Act 7

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Nombre: Matrícula:

Camila Vega Matus. 2807802


Nombre del curso: Nombre del profesor:
Doing Business in Europe and Asia. Eduardo Sebastián Garza Galván.
Módulo: 3 Actividad: 7
Fecha: 01/11/2022

Bibliografía:
Universidad Tecmilenio (2021) Doing Business in Europe and Asia.
Recovered from: https://cursos.tecmilenio.mx
o Ruvislei González Saez, Franklin M. Hernández . (2021). Asia y el
gran desafío de la COVID-19: resiliencia y adaptación. 03/11/2021,
de SciELO Sitio web:
http://scielo.sld.cu/scielo.php?script=sci_arttext&pid=S0252-
85842021000200009
o Gudalupe García de León. (2011). México y Japón: comercio
bilateral en el marco del Acuerdo de Asociación Económica.
03/11/2021, de Comercio exterior Sitio web:
http://revistas.bancomext.gob.mx/rce/magazines/135/2/116_GARCIA
_me x_japon.pdf
o Secretaría de Economía. (2021). Relación comercial entre Japón y
México. 03/11/2021, de Gobierno de México Sitio web:
https://www.gob.mx/se/acciones-y-programas/relacion-comercial-
entre- japon-y-mexico?state=published
o JETRO. (2021). 03/11/2021. Japón: Comercio con México, de JETRO
Sitio web: https://www.jetro.go.jp/mexico/Estadisticas/

Infrastructure remains the main challenge for Asian cities to overcome in order to be
more competitive, and one of the main actors involved in that process are
the central governments. Suppose that you work for a Mexican company that
produces consumer goods and it is interested in exporting those goods to Asia, but
one of their main concerns has to do with local and regional distribution channels
and operations (where infrastructure plays a key role).

1. Analyze the current business landscape across Asia, citing important


current events and economic figures by country. What can you tell
your boss about the current Asian economy?

In Asia, there are not only the second and third largest economies on the planet
(China and Japan), but also the fastest growing economies in the world, some of
which have had profound effects (India, Indonesia, Thailand, Singapore). Given the
level of interrelationship between them, COVID-19 immediately caused serious
disruptions to regional and global value chains, especially those most linked to
China. Those that depend heavily on tourism have also been severely damaged.

Some argue that COVID-19 could lead to a relocation of value chains, in part,
through the exit of companies from China. So far, practice has shown that most
companies have canceled or postponed their business trips to and from China /
Hong Kong (83.9%), as well as the introduction of new hygienic measures. A
significant number continue to trust the Asian giant, while the number of entities that
move to other latitudes is less.

COVID-19 AND THE REACTIVATION OF THE ECONOMY: INTEGRATION AND


THE DIGITAL ECONOMY
The COVID-19 pandemic has had additional effects. First, it has reinforced the need
for integration; secondly, it has forced to accelerate the fourth Industrial Revolution,
and with it, to promote new forms of work organization. Unlike Latin America and the
Caribbean, Asia perceives that through the interrelation of its mechanisms and the
implementation of joint measures, it can face the challenges of the pandemic and
other new threats that may arise.
Despite Asia being the area with the greatest capacities to face the complex situation
of the pandemic, the reactivation of the economy has been a great concern along
with the same management against COVID-
19. One of the country’s most eager for the revival has been China. In this sense,
the main problem is to overcome the interruption of supplies for the manufacture of
products. The direct impact on the supply market in Southeast Asia, considered the
first link in regional value chains, as well as in India, should also be highlighted.
2. Select and evaluate the most business-worthy economic locations in
terms of their ease of importing Mexican consumer goods. Which
ones might be a good fit and why?

✓ The terms of trade liberalization in the economic association


agreement

Agreement for the Strengthening of the Economic Association between the United
Mexican States and Japan. The historical relationship of friendship, trade,
cooperation and the high degree of complementarity between Mexico and Japan
were factors that motivated the two countries to seek a modern trade agreement for
the 21st century.

After nearly two years of intense negotiations, Mexico and Japan signed the
Economic Partnership Agreement (AAEMJ) in September 2004. The Agreement
entered into force on April 1, 2005, after ratifications by the Mexican Congress and
the Diet of Japan, respectively.

The AAEMJ comprises all the disciplines of a free trade agreement: trade and
investment liberalization; market access; investment protection; dispute resolution
mechanism; customs procedures; rules of origin, sanitary and phytosanitary
measures, cross-border trade in services, financial services, mobility of people for
business purposes, public sector purchases, competition, improvement of the
business environment and bilateral cooperation.
The chapter on cooperation is highlighted in order to strengthen the bilateral
economic relationship and maximize trade and investment liberalization between
both countries, for which the Joint Committee was established; and the Committee
for the Improvement of the Business Environment, where representatives of the two
governments and private initiative give recommendations to strengthen the
economic relationship between both countries; as well as the establishment of Sub-
Committees to guarantee preferential access to the markets of both countries.
For Japan, the AAEMJ was its first free trade agreement that included all sectors, in
accordance with WTO rules
1. Propose five Asian destinations (cities or regions) that provide the
best logistics infrastructure for the distribution of imported goods,
and trace the best international commercial route they could use for
the optimization of the whole process (explain your selection).
1. Japan: Mexico is the main supplier of Japan in: Persian Lemon
(99%), Avocado (90.6%), Melon "Honey Dew" (79%), Asparagus
(56%), Mango "Kent, Haden, and Tommy" (35%), Blue Fin Tuna
(49%), Agave Syrup and Tequila.
2. Korea: The main products that Mexico exported to South Korea
were Crude Petroleum Oils or Bituminous Mineral Oils. ($ 2.47MM),
Zinc Minerals and its concentrates ($ 290M), and Lead Minerals and
its Concentrates. ($ 290M)
3. China: Pork shipments from Mexico to China were $ 119 million in
the first half of 2021, a growth of 2.6%; at the same time, auto exports
in the same direction totaled 148 million dollars, a decrease of
15.4%, at annual rates.
4. India: With statistics from the Indian government, Mexico is India's
most important trading partner in Latin America, reaching a mutual
bilateral trade of approximately 8,000 million dollars in fiscal year
2019-20 (until September 2020).

5. Russia: According to data from the BdeM, in the first two months of
2021, exports from Mexico to Russia stood at 73 million 752
thousand dollars, 20 percent more compared to the 61 million 189
thousand dollars for the same period of 2020.

National producers achieve sales of more than 12.5 million dollars at the main food
fair in Moscow. The Secretariat of Agriculture, Livestock, Rural Development,
Fisheries and Food, through its general coordination of International Affairs and the
Agency for Services to Marketing and Development of Agricultural Markets,
organized the Mexico Pavilion at the "World Food 2018" fair in Moscow, Russia with
which agri-food exports to that nation will be increased.

Conclusion
Currently the economies are in stabilization due to the events suffered in the
pandemic. The quarantine had a great impact on all economies, from the lowest to
the highest economies. China was no exception to this, as many of its products could
not be shipped to any country due to the closure of borders worldwide.

Although Asia is the region with the best conditions to face the crisis, it will destroy
years of acquired reserves. At the same time, COVID-19 could generate the greatest
economic decline in the area in the current century. Despite this, China, Vietnam
and some other nations will manage to grow compared to India, Japan and South
Korea, which will have decreases. However, all these economies - due to the policies
implemented - will have fewer negative impacts than the United States, Europe and
Latin America.

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