Although the main objective of Free Trade Agreements (FTA) is market integration among member countries, there are limited studies supporting this impact. Our study explores whether FTA has enhanced market integration between South Korea and its FTA partners, focusing on South Korea’s fishery product import market. We investigate two research questions concerning FTA impacts: first, whether trade costs declined when South Korea imported fishery products from its FTA partners after the FTA; second, if the speed of the convergence of South Korea-its FTA partners’price differential of imported fishery products on trade costs result to occur more quickly after the FTA. To determine these outcomes, we utilize a Threshold Autoregressive Model covering the sample periods from January 2002 to April 2017. Our findings demonstrate the effects of FTA on market integration are different among FTA partners. FTA has enhanced the market integration between South Korea and Norway, Vietnam, and Spain, respectively, but not for others. Therefore, we find positive evidence of FTA on fishery import market integration between South Korea and Norway, Vietnam and Spain, respectively.

The Korea-China Free Trade Agreement finally arrived at its preliminary settlement, in the 14th round of negotiations, held on November 10, 2014. This FTA is expected to function as an essential stepping-stone for future trilateral trade agreement between China, Japan and Korea. Further, it is anticipated to considerably contribute to shaping an integrated economic community for East Asia. Therefore, it assigns a diplomatic task of reconciling the speed of growth and harmonizing different systems of the three countries; it is beyond the matter of simple market invasion. This short paper aims to track the process to the settlement of the Agreement and analyze its sectorial substances, from the viewpoint of strategic and diplomatic dynamics in East Asia. The author thereby attempts to suggest a direction of future discussion towards joint subjects of cooperation.

This study investigates the role of regionalisation in the endeavours of emerging economies to connect successfully to the global world economy. In the first part of the research, it summarizes connecting theories, using a multidisciplinary approach; International Relations, International Economics, Sociology (Granovetter, 1990; Li, 2003; Das, 2005; Yaquing, 2011) to discuss relationship-based versus rule-based governance as major characteristics of the ASEAN business environment. Descriptive statistical analysis is applied to identify the achievements of ASEAN-6 countries within global trade and FDI in 2000-2012. We suggest that the association examined in a broader context as ASEAN+3 (APT) did contribute to the greater integratedness of her member countries; and they have created a regional image with a common market, production base and exporting platform. Such achievements, however, can be in great part attributed to the micro-level activities of international and regional firms. In the second part of the study, marketing strategies of global companies are analysed based on empirical results in the literature to identify how they act in the ASEAN business environment when entering or expanding their presence. Two major manufacturing industries of the region, the household electrical appliances (characterised by fierce competition of Japanese and Korean manufacturers) and the Japanese dominated automobile industries are highlighted including the marketing mix elements of major market players. The Korean success can be attributed more to the relationship element, than the price factor. Upgrading of the maintenance service, sales and distribution network responding to local needs has been in focus. Rebuilding, restructuring of the entire ASEAN production/supply networks of corporations are expected to prepare for the ASEAN Economic Community 2015 environment. Localised products are designed for regional demand to obtain a competitive edge (Kabe, Ushiyama & Yamada, 2012). The first mover advantage of the Japanese car manufacturers has been kept since the 50’s through continuous product innovation with accelerated efforts into designing and manufacturing regional brands with cautious price-setting in recent years. There are important differences in marketing strategy of ASEAN-based companies investing abroad depending on the economic development level of their home country. Singaporean companies rely more on differentiation benefits, technology, product innovation, apply greater ODM/OBM (own design manufacturing, own brand manufacturing) than Malaysian ones (Sim, 2012). Movements in trade and FDI can also be observed in the evolving Asia-Europe interconnectedness with considerable scope for expansion. Our research identified promising examples of internationalizing SMEs beside the global players, which can be a further route to bridge Asia to the world. In order to investigate the role of the cultures (Hofstede, 2005), SMEs have been selected with presence both in the ASEAN and Visegrad four, the so called V4 countries (Hungary, Slovakia, Czech Republic, Poland) for case studies. The still very few investment cases of the V4 countries in Southeast-Asia base their marketing strategy on product or service innovation using strongly relationship elements. The research intends to shed light on the marketing strategies of ASEAN and EU-based start-up and mid-size companies when they invest in each others’ region.

The paper aims to investigate the impact of trade integration on business cycle synchronization for the East Asian countries during 2005- 2017 based on the endogeneity hypothesis of Optimum Currency Area criteria. We test the determinants of business cycles by calculating bilateral trade, financial integration, and business cycle synchronization. Applying the system Generalized Method of Moments for dynamic panel data models, the results show that business cycle synchronization is highly associated with trade and financial integration. These findings confirm the endogeneity hypothesis that more trade integration will mitigate asymmetric shocks, and have a positive impact on the business cycle synchronization. The increased trade intensity and financial linkage lead to more correlated business cycles in East Asia. Apart from trade and financial integration, the trade structure differential, monetary policy similarity also influence the business cycle comovement. The significantly negative impact of trade structure differential on business cycle synchronization suggests that countries with less similar structures are more likely to undergo asymmetric shocks. The results also indicate that monetary policy matters for output comovement. This study recommends that the East Asian countries should focus on bilateral trade as well as financial integration with each other to reap benefits from the integration process.