Question

The politics of Asia are extremely varied as would be expected of such a large landmass and a diverse population. The civilization has a long history throughout Asia and it probably involved politics right from the start. Much of the political climate in Asia today is affected by colonialism and imperialism of the past with some states retaining close links with their former colonial governors while others involved in bitter independence struggles the consequences of which continue to be felt.
The situation today is still mixed, with hostilities in parts of Asia such as the continuing tensions over South China Sea, Malaysia, Thailand, Indonesia, South Korea, Japan, Taiwan, Vietnam, Hong Kong, Philippines, Singapore as well as economic competitiveness between the People's Republic of China and India. China and India do not have a peace treaty, nor People Republic of China and South Korea. However, there are also moves towards greater co-operation and communication within the region with Association of Southeast Asian Nations (ASEAN) a notable example.
Discuss the above scenario political and dramatic government landscape on Asia business environment.

Answer 1

Situation:

If we discuss about the real business and political situations in South Asia then we will come to know that conditions are not stable today. In 19th century, cold wars between different Asian countries started and it's still continuing. To overcome the negative impacts of these cold wars and other issues on business environment in Asia, small countries of Asia like Thailand, Malaysia, Indonesia, Singapore etc. came together and formed Association of Southeast Asian Nations called ASEAN.

ASEAN Motives:

We can broadly point out motives of ASEAN as

• To facilitate better trade among member states in order to get the economic gains.
• To form an alliance against the communism in the Asian region. Leaders were Soviet Union and Mao's China.

Today, Soviet Union is not in existence thus ending communism and China is not interested in sharing ideology. However, China is interested in expanding trade in the Asian region.

Today ASEAN:

Nowadays, ASEAN is celebrating 50 years of their the formation and it may take some serious steps in order to sustain the unity and communication of the member states. Business is also getting affected by the changing political environment of Asia.

End of patience (North Korea case):

We can discuss mention following points in discussion

• North Korea's aggressive and violent behavior in Asia is making the business environment and political environment uneasy especially for Japan and South Korea.
• U.S.A. has put all the available options before the Asian nations and urged to end this strategic era of patience.
• U.S. has created military bases at the Korean border due to the inability of China to stop the dangerous actions taken by the Korean leader.
• Deployment of military bases is creating anxiety for China.
• China is also shaking hands with Hong Kong to create a healthy neighborhood.
• This political environment affecting the business in Asia also.

South Asian rivals:

We can discuss the rivalry of nations in South Asia as

• India and Pakistan, two nuclear power nations in South Asia, has a dispute on borders for a long time.
• Due to this rivalry South Asia's regional cooperation has undermined.
• South Asian countries has less business in between and it's even not upto the 5 ℅ of the total trade conducted by these countries with rest of the world.
• China is in nexus with Pakistan politically and in business.
• China is also making a road from India's part Sikkim.
• These conditions are also affecting trade in Asia negatively and associations like ASEAN and SAARC are trying for better business environment.

So, we can see how diverse and uncertain political environment South Asian countries are facing now. This is affecting business environment negatively and to make it positive some new ways are discovered day by day. Some of them we can discuss here as

• Traditional allies of U.S.A. are find news ways without the support of U.S.A. in order to get the positive political environment and it's positive impact on Asia business.
• China is also initiating with trade regimes like Regional Comprehensive Economic Partnership(RCEP) and mega infrastructure projects like BRI.
• Strength of economic alliances like ASEAN, SAARC etc. will be tested because Asia Pacific region navigates through the uncharted waters.
• Conventional wisdom of Asian countries which have democratic and free markets environment, will be challenged politically and in terms of trade aligned to the free market leader U.S.A.
• Better understanding in between the Asian countries is required for a better political environment which affects the trade directly.
• Different fruitful decisions should be taken and some of them are in pipe line currently in order to facilitate better trade despite of having any peace treaty among the Asian countries.

So, this is how political and governmental scenario in Asian countries and it's effects on Asian business environment.

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