The rapid growth of Asia as a competitive world economy has been one of the most dominant factors behind the increasing demand for Asian economic activities. Asian economic development is the fastest in the history of the world and this has led to phenomenal raise in its share value. Moreover, Asian countries have emerged as some of the strongest and biggest economic powerhouses of the world. It is no more a matter of competition between the West and East. Asia is actually an important player that needs close and active participation to progress its economic growth.
Asia economic activities – The key drivers behind the Asian economic growth are – liberalization policies of the developing countries, low cost of labor and higher levels of investment. These factors are gradually changing the rules of the game and forcing the developed countries to respond to the emerging competition. Rapid industrialization is also one of the major drivers behind the Asian economic activities. Companies of all sizes from small to mid-sized to large manufacturers are setting up base in Asia to avoid barriers in the supply chain and to get the maximum share of the global markets. Several multinational companies are taking over big established companies of Europe and America – to tap the huge market of Asia.
Manufacturing – Asia is the largest consumer of raw materials and almost all the products are manufactured here. Some of the countries like China and India are emerging as giant global exporters of consumer goods. In terms of export, each country is pursuing a separate strategy. Some countries are rapidly adopting export-led economic policy, whereas others are still lagging behind.
Trade partners – The main economic partners of Asia include countries like Japan, Korea and India. These countries are opening up massive trade surplus and this is being translated into more investment in other sectors of economy. This process is being accompanied by the establishment of free trade areas with neighboring countries. Several nations are aggressively promoting their exports. For instance, the Japanese government is offering to invest $35 billion on various sectors including information technology, automobiles and semiconductors.
Membership in World Trade Organization – One of the most prominent reasons for Asia's rise as a leading economic power is its successful entry in the World Trade Organization (WTO). Today, it is one of the biggest . . . . . . sources of foreign investment. Almost all the big countries of the world are part of this organization. Most importantly, the Asian countries are leading the list of fast-growing economies.
Maintaining balanced economic growth – Asian countries have successfully managed to maintain their balance in economic activities. The fact that they are dependent on US and European for their foreign exchange trade only shows how well they are able to manage their trade deficit. Moreover, they are now trying to diversify the source of their exports. For instance, they are now exploring for more natural resources. They are also trying to become more globally competitive. Ultimately, this will boost the competitiveness of their businesses.