GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student name: Nguyễn Minh Hiếu Student ID number: 31181020894 

Student name: Bùi Lê Mai Anh Student ID number: 31191023011 

Student name: Trần Việt An Student ID number: 31211026697

Student name: Student ID number:

Student name: Student ID number:

UNIT AND TUTORIAL DETAILS

Unit name: International Business Unit number: IB-DH47ISB-7

Tutorial/Lecture: Class day and time: Thursday, 3:30 pm
Lecturer or Tutor name: Peter Michael Saram
ASSIGNMENT DETAILS

Title: Assignment 3 Comparison of the European Union & ASEAN Economic Community
Length: 748 words Due date: 30/10/2022 Date submitted: 30/10/2022

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 Economic Integration
EU
Merchandis Highly integrated with multiple measures to
e ensure free trade. The only noticeable barriers to
free trades are physical and technical and some
minor disputes which are relatively easy to
mitigate. Physical barriers such as road
demonstration blockage or terrorist attacks are
being countered by introducing Early Warning
Procedures. Technological barriers emerging
from advancement in e-commerce have been
countered by joining the Information Technology
Agreement (ITA), making its member states easily
access required technological components. 
Services Highly integrated across different service sectors.
However, in recent years, there has been an
increased demand for more comprehensive and
encompassing integration in social and health
care as the EU is facing a fast-aging population.  members, it was enacted as a guideline
Capital  The EU has effectively obtained capital
integration among its member states with free
flow of capitals between member states in every
financial field synchronized under one central
bank with a common currency. Each country in
the EU has to consider risks and benefits before
joining the Eurozone, because of this, Poland and
some other nations are still hesitant to join. 
Labor Completely integrated with its Schengen Area
that virtually no national border exists that
restrict movements of citizens between member
states.  member states.
Instances  Since the crisis began, financial integration has
stagnated and is only very slowly starting to
AEC
Medially integrated as there are still non-
tariff barriers present in each member state.
Although AEC introduced ASEAN Trade in
Goods Agreements (ATIGA), this agreement
has only mainly solved exceptionally high
tariff rates between members. AEC needs to
further solve Non-Tariff barriers between
members by introducing a unified
framework in the near future. 
Not yet effectively integrated, ASEAN
Framework Agreement on Services (AFAS)
in 1995 only aim to reduce substantially
restrictions in services trading among
legal framework for member states to strive
for rather than an enforcing consensus
which is very different from the EU that has
strict directive measures to achieve a single
market for services trading. 
Lowly integrated among its members in
AEC. There are some initiatives to create a
central bank but those are still not realized,
furthermore, AEC does not have a common
currency and member states do not have
any initiatives of using a common currency. 
Very lowly integrated. Because the main
principle of AEC is non-interference, it is
very hard to abolish borders between
 
Since the Asian financial crisis, the region
has been able to build up sizable foreign
 recover. Cross-border risk sharing inside the
eurozone is currently at low levels. Moreover, in
the absence of private risk sharing, country-
specific shocks will continue to produce
persistent dispersion in the economic results of
euro area nations, undermining actual
convergence and making it more difficult to
implement the single monetary policy.
The ITA has helped to quadruple trade in
information technology products.Numerous
goods have become obsolete since the ITA was
ratified in 1996, while new ones have also
developed. Whole industries, like those involving
medical equipment and other high-tech gadgets,
have gone digital.
When compared to January 2019 levels, intra-EU
goods imports and exports looked to have
decreased in April 2020; but, by the end of
December 2020, they had almost recovered to
pre-crisis levels.
Other Aspects 
EU
Authority Central organizational Institutions.  Intergovernmental organizations
Forms
Central Court Neutral central court to resolve disputes.
Developing Legislative procedures are conducted. If rejected in any
Rules stage of the procedures, the new regulation will not be
accepted. 
reserve positions. Foreign direct and
portfolio investments continued to flood
into the region, supporting the enormous
trade flows. Asian financial markets have
also gotten more sophisticated, as
evidenced by the region's sharp rise in local
currency-denominated bonds.
Through ATIGA, 99.65 percent of the tariff
lines of Brunei, Indonesia, Malaysia,
Philippines, Singapore, and Thailand no
longer bear intra-ASEAN import taxes. On
98.86 percent of their tariff lines, Cambodia,
Lao PDR, Myanmar, and Viet Nam have
lowered their import tariffs to 0-5 percent.
The region's trade and economic operations
are currently being targeted by non-tariff
measures that may operate as non-tariff
barriers.
The services industry has attracted a lot of
Foreign Direct Investment (FDI) over the last
decade, making up around 40–50 percent of
all FDI into ASEAN since 2010.
AEC
No central court, members resolve
disputes bilaterally and multilaterally 
Consulted by every member and must
reach consensus. 
 Enforcing Limited enforcing power No enforcing power due to Non-
Rules  interference principle

Ref: 

https://single-market-economy.ec.europa.eu/single-market/barriers-trade_en

https://single-market-economy.ec.europa.eu/single-market/barriers-trade/physical-barriers-trade_en

https://asean.org/asean-trade-in-goods-agreement-atiga/#:~:text=ASEAN%20Trade%20in%20Goods
%20Agreement%20(ATIGA)%20%2D%20ASEAN%20Main%20Portal

https://asiantradecentre.org/talkingtrade/tackling-non-tariff-barriers-in-asean

https://www.researchgate.net/publication/
43336717_Integration_of_services_and_the_European_Union_does_EU_policy_make_sense

https://asean.org/wp-content/uploads/2013/10/ASEAN-Integration-in-Services-Dec-2015.pdf

https://www.europarl.europa.eu/factsheets/en/sheet/39/free-movement-of-capital

https://www.britannica.com/topic/European-Central-Bank

https://spia.princeton.edu/sites/default/files/content/Should%20Poland%20Join%20the%20Euro.pdf

https://www.cariasean.org/news/should-asean-even-consider-a-single-currency/

https://www.schengenvisainfo.com/schengen-visa-countries-list/

https://www.e-ir.info/2012/02/08/asean-and-the-principle-of-non-interference/

https://www.consilium.europa.eu/en/council-eu/decision-making/ordinary-legislative-procedure/#:~:text=The
%20European%20Commission%20submits%20a,a%20conciliation%20committee%20is%20convened

https://www.lawsociety.org.uk/topics/brexit/what-is-the-european-court-of-justice-and-why-does-it-matter

https://www.europarl.europa.eu/factsheets/en/sheet/6/sources-and-scope-of-european-union-law

https://www.cfr.org/backgrounder/what-asean

https://www.abacademies.org/articles/asean-court-of-justice-issues-opportunities-and-challenges-concerning-
regional-settlement-disputes-10467.html#:~:text=Based%20on%20several%20disputes%20experience,the
%20ASEAN%20Court%20of%20Justice.

https://www.jus.uio.no/smr/english/about/programmes/vietnam/docs/asean-sovereignty-and-human-rights---
gisle-kvanvig.pdf