Ways that ASEAN is beneficial for companies such as Mistine.
Mistine was launched as a direct-selling cosmetics firm in Thailand in 1991. It became the first direct selling firm in the world to engage in mass media advertising. Mistine has expanded beyond Thailand into other Asian countries. ASEAN is a crucial trade agreement paving the way for Mistine’s distribution and expansion into Southeast Asian countries.
Explain some ways that ASEAN is beneficial for companies such as Mistine.
How the Association of Southeast Asian Nations(ASEAN) Benefits Companies
Mistine, a company launched as a direct-selling cosmetic firm in Thailand in 1991, has since expanded into other Asian countries. The Association of Southeast Asian Nations (ASEAN), a binding trade agreement, is paving Mistine’s distribution and expansion to Southeast Asian countries. This paper elaborates on ways that ASEAN is beneficial for companies such as Mistine.
ASEAN comprises ten counties that are diverse in population size, culture, religion, and colonials. ASEAN strives to promote cooperation and collaboration among its member states and advance interests such as trade and economic growth (Wood, 2017). ASEAN aims to have a single market and production base in the region. Companies like Mistine benefit from the free flow of services as all restrictions on trade services such as air transport have been removed and therefore facilitating movement in the region. ASEAN has created a platform that allows free flow investments. This enhances competition in the region and attracts Foreign Direct Investment (FDI) across the region.
ASEAN has created a competitive economic region by having a competition policy that promotes a fair competition culture. ASEAN has also introduced the principle of Intellectual Property Rights (IPR) to influence external trade volume and quality (Onyusheva et al., 2018). Companies such as Mistine benefits from this IPR as their investments are protected in the competitive market.
Through ASEAN, there is also equitable economic development. Small and Medium Enterprises (SMEs) in the region can develop (Nhan Dan, 2017). The ASEAN Policy Blueprint governs this for SME development, which focuses on policy measurements, strategic work, and indicative outputs. From the equitable economic development, all companies, despite the size, benefit. ASEAN also seeks to integrate companies from member countries into the global market. To achieve enhanced participation in the global supply network, ASEAN has adopted international best practices and standards, and to the less developed ASEAN member countries, technical assistance is offered.
In summary, through a single market and production base, competitive economic region, equitable economic development, and integration in the global market, ASEAN has benefited companies such as Mistine. Tremendous opportunities have also been created for all stakeholders, from the governments, SMEs to each citizen. However, gaps such as cultural differences and non-tariff measures need to be addressed to benefit from ASEAN fully.
Nhan Dan. (2017). ASEAN economic community – opportunities and challenges. Retrieved February 16, 2021, from http://en.nhandan.com.vn/business/item/5387502-asean-economic-community-%E2%80%93-opportunities-and-challenges.html
Onyusheva, I., Thammashote, L., & Kot, S. (2018). ASEAN: Problems of regional integration. Espacios, 39(36), 5.
Wood, J. (2017). What is ASEAN? Retrieved February 16, 2021, from https://www.weforum.org/agenda/2017/05/what-is-asean-explainer/