RISE 1-PETRISOR MARIA-ALEXANDRA-LUCRARE SEM 2

MARKETS AND
COMPETITION IN ASIA
AND EUROPE
Table of Contents
Markets and competition in Asia and Europe 2
1.1 The importance of Asia and Europe 2
1.2 The meaning of Market and Competition 4
Asia 6
2.1 Asian market competition 6
2.2.The key Asian Markets 7
Europe 10
3.1European market and competition 10

3.2Achievements of the Single European market 12

1.Markets and competition in Asia and Europe

1.1 The importance of Asia and Europe.

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As far as Im concerned, I chose this project because of the importance of Asia and Europe:

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Asia's great civilizations: like those of India, China and Japan, have made great contributions to the
world civilization. Asia is also the home of several major religions in the world, such as Hinduism,
Buddhism, Confucianism, Daoism, and Shintoism. U.S. trade with Asia was twice that with Europe in
1996. During the 19th century, the world economy's center shifted westward from Europe to North
America. During the 20th century, the world economy's center has gradually moved from North
America to the Asia-Pacific.

Europe its important due to its historical importance is hard to miss: it is the source of many
arguably most of the ideas that have shaped the United States and our world; the nation-state,
capitalism, industrialization, democracy, not to mention the printing press, the railroad, and the
fundamental laws of physics. In our contemporary era when China or anti-Western terrorism dominate
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the headlines, though, it may surprise you to realize how central Europe remains to many processes

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that touch your life. There are also important markets and competition in the development of a

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country, a continent, such as Asia and Europe.

Whether through NATO, in global negotiations over economic relations or the environment, or
in almost any other world forum, the US and Europeans work side by side, often in very influential ways.
We share similar systems of government, similar values, a long cooperative past, and a dense network of
international institutions. Europe is far and away the largest donor of foreign aid to poorer countries as
well, so it is central to our interaction with the developing world too.
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1.2 The meaning of MARKET and

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COMPETITION
First of all, I want to begin with the meaning of the two terms: market and competition.

Economically speaking, a market is an actual or nominal place where forces of demand and supply
operate, and where buyers and sellers interact to trade goods, services, contracts or instruments for
money or barter. The market is the place where trades are made, where demand and supply meet. So
with other words, a market is the key concept for production, consumption and distribution.

What about competition? Competition, in economically terms, is a rivalry in which every seller
tries to get what other sellers are seeking at the same time: sales, profit and market share by offering
the best practicable combination of price quality and service. Where the market information flows
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freely, competition plays a regulatory function in balancing demand and supply.

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The bond between Asia and Europe:

Europe and Asia represent half of the world population, more than half of the worlds GDP and
55% of world trade. These are impressive figures, which show the centrality of Europe-Asia relations in
today's world. This relation is indeed the key for the world's prosperity and stability. I think it is fair to
say that Europe has a stake in Asia's prosperity as much as Asia has a stake in Europe's prosperity. One of
the pillars of this relationship, of our joint prosperity and even global growth is the EU-China
relationship. This is a relationship which has been growing in statistics and in quality, in depth and breath.
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2.ASIA
2.1 Asian Market and Competition:
The term of the Asian market is hardly homogenous as it encompasses the varying market
structures of different Asian countries. The Asian Market can be characterized by different markets of
China, India, Japan, Hong Kong, Singapore and markets of different countries in Southeast Asia, the Gulf
region and those in the erstwhile Soviet countries such as Uzbekistan and Tajikistan.

The Asian market structure has heavily influenced the development of the Asian nations according
to the Washington Consensus of 1989. The openness to trade, financial liberalization in many of these
countries was even more prominent in the later decade of the 1990's when almost all of these economies
took off to a stage of development.

The implementation of competition policy and deregulation provides markets with a framework
that encourages market discipline, eliminates distortions and promotes economic efficiency. Growing
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demand for assets from Asian companies means that competition for acquisitions will intensify, both in

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developed and rapid-growth markets.

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When comparing the situation in 1996 to that in 2010, the nature of the changes in this field is
particularly striking. The spread of competition law has been very wide when contrasted with other areas,
such as anticorruption, and has not been limited to common law countries. Competition law has been
embraced almost everywhere in Asia, no matter the political, economic or legal climate.

2.2The key Asian Markets would be:

Japan - free market economy but on the downslide in the recent years as a developed nation. The
growth rate has been as low as 2.6% in the recent years. The time required to start a business is however
as low as 23 days at present.
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China - a communistic economy with rapid steps towards privatization and liberalization and adoption
of the free market system for many products and services with certain key infrastructural facilities under
the government rule. The time required to start a business was 35 days according to the latest estimates of
2006.

India - a mixed economic model with government's five year plans still in place to achieve certain
development targets for the economy. However, the private sector is growing in importance and the
virtues of the free market are finding its way to the public sector as well resulting in its increased
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efficiency. The annual growth rate touched 9.2% at the end of 2005 with the time required to start a

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business around 35 days at present.

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Korea - a largely market economy with gradually making its presence felt on the international scene.
High growth rates, moderate inflation rates make this economy one of the strongest in the Asian scene.
The time required to start a business was as low as 22 days in 2006 and the market capitalization of
companies is gradually increasing.
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Vietnam - gradually opening up from its communistic image by allowing more and more private

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participation. Although the time required to start a business is still around 50 days, it has achieved

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phenomenal growth rates of consistently above 8% in the last two years.

It should be noted in this context that openness to the market economic structure carries with it
the added burden of higher inflation rates, which is concomitant to high growth rates for the
economy. Countries such as China and Korea have scored over the others in this regard with inflation
rates as low as 3%-4%. In the past, businesses have seen competition law risk as a transaction risk, but as
a result of the increase in compliance requirements, including merger filing rules, they must now realize
the need to look at things globally and centralize their risk management. The introduction of a new
domestic competition law is often a catalyst for compliance on a global basis. It can only be hoped that
regional regulators listen to the concerns of business, and make the burden of compliance as light as
possible.
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3. EUROPE
3.1European market and competition:

Operating as a single market with 28 countries, the EU is a major world trading power.EU
economic policy seeks to sustain growth by investing in transport, energy and research while
minimizing the impact of further economic development on the environment.

Trade: With just 7% of the worlds population, the EU's trade with the rest of the world accounts for
around 20% of global exports and imports. Around two-thirds of EU countries total trade is done with
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other EU countries. Trade has been hit by the global recession, but the EU remains the worlds largest

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player accounting for 16.4% of global imports in 2011. The EU is followed by the United States with
15.5% of all imports, and China with 11.9%. The EU was also the biggest exporter, accounting for 15.4%

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of all exports compared with 13.4% for China and the 10.5% for the United States.

Employment: Employment has also been hit by the global economic crisis, and the turbulence in the
Eurozone.

Transport: The EU aims is to promote efficient, safe, secure and environmentally friendly transport
networks.
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The proportion of journeys made by car has increased slightly since 2008 compared with other
forms of road transport (such as coaches and buses). The EU continues to support investment in and
restructuring of rail transport.

In spite of the current economic crisis, global air transport looks set to expand by around 5% a
year until 2030. As traffic increases, so do concerns about safety. EU aviation policy aims to make
European air space the safest in the world.

Nowadays the European Union is treated as one territory Single European Market , where people ,
goods, capital and services interact freely to stimulate competition and trade, and improve efficiency .The
Single Market is certainly up and running , but it is still very much work in progress with constant room
for improvement.

3.2Achievements of the Single European market:

1. Removing barriers the six founding members of the EU had not only economic motives but
an important political goal when they started lifting trade barriers between them. They realized
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that peace in Europe can only be safeguarded if effort is made to destroy the dangers that threaten

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it - with supranational integration.

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2. Progress to date the achievements so far have been very satisfactory:

The liberalization of public procurement , which involved making rules on works and supply
contracts more transparent and extending the rules to new areas such as transport , energy and
telecommunications

The harmonization of taxation , which meant aligning national provisions on indirect taxes

The liberalization of capital markets and financial services

Standardization , made possible with a new approach to certification , testing and recognition
of the equivalence of national standards , including partial harmonization of safety and
environmental standards

The removal of technical barriers- freedom to exercise an occupation and recognition of the
equivalence of training qualifications and physical barriers to the free movements of
individuals.

As it moves forward, the Single Market faces new and wider challenges. The opportunities
created by freedom and mobility and the removal of excessive administrative and regulatory controls need
to be channeled towards creating new jobs, narrowing gaps between the rich and the poor . Despite the
unresolved issues and the problems that the creation of the complete Single Market has been facing, the
main goal has been already achieved-the elimination or reduction in trade barriers would reduce existing
structural imperfections in European Markets, and hence increase welfare and efficiency.1

1 The competition effects of the Single Market in Europe Centre for Economic Policy 1998 ,
p 441
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Bibliography

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Salvatore Dominick International Economics

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Capannelli Giovanni - The Political Economy of Asian Regionalism

Reinert Kenneth - An introduction to International Economics

Kellenbenz Hermann ; Benecke Gerhard - The Rise of the European Economy: An

Economic History of Continental Europe from the Fifteenth to the Eighteenth Century

Kaser M. C. ; Radice E. A. - The Economic History of Eastern Europe -

The Rise of Competition in Asia

European Community

European Union

RISE 1 Petrisor Maria Alexandra Lucrare Sem. 2