The visit of Indian PM to Japan is a strategic move from country's point of view. With this visit the relationship between India and Japan is growing in terms of safety. The PM has already noted down the advantages of this visit and the need for a strategic partnership between ASEAN and East Asia.
We already know that the partnership between Japan and China are very good and they are dependent on each other. With the technical and economical influence of Japan and the human capital of China the two countries are growing supporting each other. With the slowdown in Western countries the developing countries specifically the ASEAN counterparts are now looking at the domestic continent for growth apart from west. This is a good opportunity for India to build strategic relationship with East and Middle East. With the support from these ASEAN countries the ASEAN tigers can perfrom exceptionally good.
This relationship if grown successfully then we can dream of a common currency in ASEAN countries like in EU or US as mentioned by Abegglen (2006). The implications of the common currency have both positive aspects and negative aspects. If we look at positive aspects are that this stabilizes the forex trading across globe. The effect of speculation will get reduced. This provide a balanced play field for all the players. It becomes easy to manage the global economy. A stronger relationship will be achieved across ASEAN players. Trade will grow in the third world. The dependency towards West will be reduced. On the other it is difficult to bring all the ASEAN players who are responsible for the growth together due to the political factors. This common currency will remove the effect of low cost strategy. This might act as a negative factor for some countries.
But overall if we see the effect of new common currency in ASEAN region will improve the state of global economy and will reduce the dependency of Dollar across geography.
We already know that the partnership between Japan and China are very good and they are dependent on each other. With the technical and economical influence of Japan and the human capital of China the two countries are growing supporting each other. With the slowdown in Western countries the developing countries specifically the ASEAN counterparts are now looking at the domestic continent for growth apart from west. This is a good opportunity for India to build strategic relationship with East and Middle East. With the support from these ASEAN countries the ASEAN tigers can perfrom exceptionally good.
This relationship if grown successfully then we can dream of a common currency in ASEAN countries like in EU or US as mentioned by Abegglen (2006). The implications of the common currency have both positive aspects and negative aspects. If we look at positive aspects are that this stabilizes the forex trading across globe. The effect of speculation will get reduced. This provide a balanced play field for all the players. It becomes easy to manage the global economy. A stronger relationship will be achieved across ASEAN players. Trade will grow in the third world. The dependency towards West will be reduced. On the other it is difficult to bring all the ASEAN players who are responsible for the growth together due to the political factors. This common currency will remove the effect of low cost strategy. This might act as a negative factor for some countries.
But overall if we see the effect of new common currency in ASEAN region will improve the state of global economy and will reduce the dependency of Dollar across geography.
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