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The Asean Free Trade Area(AFTA) and the Malaysian National Car Project                                                                                                                                
Product Ref: 01/106C Company: N/A

Product Type: Case Industry: Automobiles & Components

Related Product(s): N/A
At the October 2000 Association of Southeast Asian Nations (ASEAN) Economic Ministers meeting in Chiang Mai, Thailand, the Malaysian delegation proposed an extension to the ASEAN Free Trade Area (AFTA) tariff reduction scheme in an effort to protect Malaysia's auto industry. Given that the development of Proton and Perodua, the country's national cars, has received extensive government support, protection, and preferential treatment, there was concern whether Malaysia's cars would be competitive with other automakers in the region. Malaysia's request for the extension, however, has been a setback for AFTA, which has hoped that a strong push for further liberalisation and Asian globalisation would re-energise foreign direct investment in the region, after the devastating Asian Financial Crisis of 1997-1999. This case is designed for an MBA level course in International Business. It traces the development of ASEAN and AFTA, and highlights the interaction among different member countries within a regional agreement framework. The focus on the auto sector provides an example for discussions of international agreements, international trade, and negotiations among members in the context of these fora.
Functional Area : Economics & Business Policy

Issues: ASEAN, AFTA, Malaysia's National Cars
Length: Text: 16 pages
Exhibits: 12 pages
Country: Asia

Pub. Year: 2001 Level of Difficulty: 3
This product type is available in the following language(s):      English   Simplified Chinese
Related Information: N/A
This case is UGC funded.
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