Asia’s New Order: Implications for the United States

Abstract

What are the key trends shaping the scene in Asia today? The first set of trends relates to the new economic order. In this, the most dynamic region in the world, economic interdependence — through both horizontal and vertical channels — is rapidly advancing. Intraregional trade and investment are growing at an extraordinary rate.¹ A now familiar imagery first drawn by Japanese economists has frequently been applied, that of flying geese. The lead goose, Japan, having reached a high-technology level and with the yen greatly appreciated, has progressively internationalized portions of its industries, producing components or whole products where it can find cheaper labour and selling its high-tech products to the developing economies. In this instance as in many others, it is often meaningless to ask where a product was made.