Responses to Regionalism: Regional Production, Trade and Economic Integration

Abstract

This penultimate chapter records responses to questions in three areas: regionalised production, trade, and regional economic integration. In the initial section the localisation of production and the maintenance of production networks in the region were first considered before attention focused on the impact of China’s growth on existing production networks. Finally, firms were asked to comment on the trend of relocating production from Japan to the region (the so-called ‘hollowing-out’ phenomenon). Trade structures were then examined with particular attention given to the increasing liberalisation of intra-regional trade, exports, the changing structure of host markets, and any instances of ‘reverse imports’. The final section elicited responses on broader scenarios for regional economic integration and how specific FTAs might impact on the organisation of production. Within this firms were asked to comment on the validity of a statement suggesting that Japanese auto manufacturers preferred discriminatory regional arrangements as a defensive measure against increasing foreign competition.