The Financial Cooperation of Seoul-Beijing-Tokyo Triangle after 2008 Financial Crisis Why China, Korea and Japan able to have the financial cooperation? Japan, Korea, and China are the most promising economic giants of Asia. The three countries have greatly invested together and have formed a strong economic bond. The main area of cooperation lies in Information Technology that is meant to harmonize the economic disparities that exist between these countries. The three countries share a lot also in other aspects of culture. Industrial and Technological cooperation is the main factors that gave rise to the economic cooperation of the three countries.
The economic bloc, known as the Northeast Asia’s Dynamic Economic believes that the cooperation in technology and industrialization can influence the growth of the formation. Plans are also underway to expand the membership of the bloc (Lim, 2004). Analyze the similarity measure of the economic cycle The three countries have been in numerous activities to support the growth of the economic bloc. They have also declared to increase their areas of cooperation to include trade and investment, taking care of the environment and in the energy sector.
Although these countries are endowed with resources, they have a number that they need to address. China lags behind in the implementation of new technology despite having a larger labor market pool. On the other hand, Korea is well equipped to deal with economic matters and technology. However, it lacks sufficient resources. On the other hand, Japan has many opportunities given that capital is readily available, but, unfortunately, has a shortage of natural resources and skilled labor (Lim, 2004). See Excel file attached for the data and calculations Information technology has largely contributed to the economic growth of the three countries with figures of 2003 indicating Japan earned USD 196.5 billion; China came second with USD 84.2 billion while Korea managed to rake USD 63.2 billion.
Prior to the year, the three countries had come to an agreement share information on how to improve Information Technology and also came up with game plans on how to cooperate in the telecommunication sector. They also boosted regional cooperation by agreeing to participate and invest in research and development. China, Japan relationship has been going on for sometimes, and the countries have been doing joint ventures in the area of technology.
They have come with innovative ideas which have been used to develop new technology in different disciplines(Lim, 2004). In the telecommunication industry which the countries have agreed upon to cooperate, has the potential to generate maximum revenue given the vast opportunities it offers. The Asian market is very profitable given that it is one of the largest in the world because of the high population in the continent. The three have also agreed to build long lasting partnership in information, communication, and technology.
The partnership is expected to help them to overcome the economic challenges that the countries are facing. Despite being a global leader in IT, Japan remains behind economically because of the financial difficulties it underwent in the 1990s. Korea has shifted its paradigm and adopted new ways of production that incorporates the use of IT. The internet market in China is growing fast, and high economic growth rate has been realized. The combination of the three countries in IT has brought them benefits proving the fact that it is important to form a partnership that is well designed in order to achieve economic benefits.
They share their highly skilled personnel for a mutual benefit and thus remain the leaders of the industry (Lim, 2004). China, Korea, and Japan have been long-time trading partners. In the present day, the three are major trading partners and enjoy a good relationship. Imports and exports among the countries have continued to grow. Chemical and textile product that are used in China come from Korea whereas electronic that are used in Korea come from China while goods used in Japan come from China.
The three countries have also adopted uniform business model. Trade between industries in the same sector has also significantly improved over the last years (Lim, 2004). Competition amongst the countries has contributed to the need for producing quality products although Korea still Korea still leads producing essential goods meeting the required specifications (Lim, 2004). Although China, Japan and Korea enjoy a good economic cooperation, a partnership is faces challenges that may derail the growth of the bloc.
The growth of the bloc risks being slowed down because of the completion and rivalry because of the different interests each county may have. China and Japan, for example, have historical differences that may affect the cooperation of the countries despite being close neighbors (Mun& Yi, 2012). Despite the challenges that face these nations, It is widely believed that the cooperation of the blocks is not only important to the citizens of these nations but also other neighboring countries. It is also recommended that that the rate of exchange of currencies between these nations is harmonized by having a rate of exchange that is constant (Park, 2006). References Lim, Y.
(2004). The Journal of the Korean EconomyEconomic Relationship of China-Korea-Japan and Their Technological Cooperation in the IT Industry. Vol. 5 No. 2 Mun, U., & Yi, Y. (2012). Asian monetary integration: Coping with a new monetary order after the global crisis. Cheltenham, UK: Edward Elgar. Park, S.-J. (2006). Economic cooperation and integration in Northeast Asia: New trends and perspectives. Berlin: Lit.