Success in the global economy requires a shift in strategic vision of the Asia-Pacific region's role in supply chains. While it is no secret that an end to low-cost production in Asia is in sight, smart companies are studying the complexity of APAC region and gaining insight into the roles each country plays in the quickly evolving economic horizon. But visibility into where APAC is today isn't enough; forecasting where it will be next year, five years from now, and further into the future are key to positioning supply chains now for ongoing optimization.
South Korea and China agreed on a bilateral free trade agreement (FTA) that is expected to create the largest economic bloc in Asia. Once implemented, the Korea-China FTA will significantly boost bilateral trade between China, the world's second-largest economy, and South Korea, the fourth-largest in Asia.
Emerging markets such as China and India offer the best trade prospects for U.S. businesses, with U.S. export growth to those countries expected to average 9 percent a year through 2030, according to a report from HSBC.
Analyst Insight: Economic growth has recently slowed in the BRICS countries, causing concern among both global and domestic investors. In many industries, the time for reaping quick rewards from investment has passed. If companies want to continue succeeding in the BRICS markets, they need to increase their focus on creating competitive operational models, with a major emphasis on improving supply chain management. - Viktoria Sadlovska, Managing Director, Prameya Research, & Lead Author of the Pragmatic Value Chains Blog