ASEAN Entrepreneurs Facing Two Major External Impacts: Envisaging Opportunities or Challenges?
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Authors
Diane Fulton
Thomas Garsombke
Richard A Fulton
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Journal Article, Academic Journal
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Abstract
Two major emerging trends will impact ASEAN entrepreneurs, influencing their performance. The first trend is the adoption of a regional free trade agreement from the big three options (TPP - Trans-Pacific Partnership, RCEP - Regional Comprehensive Economic Partnership, and FTAAP-21 – Free Trade Area of the Asia-Pacific). Whichever proposal is adopted, it will become the driving strategy stimulating intra-ASEAN trade growth and increasing the flow of products and services with North, Central, and South American countries. These three trade agreements have components which offer entrepreneurs great opportunities at home and globally. Historically, new trade agreements help not only large corporations, but impact small entrepreneurial businesses significantly. The second development is as the world’s economy creeps out of recession and countries’ tax revenues increase, governments will re-examine the benefits of formulary apportionment to enhance or stabilize their tax revenues from the growing number of entrepreneurial global businesses. From past experience, formulary apportionment is more successful as a regional application, rather than globally. Formulary apportionment can offer ASEAN entrepreneurs financial opportunities. The authors posit the many changes which a regional trade agreement and the adoption of a regional form of formulary apportionment will have for local entrepreneurs.