Economic integration in Southeast Asia: its impact on the business environment

Southeast Asia is considered one of the fastest growing regions in the world. Without a doubt, this region has accelerated the pace of its integration with the global economy. This case study evaluates the opportunities and challenges of regional economic integration in Southeast Asia. Southeast Asia has been a major beneficiary of foreign direct investment in the establishment of global manufacturing and supply chain due to its comparative advantage in a plethora of production factors. China's changing role in the global economy encourages an agglomeration of industries as there is a greater tendency for businesses to trade with one another due to the centrality of location. Additionally, China's Belt and Road Initiative will facilitate larger investments into Southeast Asia.