Economic Integration: The U.S. and East Asia

McCarthy (2002) reported on statements by Alan Greenspan that indicate that though U.S. external debt levels have continued to increase, American businesses still remain very attractive to other countries and their investors. The United States has developed the ability to sustain a gap in its current account in part because of inflows from international investors.

Neither Japan nor China show any interest in bailing out of U.S. assets despite the fact that low interest rates in the United States have led some global investors to seek out higher yielding returns elsewhere. Japan and China are still purchasers of U.S. assets and many economists believe there is little threat of any reversal in these flows. This indicates the degree to which economic interdependence between the U.S. and its Asian partners is of significance domestically.

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ast Asia. As Thompson (2003) pointed out, the U.S. has provided over $4 billion in military and economic aid to Taiwan between 1949 and 1967. It also provided some $2 billion to South Korea between 1956 and 1965. Both of these countries also received an enormous post-war influx of aid and foreign direct investment that helped to dramatically advance their economies. There is no doubt that the economies of the East Asian and Pacific regions are important in the international trade of the United States which helped develop the East Asian economies. In 1987, trade with East Asia accounted for 37 percent of U.S. global commerce û more than any other region. A report produced by the U.S. Department of State in 1989 nevertheless positioned Japan as of greater significance to the U.S. than other countries in the region with the possible exception of Taiwan (East Asia, the Pacificà, 1989). In 1985, the U.S. Department of State reported that American economic connections to East Asia and specifically to Japan represented a permanent partnership. This report also stated that "official economic assistance and private capital flows from Japan and the United States have contributed to the economic and social development in many As
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Some common words found in the essay are:
East Asian, East Asia, South Korea, GNP GDP, Harvey Lee, Development OECD, China Japan, War II, Singapore Taiwan, Summary Conclusions, east asian, east asia, economic development, south korea, asian countries, japan china, asian economies, east asian economies, east asian countries, east asian economic, asian tigers, foreign direct investment, yusuf 2002, manufacturing sector, economies east asian,
Approximate Word count = 2176
Approximate Pages = 9 (250 words per page)

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