Tariffs have created another new normal. Companies and individuals in all parts of the world are scrambling to make sense of what should be the response.
The decision of several Asian countries to embrace free trade agreements (FTAs) is worth highlighting. There is a desire from most governments to increase cooperation with global partners.
Trade imbalances are sometimes brought up, but the situation is complex.
Entering Asia requires a deep understanding of the region. This can be challenging for businesses with limited local experience.
A pivot to Asia is an alternative companies should consider. The region’s potential, coupled with a relatively stable outlook, makes it an attractive prospect. Yet, it is crucial for foreign firms to identify challenges that could make market entry difficult.
While the opportunities in Asia are abundant, competition can be fierce. This is just one example.
The economic impact of tariffs on Asia’s economy should be monitored. A global slowdown may halt growth. But it’s worth remembering that more than half of the world’s GDP growth took place in Asia 2015-2021, a period defined by the China-US Trade War.
There is no universal approach to entering the region. Each country is different. Entrance is best achieved through a gradual process, starting in markets where goods or services are understood and desirable.
More Details: Asian Insiders/Jari Hietala
