Pacific Rim Definition
Regions or countries that have their base in areas surrounding the Pacific Ocean are described using the term ‘Pacific Rim’. This includes countries located in the western shores of North America and South America, some nations in Eastern Asia, Australia and those on the islands of Pacific.
The Pacific Rim is significant to countries whose economic development has a lot to do with shipping. For instance, Pacific Rim countries have been able to achieve sustainable economic development through the Pacific Rim, these countries include the Philippines, Hong Kong, South Korea, Singapore, Malaysia, Vietnam, Indonesia and few others.
A Little More on What is the Pacific Rim
Pacific Rim describes countries bordering on the Pacific Ocean, the most popular ones are China, South Korea and Australia. Considering the gigantic nature of the Pacific Ocean, countries bordering on it are classified as a region while other countries on Pacific Ocean coastlines such as Mexico, Canada and United States are regarded as part of the region.
As a result of world’s shipping that take place in the Pacific region, certain countries have been able to improve their economies. These economies that have benefited much from export through the Pacific Region are called the Asian Tigers. The Asian Tigers are Hong Kong, South Korea, Singapore and Taiwan, these economies have high record of success economically. Tiger cub economies on the other hand are countries that follow the steps of Asian Tigers in terms of market and economic policies. Although, Tiger Cubs are not as developed as Asian Tigers, they have the potentials for development. Tiger Cub economies include Thailand, Philippines, Malaysia and Indonesia.
The Pacific Rim as a region is largely dominated by an expanse of ocean between America to the east and Asia to the west. Due to its economic activity, the Pacific Rim has enhanced development of economies for many Asian and European nations. Transpacific trade is a significant part of the Pacific Rim, in the 1960s, Asian economies were producing 4% of the world’s economic output but by 1990s, it increased to 25%. However, in the early 1990s, U.S exports to Asia exceeded those of Asia to Europe. The role of Pacific Rim in enhancing transpacific trades in the economic regions cannot be underestimated.
Asian Financial Market Crisis
A worldwide economic meltdown and collapse gave rise to the Asian financial Market crisis in 1997. The devaluation of Thai baht currency on July 1997 opened doors to perceived notional attacks in real estate market and other regional currencies which contributed largely to the Asian financial market crisis. Due to the collapse, investors pulled out their investments and this crisis greatly affects countries like Indonesia, Malaysia, South Korea, Philippines and Hong Kong.
Despite the hard crisis, these regions regained strength for a more developed growth after two years. This is due to the intervention of the International Monetary Fund which resulted in the liberalization of capital markets as well as fastening local currencies to US Dollar value.
The Trans-Pacific Partnership (TPP) is a trade agreement that was signed on February 4, 2016 among 23 nations. Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the United States were part of the countries that signed the agreement in Auckland, New Zealand on February 4, 2016. Due to lack of ratification, the trade deal did not take effect.
However, the United states withdrew its signature, hence, the agreement could not implemented. Although, report has it that despite the withdrawal of US by Trump, the trade deal was revived, countries still look forward to the US being a part of TPP.
References for Pacific Rim
Academic Research on Pacific Rim
- • Antecedents to cross-cultural adjustment for expatriates in Pacific Rim assignments, Black, J. S., & Gregersen, H. B. (1991).Human relations, 44(5), 497-515. This paper discusses earlier studies on the transpacific adjustments of economic migrant on Pacific Rim assignments. Quite often, the positions of human relations experts on the significance of past records of cross-cultural adjustments of expatriates are considered as far back as 1981 and 1988. Based on collected data on expatriates on assignments in Japan, Hong Kong, Korea, and Taiwan, this paper aims to study the factors that affect the cross-cultural adjustment of expatriates. This includes an examination of the specific and general factors which gave birth to empirical findings.
- • The influence of the spouse on American expatriate adjustment and intent to stay in Pacific Rim overseas assignments, Black, J. S., & Stephens, G. K. (1989). Journal of management, 15(4), 529-544. Selecting expatriate managers for cross-cultural assignments is essential to achieve a sustainable economic development, however, human resource managers in a previous literature found out that most American expatriate managers find it problematic to stay in Pacific Rim assignments. This paper studies and addresses the influence of spouse on American expatriates and how the aid or impede the ability of the expatriate managers to retain overseas assignments. Although, earlier studies found out that the inability of spouses to adjust cause expatriate managers to return early from assignments, this study found out that how a spouse adjusts has a relationship with the intent of expatriates to stay long in oversea assignments or otherwise.
- • Globalization and urban change: Capital, culture, and Pacific Rim mega-projects, Olds, K. (2002). OUP Catalogue. This paper is a study on the effects of globalisation and urban change on the culture and capital of mega Pacific Rim projects. An analysis was carried out to this effect by Kris Olds bases on the field work in Vancouver, Hong Kong, Shanghai, Paris, and London. Case studies from these location are used in the analysis of the transcultural practises of property developers or architects. Kris Olds however identifies two transpacific cultures relating to planning and urban development of mega-projects. This paper presents alternatives to the vague economic analysis on globalization and economic change.
- • Cross-national analysis of diffusion of consumer durable goods in Pacific Rim countries, Takada, H., & Jain, D. (1991). The journal of marketing, 48-54. Countries differ from one another in both geographical and cultural traits and their differences are noticeable in the way the engage in trades. This paper presents a cross-national analysis of diffusion rates or consumer durable goods in Pacific Rim Countries. This study uses four countries of the Pacific rim to analyse the estimated factors needed in testing the country-specific effects and on lead- and lag-time effects on the rate of diffusion of consumer durable goods. Lead- and lag-time effects refers to the cross-relatedness of values or variables. Though an empirical analysis and findings, this study provides useful insights that will give rise to the implementation of efficient marketing strategies.
- • Common stochastic trends in Pacific Rim stock markets, Chung, P. J., & Liu, D. J. (1994). The Quarterly Review of Economics and Finance, 34(3), 241-259. Stochastic trends are residual series of trends arrived at after the estimation of trend and its removal from data. This paper studies the popular stochastic trends in Pacific Rim stock markets and prices, These trends are studies using five Pacific Rim countries; Japan, Taiwan, Hong Kong, Singapore, and South Korea using Johansen’s maximum likelihood estimation procedure. The study identifies variables in stock prices and also highlight US and Taiwan as Pacific rim markets that to do belong to the common stochastic trends. The findings of the study are also presented in line with variables and adjustment speed and these markets towards common trends.
- • Buyer-seller negotiations around the Pacific Rim: Differences in fundamental exchange processes, Graham, J. L., Kim, D. K., Lin, C. Y., & Robinson, M. (1988). Journal of Consumer Research, 15(1), 48-54. This paper examines the negotiations and fundamental exchange processes in the Pacific Rim market. Using a study on four cultures; 138 American, 54 Chinese, 42 Japanese, and 38 Korean businesses, this paper investigated negotiation models exhibited by these markets. The dialogue abilities and bargaining strategies in buyer-seller transactions are examined. This paper highlights the differences in fundamental exchange processes across different markets. For instance, it is revealed that Americans tend to use Problem-solving negotiations to influence exchange outcomes while the Chinese use more of competitive strategies. The differences in all the four studies cultures show that on the average, bargainers are contented with negotiation outcomes they make with appealing partners.
- • Human resource strategy and firm performance in Pacific Rim countries, Bae, J., Chen, S. J., David Wan, T. W., Lawler, J. J., & Walumbwa, F. O. (2003). The International Journal of Human Resource Management, 14(8), 1308-1332. This study underscores the effects of human resource strategy on the performance of Pacific Rim firms. After the 1997 As a in financial market crisis, there have been a lot of downturns in economic development in Pacific Rim. The East and Southeast Asian economies embraced High-performance work system (HPWS) to enhance rapid economic developement, however, this technique was challenged by competition from emerging economies such as China, India, Vietnam and Eastern Europe. This paper examines the impacts of HPWS of firm’s performance using data collected from 700 firms. The findings establish the significant effects of HPWS, especially when used in susbsidiaries of MCNs.
- • Financial links around the Pacific Rim, 1982-1992, Chinn, M. D., & Frankel, J. A. (1992). In Federal Reserve Bank of San Francisco Proceedings (No. Sep). The financial and interest rate links among Pacific Rim countries between 1982 and 1992 are examined in this journal. These financial and interest links existed among these countries regardless of the currency or geographical barriers. In the bid to achieve financial liberalization, the interest rate links exhibited by New Zealand and Australia open their membership into a club where developed economies belonged. Furthermore, regardless of country and currency barriers, financial links and interest rates seem to have improved economic bonds amongst countries in the Pacific Rim region, resulting in a shift of influence rates among some of these countries.
- Who drives real interest rates around the Pacific Rim: the USA or Japan?, Chinn, M. D., & Frankel, J. A. (1995). Journal of International Money and Finance, 14(6), 801-821. When we talk of significant countries in the Pacific Rim markets, both Japan and USA are important, especially for driving interest rates among the countries of the Pacific Rim. This paper conducts a relative comparison of the influence rate driven by USA and Japan so as to determine which country drives the real interest rate. The analysis adopts Johansen’s (1988) cointegration testing methodology which caters for the analysis of cointegrating vectors. The real interest rates are determined by the stochastic trends each of the country exhibits. The analysis shows the diverse linkage between other Pacific Rim countries and Japan or USA.
- • Human resources in development along the Asia-Pacific Rim., Ogawa, N., Jones, G. W., & Williamson, J. G. (1993). This is a project which focuses on the impacts or roles of human resource development in Asia-Pacific Rim countries. This project is a collective one carried out in 1989 by scholars at Nihon University, Japan. It studied the interplay between human resource management and the economic development achieved by Asian countries.
- • Cross-cultural differences in travel information acquisition among tourists from three Pacific–rim countries, Chen, J. S. (2000). Journal of Hospitality & Tourism Research, 24(2), 239-251. Using data from three Pacific Rim countries, the study examines the differences in the travel information especially from external travel sources acquired by tourists from the selected countries. Tourists from Japan, South Korea, and Australia that had in-flight to the United States between January and December 1997 were surveyed. With the survey, the cross-cultural differences and the information research behavior of tourists were analysed. This study did not only provide a behavioural and informational analysis of the tourists but also suggests skillful and potent ways that will help United States managers attract Australian, South Korean and Japanese tourists.
- • Technological uncertainty, buyer preferences and supplier assurances: An examination of Pacific Rim purchasing arrangements, Celly, K. S., Spekman, R. E., & Kamauff, J. W. (1999). Journal of International Business Studies, 30(2), 297-316. This paper is an examination of buyers preferences, supplier assurances, technology uncertainty and general purchasing behaviors of Pacific Rim markets. It carries out a test on the notion that overseas suppliers may proactively manage uncertainty by making customized investments to serve their buyers. The notion that credible commitments complement transactions is also argued. Using the data of a survey of the relationship between U.S. purchasing managers and Pacific Rim suppliers, in terms of technology uncertainty, the buyer’s value and seller’s response are examined. The study finds that buyer information sharing are greater when supplier relationship-specific investments are greater. To manage uncertainties, both buyer and seller engage in transactions for returns of benefits.