Answers to the assignment will vary depending on what differences are highlighted. For example the countries that have signed the agreements differ as well as the stipulations about what goods are covered, how disputes are resolved, and how the accounting for costs and tariffs are determined. Trade agreements allow goods to flow more freely across borders at lower costs (lower tariffs) while simultaneously encouraging investment in the countries involved in the agreements. Trade agreements can allow a business to access markets that were previously unreachable, can expedite technology transfer between countries and create jobs in the countries that are party to the agreement. The ASEAN countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. One important difference between NAFTA and the ASEAN Initiative is that NAFTA's focus is on the economic benefit all parties to the agreement will receive, but the ASEAN agreement has significant political objectives. ASEAN is designed to strengthen integration of these countries and create a set of bilateral Free Trade Agreements between the U.S.
and each of these countries.