QUESTION 5: How should a US firm that currently exports to only ASEAN countries respond to the creation of a single market in this regional grouping?
A US business firm that is currently exporting to only ASEAN countries should seriously consider opening a facility somewhere in this grouping, as the economics of a common market suggest that outsiders can be at a disadvantage to insiders. The opening of borders within ASEAN also has the potential to increase the size of the market for the firm. Of course it is possible, after careful consideration, that exporting may still be the most appropriate means of serving the market.