INDONESIA
advantages: 1. expand market
2 foster innovation in order to compete in the free market 3 can meet the domestic needs that can not be produced 4. create new jobs
5. easy to obtain capital from foreign loss:
1.-threatening emerging industries (infant industry) 2 dependence on developed countries
The positive value of any free trade:
1) people can enjoy a wide variety of goods with quality and competitive prices 2) communities know and have a reference type stuf
3) the government can improve the activity and the volume of trade within the country and abroad. 4) the mobility of goods and services and thus encourage more passionate human enhancement and maintenance of infrastructure.
Negative value of the presence of free trade: 1) Production in the country into a strict
2) Being a threat to economic actors and inefficient domestic business 3) The number of employees afected by layofs due to efficiency
In the face of the AEC, Indonesia has some advantages and disadvantages. Some of these deficiencies include:
1. swif flow of commodities and products overseas
2 Indonesian industry is not prepared to add value economic commodities into finished goods that have economic value added for the benefit of the trade balance.
3 Indonesia has had the impact of free trade that made Indonesia minus the trade balance and weaken the rupiah.
4. Indonesia still engrossed sell export commodities in the form of raw materials. 5. high cost of licensing.
6 Poor infrastructure is weighing on products made in Indonesia so it is difficult to compete both regionally and globally.
7 The lack of response from local investors to be the main actors in the country and globally.
Indonesia also has some advantages in the face of a Free Trade area is the population of Indonesia is quite a lot, even reaching 40% of the ASEAN population, or around 600 million residents, so
