5.7 Opportunities and threats posed by regional economic integration
In 1985, Kenichi Ohmae wrote a book, Triad Power: The Coming Shape of Global Competition . Ohmae declared that the 1990s would be the decade of triad strategy, that is, strategy focused on the triad of the three mega-markets of Japan , the US and the EU. As the combined GNP of these regions is so vast, Ohmae's argument is that companies need to develop a triad strategy which includes trade and investment with all three areas. So, what should an MNE's triad strategy encompass, assuming that the MNE operates in Europe, North America and East Asia ?
We will now look at the regions in the triad and discuss opportunities and threats for each area from the perspective of an Australian MNE. In doing this we will look at Asia rather than just East Asia .
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