Southeast States and Capitals

Economy of Southeast Asia Even prior to the penetration of European interests, Southeast Asia was a critical part of the world trading system. A wide range of commodities originated in the region, but especially important were such spices as pepper, ginger, cloves, and nutmeg. The spice trade initially was developed by Indian and Arab merchants, but it also brought Europeans to the region. First the Portuguese, then the Dutch, and finally the British and French became involved in this enterprise in various countries. The penetration of European commercial interests gradually evolved into annexation of territories, as traders lobbied for an extension of control to protect and expand their activities. As a result, the Dutch moved into Indonesia, the British into Malaya, and the French into Indochina. Europe’s interest and activity in the region was further enhanced by the opening of the Suez Canal, the development of telegraphic communications, the adoption of steam shipping, and the prospects for trade with China. In the case of Malaya, the gradual diffusion of British administration provided systems of law and order and of taxation and allowed for the gradual development of infrastructure, principally reliable transport systems. This environment attracted Chinese immigrants, and the growth of the tin mining industry soon followed. Later rubber plantations were established, which brought about still further immigration. Similar developments took place in Burma (Myanmar), Vietnam, and Indonesia. In Siam (Thailand) during the second half of the 19th century, a rapid expansion of Western enterprise occurred, though not by colonization. Both British and American firms began trading in the region. The impact of the Western activity was essentially to remove trade from what had been a Chinese monopoly and to emphasize the export of a single commodity, rice. Established indigenous textile and sugar-processing industries were replaced by imports, and the economy slowly became dependent on rice exports. The Philippines gradually developed a plantation farming system under Spanish and later American influence, although rice, sugar, and tobacco continued to be produced by small-scale growers and processed by Chinese enterprises until the mid-19th century. The incorporation of Southeast Asia into the world economy had a major impact on the distribution of the region’s economic development, and it created more uneven patterns of population growth and economic activity. It also brought about a stronger sense of class distinction and resulted in a larger discrepancy between the wealthy and poor. The worldwide economic depression of the 1930s severely affected the commercialized areas most dependent on the world economy. Unemployment rose, and the period produced the seeds of political change and activism that culminated in the independence of most of the region’s countries after World War II. Since the 1950s the economic development strategies of virtually all the capitalist Southeast Asian states have emphasized urban industrialization, while agricultural development generally has been viewed as subsidiary to industrial growth. These strategies have met with mixed success. Indeed, the trading pattern of the region by and large has continued to be one of producing and exporting raw materials and importing manufactured goods. Only Singapore has reached an advanced level of industrialization, in the process becoming one of the world’s great centers of industry and commerce. There is great disparity in development rates within the region, especially between the member and nonmember countries of the Association of Southeast Asian Nations (ASEAN). Those belonging to this grouping—Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand—generally have experienced significant economic development since the mid-1960s; the exception has been the Philippines, the economy of which has grown at a much slower rate. Development has been extremely slow or nonexistent in the non-ASEAN countries of Cambodia, Laos, Myanmar, and Vietnam, and these are among the poorest nations in the world.

Management and Globalization Global Management Why companies go global How companies for global Global Business environments Global Business Types of global business Pros and cons of global businesses Ethnic Challenges for global business Culture and Global Diversity Cultural intelligence Silent language of culture Tight and loose cultures Values and national cultures Global Management Learning Are management theories universal? Intercultural competencies Global learning goals Key concepts of the challenges of globalisation: Global economy Resources, markets and competition are worldwide in scope Internationalisation The process of increasing involvement in international operations Globalization/Deglobalization Glob- the growing interdependence among elements in the global economy The worldwide interdependence of resource flows, product markets and business competition World 3.0 Different views: World flat vs. round Distance is a metaphor that represents the degree of dissimilarities between countries Balancing cooperation in the global Global Management Global management - managing things in different countries Managing business and organizations with interests in more than one country What do we expect from global Managers Knowing how to adapt Knowing the language Global Manager Is culturally aware and informed on international affairs International Business Conducting for-profit transactions of goods and services across national boundaries International Motive Why do firms internatioalize their activities Cheaper labour Labour tax Natural resources Enrolments to do business Clientele Exclusive materials Personal benefits: Taxes Reasons why businesses go global Customers Suppluers Capital During (1993) - 4 motive 1. Market seeking 2. Efficiency Seeking 3. Resource seeking 4. Strategic Asset Seeking Cuervo Cazurra, Narula and un (2015) - 4 motive s Internationalization Motives A company may also explore the opportunities in different markets in order to take advantage and in some cases extend the product life cycle What is a Market Entry Strategy Involves the sale of goods or services to foreign markets but do not require expensive investments Franchising Exporting and importing Involve the sale of goods or services to foreign markets but do Types of market entry strategies Global sourcing Exporting Importing Licensing agreement Franchising Types of Foreign Direct Investment (FDI) strategies: Joint venture Strategic alliance Owned Subsidiary (sometimes called WOS) How to go abroad What conditions will affect the decisions of firms on how to internationalize their activities? During (1978)- Eclectic paradigm OLI model OLI- Ownership, Location and Internalization Advantages Ownership advantages Resources owned by the organization that can be transferred across locations include trademarks, production techniques and processes, managerial skills and other resources not available to the competitors Location Advantages Represent the implications of choosing to produce or to perform activities in a specific location (country or region) Internalization Advantages: The ability to internalize or to incorporate activities that add value to its business Evolution of Concepts- New Elements Although economic factors are certainly important to explain the formation, growth and expansion of firms within and across national borders, they are not sufficient to explain the additional complexity when a firm decides to expand its activities across national borders Economic factors Investigate the economic elements that affect the internationalization of firms Behavioural Elements Explaining the additional challenges (and perhaps opportunities) a firm faces in foreign host countries when compared to indigenous (local) firms Behavioural theories Johanson and Wiedersheim-Paul (1975) and Johanson and Vahlne (1977) Included the psychic Distance concept (beckerman,1956) to explain the internationalization behaviour of firms The Uppsala internationalization model Psychic distance is: the sum of factors preventing the flow of infomatio from and to the market Psychic Distance is a broad concept that includes several elements such as: language, culture, political systems, level of education, level of industrial development Firms behave in a “Risk Averse” manner It means that when the perceived risk goes down, the firm increase its commitment to the foreign market \ The Haier Group Data Strategy Big DATA and Small DATA The use of small data to satisfy individual customers’ needs, however, the book mentions a huge cultural shock at the plant in Camden, south caroline Ex: top down, hard hat colors and hierarchy Culutral Differnces can have a huge impact on the internationalization of firms Kogut and Singh (1988)- Cultural Distance Index First statsical study on the implication of ciltiral distance to the selection of entry mode When investigating in culturally distant countries, foreign firms can choose to partner with foreign firms in order to gain local knowledge and share the risk associated to the investment (higher commitment = higher risk) How Companies Go Global Global sourcing The process of purchasing materials or services around teh world for local use Exporting Selling locally made products in foreign markets Importing Buying foreign made products and selling them domestically Exports correspond to what percentage of Candain GDP What countries are the major trending partners of Canada Management and Globalization How Companies Go Global Licensing Agreement One firm pays a fee for rights to make or sell another company’s products What are the potential risks associated to licesning The case of new balance in China Franchising A fee is paid for the rights to use another firms name, branding and methods Insourcing Insourcing: refers to local job creation that results from foreign direct investment Types of insourcing Joint ventures: operate in a foreign country through co-ownership by foreign and local partners Strategic alliances: A partnership in which foreign and domestic firms share resources and knowledge for mutual gains Foreign subsidiaries: local operation completely owned by a foreign firm Criteria for choosing a joint venture partner: Familiarity with your firm’s major business String local workforce Values its customers Future expansion possibilities Strong local market for partner’s own products Good Profit potential Sound financial standing Global business environments Legal and poliical systems Trade agreements and trade barriers Regional economic alliances Legal and political systems Differing laws and practices regards Business ownership Negotiation and implementation of contracts Foreign currency exchange Protection of intellectual property rights Counterfeit merchandise Political risk Potential loss in value of foreign investment due to instability and political changes in the host country Political risk analysis (expertise/experience) Forecast political disruptions that threaten the value of a foreign investment Changes in the rules of the game Brexit US Trade Wars-mexico-China Other examples Bolivia, Venezuela, China De-globalization The process of weakening interdependence among nations Trade Agreements and trade Barriers World trade organization Most favourd nation status Tariffs Nontariss barriers (quotes, restrictions, etc.) Protectionism Regional Economic Alliances USMCA (replacment for the NAFTA-North American Free trade Agreement) EU- European Union APEC- Aisa Pacific Economic Copperation ASEAN - Association of Southeast Asian Nationas SADC - Southern Africa Development Community MERCOSUR- Chapter 5- Global Management and Cultural Diversity (part 2) Review Types of global business Global corporation MNE (multinational enterprise) or MNC (multinational corporation) with extensive business operations in more than one foreign country Transnational corporation A global corporation that operates worldwide on borderless basis Some host country complaints about MNCs Host Country companits about MNCs: Excessive profits Interference with local government Domination of local economy Interference with local government Hiring the best local talent Limited technology transfer Disrespect for local customers Examples - War in Ukraine Disruption in global -value chains and increased pressure and interference of MNCs with local government Fertilizer imports in Brazil (one of the major producers of agricultural commodities) We must consider the triple bottom line and the impact in society, the environment and the economy $2.5 billion invest in potash mine in Brazill What about Globalization gap Large multinationals adn industrilizednaitons gaining disporoportinonally form globalization Globalization gap: Large multinational and industrialized nations gaining disproportionally from Globalization Some MNC complaints about host countries MNC Complaints about host countries: Profiit limitations Laws and regulations Overpirce resources Exploitative rules Foreign exchange restriction Failure to uphold contracts Mutual benefits for host countries and multinational companies Mutual benefits for host country and global corporation of MNC: Shared growth opportunities Shared income opportunities Shared learning opportunities Share development opportunities Develop projects together What are some of the ethical challenges for global business Ethincal challenges for global business Child labour Employmnet of children for worl otherwise done by adults Sweatshops Employment of workers at very low wages for long hours in poor working conditions Ex: Nike bad labour prices Unsafe working conditions Corruption Illegal practices that further one’s business interests Corrupiotn of froeign public officials Act makes it illegal for Candain firms and their representatives to engage in corrupt practices overseas Bribes to foreign officials Excessive commissions Non-monetary gifts Sweatshops Conflict materials What is culture Culture : The shared set of beliefs, values, and patterns of behvaiourr common to a group of people Food preferences Values and traditions Language and beliefs Religion Art music Life style Hofstede defines culture as: “The collectiv programing of teh mind distinguishing the members of one group or category of people from others” What is culture shock Culture Shock: Confusion and discoumfert a person experiences in an unfaamiliar culture Stages to adjusting to a new culture Confusion Small vitorires The honeymoon Irritation and anger Reality Cultural Intelligence The ability to adapt and adjust to new cultures What is Ethnocentrism Tendency to consider one’s own culture as superior others Slinet languages of culture Contect Low context High context Space Proxemics Ex: personal space Time Monochronic Polychronic High and low contexts cultures Edward T.Hall (1959) Def: Part of a discourse that surround a word or passage and can throw on its meaning Low context cultures Emphizes communication via spoken or written words Countries like United States, Canada and Germany High context cultures Rely on nonverbal and situational cues as well as on spoken or written works Thailand Malaysia Time Monochronic cultures People tend to do one thing at a time Canda Polychronic cultures Time is used to accomplish many different things at once Egypt Space Proxemics Study of how people use space to communicate In North American people value “personal space’ Many Latin and Asian cultures expect much less personal space Tight and Loose Cultures Cultural tightness-looseness Tight = Strength of norms that govern social behvaviour Japan, Korea, Malaysia Loose = tolerance for any deviation from norms Australia, Brazil, Hungary Values and national cultures (Hofstede) Power distance Uncertainty avoidance Individalism-collectivism Masculinity-femininty Time Orientation Indulgence vs. Restraint Comparative management How management pratices systematically differ among countries and /or cultures Intercultural competencies Skills and personal characteristics that help us be successful in cross cultural situations Global Managers (know how to adapt) Need to successfully apply management functions across interantional boundaries Global Learning goals Not universal Engage critical thinking Look everywhere for new management ideas Always consider culture

Southwest States and Capitals

Influence of China and India China ChinaChina under the Han emperor Wudi (c. 100 bce) and (inset) at the end of the Chunqiu (Spring and Autumn) Period (c. 500 bce). Between approximately 150 bce and 150 ce, most of Southeast Asia was first influenced by the more mature cultures of its neighbours to the north and west. Thus began a process that lasted for the better part of a millennium and fundamentally changed Southeast Asia. In some ways the circumstances were very different. China, concerned about increasingly powerful chiefdoms in Vietnam disturbing its trade, encroached into the region and by the end of the 1st century bce had incorporated it as a remote province of the Han empire. For generations, the Vietnamese opposed Chinese rule, but they were unable to gain their independence until 939 ce. From India, however, there is no evidence of conquests, colonization, or even extensive migration. Indians came to Southeast Asia, but they did not come to rule, and no Indian power appears to have pursued an interest in controlling a Southeast Asian power from afar, a factor that may help to explain why only the Vietnamese accepted the Chinese model. Yet, in other ways the processes of Indianization and Sinicization were remarkably similar. Southeast Asia already was socially and culturally diverse, making accommodation easy. Furthermore, indigenous peoples shaped the adaption and adoption of outside influences and, indeed, seem to have sought out concepts and practices that enhanced rather than redirected changes already underway in their own societies. They also rejected some components: for example, some of the vocabulary and general theories related to the Indian notions of social hierarchy were borrowed but much of the specific practices were not, and neither Indian nor Chinese views of women as socially and legally inferior were accepted. In the later stages of the assimilation process—particularly in the Indianized areas—local syncretism often produced exuberant variations, which, despite familiar appearances, were expressions of local genius rather than just inspired borrowings. Get Unlimited Access Try Britannica Premium for free and discover more. Sculptures at Borobudur, central Java, Indonesia. 1 of 2 Sculptures at Borobudur, central Java, Indonesia. Pagan, Myanmar 2 of 2 Pagan, MyanmarRuins of ancient Buddhist shrines and pagodas, Pagan, Myanmar. Still, Chinese and Indian influences were anything but superficial. They provided writing systems and literature, systems of statecraft, and concepts of social hierarchy and religious belief, all of which were both of intrinsic interest and pragmatic significance to Southeast Asians of the day. For elites seeking to gain and retain control over larger and more complex populations, the applications of these ideas were obvious, but it would also seem that the sheer beauty and symbolic power of Hindu and Buddhist arts tapped a responsive vein in the Southeast Asian soul. The result was an imposing array of architectural and other cultural wonders, at first very much in the Indian image and hewing close to current styles and later in more original, indigenous interpretations. The seriousness and profundity with which all this activity was undertaken is unmistakable. By the 7th century ce, Palembang in southern Sumatra was being visited by Chinese and other Buddhist devotees from throughout Asia, who came to study doctrine and to copy manuscripts in institutions that rivaled in importance those in India itself. Later, beginning in the 8th century, temple and court complexes of surpassing grandeur and beauty were constructed in central Java, Myanmar, and Cambodia; the Borobudur of the Śailendra dynasty in Java, the myriad temples of the Burman dynastic capital of Pagan, and the monuments constructed at Angkor during the Khmer empire in Cambodia rank without question among the glories of the ancient world.

When it was his turn to speak, Adam Malik, Presidium Minister for Political Affairs and Minister for Foreign Affairs of Indonesia, recalled that about a year before, in Bangkok, at the conclusion of the peace talks between Indonesia and Malaysia, he had explored the idea of an organization such as ASEAN with his Malaysian and Thai counterparts. One of the “angry young men” in his country’s struggle for independence two decades earlier, Adam Malik was then 50 years old and one of a Presidium of five led by then General Soeharto that was steering Indonesia from the verge of economic and political chaos. He was the Presidium’s point man in Indonesia’s efforts to mend fences with its neighbors in the wake of an unfortunate policy of confrontation. During the past year, he said, the Ministers had all worked together toward the realization of the ASEAN idea, “making haste slowly, in order to build a new association for regional cooperation.” Adam Malik went on to describe Indonesia’s vision of a Southeast Asia developing into “a region which can stand on its own feet, strong enough to defend itself against any negative influence from outside the region.” Such a vision, he stressed, was not wishful thinking, if the countries of the region effectively cooperated with each other, considering their combined natural resources and manpower. He referred to differences of outlook among the member countries, but those differences, he said, would be overcome through a maximum of goodwill and understanding, faith and realism. Hard work, patience and perseverance, he added, would also be necessary. The countries of Southeast Asia should also be willing to take responsibility for whatever happens to them, according to Tun Abdul Razak, the Deputy Prime Minister of Malaysia, who spoke next. In his speech, he conjured a vision of an ASEAN that would include all the countries of Southeast Asia. Tun Abdul Razak was then concurrently his country’s Minister of Defence and Minister of National Development. It was a time when national survival was the overriding thrust of Malaysia’s relations with other nations and so as Minister of Defence, he was in charge of his country’s foreign affairs. He stressed that the countries of the region should recognize that unless they assumed their common responsibility to shape their own destiny and to prevent external intervention and interference, Southeast Asia would remain fraught with danger and tension. And unless they took decisive and collective action to prevent the eruption of intra-regional conflicts, the nations of Southeast Asia would remain susceptible to manipulation, one against another. “We the nations and peoples of Southeast Asia,” Tun Abdul Razak said, “must get together and form by ourselves a new perspective and a new framework for our region. It is important that individually and jointly we should create a deep awareness that we cannot survive for long as independent but isolated peoples unless we also think and act together and unless we prove by deeds that we belong to a family of Southeast Asian nations bound together by ties of friendship and goodwill and imbued with our own ideals and aspirations and determined to shape our own destiny”. He added that, “with the establishment of ASEAN, we have taken a firm and a bold step on that road”. For his part, S. Rajaratnam, a former Minister of Culture of multi-cultural Singapore who, at that time, served as its first Foreign Minister, noted that two decades of nationalist fervor had not fulfilled the expectations of the people of Southeast Asia for better living standards. If ASEAN would succeed, he said, then its members would have to marry national thinking with regional thinking. “We must now think at two levels,” Rajaratnam said. “We must think not only of our national interests but posit them against regional interests: that is a new way of thinking about our problems. And these are two different things and sometimes they can conflict. Secondly, we must also accept the fact, if we are really serious about it, that regional existence means painful adjustments to those practices and thinking in our respective countries. We must make these painful and difficult adjustments. If we are not going to do that, then regionalism remains a utopia.” S. Rajaratnam expressed the fear, however, that ASEAN would be misunderstood. “We are not against anything”, he said, “not against anybody”. And here he used a term that would have an ominous ring even today: balkanization. In Southeast Asia, as in Europe and any part of the world, he said, outside powers had a vested interest in the balkanization of the region. “We want to ensure,” he said, “a stable Southeast Asia, not a balkanized Southeast Asia. And those countries who are interested, genuinely interested, in the stability of Southeast Asia, the prosperity of Southeast Asia, and better economic and social conditions, will welcome small countries getting together to pool their collective resources and their collective wisdom to contribute to the peace of the world.” The goal of ASEAN, then, is to create, not to destroy. This, the Foreign Minister of Thailand, Thanat Khoman, stressed when it was his turn to speak. At a time when the Vietnam conflict was raging and American forces seemed forever entrenched in Indochina, he had foreseen their eventual withdrawal from the area and had accordingly applied himself to adjusting Thailand’s foreign policy to a reality that would only become apparent more than half a decade later. He must have had that in mind when, on that occasion, he said that the countries of Southeast Asia had no choice but to adjust to the exigencies of the time, to move toward closer cooperation and even integration. Elaborating on ASEAN objectives, he spoke of “building a new society that will be responsive to the needs of our time and efficiently equipped to bring about, for the enjoyment and the material as well as spiritual advancement of our peoples, conditions of stability and progress. Particularly what millions of men and women in our part of the world want is to erase the old and obsolete concept of domination and subjection of the past and replace it with the new spirit of give and take, of equality and partnership. More than anything else, they want to be master of their own house and to enjoy the inherent right to decide their own destiny …” While the nations of Southeast Asia prevent attempts to deprive them of their freedom and sovereignty, he said, they must first free themselves from the material impediments of ignorance, disease and hunger. Each of these nations cannot accomplish that alone, but by joining together and cooperating with those who have the same aspirations, these objectives become easier to attain. Then Thanat Khoman concluded: “What we have decided today is only a small beginning of what we hope will be a long and continuous sequence of accomplishments of which we ourselves, those who will join us later and the generations to come, can be proud. Let it be for Southeast Asia, a potentially rich region, rich in history, in spiritual as well as material resources and indeed for the whole ancient continent of Asia, the light of happiness and well-being that will shine over the uncounted millions of our struggling peoples.” The Foreign Minister of Thailand closed the inaugural session of the Association of Southeast Asian Nations by presenting each of his colleagues with a memento. Inscribed on the memento presented to the Foreign Minister of Indonesia, was the citation, “In recognition of services rendered by His Excellency Adam Malik to the ASEAN organization, the name of which was suggested by him.” And that was how ASEAN was conceived, given a name, and born. It had been barely 14 months since Thanat Khoman brought up the ASEAN idea in his conversations with his Malaysian and Indonesian colleagues. In about three more weeks, Indonesia would fully restore diplomatic relations with Malaysia, and soon after that with Singapore. That was by no means the end to intra-ASEAN disputes, for soon the Philippines and Malaysia would have a falling out on the issue of sovereignty over Sabah. Many disputes between ASEAN countries persist to this day. But all Member Countries are deeply committed to resolving their differences through peaceful means and in the spirit of mutual accommodation. Every dispute would have its proper season but it would not be allowed to get in the way of the task at hand. And at that time, the essential task was to lay the framework of regional dialogue and cooperation. The two-page Bangkok Declaration not only contains the rationale for the establishment of ASEAN and its specific objectives. It represents the organization’s modus operandi of building on small steps, voluntary, and informal arrangements towards more binding and institutionalized agreements. All the founding member states and the newer members have stood fast to the spirit of the Bangkok Declaration. Over the years, ASEAN has progressively entered into several formal and legally-binding instruments, such as the 1976 Treaty of Amity and Cooperation in Southeast Asia and the 1995 Treaty on the Southeast Asia Nuclear Weapon-Free Zone. Against the backdrop of conflict in the then Indochina, the Founding Fathers had the foresight of building a community of and for all Southeast Asian states. Thus the Bangkok Declaration promulgated that “the Association is open for participation to all States in the Southeast Asian region subscribing to the aforementioned aims, principles and purposes.” ASEAN’s inclusive outlook has paved the way for community-building not only in Southeast Asia, but also in the broader Asia Pacific region where several other inter-governmental organizations now co-exist. The original ASEAN logo presented five brown sheaves of rice stalks, one for each founding member. Beneath the sheaves is the legend “ASEAN” in blue. These are set on a field of yellow encircled by a blue border. Brown stands for strength and stability, yellow for prosperity and blue for the spirit of cordiality in which ASEAN affairs are conducted. When ASEAN celebrated its 30th Anniversary in 1997, the sheaves on the logo had increased to ten – representing all ten countries of Southeast Asia and reflecting the colors of the flags of all of them. In a very real sense, ASEAN and Southeast Asia would then be one and the same, just as the Founding Fathers had envisioned. This article is based on the first chapter of ASEAN at 30, a publication of the Association of Southeast Asian Nations in commemoration of its 30th Anniversary on 8 August 1997, written by Jamil Maidan Flores and Jun Abad.

Southeast Asia, vast region of Asia situated east of the Indian subcontinent and south of China. It consists of two dissimilar portions: a continental projection (commonly called mainland Southeast Asia) and a string of archipelagoes to the south and east of the mainland (insular Southeast Asia). Extending some 700 miles (1,100 km) southward from the mainland into insular Southeast Asia is the Malay Peninsula; this peninsula structurally is part of the mainland, but it also shares many ecological and cultural affinities with the surrounding islands and thus functions as a bridge between the two regions. Mainland Southeast Asia is divided into the countries of Cambodia, Laos, Myanmar (Burma), Thailand, Vietnam, and the small city-state of Singapore at the southern tip of the Malay Peninsula; Cambodia, Laos, and Vietnam, which occupy the eastern portion of the mainland, often are collectively called the Indochinese Peninsula. Malaysia is both mainland and insular, with a western portion on the Malay Peninsula and an eastern part on the island of Borneo. Except for the small sultanate of Brunei (also on Borneo), the remainder of insular Southeast Asia consists of the archipelagic nations of Indonesia and the Philippines. Southeast Asia stretches some 4,000 miles at its greatest extent (roughly from northwest to southeast) and encompasses some 5,000,000 square miles (13,000,000 square km) of land and sea, of which about 1,736,000 square miles is land. Mount Hkakabo in northern Myanmar on the border with China, at 19,295 feet (5,881 meters), is the highest peak of mainland Southeast Asia. Although the modern nations of the region are sometimes thought of as being small, they are—with the exceptions of Singapore and Brunei—comparatively large. Indonesia, for example, is more than 3,000 miles from west to east (exceeding the west-east extent of the continental United States) and more than 1,000 miles from north to south; the area of Laos is only slightly smaller than that of the United Kingdom; and Myanmar is considerably larger than France. All of Southeast Asia falls within the tropical and subtropical climatic zones, and much of it receives considerable annual precipitation. It is subject to an extensive and regular monsoonal weather system (i.e., one in which the prevailing winds reverse direction every six months) that produces marked wet and dry periods in most of the region. Southeast Asia’s landscape is characterized by three intermingled physical elements: mountain ranges, plains and plateaus, and water in the form of both shallow seas and extensive drainage systems. Of these, the rivers probably have been of the greatest historical and cultural significance, for waterways have decisively shaped forms of settlement and agriculture, determined fundamental political and economic patterns, and helped define the nature of Southeast Asians’ worldview and distinctive cultural syncretism. It also has been of great importance that Southeast Asia, which is the most easily accessible tropical region in the world, lies strategically astride the sea passage between East Asia and the Middle Eastern–Mediterranean world. Within this broad outline, Southeast Asia is perhaps the most diverse region on Earth. The number of large and small ecological niches is more than matched by a staggering variety of economic, social, and cultural niches Southeast Asians have developed for themselves; hundreds of ethnic groups and languages have been identified. Under these circumstances, it often is difficult to keep in mind the region’s underlying unity, and it is understandable that Southeast Asia should so often be treated as a miscellaneous collection of cultures that simply do not quite fit anywhere else. Roofs of the Forbidden City, Beijing, China Britannica Quiz All About Asia Yet from ancient times Southeast Asia has been considered by its neighbors to be a region in its own right and not merely an extension of their own lands. The Chinese called it Nanyang and the Japanese Nan’yō, both names meaning “South Seas,” and South Asians used such terms as Suvarnabhūmi (Sanskrit: “Land of Gold”) to describe the area. Modern scholarship increasingly has yielded evidence of broad commonalities uniting the peoples of the region across time. Studies in historical linguistics, for example, have suggested that the vast majority of Southeast Asian languages—even many of those previously considered to have separate origins—either sprang from common roots or have been long and inseparably intertwined. Despite inevitable variation among societies, common views of gender, family structure, and social hierarchy and mobility may be discerned throughout mainland and insular Southeast Asia, and a broadly common commercial and cultural inheritance has continued to affect the entire region for several millennia. These and other commonalities have yet to produce a conscious or precise Southeast Asian identity, but they have given substance to the idea of Southeast Asia as a definable world region and have provided a framework for the comparative study of its components.

People of Southeast Asia By the late 20th century, Southeast Asia’s population (including Indonesia and the Philippines) was approaching a half billion, or about one-twelfth of the world’s total. This population, however, was unevenly distributed within the region. By far the nation with the largest population was Indonesia, with about two-fifths of the regional total; in contrast, Brunei’s population was only a tiny fraction of that. Nearly half of the regional population was accounted for by the mainland states, with Vietnam and Thailand being the most populous. Settlement patterns Southeast Asia is predominantly rural: three-fourths of the people live in nonurban areas. Moreover, population is heavily clustered in fertile river valleys and especially in delta areas, such as those of the Mekong and Irrawaddy rivers. Historical, cultural, and environmental influences also have affected the settlement patterns. Java and other core areas such as the Bangkok (Thailand), Hanoi, and Manila metropolitan areas contain high population densities. While the rate of urbanization in Southeast Asia is relatively low compared with those of other developing regions, it is increasing rapidly. Singapore is unique in that it is essentially totally urban. In addition, the Philippines has a much higher than average level of urbanization, in part because of its Spanish and American colonial history. The largest cities—Jakarta (Indonesia), Bangkok, and Manila—are among the world’s most populous. The growth of cities of all sizes is being fueled primarily by natural increase, but rural-urban migration also is a significant contributor. Rural dwellers continue to be attracted by the promise of employment and other opportunities, but for many migrants the informal (undocumented) economic sector in these large cities is the only hope for some form of employment. Settlement patterns in rural areas tend to be associated with agricultural practices. Shifting cultivation is still common in some parts of the region (notably the remote interior areas of Myanmar, Vietnam, and the island of Borneo), although the amount of land so utilized is gradually shrinking. The village is the unit of settlement and often functions collectively, and typically it is moved from time to time. By contrast, wet-rice cultivation, the dominant form of agriculture in Southeast Asia, is sedentary and results in relatively large rural agglomerations with well-developed village life and customs. Dry and upland farming often produces scattered homesteads. Population resettlement to provide agricultural employment and access to land is important in some Southeast Asian countries, notably Indonesia, Malaysia, and Vietnam. By far the largest program has been conducted in Indonesia, where more than four million people have been voluntarily resettled from Java and Bali to the less populated islands. Despite considerable success, the program has been plagued by such problems as improper site selection, environmental deterioration, migrant adjustment, land conflicts, and inadequate financing. A program in Malaysia also has been quite successful, in part because it has set much smaller resettlement targets and has been better funded. Vietnamese development policy also has utilized the resettlement of people in an effort to revitalize areas outside the major population centres.

Industry of Southeast Asia Industrialization in Southeast Asia is a relatively recent phenomenon, much of the development having occurred only since the early 1960s. As mentioned above, industrialization policies have been critical goals in the market economies of the ASEAN countries; and, in all of them except Brunei, industry’s share of the GDP has grown considerably. The most significant increases have occurred in Singapore, Thailand, and the Philippines. Manufacturing in particular has accounted for the greatest changes, with Indonesia, Malaysia, and Thailand making especially large gains during the 1980s. Small factories dominate, both in terms of the number of companies and the number of workers employed. Agricultural processing is most important in virtually all nations. The notable exception is Singapore, where the manufacture of a variety of products, headed by electrical and electronic and transport equipment, is dominant. In Thailand, Myanmar, and the Philippines, textiles and clothing are significant, as is the chemical industry in Thailand and Indonesia. Light, labour-intensive goods, such as electrical and electronic products, are increasingly important. It is in the manufacture of these products and textiles that the most employment has been gained. Tin is the most important metallic mineral in the region in terms of value, and Thailand, Malaysia, and Indonesia account for more than half of world production. In Malaysia and elsewhere, however, alluvial lodes are becoming depleted, and the remaining concentrations are less economical to mine. Fluctuating market prices have also discouraged tin production. Nickel, copper, and chromite are also mined, although the quantities produced in the region are minor in terms of world production. Southeast Asia has considerable reserves of oil and natural gas, notably in Indonesia, Malaysia, and Brunei. Trade Given Southeast Asia’s strategic location and the early development of trade there, it is not surprising that trade is especially important to all nations in the region. The value of regional trade is about one-third that of the United States. Most striking is the almost total dominance of trade by the market economies. Exports, as a percentage of the GDP, are small in Cambodia, Myanmar, Vietnam, and Laos and moderately so in Thailand, the Philippines, and Indonesia. Countries with a relatively large proportion of export trade are Singapore, Malaysia, and Brunei. Composition of exports is important. In this respect, Indonesia—the trade structure of which long has been dominated by oil—has been relatively successful in diversifying its exports toward plywood, rattan, coffee, rubber, and textiles. Conversely, Malaysia, with a trade pattern of exporting palm oil, tropical hardwoods, and tin, now derives the majority of its export income from petroleum products. This revenue has been used to build up the country’s industrial base. Thailand exhibits a much less diverse export structure, where food and manufactured goods account for nearly all of its total trade. Likewise, Brunei relies almost entirely on its petroleum exports. Singapore, however, has utilized its unique geographic position and highly educated labour force to attract multinational corporations. As a result, investment in the manufacturing and, increasingly, service sectors has greatly expanded. Intraregional trade among the ASEAN members, while important, accounts for only about one-fifth of Southeast Asia’s total trade. Philippine trade within the region is especially small, reflecting its long-term orientation toward the United States. Far more important, therefore, is the trade with countries outside the region, dominated by that with Japan, Europe, and the United States; increasingly significant, however, is the trade with Taiwan, China (especially Hong Kong), and South Korea.

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