| With the rapid development of economic globalization since the latter half of 19th century, it has been increasingly developing towards a trend of regional economic integration. Today, as two trends of development of global economy, the economic globalization and regional economic integration is becoming an inevitable stream in the development process of global economy. Organizations of regional economic integration with various types, such as Free Trade Zone, Tariff Union and Common Market, were established one after another in Asia, Europe, Africa, Oceania as well as the trans-continental countries and areas.Northeast Asia is an important point in East Asia area, even in global economy. It includes some outstanding countries in this area such as Japan, the second largest economic entity; Korea, ranging in the list of countries with developed economy; and China, with a rapid raising economy. However, it is an exceptive area to develop regional economy without governmental cooperation in the world. According to the statistics, there are nearly 200 different investment arrangements for regional trade in the world, and maximum of countries have taken part in one or more free trade arrangements. While in Northeast Asia, only Japan and Korea just tend to start negotiations on free trade arrangements for bilateral trade without emerging of overall regional institutional arrangements. According to the main characteristics of the trend of economic regionalization initiated by market mechanism in Northeast Asia, the companies alternatively developed trade and investment in accordance with the market, resulting in the strengthened economic relations and high proportion of investment within the area. At the same time, with a certain development of all kinds of regional industries, various cooperation projects and "economic circles" with loose relations are established. Since the early 1990s, with the rapid development of economy, the extremely enlarged economic scale and the increase of market demands in China, it is more significant for Korea to make free trade with China. The growth of Korea economy and export can be droved by either the increase of domestic demand or expansion of export of China. The reconstruction problems on economic system, industrial structure and business system will be the holdback of the economic development of Korea. It is usually cost-high to implement the reconstruction within a single country, but the establishment of FTA among three countries (i.e. China, Korea and Japan) may accelerate the mutual trade and investment as well as the rearrangement of industries. As a result, the cost derived from reconstruction may be partly countervailed by the increase of economic efficiency, and then the reconstructions of three countries may be pushed forward. The resources can be collocated, either inter-industries or within industries, in accordance with compared superiority among three countries. For the work division of inter-industries, Japan is superior in fields of high-tech and service industries, while the labor-dense agriculture and manufacturing of China will be further developed, and the status of Korea is between that of China and Japan. The technology-dense and capital-dense industries will be restructured among three countries in the cases of enlarged market in this region and increasing competition from internal and external. For the work division within industries, China, Korea and Japan, in some industries with apparent efficiency on high value-added products and scaled economy, will cooperate in the areas of different aspects and different products in industrial chains. Therefore, it is absolutely necessary for Korea to choose more active and actual FTA policies to hold its long-term economic interests.To be consistent with the changes of international background aforementioned and prepare for the future economic development of Korea, this paper, briefing the status of FTA established in China, Japan and Korea, discussed the economic benefits from establishment of FTA, the p... |
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