International Relation between India and Malaysia - Essay Example

?Challenges of globalization Introduction The issue of globalization process evokes a vivid discussion among different scientists and researchers. Nevertheless, it is interesting to focus in this issue on a specific background and on the example of a certain country or region and the way globalization influenced on it in the context of international business. Further discussion is based on international relation between Indi and Malaysia. These two countries provide us with challenging aspect of collaboration in terms of globalization processes and its implications to international business are of crucial importance for any world’s economy. Summary The article by Faizal Yahya “Challenges of Globalization: Malaysia and India Engagement” deals with international relations establishment between India and Malaysia in the context of globalization process. The coming challenges were facilitated in case bilateral and regional linkages would be intensified. The main emphasis in the article is made on ASEAN region as the main intensifier of inter-regional relations, business and trade. Malaysia is considered as the largest India’s coordinator and a facilitator of India’s integration into the ASEAN region. Moreover, it is interesting to consider international relations establishment between these two countries, as they are historically and culturally linked. Position of the author During the post-Cold War period, India made numerous attempts to increase economic linkages with economies of different countries. Nevertheless, its participation in SAARC has been stalled by complexities of India’s trade. Therefore, the author of the article makes an attempt to assess the challenges caused by globalization and their impact on India and Malaysia relations. It is evident, that the author considers India to be a perfect alternative trade area for the international business. He compares it with China and claims that India can play a role of a perfect rival at the international arena. Malaysia was chosen not unintentionally by the author as well: it is the largest trading partner in ASEAN. The Islamic identity of Malaysia is positioned by the author as a certain zest of the country. On the Islamic cultural and religious background Malaysia establishes its close relations with Pakistan, the country, which is the major rival for India in South Asia. Therefore, the author intrigues us by his dramatic background chosen for the discussion of international relations between India and Malaysia. Therefore, the author of the article makes an attempt to consider establishment of relations between Malaysia and India on a diversified cultural and historical background of the countries’ development. Though this article contributes to the field of international business, the main issues are highlighted in the culturally-marked context. Analysis of the issue The main interest of this issue can be explained by deep-rooted historical background of Malaysia’s history and culture. Nevertheless, starting from 60s this country did not make an attempt to preserve its national identity in spite of taking a chance to participate in the international trade. The main focus of Malaysia’s first Prime Minister was to place international relations above all other considerations. Another Prime Minister Mahathir made an attempt to introduce “Look East” policy. A need for Islamic unity was integral for Malaysia at that time. Therefore, it can be claimed that a twofold direction of Malaysia’s relation at the international arena have been historically chosen: to establish international business relations with Asian and foreign partners and preserve Islamic identity of the country at the same time. Concerning India, it should be noted that controversies with Pakistan occurred mainly because of Islamic traditions of the latter country. SAARC lacked economical progress because of controversies between India and Pakistan and at the same time India made attempts to foster relations with partners from ASEAN region. This strategy is supported by the author and it cannot go further without agreeing with him. The fact that India joined ASEAN region and developed its trade relations resulted in huge profits that mount end up to US$15 billion in 2004 in comparison with US$3.5 billion in 1994 (Faizal, 2005). This is the result of so-called Look East policy. Still, this policy came across both internal and external challenges. It is clearly shown in the article that external conflicts between India and Pakistan negatively influenced on active participation of India as ASEAN region member. The most beneficial stage of Look East policy for India occurred on the second stage of its development. During that period India made attempts to diversify trade ties in ASEAN region, but at the same time India and China relations were established at that stage as well. Military intentions of India and other countries from ASEAN region to become weighty rivals for China can be evaluated as a failed attempt to lose a reliable international business partner. It would be wiser of India’s government to support China or to contradict to this country in a hidden manner. Both, China and India are powerful countries of the Eastern world and it would be more effective to join each other in their alternative powerful positioning as two leading global economies of the modern world. Nevertheless, India chose the line of the least resistance and started invested its money in potentially profitable projects. Malaysia was chosen as a perfect country for India to invest its money into manufacturing sector and infrastructure projects. But the core interest between these two countries was found in the production and exporting of palm oil. Malaysia is the world’s greatest producer of palm oil and India is the largest exporter of it. However, this sphere of interest was not too beneficial both for India and Malaysia. A conflict over price of oil was triggered by the governments of the countries. Thus, another attempt to establish international business relations with Malaysia was challenged. India has then positioned itself as a great strategic player on the international business arena and took a position of an independent observer. As a result, the country came to the conclusion that there is a need to make investments in the spheres, where Malaysia is unique in its creative potential. Kuala Lumpur International Airport and Petronas Twin Tower in Kuala Lumpur have impressed India to the greatest extent. In this area India and Malaysia reached a mutual success. Still, their attempts to extend their international relations and collaborate in the spheres of telecommunications or ports failed. Moreover, the countries managed to reach collaborative success in IT sector. In spite of ill-treatment showed by Malaysians to Indian professionals in IT sphere, India did not lose this chance to establish international relations with Malaysia. Contribution to international business From economic perspective, Malaysia is not attracted to collaboration with India because of interests of gaining profits only. It is desirable for the country to restore historical and cultural linkages in the southern state in India. External conflicts constantly accompany India-Malaysia international relations, but it should be noted that the countries do not stop their collaboration but continue looking for new alternatives and prospects. Malaysia’s stand on Kashmir causes the main impact on India-Pakistan relations and Kuala Lumpur’s close relations with the Muslim world via membership in the Organization of Islamic Conference (OIC). Moreover, in spite of external conflicts between these two countries, Malaysia is one of the possible harbors for India’s economic security and partnership in the face of overall dominance of China. It is relevant to India to be more open to international relations with other countries except those included in ASEAN region. This is the right way to establish diversified international relations in terms of globalization process in the world. Works cited 1. Faizal, Yahya. “Challenges of Globalization: Malaysia and India Engagement”. Contemporary Southeast Asia (Dec 2005) 27 (3), pp. 472-498. Read More