...I. Stoplet-Samuelson Theorem In order to understand the Stoplet-Samuelson Theorem we need to understand the Hekscher-Ohlin model first, as the theorem is within the context of that model. In that model there are two countries with different factor endowments, one capital abundant and the other one labor abundant. There are two products, one capital intensive and the other one labor intensive. There are two factors, one is labor and the other one is capital. In this context, the theorem shows that there is a positive relationship between the changes of the price of an output and the changes in the price of input factor used in a higher percentage (intensively) (for example: labor intensive or capital intensive) in producing the final product. And there is a negative relationship between changes in the price of an output and changes in the price of the factor not used intensively in producing that product. To explain the theorem, we can have a look at the real world and think about what happens when the U.S. ( a capital abundant and labor scarce country) takes part of the international trade. Would the high-waged labor lose because of international trade? This is the first thing I would ask myself, and it seems to be logical that labor will lose competitiveness with other labor abundant countries, and therefore labor would lose because of international trade. Samuelson and Stolper demonstrated that free trade lowers the real wage of the scarce factor and raises that of...
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...The Korean War was a period of military conflict between North Korea (Democratic People’s Republic of Korea) and South Korea (Republic of Korea) with many casualties when North Korea invaded South Korea on June 25th, 1950. It was foremost a civil war that demonstrated an incomparable battle between North and South Korea and their attempts to reclaim Korea under each own government. North Korea under the leadership of Kim-Il Sung committed to uniting both halves of Korea under communist rule with the intervention and support of the Soviet Union’s prominent leader Joseph Stalin. Meanwhile, South Korea was a nationalist nation, with an anti-communist government under the leadership of President Syngman Rhee and received economic assistance from...
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...Lindsey Vonn has competed in the 2002, 2006, 2010 and now will be competing in the 2018 Winter Olympics, in PyeongChang, South Korea. Unfortunately she couldn’t do the 2014 Olympics because she injured her knee again. Vonn, three-time Olympian skier, states, “I won’t be representing US President at Winter Olympics.” Vonn has competed in the 2002, 2006, 2010 and now will be competing in the 2018 Winter Olympics, in PyeongChang, South Korea. Unfortunately she couldn’t do the 2014 Olympics because she injured her knee again. The statement that was just posted at 12:43 p.m., Thursday, December 7th, 2017 has everyone talking. CNN news posted about Vonn statement and why she said that. CNN has Vonn saying, “Well I hope to represent the people...
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...1- Governance Indicators in Japan Sourced from Finance for Australian Exporters, 2015 Additionally, the World Bank has also rated Japan 29th out of 189 economies in ease of doing business. Australia has a major foreign trade incentive with Japan as the free trade agreement between Australia and Japan which came into effect in January 2015 allows 97% of Australian exports preferential treatment or duty free access into Japanese markets (Export Credit Agency, 2015). Japans stable political environment and Australia’s positive relationship positions the country’s political risk as low. 3.2 Political Environment and Risk in South Korea According to World Bank, South Korea scores in the top 50% in all areas of governance, however it is not quite up to par with other advanced economies (refer to figure 2). The instability in North Korea does, however, pose the most significant circumstantial risk. Paired with the deterioration with South...
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..."protectorate", "sphere of influence", and concession which minimized the need for direct military conflict between competing European powers. The newly modernized Meiji government of Japan sought to join these colonizing efforts and initiated discussions (Seikanron|(lit. "subdue Korea")) in Japan in 1873. This effort was allegedly fueled by Saigō Takamori and his supporters who insisted that Japan confront Korea's refusal to recognize the legitimacy of Emperor Meiji as ruler of the Empire of Japan, as well as for supposed insulting treatment meted out to Japanese envoys attempting to establish trade and diplomatic relations. In fact the debate concerned Korea, then in the sphere of influence of China's Qing Dynasty which elements in the Japanese government sought to separate from Chinese influence and establish as a Japanese satellite.[8] Those in favor also saw the issue as an opportunity to find meaningful employment for the thousands of out-of-work samurai, who had lost most of their income and social standing in the new Meiji socioeconomic order. Further, the acquisition of Korea would provide both a foothold on the Asian continent for Japanese expansion as well as a rich source of raw materials for Japanese industry. The arguments against such designs were outlined in Okubo Toshimichi's "7 Point Document", dated October 1873, in which he argued that action against Korea was premature as Japan, itself, was in the stages of modernization and an expedition would be far too costly...
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...Displays Overview of Korea’s Industries 2012 PROMISING INVESTMENT OPPORTUNITIES 02_ Overall Status of the Display Industry 04_ Characteristics of the Display Industry 13_ Investment by Foreign Companies Display Industry 02 03 1. Overall Status of the Display Industry 1. Overall Status of the Display Industry Flat-Panel Display (FPD) Market and Technologies ·The flat-panel display (FPD) market is growing based on the competitiveness of three major technologies: thin-film transistor-liquid crystal displays (TFT-LCD), plasma display panels (PDP) and organic light-emitting diodes (OLED). ·TFT-LCD has the largest market. The technology dominates the market, as it can be used in different types of applications, ranging from small devices including mobile phones to large appliances including televisions. ·PDP differs from LCD in that it does not need back light because it is self-luminous. Its use is limited to large applications such as televisions because the technology cannot be applied to small devices. It consumes more electricity than LCD. ·OLED is also self-luminous, and its use is limited to small devices such as mobile phones, as research is still underway to apply the technology to larger devices. OLED is lighter and consumes less electricity than LCD. It has great potential due to its simple structure and focus on materials, and it is praised as the foundation for flexible display, which is expected to lead the future. OLED is drawing attention...
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...JBR-07661; No of Pages 11 Journal of Business Research xxx (2012) xxx–xxx Contents lists available at SciVerse ScienceDirect Journal of Business Research Antecedents and outcomes of strategic thinking Byeong-Joon Moon ⁎ Kyung Hee University, Republic of Korea, School of Management, Kyung Hee University, Republic of Korea a r t i c l e i n f o a b s t r a c t This study focuses on the factors that influence strategic thinking at the organizational level. Based on previous research on strategic thinking in diverse management fields including marketing strategy, strategic management, and human resource management, this research provides a hypothetical model that links the firm's internal and external variables regarding strategic thinking at the organizational level, which in turn links to marketing performance. The results of empirical analysis provide evidence that the attitude of firms' management toward risk taking, the CEO's emphasis on strategic thinking, interdepartmental teams in the organization, and marketing competency foster strategic thinking at the organizational level, but formalization in the organizational structure impedes it. Contrary to the proposed hypotheses, centralization in the organizational structure is positively related to strategic thinking at the organizational level. The results also show that market turbulence and technological turbulence foster strategic thinking at the organizational level and there is a positive relationship between...
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...material seen in class? ① Comparative Advantage -Korea should specialize in the production of color TVs and United States should specialize in the production of agricultural products according to comparative advantage. This is because comparative advantage says that a country should produce goods that it can produce more efficiently and buy the goods that it produces less efficiently from other countries. -In the passage, it says that people in Korea and the United States often thought of trade as an economic war, rather than a ‘win-win’ situation for all. However, this is totally wrong. If the countries specialize in the production according to the comparative advantage, then the potential world production would be greater with unrestricted free trade than it is with restricted trade. ② Ad Valorem Tariff -An ad valorem tariff is levied on the color TVs. The reason for this is that United States wouldn’t apply tax as a fixed charge for each kilogram of the TVs. ③ VER -A Voluntary Export Restraint works like an import quota and Korea voluntarily restricted its exports to United States under its request after becoming a major exporter of color television receivers. Following the repeal of the VER in 1982, the export volume rose greatly and this shows that VER was binding or effective. Also we can say that for United States, it was more costly compared to a tariff as revenue under a tariff becomes rents earned by Korea. ④ Quota -In the passage, it says that agriculture...
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..."modernity”. The Hyundai cars are simple, resilient and known for their low cost. Created in the middle of the country’s recovery after the Korean War, Hyundai received help from Ford, which through its subsidiaries in the UK, helped to set up its manufacturing plant. The brand was born in 1947 by Chung Ju-yung, Son of North Korean peasant farmers; dominant figure in the Korean economy from 1960 until his death in 2001. Hyundai built its first car in 1968, the “Cortina”, a compact sedan under Ford license. In 1975, Hyundai made its first own model, the Pony, in collaboration with Mitsubishi and the firm “Italdesign” of Turin. Currently, Hyundai has one of the most respected research and development centers of the industry. In 1997, South Korea suffered of a serious financial crisis which also affected the automotive industry involving the Daewoo’s bankrupt (now part of General Motors). Hyundai overcame the crisis, but it was forced to divide its many operations (construction, banking, petrochemicals, logistics, shipbuilding, etc...) into 5 separate companies. One of these, the most internationally known, is the Hyundai Motor Group which now includes the brand Kia. The company has been one of the most influential industrial conglomerates in South Korea's economy. And currently, it’s the second-largest chaebol behind Samsung. The 6 major group companies are: • Group Hyundai: Hyundai's original company, founded in 1947 as a company infrastructure construction. It is dedicated...
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...local buying patterns, etc. For example, where Wal-Mart was successful (China and Mexico), it adapted to meet the needs of the local shopper. In Mexico, Wal-Mart hired local managers to help it find ways to adapt to the local culture and to better meet the needs of local shoppers, it provided smaller stores that people could walk that were stocked with more fresh produce. In China, Wal-Mart redesigned meat packaging and offered live fish that the buyer could net and take home for dinner that day. This practice made Wal-Mart more appealing to the Chinese shopper because they prefer fresh meat and fish. In the countries in which Wal-Mart failed (Germany and South Korea), it failed to adjust its discount strategy that had previously worked but did not appeal to the local shoppers. The shoppers in Germany and South Korea preferred to shop at rival stores that stocked higher quality merchandise. Potentially Wal-Mart might have succeeded in these countries had it been willing to stock some higher quality merchandise; however, this would be counter to the strategy that has proved to be so successful for the company otherwise. 2. Why do you think Wal-Mart was successful in Mexico? Wal-Mart was successful in Mexico is because it was willing to move in cautiously, adapt to the preferences of local buyers, and partner with local retailer, Cifra. Wal-Mart adeptly uncovered that having large stores that sold large packaged products would not be successful in Mexico. People there wanted...
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...Kingdom. In March of 1997, Cocoa Bio started working to offer us this kind of products to a marketing expansion. In this essay, I will focus on expanding this brand to South Korean in which has not been covered yet. I will use PESTEL analysis macro environment, then discuss market entry modes and market mix strategy, and last, I will propose which one to choose, standardization or adaptation. PESTEL analysis Political factors South Korea is government-led market economy. The economic aspect of the direction and development depends on government’s unilateral command, because of its highly centralized system of government. The most cannot be ignored problem is substantial degree of selective state intervention in the private sector. It is an obstacle for Cocoa Bio market entry and penetration. Besides, South Korean market has relatively limited volume, and it mainly relies on foreign trade to accelerate economy, therefore the government is quite sensitive to imported goods. Furthermore, Protection of homegrown company is quite common in South Korea. Imported goods are hard to occupy local share of the market under the pressure of protection policies of local products. Lee, Y. and Trim, P. (2008). This is not conducive to Cocoa Bio with establish brand image. Nevertheless, the attitude of government towards import has changed. In recent years, t it gives more lenient policy to import market. Moreover, the South Korean...
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...Samsung Electronics Prepared by: M. O. Prepared for: Dr. N. C. Course: Organizational Strategy, MGM 6123, Fall 2009 [pic] Date: October 5, 2009 H. State University Samsung Group is one of the leading global conglomerates originating in South Korea, termed chaebol in native terms. Their sales in 2004 climbed to $134billion with 337 overseas operations in 58 countries and they employed 212,000 people worldwide. They have myriads of businesses in a wide variety of industry sectors including electronics, finance, trade and services (Siegel and Chang, 2005). In 1974 a semiconductor company in South Korea started ‘wafer’ production. This was purchased by Samsung Company who merged the semiconductor company with their electronics division to form a ‘global powerhouse’ (Siegel and Chang, 2005). They started with producing watch chips. In the 1980s, semiconductor was decided to be the future of Samsung Group. And the company gave most of its resources to this ‘star affiliate’ (Siegel and Chang, 2005). During 1983 to 1985, Intel exited the DRAM market. Samsung still held on despite incurring losses hoping that it would someday pay off. Their persistence paid off in later years. Samsung built its first large plant in the mid 1980s. Building a semiconductor facility is difficult and time consuming, because of high sensitivity to dust and electric shock. But the Samsung workers, from the executives, engineers, down to the field laborers, were highly dedicated. One memorable...
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...Discuss the antecedents of International Business Models. International business models can be classified into two main categories: country-based theories and firm-based theories. Country-based theories view business in a macro perspective from a point a view of a nation and focus on trading phenomenon particularly in exports and imports. While firm-based theories are modern theories that emerged after the Second World War as it views business in a micro perspective from the angle of a firm. Despite the different perspectives of firm-based theories and country-based theories, they are interlinked and complement each other. The firm-based theories were developed from classic country-based theories and supported with empirical research. Country-based theories are international business theories that argue on the evolvement of business since the 16th century. The theories are classical theories that derived from an economic perspective. There are 4 theories involved in country-based theories. They are Mercantilism Theory, Absolute Advantage Theory, Comparative Advantage Theory and Heckscher-Ohlin Theory. Firm-based theories attempt to explain business phenomena related to international trade. Mercantilism theory was the first theory of international business that emerged in England in the mid of 16th century. The principal affirmation of the theory was its gold and silver were the mainstays of national wealth and essential to dynamic business. It was a political economy...
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...International Telecommunications Union. 2003. Broadband Korea: Internet Case Study. South Korea Available at: http://www.itu.int/ITUD/ict/cs/korea/material/CS_KOR.pdf Viewed on 12/10/06 National Internet Development Agency of Korea. 2006. Korea Internet Whitepaper. Seoul, South Korea, Available at: http://eng.mic.go.kr/eng/user.tdf?a=user.board.BoardApp&c=2001&board_id=E_04_03&mc=E_04_03_01&ctx=annual_report Viewed on 9/10/06 National Computerization Authority. 2001. 2001 Korea Internet White Paper. Available at: www.nca.or.kr/white/data/2002engwhite/review.pdf Viewed on 12/10/06 DTI / Brunel University. 2002. INVESTIGATING BROADBAND DEPLOYMENT IN SOUTH KOREA: Broadband Mission to South Korea. Available at: www.broadbanduk.org/reports/SKorea_report.pdf Viewed on 08/10/06 Yun, K., Lee, H., Lim, S., 2002. The Growth of Broadband Internet Connections in South Korea: Contributing Factors. Available at: www.iisdb.stanford.edu/pubs/20032/Yun.pdf Viewed on 09/10/06 Communicaid Global Communication. 2006. Doing Business in South Korea. Available at: http://www.communicaid.com/south-korea-business-culture.asp Viewed on 08/10/06 World Broadband Yearbook 2006. 2006. Country Overview: South Korea. Available at: www.telegeography.com/products/broadband_yearbook/pdf/wb06_skorea.pdf Viewed on 08/10/06 Ministry of Information and Communication (MIC) and National Computerization Agency (NCA), 2002. 2002 Korea Internet White Paper. Avaliable at: www.mic.go.kr Viewed...
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...Vizio and the Market for Flat panel TVs They begin as glass panels that are manufactured in high tech fabrication centers in South Korea, Taiwan, and Japan. Operating sophisticated tooling in environments that must be kept absolutely clean, these factories produce sheets of glass twice as large as king size beds to exacting specifications. From there, the glass panels travel to the Mexican plant located alongside the U.S border. There they are cut to size, combined with electronic components shipped in from Asia and the United States, assembled into finished TVs, and located onto trucks bound for retail stores in United States. It’s a huge business. U.S consumers spend over $35 billion a year on flat panel TVs. The underlying technology for flat panel displays was invented in the United States in the late 1960s by RCA. But after RCA and rivals Westinghouse and Xerox opted not to pursue the technology, the Japanese company Sharp made aggressive investments in flat panel displays. By the early 1990s Sharp was selling the first flat panel screens, but as the Japanese economy plunged into a decade-long recession, investment leadership shifted to South Korean companies such as Samsung. Then the 1997 Asian crisis hit Korea hard, and Taiwanese companies seized leadership. Today, Chinese companies are starting to elbow their way into the flat panel display manufacturing business. As production for flat panel displays migrate its way around the globe to low cost locations, there are...
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