...AN INTERNATIONAL COUNTRY CASE STUDY OF SOUTH KOREA [pic] PREPARED BY INTERNATIONAL TRADE & ECON 470 Table of Contents Introduction 1 International Trade Theory 3 Revealed Comparative Advantage 3 Resource Endowments 3 RCA VS Technology Resource Endowments 6 Implication 3 International Trade Policy 4 Tariff Policy 5 Government Corruption & International Trade Policy 6 Implication 3 International Monetary System 1 Balance of Payment 3 Currency Value 3 Implication 1 Conclusion 1 Suggestions for Further Research 3 Work Cited 5 APPENDIX Figure 1.1 1 Figure 1.2 1 Figure 2.1 1 Figure 2.2 1 Figure 3.1 1 Figure 3.2 1 Figure 4.1 1 Figure 4.2 1 Figure 5.1 1 Figure 5.2 1 Introduction Overview of South Korea South Korea is formally known as the republic of Korea is a country in East Asia. The country covers a land area of 99,392 Km square and a population of 49.3 million. The country constitutes the southern part of the Korean Peninsula. South Korea is a developed nation ranked at position fifteen. In terms of education, the country is not left behind as it ranks highly in terms of providing high quality education to its citizens. Proper and quality healthcare facilities are also available in the country. South Korea is my country of choice because I got attracted by the efforts the country has put into place to grow from the world poorest country to be among...
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...Bribery and corruption is a way of life in many countries. These practices affect the way international business is regularly conducted. However, in most of these countries, it is illegal to offer or receive bribes or engage in corrupt practices. Yet corrupt practices are a part of the ‘culture’ of ‘doing businesses. Unless companies ‘conform’ to such practices, in many cases, international business cannot be transacted. This paper will attempt to provide discussion about bribery and corruption in international trade example in vary different point of view in according to the principal ethical system suchlike religious, philosophical and ‘natural’. It will anayize the case of Siemens bribery scandal related to ethical issues. Bribery is a most important issue of concern to many companies. Incidents of bribery vary across many countries. Not everyone has the same opinion about this issue. Hong Kong and Greek managers are less critical of bribery in certain situations than Americas. Paying bribery carries with it a great risk to damaging the company reputation with the country which the briberies are paid and at home. Moreover, there is also the risk that the corporate culture of the company will become more open-minded of several of other practices at the legal issues. There is also evidence to suggest that those countries with the reputation for bribery and corruption damage themselves as it reflects in their economic growth has a low rates for high level of corruption. Corruption...
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...popularity with the people, allowing the CCP to gain the support of the people in the civil war. The inflation of prices signalling economic failure can be seen from the price index increasing from 249,100 in 1945 to 287,700,000 in 1948 which led to people being demoralised and the GMD government being discredited with their economic policies which in turn led to decreased popularity, shown by the main supporters of the GMD being rich landlords and the majority of peasants not supporting the GMD but instead supporting the CCP. However, political problems such as corruption in the officials were as significant as economic problems as it resulted in the GMD losing peasantry support. GMD officials that took control of Taiwan were corrupt and the people did not get benefits from the government and the loss of GMD from the peasantry can be substantiated by the 1947 rebellion in Taiwan in direct response to the corruption. In addition, the GMD army decreased from 4.8 million in 1946 to 1.5 million in 1949 while the PLA army increased from 1.2 million 1946 to 4 million in 1949 which shows the support of the peasantry wavered because...
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...Mexico Nowadays, there are several companies from USA that consider Mexico as one of the best places to invest Latin America, not only for being near USA, but also because the Mexican government has made major changes in order to keep the economy stable in the last years. Also, If we add that Mexico offers other advantages such as; the free trade agreements with USA, low labor cost (compared with USA), and the increase in the number of middle class, we might think that Mexico is one of the best countries to install this company. However, we have to consider that the corruption is still an issue, several companies take a long time to initiate activities due to bureaucracy, and the toll roads are expensive. From the economic point of view, we can consider that Mexico has grown steadily in recent years (around 3-4% per year), with a similar growth projection for the following year. Even though, Mexico has a moderately consolidate political party systems, and a low political consensus (this could not allow a successful prospects for economic reforms from Packenham model), it is projected that Mexico continues its economic growth, led by its president Enrique Peña Nieto. We must also consider that Mexico has a low probability of currency devaluation, because it has an autonomous central bank, flexible interest rate, among other factors, allowing considering Mexico as a business platform. Second, the power bargaining acquires relevant importance in the negotiation between this company...
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...problems in diverse cultures. One of the greatest implications is that you cannot market to Singapore the same way you would in the United States because both countries desire different things. Introduction This paper analyses the differences in marketing environments between Singapore and the United States, and is structured into five tables. Table 1 presents general differences between Singapore and the USA; it also gives information on both countries. For example, it shows the differences in land size, population, and GDP. Table 2 discusses trade relationship between Singapore and the USA. It explains the U.S. exports and imports from and to Singapore over the past five years. It also explains the key products and services that both countries export and import. Table 3 describes the differences in social/cultural environments between Singapore and the USA. It explains more about the differences in diversity, social class, and educational systems that both of these countries practice. Table 5 describes the differences in economic environment between Singapore and the USA. The table goes more into detail about...
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...In today’s world, more companies are selling their products globally in an effort to increase their revenue. For example, Johnson and Johnson whose domestic market is in USA now generate more revenue globally than its domestic revenue. The increase in its global business revenue has lead the company building factories strategically in different part of the world so that it will be able to streamline its logistic reaching target market. This can be said to many companies increasing their global business by building plants in other countries away from their local market especially in an undeveloped countries that are poor and corruption are high. All these factories that are been built around the world have led to mangers communicating with one another which can cause cultural conflict. The reason for the conflict is examines in an article called the cultural roots of ethical conflicts in global business. I grew up in Nigeria where the author wrote is far more corrupt than Finland. “Many of the people inhabiting poorer countries are more concerned with survival than success, the argument goes, and higher ethical standards are often considered a luxury people cannot afford" (Sanchez-Runde, Nardon and Steers 2013). For example, in Nigeria it is highly unlikely to import a product into the country without paying some kind of bribe to officials at the port authority who are paid low wages, and have to supplement their income with bribery for survival. A manger in Nigeria who works...
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...Relationship between Religion and International Trade Hilal AKINCI, Yeditepe University, İstanbul 2014 The main aim of this paper is to show whether or not religion has impacts on international trade and how it does happen. To do so, researches about the topic will be covered and some worldwide statistics are gathered together. Empirical Studies There are few empirical studies about impacts of religion on international trade or its relationship with international trade. In shared research of Emilia Justyna Powell, University Alabama, and Stephanie J. Rickard, London School of Economics, impacts of Islamic law on international trade is examined. Two models which are monadic and dyadic techniques are used in this study. The main purpose of them to demonstrate whether or not countries governed by Islamic law are effected regarding their international trade although they believe that “the importance of countries’ legal systems for trade has declined over time, possibly due to the increased role of international arbitration bodies and/or the standardization of international sales contracts (Powell & and Rickard, 2010). This research is important as being the first direct test of the effect of Islamic law on countries’ trade relations. The researched draws our attention to the situation that trade can be conceptualized as the aggregate flow of goods and services between countries but in fact that flows are a series of contracts between buyer and seller countries. Enforcement...
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...[pic] GROWING THE FUTURE, LEADING THE WORLD Morgan State University 1700 East Cold Spring Lane Baltimore, MD 21251 Project Charter “NZEMA SOLAR POWER PLANT” The Ghana Team Project SUBMITTED BY: MONSURAT BUCKNOR SEAN BOONE MORGANE’ COLE JUANITA SINGLETARY JONES DONISHA WHITE September 19, 2015 Project Charter The Ghana Project This Charter formally authorizes the Morgan State University Ghana Team to develop and implement a solar energy plant to be completed for the summer 2018 Ghana Development National Priority plan. This is a firm fixed price contract for $800 million dollars to be completed in two years. The government of Ghana has a strict mandate that all supplies and labor shall come from and within Ghana or from other West African countries and Ghana governance should be the prevailing rules of engagement. This project charter is being submitted to the Project Sponsor for approval. The project charter includes the following: Scope Statement; Identification of Project Manager; Assumptions; Constraints; and a Stakeholder Register. All resources will be assigned by the Project Sponsor, Dr. Steve Onu the Project Sponsor. I. Scope Statement The purpose of the Ghana Solar Energy Plant project is to construct a strategic regional $800 million Solar Energy Plant project in Ghana for the ECOWAS to be completed in two years utilizing Ghanaian resources under the strict governance of Ghana’s prevailing...
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...property, the copyright. Some norms of professional work of engineers are fixed in the administrative establishments regulating activity of this or that organization. Till certain time ethical standards can exist in a kind of "unwritten rules», but in process of expansion of sphere of social consequences of engineering activity, its complications and misbalance there is a necessity for specially developed and accurately formulated ethical codes. They, as a rule, correlate both with the legal legislation, and with administrative statutory acts, but appreciably reflect specificity of this or that engineering community, being public regulators of interaction of its members. Well-developed ethical codes exist in Germany, France, and the USA. So, in the USA numerous engineering both scientific trade unions and societies which unite under the aegis of three basic organizations operate: «the American Association of Engineering Societies», incorporating about 800000 members (engineers, designers, builders, etc.), «the American Society for Engineering Education» (10000 individual members and more than 300000 institutional) and «The American Association for the Advancement of Science» - 300 independent...
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...GENICON CASE 1.Evaluate GENICON international expansion so far. What are the main reasons it has been successful? GENICON international expansion has been successful because the international markets were expected to grow much faster than USA. This fact may seem unusual as the USA market of this kind of products is the largest all over the world. Another reason of the success of this firm was the transition of the European market for medical devices. These changes where produced because of the entrance of Tyco Healthcare, a global healthcare products company. This company sought favorable contracts with few distributors. The willingness to take GENICON's products increases and this fact helps the company success. Finally, another reason of success could be the strategy of the company, very focused of carrying out deep studies to choose the right countries. Factors as taxes, tariffs, regulations, exchange rates, etc. were taken into account. 2.Apply Country Portfolio Analysis (see Distance Still Matters) to the markets GENICON is considering entering. You may use the combination of industry statistics and country indicators (such as GDP per capita). Which country makes the most sense from this perspective? In order to study these countries we will focus on the GPD, GPD growth, GPD per capita, population and land. In the picture below we can see that China has the best numbers regarding GDP and its growth. Nevertheless, due to this large population the GDP per capita, data that...
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...but also valuable capital investments. Ethical challenges are however the most common and contentious. This is occasioned by differences in the requirements of home and host countries (DeGeorge, R.T. (15). For instance, friendly payments are called gift-giving in China while as in USA it is considered bribery. In addition, the religious beliefs of the majority in a country also influence its perception of business ethics. In India, for instance, it is unethical to eat beef; in Pakistan, it is abominable to eat pork. As such, companies must adhere to both the legal ethical requirements as well as societal ethical requirements to succeed in international markets. One major ethical difficulty is questionable payments. In many countries, especially in the East and in Africa, bribes and gift-giving are a social norm, especially for large value business deals. The Lockheed Corporation was locked in a devastating international corruption scandal in 1975-1977. The company had given millions of dollars in gifts to foreign government officials, including Japan and Holland, so as to secure an aircraft contract. While this may have been done in good faith, the USA viewed such an act in light of grave corruption. In the investigation by the Securities Exchange...
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...Corruption is an ongoing problem all over the world. From drug trafficking, to money laundering, to illegal activity with the environment, it seems it will never end. In a lot of places, the illegal activities and corruption move the economy, therefore there has not been anything done about it. The first article that I found to be interesting takes place in Saweto, Peru. Four men were killed there after trying to defend their land that they have called home for many years. Illegal logging has had many environmentalists killed in the past decade by harvesters. I found this article to be interesting for various reasons; one being the fact that I admire the people for fighting for what they believe in, along with defending their land although they lost their lives because of it. I think it’s prosperous that most of the authorities in Peru accept bribes and encourage it. As long as there is a lack of law enforcement handling this issue, the Amazon will continue to get destroyed and the consequences of illegal activity will be outweighed. Illegal logging threatens biodiversity, increases carbon emissions, and benefits criminal organizations at the expense over the population. I think we as a nation need to get the government to stop corruption all over the world through the criminal justice system. The second article I found interesting involves a whistleblower. Secretly taped conversations were being done between Federal Reserve and officials at Goldman Sachs Group Inc...
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...Corruption: Good or Evil Corruption in developing countries perpetuates to be one of the greatest factors of poverty, development and internecine conflicts. Although many developing nations are endowed with priced natural resources, yet they struggle and scramble for position in the lower rungs of the United Nations Development Index. Most developing countries perpetuate to grapple with the ever transmuting trends in global politics, economic and technological advancements having little or nothing to do due to the weakening effects of corruption on their very subsistence. From the USA to the Philippines, corruption perpetuates to have an adverse effect on the lives of the vast majority of the population. Understanding the concept of corruption presupposes that one should have a clear dichotomy of what it entails and what constitutes it in the simplest term. There is no single accepted definition for the term ‘corruption’ because what may seem corrupt in one society may not indispensably be perceived as such in another. Though there have been different endeavors to define it, there is no precise, clear definition that can be applied to all forms, types and degrees. According to Friedrich (1972), “Corruption is a kind of behavior which deviates from the norm actually prevalent or behaved to prevail in a given context, such as the political. It is deviant behavior associated with a particular motivation, namely that of private gain at public expense.” The Oxford English...
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...means in which society assimilates this nature is through the use of our legal system. It is commonly known that in civil litigation, the purpose punitive of damages is to punish the tortfeasor and to prevent him or her from performing such conduct. Punitive damages are to be paid by the tortfeasor to the victim. Aspects of punitive damages can vary from state to state, such as the amounts in which the tortfeasor owes to the victim. The purpose of punitive damages may be just in nature, it is however susceptible to exploitation and deception through instigation and other means by the victim. The notion of exploitation and deception in society is not just at all, it is in fact the source of corruption. In order to avoid corruption in society, it would be best to remove the source of this corruption, by altering the law in which the victim does not receive punitive damages. According to Victor E Schwartz, “In their origins, punitive damages were a helpful auxiliary to state criminal Law.” The very nature of punitive damages appears to be an incomplete method of judging as it may punish the guilty at hand; it also fails to recycle the damage in a proper manner. The first issue at hand with punitive damages being rewarded to the victim of a certain case is figuring out how much is being rewarded. Drastic rewards of punitive damages are often viewed as loopholes in the legal system and are a product of exploitation. A highly controversial case that concluded with a profound reward...
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...THE FIGHT AGAINST CORRUPTION. THROUGH MORE THAN 90 CHAPTERS WORLDWIDE AND AN INTERNATIONAL SECRETARIAT IN BERLIN, WE RAISE AWARENESS OF THE DAMAGING EFFECTS OF CORRUPTION AND WORK WITH PARTNERS IN GOVERNMENT, BUSINESS AND CIVIL SOCIETY TO DEVELOP AND IMPLEMENT EFFECTIVE MEASURES TO TACKLE IT. www.transparency.org WE ARE A GLOBAL MOVEMENT SHARING ONE VISION A WORLD IN WHICH GOVERNMENT, POLITICS, BUSINESS, CIVIL SOCIETY AND THE DAILY LIVES OF PEOPLE ARE FREE OF CORRUPTION Editors: Alice Harrison and Michael Sidwell Design: Sophie Everett Cover photo: © Reuters/Yannis Behrakis Every effort has been made to verify the accuracy of the information contained in this report. All information was believed to be correct as of June 2011. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts. ISBN: 978-3-935711-79-1 Printed on 100% recycled paper. ©2011 Transparency International. All rights reserved. This report provides a snapshot of how the Transparency International movement was active in the fight against corruption in 2010. For the purpose of conciseness, national chapters, national chapters in formation and national contacts are referred to as chapters, regardless of their status within Transparency International’s accreditation system. Visit www.transparency.org/chapters for their current status. WELCOME During 2010 we continued to see the terrible cost of corruption. Sixty-four million...
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