...the KOSPI Index over a 2 week observation Apurva Joshi | F1601- Global Finance & Capital Markets |10/31/14| James Ryan KOSPI Index Introduction The Korea Composite Stock Price Index or KOSPI index is the Index of all common stocks traded in the Korea Exchange (KRX) which is based in South Korea created by the amalgamation of the Korea Stock Exchange, Korea Futures Exchange and KOSDAQ Stock Market under the Korea Stock & Futures Exchange Act. replacing the previous DOW-styled KCSPI. The Index is calculated based on market capitalization which makes it highly susceptible to the fortunes of its key market players. The Index is also sensitive to foreign markets as its key market players are heavily into the Electronics segment, where its key customers are based in Western Europe, North America and Australia.The Index's risk regarding market sentiment is also dependent on its relation with North Korea with whom South Korea has a history of war and recent skirmishes and its competition with Japan over the depreciating Yen. Rising Competition from India and mainly China have also pressurized South Korea's current position as the country with the largest weight in the MSCI Emerging Markets Index. Although new banking measures have been brought into place with the aim of strengthening the won which has depreciated greatly, the recent stream of cutting interest rates by South Korea's Central bank can cause heightened risks in the financial sectors if households increase...
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...for a new market. However, there seems to be evidence that some of these companies have been able to establish themselves in some foreign markets. For example, Tesco has failed in Japan but has proved to be a success in South Korea. Over this past century, there has been an evident emergence of multinational retail corporations. The general philosophy of these companies has been economically driven, that is, to prosper in terms of sales revenue and to expand globally while acquiring maximum market shares. The most dominant firm in this aspect is U.S. based Wal-Mart that leads with sales revenue exceeding $466.1 billion in 2012, followed by French based Carrefour with income of $112.6 billion (Forbes, 2013). They are trailed by U.K based Tesco at $96.8 billion and by Germany’s Metro in fourth place with sales of $90.5 billion (Forbes, 2013). The common strategy of these stated firms has been to target their marketing efforts towards rapidly emerging countries by investing in the establishment of foreign branches. An emerging market can be defined as an economy which is in the process of a shift into an open and global economy. There are numerous factors contributing to firms opting for ventures in these countries. According to Forbes (2013), emerging markets may contribute to nearly three quarters of the world economical growth for the coming years. Moreover, the Asian population, which represents almost half of the world’s population, is surrounded by emerging markets with countries...
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...“Hallyu” : Indo-Korean Relationship Rising up and up Indo Korean relationship- talented people are no less both in the land of Morning Calm (Republic of Korea) and the Land of Festivals and Spices (India). Economic ties are the bulwark of the Indo-Korean relationship. But surely there are other areas with potential for growth. South Korea's forte is in IT hardware manufacturing while India's is in IT services. In this respect, it is possible to produce synergy in the IT area between the two countries. Wave of Indo- Korea relationship looks forward to seeing the joint participation of software companies from both countries in building an IT infrastructure in India. South Korea and India, though geographically far apart, have shared close...
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...Shipbuilding & Marine Engineering (DSME) DSME is a shipbuilding company which enters to the wind sector and aiming to become world’s third largest production of wind energy equipment by 2020 and also planning to spread their business in USA. Doosan Heavy Industries & Construction Doosan started developing 3MW offshore wind turbines in 2006 and planning to develop more offshore projects. Hanjin Industries Hanjin Industries are the first company to produce 1.5MW wind turbine in Korea. (Heechan, K 2010) The level of competition among the companies against the Windstream is very aggressive. These private sector companies are seeking multilateral approach to acquire most modern technologies for the manufacture of the wind turbines and also getting financial aids from banks like World Bank and ADB to expand their business. Moreover, these companies also eyeing on foreign market such as USA and China, which dominant in wind energy sector and also have plans to export to Australia and South America which is developing at the moment. This has proven to be a major threat to Windstream industry as the competition is very tough. Even though the...
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...Ibrahim Masmoum Business Development in Emerging Economies 11 April 2014 A) In your opinion – What is the future of Emerging Economies? It seems almost impossible to deny that the emerging economies have a big future. In the last two decades, many developing countries have experienced economic growth and have come over many challenges such as social, political and technological. The economic growth is changing the outlook of those emerging markets. The future of developing countries is very promising and likely to bring large-scale developments and improvements for those emerging economies. Emerging economies are growing at a high rate, which is giving them an economic importance as their share of the world total GDP is still growing (IMF, 2014). However, many factors are challenging the rapid growth of emerging markets. In fact, in some countries such as Turkey and Brazil, it’s proving difficult to achieve a sustainable growth due to political risks. In terms of opportunities, emerging markets are the most promising because they are very rich in human resources (China and India) and natural resources (oil in Middle east and energy in Russia). The financial crisis in 2008-2009 has given the emerging markets more confidence to take the lead on the international level. In my opinion, the opportunities for emerging economies are big because they are experiencing a lot of social and political developments and on the long-term nations like China, India, Russia and Brazil...
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...Global strategy in emerging markets Suggested case discussion questions Q1 Explain how LG’s experience within its domestic market (South Korea) influenced how it expanded into the BRIC emerging economies All MNCs are shaped, to some degree, by their domestic markets. In LG’s case, its emergence in Korea during the decades following the Second World War strongly affected its ability to expand into the BRIC economies. The domestic Korean market was highly competitive, which helped hone its ability to enact “come from behind” approaches in other locations as it was used to having to fight its way to the top. The Korean Government placed strong emphasis on R&D within LG’s home economy, which had a double-effect on it. First, the importance of high quality R&D enabling quick and effective localization of products and services was always central to its approach to expanding its presence within the emerging economies – this runs counter to much perceived wisdom that suggests emerging economies do not have infrastructure to support such a policy. Second, it built on its experience of working with governments, which it then displayed most effectively in Brazil. The Korean Government encouraged foreign direct investment which saw LG partner with Hitachi of Japan, again, allowing it to develop valuable partnership experience that would be brought to bear on joint ventures within emerging economies. Lastly, emerging within an economically disadvantaged South Korean economy...
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...Global strategy in emerging markets Suggested case discussion questions Q1 Explain how LG’s experience within its domestic market (South Korea) influenced how it expanded into the BRIC emerging economies All MNCs are shaped, to some degree, by their domestic markets. In LG’s case, its emergence in Korea during the decades following the Second World War strongly affected its ability to expand into the BRIC economies. The domestic Korean market was highly competitive, which helped hone its ability to enact “come from behind” approaches in other locations as it was used to having to fight its way to the top. The Korean Government placed strong emphasis on R&D within LG’s home economy, which had a double-effect on it. First, the importance of high quality R&D enabling quick and effective localization of products and services was always central to its approach to expanding its presence within the emerging economies – this runs counter to much perceived wisdom that suggests emerging economies do not have infrastructure to support such a policy. Second, it built on its experience of working with governments, which it then displayed most effectively in Brazil. The Korean Government encouraged foreign direct investment which saw LG partner with Hitachi of Japan, again, allowing it to develop valuable partnership experience that would be brought to bear on joint ventures within emerging economies. Lastly, emerging within an economically disadvantaged South Korean economy gave...
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...Technology in South Korean Introduction The Republic of South Korea is one of the priority partners of the European Union (EU) in the global economy and has been historically known for technological innovation. Moreover, with a highly educated workforce and well equipped infrastructural facilities, the country is a favoured destination for R&D. The impressive economic and technological progress South Korea has been demonstrating for last several decades has brought the country to the forefront of the global powerhouses and South Korea is the most wired country, in terms of communications and internet facilities, in the world. The gap between innovation and commercialization is also very small in South Korea. Korea is also among the most technologically advanced and digitally connected countries in the world and a recognized market leader in electronics, mobile communication and the automotive sector. Current strengths ▪ Firm telecom sector South Korea has world's highest broadband internet subscription rate, while the country’s 68% mobile-phone penetration rate is also one of the highest in the world. South Korea also introduced the world's first commercial wireless broadband (WiBro), satellite digital media broadcast (DMB), and telephonic-DMB services. All these developments act as major attractions to foreign technology investors to set up their R&D centers in the country. ▪ Presence of large global and domestic players The powerhouses of South Korean economic growth...
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...mechanism behind Japanese foreign trade VS China & South Korea. Background information: After World War 2 japan recovered very rapidly and had economic boom. Japans economic growth was very high. Here is a table showing Japan’s economic growth. Behind this scenario were couple essential factors: JETRO- japans external trade organization, MITI- ministry of international trade and Industry, after renamed to METI- Ministry of Economy Trade and Industry, Sogo-Shosho independent trading houses, Japan bank for international corporation, Institute of developing economies under METI and Ministry of Finance. MITI: Combining to two different sectors under single ministry already emphasizes how long oriented and strategic meaning it carries. The main engine of Japanese economy was industry that includes- machinery, high-tech, etc… And coming to trade it is also main accumulator of Japans GPD. Japans economy relies on export mostly. Japan in early 80-90 had huge gap of budget surplus. It exported much more than it imported and that imbalance between export and imports directly influenced US economy. Japan had and still has very exclusive channel distribution. Foreign companies cannot directly sell to japan. There are many informal barriers for foreign companies. More than that Japanese companies used predatory pricing strategy wherever they go. They set aggressive pricing strategy against competitors that couldn’t survive in market. In addition to these, Japanese yen until Plaza Accord...
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...FTA: South Korea & The EU | | | Table of Contents Executive Summary 2 Introduction 4 International Trade between South Korea & the European Union 6 A Macroeconomic Analysis of South Korea 6 The Free Trade Agreement between South Korea & the EU 6 International Trade between SK & EU 9 Other FTA Examples of South-Korea 10 World Trade Organization (WTO): Position regarding Bilateral Agreements 11 Conclusion & Recommendations 14 References / Endnotes 15 Appendices 17 Executive Summary This report analyzes trade relations between South Korea, one of the four Asian dragons, with the European Union, which has the largest nominal GDP and GDP PPP in the world. South Korea's industrialization, urbanization and GDP are rapidly growing mainly because of its comparative advantage in manufacturing and exporting of technological goods, its political centralization also supports a clear coordination and effectiveness of laws reforms. However, its aging population, low fertility rates, recent decline in FDIs and unresolved political disputes with Democratic People's Republic of Korea should be amended in order to increase consumer confidence and improve its international potential. South Korea's main partners are the United States of America and the European Union. The EU-South Korea Free Trade Agreement (2011) offers, among other things, preferential import duties and liberalization in trade of services via provisions for intellectual...
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...Professor, Indira Institute of Management, Pune Email: dipanjay.bhalerao@indiraiimp.edu.in INTRODUCTION Today’s exponentially growing retail market of around USD 15 trillion (2011) is worth watching as lots of new practices and strategies are being adopted by the retailers around the world. Today there is an increasing need for every giant company to look for the emerging economies for growth. But in that growth pursuit are they slipping from the home grounds or the established markets! Also when the retail company enters into new established markets for expansion, they need to do something innovative which also suits those markets. So what should the retailers do to balance the growth of the established & emerging economies for the expansion! What provokes this thought is Tesco’s rare success in the Korean market. Why to call it rare! As Korea is the retail market where the Retail Giants like Carrefour had bowed to the knees in the battle of retail with the Korean retailer E- Mart, Lotte, the Market Retailer of Korea. Knowing such a market back ground Tesco did something, which stormed the market & brought Tesco into the big league of Korea. Before going into what Tesco did, let’s learn about Tesco and the Korean retail battle ground in light of the global retail scenario. Tesco History Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End. Over the years the business grew around the world in 14 countries with a team of over 500,000 people serving millions...
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...the “White Goods” market or the market for consumer appliances and gadgets. The company that is a South Korean family owned business has global aspirations and as the recent expansion into newer markets has shown, Samsung is not content with operating in some markets in the world but instead, wants to cover as many countries as possible. Therefore, the focus of this article is on the external environmental drivers of Samsung’s strategy. Political In most of the markets where Samsung operates, the political environment is conducive to its operations and though there are minor irritants in some of the foreign markets like India, overall Samsung can be said to be operating in markets where the political factors are benign. However, in recent months, it has faced significant political headwinds in its home country of South Korea because of the country’s tensions with North Korea wherein the company has had to take into account not only the political instability but also the threat of war breaking out in the Korean Peninsula. Apart from this, Samsung faces political pressures in many African and Latin American countries where the political environment is unstable and prone to frequent changes in the governing structures. Of course, this is not yet a major cause for worry as the company has more or less factored the political instability into its strategic calculations. Economic This dimension is especially critical for Samsung, as the opening up of many markets in the developing...
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...Sheet August 2010 Key Statistics: Regional Population: Mobile Broadband Connections: Mobile Broadband Penetration: Number of HSPA Networks: 3,630,845,3401 97,116,3002 2.67%3 63 Number of HSPA+ Networks: Number of Planned LTE Networks: Highest Mobile Broadband Connections: Top Mobile Broadband Penetration: 7 26 South Korea (27,783,865)2 South Korea (57.13%)3 Regional Monthly Growth in HSPA connections: 773,8024 Asia-Pacific Region Mobile Broadband Landscape A “Gulf” in Mobile Broadband The Asia-Pacific is a region notable by its countries being at different stages in their “communications evolution”: 1. Australia and New Zealand are seen as mature markets and part of the GSM/UMTS/ HSPA/LTE family of technologies 2. Countries such as Japan and Korea are advanced and mature and have often developed their own standards/solutions in the past but now appear to be converging on LTE 3. Countries such as India, Pakistan, Bangladesh, Vietnam and Indonesia are emerging markets with a high percentage of their consumers on lower average income but play a major part in the GSM/UMTS/HSPA/LTE family 4. Countries such as China are an emerging market with tremendous size and growth potential. However, have individual approaches to harmonised technology and/or spectrum usage. Mobile Broadband in the Asia-Pacific Region 1 2 3 4 CIA World Factbook (Estimate June 2010) Wireless Intelligence (Q1 2010) Wireless Intelligence & CIA World Factbook Combined Data Calculated from monthly...
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...GLT1 Task 1 Western Governors University Examples of Globalization’s Impact Native non-Western culture is a body of ideas and values derived fundamentally from mysticism or subjectivism, as opposed to reason. Two examples of native non-western cultures that have been impacted by globalization are South Korea and China. Circumstances Before and After Event Prior to globalization South Korea has a GDP per captita of about one-third of nearby developed Asian economies such as Singapore, Hong Kong, and Japan. South Korea is a historical recipient of official development assistance (ODA) from organization for economic co-operation and development (OECD). After globalization the country’s GDP has increased from $88 billion to $1,460 billion. South Korea has advanced into a developed economy. The GDP per capita of South Korea is now almost thirteen times what it was thirty years ago. Now, South Korea has become the first major recipient of ODA to have ascended to the status of a major donor of ODA. (Wikipedia website, n.d.) China used to be the world’s most important opponent of globalization. China believed that global disorder was a good thing. They tried socialism, capitalism, empire, republic, warlords, religious fundamentalism, but all failed. Alienation was so severe, that much of the country accepted that the world economic and political order, and the Chinese economic and political order, were so stacked against them that any path to success had to start with...
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...in the “White Goods” market or the market for consumer appliances and gadgets. The company that is a South Korean family owned business has global aspirations and as the recent expansion into newer markets has shown, Samsung is not content with operating in some markets in the world but instead, wants to cover as many countries as possible. Therefore, the focus of this article is on the external environmental drivers of Samsung’s strategy. Political In most of the markets where Samsung operates, the political environment is conducive to its operations and though there are minor irritants in some of the foreign markets like India, overall Samsung can be said to be operating in markets where the political factors are benign. However, in recent months, it has faced significant political headwinds in its home country of South Korea because of the country’s tensions with North Korea wherein the company has had to take into account not only the political instability but also the threat of war breaking out in the Korean Peninsula. Apart from this, Samsung faces political pressures in many African and Latin American countries where the political environment is unstable and prone to frequent changes in the governing structures. Of course, this is not yet a major cause for worry as the company has more or less factored the political instability into its strategic calculations. Economic This dimension is especially critical for Samsung, as the opening up of many markets in the developing world...
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