...Executive Summary Foreign trade has been considered as an engine of economic growth. The progress of a country to a large extent depends on their ability to trade relatively freely with the rest of world. The rapid export growth not only contributes directly to economic growth but it permits more imports and rapid modernization of production. It is necessary to understand Indian Fertilizers Industry position in world trade and their promotional strategy for integrating India with the world trade. In terms of Indian Fertilizer Industry, Composition of Foreign Trade, Direction of Exports and Imports and Major Problems of Indian Fertilizer Export Sector will be analyzed. Overall the industry specific export-import scenario, avenues and prospects, India’s competitive advantages and disadvantages and suitable export strategies to boost the exports of carpet related products will be discussed. Though economic relations between India and Korea have been strengthening, the current size of trade and investment between the two countries is relatively low compared to the size and structural complementarities of the two economies. In this context, the present paper analyses trade and investment relations and explores future areas of potential co-operation between India and Korea. We find that the increase in merchandise trade between the two countries has been mainly because of the changing demand structure and comparative advantages of both the economies in complementary sectors in...
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...302 Danmeng Yin U.S. Korea Trade Agreement and Arizona The U.S.-Korea Trade Agreement is an integral part of the President’s efforts to increase opportunities for U.S. business, farmers and workers through improved access for their products and services in foreign markets. The KORUS Agreement supports the President’s National Export Initiative goal of doubling of U.S. exports in five years. It would also promote the further integration of the U.S. and Korean economies and enhance the competitiveness of U.S. business in the world’s 12th largest economy. For agricultural products, the KORUS Agreement would immediately eliminate or phase out tariffs and quotas on a broad range of products, with almost two-thirds of Korea’s agriculture imports from the United States becoming duty free upon entry into force. Effective March 15, 2012 entry into force of the U.S.-Korea Free Trade Agreement (KORUS) marks a historic milestone in the economic integration of the United States and Korea. Companies with U.S.-Korea business interests should carefully plan to take full advantage of the many opportunities KORUS presents. Effective March 15, 2012, with justifiable fanfare, the United States and South Korea bring into force the U.S.-Korea Free Trade Agreement (KORUS), marking an important and historic milestone in the economic integration of these two major trading partners. With two-way trade already valued at more than US$85 billion annually...
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...Would free trade agreements improve international trade by encouraging foreign direct investments and opening new markets (Name) (University) Table of contents 1 Introduction……………………………………………………………………………………...3 2 Literature review………………………………………………………………………………..3 2.1 The Changing Landscape of Regional Trade Agreements ……………………………...……3 2.1.1 Introduction………………………………………………………………………………….3 2.1.2 Evolution of the RTAs Landscape………………………………………………….……….4 2.1.3 Conclusion………………………………………………………………………………...6 2.1 Integrating Free Trade Agreements and the politics of Free trade Agreements…………….7 2.2.1 Introduction…………………………………………………………………………………7 2.2.2 MENA Region………………………………………………………………………………8 2.2.4 Conclusion………………………………………………………………………………...9 2.3 Arab Free Trade Area: Potentialities and Effects and the Impact of regional Trade Agreement and Trade Facilitation in the Middle East North Africa region…………………….10 2.3.1 Introduction………………………………………………………………………………..10 2.3.2 The Past……………………………………………………………………………………11 2.3.3 Conclusion…………………………………………………………………………………13 2.4 The North American Free Trade Agreement:Economic impacts of the agreement on United States of America and Mexico in comparison…………………………………………………14 2.4.1Introduction………………………………………………………………………………..14 2.4.2 About NAFTA……………………………………………………………………………15 2.4.3 Conclusion ……………………………………………………………………………….16 2.5 Effects of changes to USA-Korea Free Trade Agreements[FTA] On The Passenger Vehicle sector……………………………………………………………………………………………17...
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...2-International trade policies formation and implementation. On a first time The Republic of Korea has been a APEC (Asia-Pacific Economic Cooperation) member since 1989. APEC aims at improving international trade and investment liberalization by reducing trade barriers, business facilitation thanks to business transactions cost reduction and finally increase economic and technical collaboration between countries. Then in 1995 South Korea became a member of WTO (World Trade Organization) which intend to supervise international trade. It provides a framework for negotiating and formalizing trade agreements The year after the country became a member of OECD (composed by 34 nearly all developed countries) which provides each country members tools to monitor and analyze their economic policies. As an example, in 2012 during the OECD's Ministerial Council Meeting, held in Paris, The Republic of Korea participated to the adoption of policies regarding international growth and employment. This means South Korea decided to increase its globalization and overall competitiveness of its economy. Since the creation of the Free Trade Area Roadmap (2002-2003), Republic of Korea has vigorously pursued collaborations with its most important partners. Up to now, FTA (Free Trade Agreement) were signed with India, Peru, Singapore, Chile, ASEAN, European Union, United States and EFTA (European Free Trade Association) which is an intergovernmental organization composed by Iceland, Liechtenstein...
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...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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...YuFong Fan (ID No. 0655330) & Jitin Kochhar (ID No. 0654351) ITM151: Global Trade Research Assignment #2 Research Outline 1 Oct. 14, 2012 Professor Floyd Simpkins St. Clair College COUNTRY A: JAPAN 1. Political Environment Political Stability: Political stability of the country indicates towards the positive or negative affect on the Trade of a particular product. Our product is Canadian chocolate which can have a great potential to perform business in Japanese market because of its strong Political Stability. The Political Stability is based on a given country's record of peaceful transitions of power, ability of a government to stay in office and carry out its policies vis a vis risk credible risks of government collapse. Japan’s Political Stability index is 9 on a scale of 10. This shows a high Political stability. (Watch, 2011-2012) Barrier: Import Tariff Rate: 10% (Tariff, 2011) Risks: • Strict Trade policy for chocolate trading. • Diplomatic events in surrounding countries, results in less trade. Opportunities: Japan is the world’s fifth largest agri-food importer and one of the most significant export destinations for Canadian agri-food products. More and more Japanese consumers are willing to pay a premium price for quality food with healthy ingredients, as these consumers are increasingly interested in their health. This makes Japan a potentially attractive market for Canadian exporters of high-quality chocolate...
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...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 has always had a special place in Korea, and the political institutions and even consumers would support protection for agricultural goods in order to protect the farmers. Actually Korea applies quota system...
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...| | | 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 property, public procurement, competition...
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...Chapter 7 Government Intervention in International Business GOVERNMENT INTERVENTION 1. In a short essay, describe two methods of government intervention. What is the purpose of government intervention in international business? Answer Government intervention is often manifested as protectionism. Protectionism refers to national economic policies designed to restrict free trade and protect domestic industries from foreign competition. Protectionism often leads to two types of intervention: tariffs and nontariff barriers. A tariff is a tax imposed by government on imported products, effectively increasing cost of acquisition for the customer. A nontariff trade barrier, such as a quota, is a government policy, regulation, or procedure that impedes trade through means other than explicit tariffs. Governments intervene in trade and investment to achieve political, social, or economic objectives. Barriers are often applied to benefit specific interest groups, such as domestic firms, industries, and labor unions. A key rationale is to create jobs by protecting industries from foreign competition. Governments may also intervene to support home-grown industries or firms. In various ways, government intervention alters the competitive positions of companies and industries, and the status of citizens. (pp. 195-196; concept; Learning Objective 1; moderate; AACSB: Analytic Skills) RATIONALE FOR GOVERNMENT INTERVENTION 2. In a short essay, explain the four main motives for...
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...contribution of government policy at the broad macro level and at the sector level in Samsung’s technological learning? By the 1980s, Korean government had made it clear through a “pre-announcement system” that quantitative control and tariff cutting would be eliminated. Firms were thus given time to prepare and to adjust production systems for efficiency Protection and subsidies were not without a prize. The State imposed performance standards by which export performance was the “ultimate criterion of performance for the contest”, Lee (1997). Export criterion was in fact the key determinant of the relationship between the state and the enterprises. In other words, protection did not translate to complacency but was used to facilitate maturation and the attainment of international competitiveness. Still, the government of South Korea has had and continues to have a strong influence on business development in the nation. Beginning in the 1960s the government of South Korea began to formulate an industrial policy by which it established target industries and even target companies. These target industries and companies received special aid from the government to help nurture their growth. Under both Presidents Park Chung Hee and Chun Doo-Hwan, five-year plans were established to ensure the economic well-being of these companies through subsidies, tax relief, and protective tariffs. These policies contributed in part to the subsequent success of the Korean giant trading companies...
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...2000-Onwards: Post Liberalization Phase-2 6 Japanese Investment in India - Past and Present 8 Overseas Development Assistance (ODA) 8 FOREIGN DIRECT INVESTMENT (FDI) FROM JAPAN 8 SECTOR-WISE DISTRIBUTION OF FDI INFLOWS 8 Why was Japanese FDI less? 9 India as a manufacturing hub for global exports 10 R&D facility in India 11 Japanese vs. Koreans (Strategies to replace the incumbent Koreans) 12 Summary 13 References 13 The FDI decision of a firm is guided by the OLI model as discussed by Dunning. We tried to study the OLI advantages enjoyed by the Japanese firms that invest through FDI in India. We studied the Japanese firms in the white goods industry namely Sony, Daikin, Hitachi, Sharp, Toshiba and Panasonic. Ownership Advantage Most of these firms, when it comes to ownership or firm specific advantages score very high. They have a wide array of monopolistic advantages like patents, IPR, brand name as well as advanced technology advantages as a result of huge R&D facilities at home and other locations. These firms also enjoy economies of scale and scope. They also benefit from the international diversification of risks and assets. These firms have a global supply chain network in place along with the best managerial practices. These ownership advantages help these firms to compete with the local players and compensate for the advantages that the local players enjoy in terms of local market knowledge, cultural and language benefits, etc. Some of...
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...012-IBE-CaseStudies.docx Academic Year 2011-2012 International Business Environment Jean-Guillaume DITTER, PhD Groupe ESC Dijon Bourgogne – Burgundy School of Business SUPPORT DOCUMENT I - CASE STUDIES The texts making-up this document review and emphasize significant issues covered during the sessions. The questions asked at the beginning of each set of texts are meant to help students identify the issues that they should pay attention to. Students will work in teams on one single case study (see class outline for number of students per team). Each team will produce a presentation slideshow of its case study (7-10 slides per presentation, depending on the size of the case). Slideshows will be presented orally during sessions, according to the class outline (1520mn per presentation). Each team member will actively participate in his/her team presentation. Page 1 of 35 012-IBE-CaseStudies.docx CONTENTS Case Study 1. Text 1. Text 2. Text 3. Case Study 2. Text 4. Case Study 3. Text 5. Text 6. Text 7. Case Study 4. Text 8. Text 9. Text 10. Text 11. Text 12. Text 13. Case Study 5. Text 14. Text 15. Text 16. Text 17. Text 18. Text 19. Case Study 6. Text 20. Text 21. Case Study 7. Text 22. Text 23. Text 24. Text 25. Chinese Mercantilism .................................................................................................... 3 Chinese New Year ............................................................................................................
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...Country report South Korea – Electronic Yu Ming Lin Country Profile In February 1945 the end of World War II, Korean Peninsula divided into North and South Korea. South Korea also name Republic of Korea, 99,392 sq. km, has a population of almost 50 million, and has its capital at Seoul, the largest city in Korea. The second largest city is Busan, which is the country’s main port, has wonderful nature harbor beside the delta of Nakdong River. The major industrial prior 1948 was agriculture in Korea peninsula, South Korea was in a sever environment of economic. The war damage and the refugee from North Korea keep South Korea inflation and unemployment. Korea is full of mineral source, however, most minerals concentrated in the North such as gold, coal, ore, iron and graphite. There are some tungsten, amorphous graphite, coal, and iron in South Korea and the distribution percentage is North 80%~90% to South 10%. International trade Balance Of Payment The table above is the South Korea’s balance of payments account and this table can track the payments to and the receipts from other countries from 2006 to 2010. As we can see the current account surplus in all five years and it means that these five years South Korea exports more goods, services, and income than it imports. (Data from world databank) The Current Account In October 2011, South Korea’s current account surplus US4000 Million. South Korea’s growing economy relies on exports, and the most important exports...
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...Global Business Cultural Analysis of South Korea John Smith University of Rochester BUS 800 – INTERNATIONAL BUSINESS Dr. Peterson March 6, 2015 Abstract Today, the United States conducts a substantial amount of business with South Korea. It is important that American managers, entrepreneurs, and businessmen understand the South Korean social, cultural, and religious dimensions of the nation. The South Korean culture and customs are uniquely different from those of the United States. The culture and customs of the United States are based on European traditions and religious Christian beliefs. The culture and customs of South Korea are based on Confucianism’s way of life, Buddhism’s individual salvation, and since the 1950’s Christianity’s redemption of the soul. American businesses that incorporate South Korean culture into American business practices will develop long lasting business relationships with their South Korean counterparts. American businessmen working in multinational corporations have adjusted well the collectivist culture of South Korea. Multinational enterprises considering cross border business in South Korea can feel safe investing in South Korea. Keywords: South Korea, United States, cultural dimensions, multinational business, Hofstede. Introduction South Korea is one of the United States most important strategic and economic partners in Asia. Members of Congress tend to be interested in South Korea for political purposes. South...
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...NONTARIFF TRADE BARRIERS MULTIPLE-CHOICE QUESTIONS 1. THE IMPOSITION OF A TARIFF ON IMPORTED STEEL FOR THE HOME COUNTRY RESULTS IN: a. Improving terms of trade and rising volume of trade b. Higher steel prices and falling steel consumption c. Lower profits for domestic steel companies d. Higher unemployment for domestic steel workers 2. Which of the following refers to a market-sharing pact negotiated by trading partners to moderate the intensity of international competition? a. Orderly marketing agreement b. Local content requirements c. Import quota d. Trigger price mechanism 3. Suppose the United States and Japan enter into a voluntary export agreement in which Japan imposes an export quota on its automakers. The largest share of the export quota’s “revenue effect” would tend to be captured by: a. The U.S. government b. Japanese automakers c. American auto consumers d. American autoworkers 4. Suppose the government grants a subsidy to domestic producers of an import-competing good. The subsidy tends to result in deadweight losses for the domestic economy in the form of the: a. Consumption effect b. Redistribution effect c. Revenue effect d. Protective effect 5. Tariffs and quotas on imports tend to involve larger sacrifices in national welfare than would occur under domestic subsidies. This is because, unlike domestic subsidies, import tariffs and quotas: ...
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