...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, KORUS is the most commercially significant U.S. free trade agreement (FTA) since the North American Free Trade Agreement (NAFTA). Businesses across industries in both countries stand to benefit immediately, and over the long term, from the trade liberalizing commitments in KORUS. Companies with U.S...
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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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...Thank you, Mr. Jung Kyu-jae for the kind introduction. President Kim Ki-woong, Dr. Kim Joo-hyun-- It is a pleasure to speak to such a distinguished audience of journalists, intellectuals, and entrepreneurs. I was invited here this morning to speak about the future of U.S.–Korea cooperation. Of course, our bilateral relationship does not take place in a vacuum. We are members of the rising Asia-Pacific community. Economically, Asia itself already accounts for more than one-quarter of global GDP. Over the next five years, nearly half of all growth outside the United States is expected to come from Asia. This growth is fueling powerful geopolitical forces: China’s ascent, Japan’s resilience, an eastward-looking India, Southeast Asian nations more interconnected and prosperous than ever before, and of course the rise of a “Global Korea.” President Obama has made U.S. engagement in the Asia-Pacific region a priority. We have already begun a strategic rebalance of diplomatic, economic, and security investments in Asia. And America’s 60-year alliance with Korea is a lynchpin of that strategic rebalance. 60 years. 60 years of peace and stability. 60 years of hard work and economic growth. 60 years of partnership and shared prosperity. This year marks the 60th anniversary of the U.S. – Korea Mutual Defense Treaty, the armistice, and the formation of the American Chamber of Commerce in Korea. As we celebrate 60 years of partnership and shared prosperity, we are...
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...Global Business Cultural Analysis: Republic of Korea Abstract The purpose of this paper is to provide information to business professionals about the Republic of Korea, the Korean culture, and the peculiarities of conducting business in this country. The topics discussed include a brief historical background about the nation, its dimensions of culture, how these elements are integrated by Koreans, and a comparison between these characteristics and American culture and business practices. The paper examines the implications for US firms wishing to do business in Korea using Hofstede’s Dimensions of culture, a SWOT analysis, and FDI analysis. Keywords: culture, religion, Confucianism, innovation, export, KORUS FTA Historical Background of Korea The Republic of Korea (ROK) is commonly known as South Korea. For the remainder of this paper, the ROK will be synonymous with "Korea". Korea is located in northeast Asia on the Korean peninsula between the Yellow Sea and the Sea of Japan. It borders the Democratic People's Republic of Korea (DPRK), also called North Korea (nK), immediately to the north, across the 38th parallel. Korea's total land area is nearly 62,000 miles, slightly larger than Indiana (www.cia.gov). It has an ethnically homogeneous population of over 49 million people, 83% of which live in urban areas (www.cia.gov). According to legend, Korea's birth as a nation was in 2333 BC with its early inhabitants coming from and heavily influenced by China...
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...trade liberalization since the end of World War II, mainly by the removal of trade barriers such as quotas, subsidies, and tariffs. America has pursued multilateral negotiations for years with a number of countries through the General Agreement on Tariffs (Gabriel. H, Oct, 2007). On April 4th, 2007, after 10 months of negotiations, the United States concluded a free trade agreement with South Korea, which was the most important since the 1994 NAFTA (Gabriel. H, Oct, 2007). According to the Office of the U.S. Trade Representative, today South Korea is the world’s 10th-largest economy and America’s 7th-largest trading partner. The KORUS FTA is expected to abolish about 95 percent of tariffs on all industry within three years (Gabriel. H, Oct, 2007). It is not easy to affirm that who is the winner and who is the loser between the two countries of KORUS FTA, which was finalized at March 15th, 2012. However, as considering the domestic situation for each country, there are clear winners and losers. First, on the side of the United States, the winners include international financiers who will benefit from foreign investor rights and auto makers who will benefit from increased auto-exports (California Fair Trade Coalition, n.d.). On the other hand, the losers are manufacturers, workers, farmers, and consumers who will lose their competitive powers from decreased benefits (California Fair Trade Coalition, n.d.). In addition, on the side of South Korea, the main winners would be the automobile...
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...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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...information is classified and kept from U.S. government officials. However, several documents have been leaked to the public through various sources. -There is much clamor and concern over the Intellectual Property proposals put forth by the U.S. These proposals threaten to dial back public health safeguards set forth in the 2007 New Trade Deal of the Bush administration, increase prices of consumer goods, and restrict access to information on the internet. -There are 12 countries involved in negotiations, with China as an observer and considering entry. Overall, these countries make up about 40% of the world GDP and offer access to huge markets for the U.S. Nonetheless, the threat of losing jobs overseas, as with most FTAs, is cause for concern. -Past FTAs have resulted in an increase in U.S. trade deficit and a loss of jobs. However, analysis shows that American firms can benefit from these agreements as well with increased exports to new markets. Brief History The Trans-Pacific Strategic Economic Partnership Agreement is a free trade agreement with the goal of liberalizing the borders and economies of the Asia-Pacific Region and was initiated in 2005 by Chile, New Zealand, Singapore, and later Brunei. Eight more countries have joined in the negotiations since 2008: the United States, Australia, Vietnam, Peru, Malaysia, Mexico, Japan, and Canada. China has also expressed interest in joining the agreement, but is not as of yet directly involved in negotiations. So far...
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...Stacy Schuster Global Business Assignment 2 Recently the U.S. and South Korea came to have reached agreement on a landmark trade deal. According to an article by Martha Grevatt the “landmark deal” makes modification to a previous trade agreement, KORUS, negotiated by George W. Bush and former South Korean President Roh-Moo Hyun. The preceding points in this paper will explore the differentiating views of two articles on the trade agreement, which disagree on whether the agreement is beneficial or not. A. The long awaited revision of a free trade agreement met by the U.S. and South Korea is one of the largest trade pacts “by value of traded goods” the U.S. has completed since the North American Free Trade Agreement with Canada and Mexico. According to Evan Ramstad the trade agreement with have many effects on South Korea than the U.S. as they become will continue to play a greater role in the South Korea economy and import tariffs that have been kept high to protect its climb from poverty will be rapidly eliminated. According to the text, tariffs are a tax levied on imports (or exports) (Hill, 2010). This elimination of tariffs may reduce South Korea’s surplus in trade with the U.S., but this pact is expected to contribute to an increase in trade and U.S. firms can immediately set up shop in South Korea to work on international contracts and disputes (Ramstad, 2012). The free trade area between the U.S. and South Korea aims to drop all tariffs and increase the United...
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...Introduction As Lowe’s seeks new international markets to expand its highly successful home improvement model, the opportunities in the Asia market provide a unique untapped region. In Korea, recent political changes have opened its economy to foreign investors and businesses. Korea’s strong economic growth provides Lowe’s with the ideal situation of opening up stores before their competitors. Based on research I conducted, this assessment considers the potential of expanding Lowe’s into the Korean market. With any major investment, it is important to consider the monetary and non-monetary aspects including gaining an understanding of the culture, the ideal management approach, past and future trends, along with political roadblocks. In this paper, the following information provides a roadmap to the decision-making process. First, an assessment of the Lowe’s vision, mission, and promise are discussed and compared to the similarities and differences within Korea. Then, an analysis considers Korean trends that support the expansion of Lowe’s. Next, a culture assessment of Lowe’s base country (USA) is compared against Korea including management styles to consider for the local corporate office and stores. Lastly, a communication strategy is discussed based on the cultural assessment and offers best practices for the expansion of Lowe’s into Korea. This paper is intended to assist Lowe’s senior managers begin an assessment of expansion into the Asian market via Korea by...
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...An Economic Comparison of Japan 日本国 And South Korea 대한민국 Introduction South Korea and Japan have had a close relationship from ancient history to the present day. Because of this reason, their economic growth and development have similarities and disparate differences. This paper will discuss some of the two countries’ major characteristics including geographic, social, and political characteristics and look at their histories and economies. Another reason that it is natural to compare them is their economic growth has mirrored one another. Both emerged from a war with its economy devastated and its infrastructure in ruins. Both countries changed with the economic climate of the time and took advantage of foreign investment in order to rebuild. Finally, both countries used their strengths to develop their economies to the point that they are world leaders in their field. Finally, both counties enjoy close political and economic relations with the United States, with each country being among our Top 10 largest trading partners. We have been a good friend to both, which has helped to stabilize relations in the regions between the two. Brief History (Since World War 2) The Korean Peninsula was occupied by Japanese forces for 35 years, from 1910 until the end of WW2 in 1945. Due to existing agreements, Japanese forces in Northern Korea surrendered to the Soviets and those in South Korea to the United States. The Korean War (1950-1953) was an attempt...
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...North C arolin a Polic y Wa t c h Cru cial Co nv ersa tion The Trans-Pa cific Partnership: Worse than NAFTA? Septemb er 2013 Lori Walla ch Public Citizen’s Global Trade Watch Outcomes of 20 Ye ars of NAFTA, WTO, FTAs… Crushing of Americ an Middle Class: more than 5 million US manufa cturing jobs (1 out of 4) & 60,000 US manufa cturing fa cilities gone. Millions of service sector jobs offshored: c all centers, computer, programming, engineering, a cc ounting. Wage “arbitrage” in a ra ce- to-the- bottom. U.S. re al median wages at ‘70s levels. Income inequality at Robb er-Baron-era levels. When manufa cturing, good jobs go tax bases shrink – and schools, public services, infrastructure cut, and construction sector unemployment soars. Floods of unsafe imported food, products. Financial deregulation, instability and repe ated financial crises. He alth, labor, land use, other public interest laws around world atta cked in foreign tribunals. Some dump ed. Initiatives chilled. Billions extra cted from taxpayers and paid to corporations for violations of new “rights.” Drug prices up. In poor nations, de adly cut in a cce ss to meds. Rich nation higher prices slam poor consumers, govt budg ets as Big PhRMA profits soar. U.S. loses 170,000 family farms. In ‘12, volume of U.S. food exports only 1% higher than ’95 (when NAFTA-WTO started). Imports of food now 97% above ‘95 level. Livelihoods of tens of millions of pe asant farmers destroyed, mass migrations...
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...1. Peru nominal and real GDP, 1994-2013 and Inflation Rate, 1994-2013 22 Figure 2. Peru Exports (FOB) and Imports (CIF). 1994-2013 22 Figure 3. Peru Trade Openness Index and Contribution of US trade to TOI. 23 Table 1. Trade evolution for Exports, Imports, and Trade Balance, Peru-USA 2009-2013. 23 Figure 4. Trade evolution for Exports, Imports, and Trade Balance, Peru-USA 2009-2013. 24 Figure 5. Peru-USA Trade Exports and Imports per capita. 2009-2013. 24 Figure 6. Peru-USA and Peru-World Net Trade and Balance Trade Comparison. 2009-2013. 25 Figure 7. Peru’s Foreign Direct Investment stock and flow (Equity Capital). 2003-2013. 25 ABSTRACT Peru has signed a Free Trade Agreement with United States on February 2009, this FTA with the US is a balanced and comprehensive agreement covering all aspects of bilateral economic relationship such as: trade in goods, investment promotion, procurement, border services, and protection of intellectual property. It also includes chapters on labor and environmental protection. Objectives for the Agreement are of two orders, to increase and guarantee preferential access to Peruvian exports to US economy, diversify exports, and attract Foreign Direct Investment, and on the other hand (and maybe most important in the long term) to strengthen the stability of the Peruvian economic policy reforms and institutions, as well as to contribute to improved international risk classification of Peru, promoting in...
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...GLT1 Task 1 Analyze the effects of globalization on native-no Western cultural practices Issues in Behavioral Science Jamie B BSN 06/18/2014 Western Governor’s University In this essay, I will discuss the matter of Globalization of two nations, South Korea and India. Globalization can be defined as, in simple terms, as the process of making something, anything available worldwide. It is a collaboration between countries, exchanging goods, services, workers, ideas, and even culture, which allow a multitude of opportunities to anyone to enjoy, from anywhere in the world (dictionary.com, n.d.). Globalization can been seen different depending on where you are from. It can cause issues for more traditional societies such as losing ancient customs and values. Although there are many, South Korea and India are examples of two non-western cultures that have been impacted by globalization in which I will look at each country before globalization and the effects of globalization it has now. A1. Circumstances before and after event Before globalization, South Korea was considered a very isolated society (Ruediger, 2006), with deep cultural ideas, and one of the poorest countries in the world with most of its culture being based on farming rice. It was said that rice farming was more than just farming in was a way of life for the South Korean people. The majority of the population of South Korea was committed to growing rice, with rice being to major farming product. ...
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...Elaine Hannah Why Invest in South Korea? Elaine Hannah Why Invest in South Korea? Why invest in emerging markets? To cash in where growth is today, and for the foreseeable future. But success is only possible if you have chosen the right entry modes to your market and understand the environmental, political and sociocultural factors of the chosen host country. This report analyses South Korea and demonstrates this emerging market is there for the taking if approached with shrewdness. The South Korean Government, after the financial crisis in 1997, decided it needed to make its country attractive for foreign direct investment, which resulted in the release of the Foreign Investment Promotion Act in 1998. This opened up a passage for 99.8% of Korea’s industry for direct investment. This report looks at the successes and failures of FDI’s in South Korea referred to as Korea from hereon, and what business factors influence these outcomes. Global Business Project Lecturer: Enda Murphy Student: 1063289, 1602617, 1728607 No of Words: 6198 Why invest in emerging markets? To cash in where growth is today, and for the foreseeable future. But success is only possible if you have chosen the right entry modes to your market and understand the environmental, political and sociocultural factors of the chosen host country. This report analyses South Korea and demonstrates this emerging market is there for the taking if approached with shrewdness. The South Korean Government...
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...S.R. Luthra Institute of Management, Surat 2011-2013 A Comprehensive Project On SouthKorea Economy Submitted to Ms. Delnaz Kasturwala By INTRODUCTION: South Korea has a market economy which ranks 15th in the world by nominal GDP and 12th by purchasing power parity (PPP), identifying it as one of the G-20 major economies. It is ahigh-income developed country, with a developed market, and is a member of OECD. South Korea is one of the Asian Tigers, and is the only developed country so far to have been included in the group of Next Eleven countries. South Korea had one of the world's fastest growing economies from the early 1960s to the late 1990s, and South Korea is still one of the fastest growing developed countries in the 2000s, along with Hong Kong, Singapore, and Taiwan, the other three members of Asian Tigers. South Koreans refer to this growth as the Miracle on the Han River. Having almost no natural resources and always suffering from overpopulation in its small territory, which deterred continued population growth and the formation of a large internal consumer market, South Korea adapted an export-oriented economic strategy to fuel its economy, and in 2010, South Korea was the seventh largest exporter and tenth largest importer in the world. Despite the South Korean economy's high growth potential and apparent structural stability, South Korea suffers perpetual damage to its credit rating in the stock market due to the belligerence of North Korea in times of deep military...
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