...Situation The United States-South Korea Free Trade Agreement (KORUS FTA) is a trade agreement between U.S. and South Korea. Signed on June 30, 2007 by President George W. Bush still has to be approved by Congress. This Free Trade Agreement would be the largest for South Korea and the second largest for US, after the NAFTA. As the fourteenth largest economy of the world, South Korea is the seventh largest trading partner of the United States. An agreement was reached in which it was concluded that an FTA between both countries would increase the investments industry and bilateral trade. In the proposed FTA issues like trade, investments, autos, agricultures, and financial services were included. However, there has been some dispute over the KORUS FTA (mainly about the auto and agricultural industry), which hasn’t allowed it to be finalized. U.S. debates about the non-tariffs impact South Korea can impose on the beef and automobile industry. Recommendations: In order for the KORUS FTA to be eligible for approval and both parties can be benefit from economic growth, an alliance, and stability, some changes need to be done. This review recommends approval to change the following key point of the agreement: • Auto industry: 1. The United States should ensure the complete or mostly elimination of South Korea’s non-tariff barriers that are created without input from foreign automakers and forced without warning. For example, the license plate size, keyless entry systems...
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...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 States exporting of goods and services...
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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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...Current Event: Free Trade Agreements with Colombia, Panama, and South Korea On October 12, 2011, Congress passed the free trade agreements between the United States, Colombia, Panama, and South Korea after waiting almost five years after the Bush administration first introduced the idea, but failed in Congress by the Democrats. According to President Obama, this is a victory and it will be a win-win situation for all the counties involved. A developed country like the United States turn to free trade agreements with emerging countries to help build their economy and hopefully reduce the chances of another recession. According to South Korean President Lee Myung Bak, he agrees this agreement is a “win-win” for all the countries because this “will create more jobs, generate more trade and stimulate our economies.” The largest benefit the South Korean accord and the United States has will be the United States exporting automobiles and car parts to South Korea is expected to increase up to 54%. Colombian President Juan Manuel is looking forward to this agreement, but Tarsicio Mora, the President of Colombia’s labor federation has some concerns. Mora is opposed to the agreement because Colombia’s economy is not developed enough to handle trade with the United States and their country is not in a stable condition to compete. From these agreements come many benefits such as: an economic boost, U.S. exports expected to increase by more than 13 billion per year, add 300,000 jobs...
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...and South Korea Sign Free Trade Agreement Many may ask why nations trade with each other. The answer to that question is that it provides those nations access to more goods and services at much lower prices. Whenever nations trade amongst one another, there are always winners and losers. The side who stands to win if congress ratifies the US-Korea free trade agreement would be Korea. The side that would stand to lose would be the United States. In the United States the United Auto workers supported Korea trade deal. It was mostly due to the fact that they wanted to have the ability to export a large amount of vehicles and have many of the tariffs that were in there way removed. They see it as a landmark trade deal. Companies such as Ford were very disturbed by their limitations prior to the removal of the tariff. There are many reasons as to why the Global Automotive Industry was a lot of the time at the center of disagreements over trade relations. One of the reasons is that a reduction in South Korea’s tariffs would boost exports from the United States by 11 billion each year. Many US automakers stand to benefit from improved access to 48 million people. They show one of the largest interest because they have a large amount they could lose if things don’t go there way and a lot to gain if things go their way. They show the largest financial gain from a deal than many other American companies that have interest in trading with South Korea. The deal with the United States...
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...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 the abundant factor compared to autarky and that protection raises the real wage of the scarce factor of production and lowers the real wage of the abundant factor of production. How did they demonstrate it? A small country select a tariff as a trade barrier. As a result, this will increase the price of the import good in comparison with the exported good. In case of homogenous products,...
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...The United States has strongly supported 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...
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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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...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 Korea has development...
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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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... 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 crises, which has an adverse effect on the financial markets of the South Korean economy.However, renowned financial...
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... 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 by communist North Korea (with China’s...
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...Economy of South Korea By Henry Graves Dr. Davis September 27, 2014 South Korea is known as one of the emerging economies of the entire world. The South Korean economy has been growing at a steady pace for the past 15 years; this is being accomplished with a dangerous situation with their northern neighbor. When the Korean War ended in 1953 by an armistice that defined the international boundaries between North and South Korea. However, these boundaries are merely a line of truce and hostilities continue between both sides as a search of a just reunification is sought by both countries, but by differing visions on the political future of the Korean peninsula. The question that must be addressed is how does South Korea continue to maintain their dominance in the economy of East Asian nations. The answer can be found by looking into the past history of Korea starting after the end of the Korean War, the present economic policies of the current government of South Korea, and what might the nation need to address in order to maintain their competitive advantage in the region. However, before I begin to look at the past history of South Korea's economy, I must state the present statistics of what has been accomplished in the country. Currently, South Korea is the fifteenth largest economy when measured by GDP and is twelfth in the purchasing power parity. The country has been experiencing economic growth starting from the 1960s until the late...
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...Japan. Because of the complex, shifting, and historic relations between these areas, as well as relations with other places such at the United Sates in more recent times, the history of Korea has been told in many ways and is still the subject of hot debate both inside and outside the Koreas. North and South Korea have different versions of the peninsula’s history, both of which differ in detail and perspective from histories written in China, Japan, Russia, and the USA. The following sections, which attempt to outline the history in a balanced way, are based on a variety of materials, including lectures attended in a special workshop on Korean culture at Korea University in the summer of 1997. Map of Korea The overall pattern of development in the history of the Korean peninsula is a process that begins with an unknown number of early tribal groups that populate the peninsula in prehistoric times, wandering out of Siberia and areas to the west. Over time, some of these groups form more complex societies that eventually result in early kingdoms that grow up on the peninsula; in some cases extending westwards into what is now Chinese territory. As time and events unfolded, these kingdoms were unified, though the borders and degree of unity have continued to change over time—down to today. Besides the obvious split between North and South Korea, cultural differences (including dialect, food, and local identity) exist between the various regions of the peninsula. In some cases these...
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...MBA 602 International Business Section: 960 IB News Article 11/29/12 Japan Dives into Trade Talks ASEAN leaders begin RCEP negotiations Summary: An effort is being negotiated currently to launch a new regional comprehensive economic partnership called RCEP. The concept is this: to engage 16 Asia Pacific nations for free trade and to establish a trilateral free trade agreement with China and South Korea. Negotiations in this landmark free trade pact are taking place now in Phnom Pehn following the ASEAN Summit. If or once it is formed the RCEP is likely to cover half of the world’s population and would be the largest regional trading arrangement in the world to date. The RCEP is a strategy aimed at maintaining regional growth by ensuring that markets of the participating countries remain open and competitive. It is estimated that Japan’s GDP will grow by 1.1 percent with a wide range of partnership frameworks: tariff reductions and intellectual property protection. Under RCEP, which is different from individual country to country rules, there is a unification of rules and simpler business transaction procedures. The potential free trade agreements between ASEAN and China, Japan, South Korea, India, Australia and New Zealand could eventually lead to the creation of an integrated market that spans 16 countries with a combined market population of more than 3 billion people and a combined GDP of about US$19.78 trillion based on 2011 figures. The barriers...
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