BUSA 3000 South Korea

As well as the fact that their trade deficit is 4,899 USD millions, with a reasonable interest rate and inflation of 1.8% economically they are doing quite well when being compared to the U.S. As a matter of fact their inflation rate is not the same but with-in the same range for most years throughout the last 10 years. (Trading Economics, South Korean Balance of Trade, n.d) (Aneki.com, Ranking and Records, United States vs. Korea South) (Inflation.eu, Worldwide Inflation Data, Inflation South Korea 2012, n.d) (Global Rates Com, Fed Federal Funds Rate, American Central Bank’s Interest rate, n.d) (UN Data. A World of Information, Per Capita GDP at Current Prices USD, South Korea) (Index Mundi, Unemployment Rate South Korea, Historical Data Graphs per year) (U.S. Inflation Calculator, Current U.S. Inflation Rate 2003-2013,) (Inflation.eu, World Wide Inflation Data, Historical Inflation south Koreas – CPI Inflation)

2) Strategic Location: Korea is the closest area on the Asian mainland to Japan, making it a strategic location for maintaining a direct land border with other Asian countries and making Manchuria into a sphere of influence.

The Physical Characteristic of North Korea are extraordinary. North Korea is part of the East Asia Continent and it is located on the Northern Half from the 38th parallel to the Korean peninsula with an absolute location of 40.3399° N, 127.5101° E North Korean capital is Pyongyang and has an absolute location of 39.0392° N, 125.7625° E (World atlas). The Korean Peninsula is a peninsula found in East Asia; that expands Southward for about 684 miles from the Asia continent toward the Pacific Ocean. (New World Encyclopedia, Korean Peninsula). North Korea is nearby two seas the yellow sea and the Bay of Korea which located on the west of this country and to the East by the Sea of Japan. (20.3 North Korea, D eisma). The Northern and Eastern Regions of this country are dominated by steep Mountain and not very fertile. In addition, sheltering forests and Valleys, North Korea has many mountains. The major landform of North Korea is the Nangnim Mountains, the Paektusan, and the Peninsula Korean as already mentioned.

In 2015, South Korea’s gross domestic product (GDP) was 1.377 trillion dollars (“South Korea GDP, 2017). Comparatively, North Korea’s GDP in the same year was a paltry 16.12 billion dollars (North Korea GDP, 2017). The country is also ruled by an authoritarian dictator whose sole agenda is developing nuclear weapons to inflict mass casualties. On the other hand, South Korea has gone on to make popular consumer products through reputable companies such as Samsung and Hyundai. Aside from protecting a nation from the clutches of dictatorial leaders, the US’s involvement in the Korean War helped to prevent the forceful spread of an imperialistic version of communism that was being perpetrated by North Korea and

For example, the Kaesong Industrial Complex, an economic co-operation zone where South Korean companies hire North Korean workers, is spreading awareness of South Korea’s economic and technological progress through North Korean society. North Korean workers are paid well to work with South Koreans, producing goods that are far superior to anything produced by North Korean

North Korea, also referred to as the bridge between Japan and China, is located in the eastern part of Asia. North Korea is half a pennisula, particularly the northern half, in the Korean Peninsula. North Korea, is a bit smaller than Mississippi, and about eighty percent of its land it mountainous (Kummer, 19-20)

Along with the importance and power of the country itself, people must also consider the power and importance of transnational corporations created in the Asian Tigers, especially the South Korean Chaebols (Daewoo, LG, Hyundai and Samsung). These TNCs still play a large part in the global economy, with these brand names being known around the developed and developing world. It is unlikely that any TNCs from currently developing economies will be able to rival these existing TNCs because of set-up costs and levels of technology needed to produce products which are on par with existing ones. Equally, the existing TNCs have the advantages of brand loyalty and economies of scale which newly formed companies will not yet have. In this respect, certain features of the Asian Tigers are heavily linked to, and will continue to play a large part in the future of the global economy.

North Korea has a vast and growing culture. With a population of 24 million citizens living in this isolated area, most of them are ethnically Korean even with China being such a close neighbor. With such a dense population, the same believes and religion practiced throughout its nation. North Korea is located in eastern Asia with approximately 55% in the north. The Sea of Japan borders North Korea’s eastern shore and the Yellow sea boarders the western portion of the land. The boarder that separates North Korea from South Korea is approximately 148 Miles long. North Korea shares boarders with China being directly north and a small boarder is joint with Russia in the far northeastern corner of the country. (Encyclopaedia

North Korea, officially the Democratic People, known as The Republic of Korea, is East Asian country of Pyongyang. At its northern border are China on the Yalu River and Russia on the Tumen River, in the four northeastern corner the country("North Korea - New World Encyclopedia," n.d., p. xx).

In 1948, Korea was divided into two countries: North Korea and South Korea. Unlike South Korea, North Korea is still a very closed economy. There is not a lot of foreign investment inside the country except from South Korea and China. North Korea is a one party controlled country so the government is everywhere. Public service is completely under government control. Everything from construction to financial services is controlled by the government. Corruption can be seen more in North Korea because of the serious shortages of foods, goods, and housing. If the company is trying to do business with North Korea, they have to seek help from government officials, which means they have to pay a bribe.

At present there are five communist countries in the world, Vietnam, Laos, People’s Republic of China, Cuba, and Democratic People’s Republic of Korea. All of these, with the exception of Cuba, are Asian countries. While Vietnam and China are on the upswing economically, North Korea remains one of the poorest. The reason for this may be because it, along with Cuba, have an entirely state run economy. In comparison to the other three Asian communist countries, North Korea has the lowest GDP per capita of the four at 1800 USD (2008). (1) With North Korea being as centrally located to two of the richest countries, Japan and China, it would seem that they would enjoy some of the same riches of these two. What has caused such differences

South Koreas current GDP is at US$1.3 Trillionviii, their GDP raises approximately 8 percent each yearix. Their chief export is refined oil at 9.2 percent and their main import is crude oil at 20 percentx.

Majority of their food aids supply by the Chinese’s goes to the North Korean military. Economically China has grown because of the relations they have with North Korea. The Chinese also invest heavily in North Korea; theses are strategy used to stabilize the border regions between the Chinese’s and the North Koreans. Investors in North Korea make it easier for the North Koreans to migrate to China.

Many people are hesitant about investing in South Korea since they are currently in a state of war with North Korea, and incidents involving military occur from time to time to increase tension between two countries. Although South Korea’s political violence resulted in an increase in risk, the country itself shows general peace and stability due to an armistice agreement that has lasted for around 60 years. South Korea did not have a single history of political violence directed against foreign investors, and they were able to accumulate USD 19 billion of foreign direct investment in 2014. Foreign direct investments have become essential part of the Korean economy as the foreign invested companies in Korea now account for 13% of sales, 12% of all

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,