Is South Korea And The Global Market For The Next Decade?

This paper is an analysis of the country of South Korea. Using the operational variables of PMESII-PT this paper will identify the current situation in South Korea and the countries current issues. The overall objective is to understand the motives of 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)

In North Korea, their economy depreciated because of their military methods, which did not work. Their economy struggled a lot especially after the Cold War, as they had no stable system. They militarized the economy, which caused lots of demonetization. Compared to South Korea, North Korea’s stocks are mostly useless in the global economy. They have many debts that they are still trying to fix, and their trade is going down. Many other countries do not want to trade with

They targeted specific industries for development and the first were textiles and light manufacturing then to iron, steel, and chemicals(Yu, Lew). By joining the “Organisation for Economic Co-operation and Development”(Yu, Lew) to advance to the next level of economic growth(Yu, Lew). South Korea obtained all parameters; political, military, and economic from the U.S and recovered from the Asian financial crisis in 1997. On the other hand, North Korea developed a government having a highly centralized political system. North Korea developed into the most isolated and controlled state showing no sign of both political and economic

Article one titled “A Kim in his counting house; North Korea’s awful economy” explains North Korea’s collapsing economy. North Korea suppresses most economic data. The information is created by using near statistics of its trade with other countries. We can use those countries records and a jazz for population growth and inflation to get a close estimate of that country’s economy. In 1950s through the 1970s its economy outgrew the capitalist’s country of South Korea. All their resources were placed towards production. Although today North Koreas per capita GDP is only one 40th of South Korea’s at a whopping $600 year. Korea spent almost 3,000,000,000 each year in the military. There are 1.2 million people in the Army out of 25 million people in the whole entire country. They have huge conventional arsenal, rocket launchers and nuclear tests. Most countries who invest highly in the military grow economically. North Korea however their economy has gone up only a little. North Korea’s exports in 2015 were no higher than that at their peak in late 1970s, while per capita imports were 2/5 lower. The underperformance is remarkable either for a country that is neither a failing country nor at a state of war. So where North Korea go wrong? The collapse of the Soviet Union hit North Korea hard in 1990s on addition bad weather and agricultural reduction collapsed in the 1990s that led to famine in which hundreds of thousands of people died. Also North Korea’s nuclear bombing test has

When someone says North Korea, what do you think of? Many think of the controversial politics, their controversial leader, or even the controversial movie, “The Interview.” The majority of people don’t tend to think about the country’s geography, or how North Korea’s history shaped its future. Today’s media tends to focus on the actions of Kim Jong-Un. Politics are a huge part of North Korea, but so are its history, economy and its geography. By analyzing these four features of the country, we can see how they relate to North Korea’s current day issues. (Perfect introduction!)

In North Korea, all the production means are held by the government and are barely used. The lack of property rights causes a lack in investment because people cannot invest as they cannot acquire the means of production or to claim property on them. The absence of the property rights is one of the main factors that cause states to collapse due to its impact on the economic situation of country and it causes inequalities and

In South Korea like any other nation, Religion is a very delicate area that needs to be considered before embarking on business opportunities in that nation. Because of the sensitive nature that Religion brings to business, when considering a country to do business in, one must tread lightly, being careful not to infringe on a group of peoples Religious rights. As it relates to South Korea, it is made up of various Religious groups, and there is a little over 65% of the population of the Republic of Korea that are members of an organized religion.

North Korea has a state-led, highly centralized economy because its government is the dominating force in all aspects of the country (Park 2004). In the beginning of its formation, North Korea practically banned all markets and was run by select bureaus and elites. As years passed, there has been slightly more freedom given to the people through various reforms in order to help the dwindling economy stabilize (Park 2004). South Korea has a much more successful, open, and market-based economy. However, most of it is dominated by large and centralized business groups, called chaebols (Campbell II and Keys 2002). North Korea has about 14 million people in its labor force out of a population of 25 million with about 63% of those people working in industry and services while 37% work in agriculture (“Korea, North” 2017). On the other hand, South Korea has a larger labor force of 27.25 million because of a significantly larger population of 50.9 million (“Korea, South” 2017). Almost all of the labor force, about 94.4%, work in services and industry while only 5.7% of people work in agriculture (“Korea, South” 2017). This is because South Korea’s main focus and money source are on industrialized products.

Fortunately, the region was able to reestablish its economy from the building blocks that it had in place. Noland (2014) claims that “Soon after the division of the Korean Peninsula, in 1945, South Korea already had in place the building blocks for growth: an educated population, property rights, land reform that boosted productivity, and the institutions of modern capitalism. These pillars laid the foundation for prosperous economic development and after a few setbacks, South Korea was able to emerge as a respectable economic developed country. South Korea have a population of over 50 million, an unemployment rate of 3.5%, and an inflation rate of 1.3%, South Korea Gross Domestic product reached over $1.2 trillion in 2006, or about $24,500 per capita. South Korea’s economy thrives from its robust agricultural market, forestry and fishing, mining and manufacturing, plus multiple other resources. According to (Nolan 2014), “The country is a rich, technologically advanced, mature democracy with an impressive record of innovation, economic reform, and sound leadership,” (Noland 2014). One of the many reasons why South Korea has been able to become so successful in such a short period of time is because of the value that the country places on

Consequently, North Korea has been able to reverse their 20-year trade deficit into a trade surplus, therefore generating a positive balance-of-payments. Taylor (2013a) indicates that the China’s Ministry of Commerce recorded a trade value of $1.67 billion between them and North Korea in the first quarter of 2012. Taylor (2013b) postulates that because North Korea has access to $6 trillion worth of natural resources and a refugee crisis remains possible if conflicts were to rise and give way to political instability, China is likely to withstand the political corruption and overlook the economic sanctions of others to ensure a cohesive relationship. Additionally, because China exports 70 percent of North Korea’s food and 70-80 percent of their fuel, in the event of a refugee crisis where an influx of North Koreans enter China, China’s exports will ultimately decrease along with an increased imports from a rise in the consumption (Taylor, 2013b). Despite the trade surplus North Korea has recognized over the last couple years, inaccurate exchange rates are causing citizens to not only pay a higher price for goods, but are forcing them to utilize foreign currencies, which can have an adverse effect on China’s exports into the country (Kim, 2013). Regardless of these facts, due to North Korea’s already limited trade relations with other nations, heavy focus on nuclear weapons, and their lucrative trade relations with China, the intended purposes of the United States’ economic sanctions are falling short of expectations (Carbaugh, 2015; Kim,

Since the World War II, when Korea got its independence from Japan, and the Korean War in 1953, Korea has worked hard to earn its reputation as the “impossible country.” According to Daniel Tudor, author of Korea the Impossible Country, Korea got its nickname as the “impossible country” because only 50 years ago, the country was impoverished from the recent wars and went through couple of unstable regimes changes and yet, Korea’s economic growth since the 1960s has led the country out of poverty and has a stable democratic leadership . Korea has been able to grow its GDP and its GNP since the 1950s, but not without a negative consequence. Thanks to General Park, Korea adopted an export-led economic system ran by the Chaebols, business conglomerates, but it also shaped a hard working style culture that still reflects today’s work life in the 21st century.

This has to be taken in the context of the considerable global recession that has been in play since 2008, the results from which North Korea was largely shielded due to its insularity. In general terms, the North Korean economy is still far poorer than most other Asian nations.

At the end of World War II, Korea was a poor former agricultural colony of Japan. But the rapid growth of Korea’s industrial economy has been remarkable. The economy of South Korea is now the third-largest in Asia and the 13th largest in the world by GDP as of 2007. To trace back the economic development of South Korea, the former president Park Chung-Hee played a pivotal role, and was credited for shifting its focus to export-oriented favoring a few large conglomerates. Unlike his predecessors, Park showed a strong commitment to economic development, believing good economic performance as a primary means for enhancing his political legitimacy. Under the President Park Chung-Hee’s era, the government played a dominating role in a

Investing in emerging markets offer tempting advantages to investors. The volatile economies of countries considered to be in this category have a potential for extraordinary returns. A caveat to investors considering opportunities in emerging markets are the presence of unstable governments, the chance of nationalization, poor property rights protection, and large swings in prices. Emerging markets are far from a sure thing. But, despite high individual risk, emerging markets can reduce portfolio risk. The volatile economies of these countries have such low correlations compared to the domestic market that they actually provide the greatest degree of diversification.