South Korea: Country Attractiveness Report

North Korea’s economy is very different then the United States’ economy. Even though one dollar in American money doesn’t seem much to us Americans, it is worth nine-hundred dollars in their currency. North Korea’s main sources of income are military products, machine building, electrical power, chemicals, mining, metallurgy, textiles, food processing and tourism. North Korea’s overall condition of the economy is not good.

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.

These measures were introduced as there were extremely high taxes in South Korea, which widened disparity made many people suffer. South Korea’s economic success was a result of a competitive education system and a highly skilled and motivated workforce. In the 1970s and 1980s, South Korea became the leading producer of ships, one of the major ship building countries being Hyundai but this industry began to decline in the mid-1980s as a result of the oil glut and world-wide recession. However, South Korea is once again the world’s most dominant ship builder with a 50.6% share in the global shipping market as of 2008. Construction has also been an important in the South Korean export industry since 1960s and remains to be a critical source of foreign currency. By 1981, overseas projects, mostly in the Middle-East accounted for 60% of the work undertaken by South Korean construction companies. South Korea’s Samsung C&T Corporation also built many remarkable buildings such as the Petronas Towers and Burj Khalifa. During the 1960s, South Korea was extremely dependent on the U.S.A to supply its armed forced but after President Nixon’s policy of Vietnamization was removed in the 1970s, South Korea began to manufacture many of its own weapons. In 2010, South Korea’s defence exports were $1.5 billion. South Korea’s remarkable technological advancement and

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)

Following the Korean War and the rebuilding of their societies, both North Korea and South Korea’s economies have depreciated and fluctuated. With their different economic systems, one using the military and the other using trade, they both have received different results.

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

After the war, both Koreas moved quickly to rebuild and modernize. North Korea, which was more industrialized than South Korea before the war, rebuilt quicker. Unfortunately, North Korea’s economy suffered, because of the break-up with the Soviet Union. Eventually South Korea evolved into a industrial society, who became a heavy exporter to the United States. Overall after the war both Koreas have been successful, but still face the challenge of

Thus far, I have laid out some of the most important arguments in the extant literature on the East Asian Miracle with particular reference to South Korea. In this section, I integrate the preceding two sections on the existing literature and propose an alternative theory. In brief sum, the existing developmental state literature, including that specific to South Korea, argues that the developmental state causes economic growth through export-led industrialization. I reverse the order of two links in that theoretical chain. Specifically, I argue that the developmental state does not give rise to export-led growth. In fact, it is the inception of the export-led growth strategy that gives rise to the developmental state, which emerges as a

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

The economical system of North Korea is known as a strict command economy. This means that the government is in full control of the market. They determine what goods should be produced, how many goods should be produced, and the price of the products. After the Korean War, North Korea focused heavily on industrial development. This gave them a boost in metal manufacturing. In the modern day, North Korea now focuses on improving their military through heavy government spending. This spending along with other economic setbacks, such as international debt, have North Korea’s economy on a stable decline with short periods of improvement, according to Investopedia. It should also be noted that North Korea is very private when it comes to its economical records since they haven’t released any reliable data on the state of their economy. The statements previously made in this paragraph can’t fully be trusted due to the lack of dependable sources. (www.investopedia.com)

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.

In this essay we look in-depth on how government strategies and economic policy play a crucial role in the success of High Performance Asian Economies (HPAEs) during 1960 to 1990 (World Bank 1993).There are eight countries within HPAEs: South Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia, Indonesia and Japan. Its economic development has significantly rise that it was name ‘East Asia Miracle’ (World Bank, 1993).

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

Manners represent an individual by the way they dress, behave, communicate, and their etiquette, while customs refer to the traditional way that a culture is practice individually, or by a group of people. Workers are expected to bow to their seniors when they greet them, and to use only formal language to their seniors, as it is rude to speak informally to someone of higher rank. In Korean businesses, meetings are often held in evenings at a restaurant or bar. Drinking is part of the Korean culture, as Koreans believe that drinking helps to bond colleagues in the company, and an offered drink must never be refused as it is considered to be rude. Along with drinking, Karaoke is a popular activity after meetings. People who attend the meeting are usually expected to sing a solo song.

The project proposal will be critical analysed before it will established in South Korea. In the first assignment will looked in depth in political, country risk, FDI theories and motive for the project. In the second assignment, the cost of capital for the project was calculated, stating the risk for both the parent and subsidiaries.