globalEDGE Newsletter

May 2007
Vol. 6 - Issue 5

Inside This Issue

  1. Featured Country: South Korea
  2. Poll Question
  3. News
  4. In-Depth Look
  5. Recently Added Sites
  6. Featured Academy Section
  7. Newsletter Information

1) Featured Country: South Korea

Think of South Korea today, and cosmopolitan springs to mind. However, such was not always the case. Believed to have been founded by a god-king, the East Asian nation was once a victim of numerous invasion attempts, as well as its own isolationist ways. Gripped by further political turmoil following World War II and the Japanese occupation, South Korea finally emerged from its troubled past in the early 1990s. It is now a center of innovative genius, melded with the traditional Korean values of self-reliance and conformity.

From economic minnow to powerhouse in the last three decades, South Korea has drawn envious looks from many. Rapid growth during those years led to a spectacular leap in GNP per capita, from a meager $100 in 1963, to $14,000 in 2004. South Korea is also currently the eleventh largest economy in the world. Additionally, Korean products now have greater market access in the United States, due to a recently inked trade deal. That agreement, coupled with warming relations between the two Koreas, is expected to sustain South Korean economic growth for many years to come.

Learn more about South Korea on globalEDGE Country Insights.

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2) Poll Question

This month's poll question is:

"China and South Korea are discussing a bilateral trade agreement. What do you think would be the effect of this potential pact?"

Please visit our homepage to vote on this month's poll question.

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3) News

US and S Korea Agree Trade Deal
BBC News (April 2, 2007)
http://news.bbc.co.uk/2/hi/business/6516923.stm
The U.S. negotiated a trade deal with South Korea just before the buzzer. With minutes left to propose to Congress, the team members from the White House had agreed to give South Korean products access to a more open American market. To complement the agreement, South Korea decided to reduce its tariff on U.S. beef. This maximal trade pact surpasses even the North American Free Trade Agreement, signed in 1992.

China's Large Aircraft Program Gains Momentum: When Will It Take off?
Knowledge @ Wharton (April 19, 2007)
http://www.knowledgeatwharton.com.cn/index.cfm?fa=viewfeature&articleid=1604&languageid=1
China has decided to re-launch its plan for R&D on large aircraft. Currently, Boeing and Airbus hold dominant positions in the global market, but China feels that it has huge market potential for the large aircrafts industry. One estimate approximates that China will need between 2,100-2,400 passenger planes in the next 20 years. Once launched, the program will have corresponding projects on both military and commercial aircrafts. China's excited about the opportunity, although there are some concerns since it will be difficult to restart and to catch up with the well-established players.

Romania's Economic Growth Threatened by Shortage of Workers
International Herald Tribune, by Matthew Brunwasser (April 10, 2007)
http://iht.com/articles/2007/04/10/news/factory.php
Large-scale emigration is forcing Romania to seek foreign labor alternatives. In an attempt to plug the worsening worker shortage, several Romanian industries are now resorting to a more expensive, but readily available, Chinese workforce. Yet, this solution is not without its downfalls, as factory operators are now responsible for providing food and lodging, over and above employee salaries.

View more News on globalEDGE.

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4) In Depth Look

An Industry in Search of its Identity
JoongAng Daily, by Ines Cho (April 10, 2007)
http://joongangdaily.joins.com/article/view.asp?aid=2874282
South Korea is not a country known for its fashion, but rather a culture that turns the other cheek at flaunting the latest handbag. For centuries Koreans have felt that being fashionable, or being caught in a style storm, was a "social evil." With Seoul Collections fashion week, the country is trying to step away from the vanity issue of old, and into the fashion world. The government lobbied major fashion houses and brought in journalists from around the world spending $1.6 million for the week. However, the rest of the world was unimpressed with copied looks, even though the event has gotten much bigger since it first opened in 2000. South Koreans are struggling to find their place on the catwalk but feel they'll find their footing soon. It is a new frontier for the country, but there has been much investment from the government and young designers have their hopes set high.

China's Appetite for Meat Feeds a Brazilian Soybean Boom
International Herald Tribune, by Alexei Barrionuevo (April 5, 2007)
http://iht.com/articles/2007/04/05/business/soy.php
As China continues to grow, so too does the rest of the world. Fueled by increased affluence, a greater Chinese demand for meat has resulted in a similar need for animal feed in the form of soybeans. Hence, a new trade relationship has been forged with Brazil leading to a surge in soybean production in that country. However, fraught with Brazilian infrastructural difficulties and issues of exploitation, the partnership seems shaky at best.

The Business of Global Poverty
Harvard Business School, by Gary Emmons (April 4, 2007)
http://hbswk.hbs.edu/item/5656.html
Professors at Harvard Business School (HBS) studying global poverty have made critical revelations in the field. Michael Chu, senior lecturer at HBS, says that doing business with the bottom of the wealth pyramid is not just morally sensitive, but is just perfect business sense. The poverty stricken individuals may only have dollars of dispensable income, but 2.8 billion people is a large market in and of itself. Micro-financing is one way to work with people below the poverty line. One example is the Grameen $200 loan, which some 7 million people have taken out, that has a 98% repayment rate. Global poverty is probably the biggest socioeconomic problem and won't be fixed with a band-aid, but can over time be dramatically improved.

View more In Depth Look articles on globalEDGE.

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5) Recently Added Sites

A sample of some of our recently added sites:

South Korea: Kwintessential
http://www.kwintessential.co.uk/resources/global-etiquette/south-korea-country-profile.html
Kwintenssential provides some key phrases in Korean as well as brief information about Korean culture and society. Also discussed in the website are meeting, dining, and dress etiquette, business relations, and business cards.
Country: South Korea
Category: Reference: Culture

South Korea: GobizKorea.com
http://www.gobizkorea.com/
GobizKorea.com provides trade leads on a variety of products such as agricultural or cleaning equipment, pharmaceuticals, manufacturing machinery and others. Available in Korean, Chinese and English, this site is an international marketplace where international buyers can get in touch with Korean suppliers over the Internet. A free registration is necessary to participate in postings.
Country: South Korea
Category: Trade: Trade Leads

Green Energy News
http://www.green-energy-news.com/
Green Energy News focuses on providing current news stories related to renewable energy sources. They also have calendars of events concerning the promotion on environmentally friendly energy sources.
Category: Industry: Industry Specific

View more recently added sites on globalEDGE.

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6) Featured Academy Resource

Globalization101
http://www.globalization101.org/ask/ Globalization101 provides interviews with experts in academia, public policy, and business on topics of globalization. Issues include the World Bank, FTAA, and Agricultural Trade. The videos are downloadable and recent selections provide individual clips for each question and answer.

View more Academy Resources on globalEDGE.

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7) Newsletter Information

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