South Korea: Country Attractiveness Report Essay

1841 Words Jul 20th, 2011 8 Pages
FACULTY OF BUSINESS AND ECONOMICS

KATHOLIEKE UNIVERSITEIT LEUVEN

D0M19B - International Business Strategy

SOUTH KOREA Shortened Country Attractiveness Report
Antoine Hirschland

Prof. Dr. Sleuwaegen Leo

– 2010 –

I.

Introduction

Thanks to the globalization, Asian economy is drawing more and more the attention of the rest of the world. Nevertheless, when we talk about economic growth in Asia, we think mostly about China, India or Japan whereas South Korean economy is staying quite unknown in Belgium. However, since the war in the Korean peninsula and the formation of the Democratic People's Republic of Korea (North Korea) and the Republic of Korea (South Korea) in 1948, South Korea has becoming a major economic
…show more content…
This framework consists in four attributes that promote or hinder the creation of competitive advantage for this nation.
Firm strategy, structure, and rivalry

Factor Endowments Relating and supporting industries

Demand conditions

A. Factor endowments Factor endowments can relate to either basic- (natural resources, climate and location) or advanced factors (skilled labour, infrastructure and technological know-how). i. Basic factors South Korea’s basic factors are not especially advantageous in general. Indeed, South Korea is characterized by a variety of different climates. Located in the monsoon region of East Asia, the country has warm and wet summers and dry and cold winters. On average, temperatures are equal to -10°C in winter and 30 to 35 degrees in summer. In June, July and August precipitations are more abundant. -2-

Moreover, South Korea has no natural resource setting apart coal, tungsten and graphite. Finally, the location of the country can be considered both as a drawback and as an advantage. On the first hand, South Korea has borders only with North Korea and crossing this one is almost impossible. On the other hand, South Korea is located in one of the most growing economic region in the world, just between China and Japan. ii. Advanced factors Those factors are a lot more advantageous. South Korea enjoys high quality infrastructures (communication, transportation, etc.) to ensure the

Related Documents