South Korean Economy

South Korean Macro Environment South Korea is located in the Eastern Asia. Characterized by temperate climate, The country is surrounded by mountains and coastal plains. South Korea also has such natural resources as coal, tungsten, lead. The country also has hydropower potential.Advertising We will write a custom essay sample on South Korean Economy specifically for you for only $16.05 $11/page Learn More Although South Korea is endowed with arable land, it is apparent that water pollution that ensues from the discharge of sewage and industry will end up destroying the environment. This would consequently pose great danger to the survival of both plants and animals. Therefore, there exist certain environmental issues to be addressed. South Korean population normally speaks Korean although English is also taught in high schools. About 26 percent of the population is Christian, 23 percent of people are Buddhists while 49 percent do not belong to any relig ious group. In total, South Korea has a population of 48.7 million. The working class is about 72.9 percent of the total population while population aged 65 years and above is 11.4%. Even though the level of urban population stands at 83%, the low rate of urbanization is expected to remain at 0.6% until 2015.1 Reportedly, 99% percent of male above 15 years are able to read and write. It is estimated that 96% of women over 15 years can read and write as well. This has enabled the rate of unemployment among youths aged between 15 and 24 years to remain as low as 9.8%.2 The major cities, which are the cornerstones of South Korea’s strong economy, include Seoul, which is the capital city, Busan, Daegu, Incheon and Daejon. South Korea is characterized by high level of education among its population. Notably, South Korean GDP of about 50 years back was compared to that of developing countries in Africa. South Korea’s present success is often explained by strong ties between the government and businesses. For instance, government constantly ensures businesses with steady credit in addition to providing restrictions on imports. In a number of cases, the government of South Korea encouraged the importation of both raw materials and technology. Conversely, it places restrictions to the importation of consumer goods.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is through the government’s concerted efforts that emphasize on savings and investment at the expense of consumption that saw South Korea perform considerably well economically. Following the financial crisis that occurred between 1997 and 1998 (which plunged GDP down to 7% in 1998) South Korean government started reforming its policies including the allowance of large foreign investments in South Korea’s economy.3 South Korean GDP stood at $1.554 trillion in 2010. By the end of 2011 the rate of growth was estimated at 3.9%. The per capita was evaluated at $31,700 by the end of 2011. Generally, agriculture dominates 3% of the total economy while 39.4% is dominated by industrial sector. 57.6% of the total GDP is dominated by service sector.4 South Korea’s firms targets cheaper methods of production, access to new skills and financial support in addition to advanced technology. As far as South Korea’s outward FDI in Asia, it is estimated that South Korea has a net investment of 35% in Asia, which amounts to US$33 billion. The second largest investment in the Asian region is that of the North America ($18 billion). The third is Europe which accounts for 11% of the total foreign investment in Asia which is approximately $11 billion. Led by President Lee Myung, South Korea engages with other countries in issues pertaining to global policies. This is evident as Myung speaks for international collaboration between countries. Thus, he seeks to host Nuclear Sec urity Summit, which will be held in March 2012.5 Nevertheless, South Korea frequently confronts with North Korea. For instance, certain tension was created after North Korea sunk South Korean warship in March 2010. South Korean Factor Endowments South Korea was ranked 12th in 2010 with GDP of 1.459 trillion. People refer to Hong Kong, Singapore, South Korea and Taiwan as the Asian Tigers.6 Rapid development of South Korea’s economy is due to the rapid growth in the industrial and manufacturing sectors. A major progress has been seen in the movement from labor intensive to capital-oriented economy. However, South Korea lags behind in the agricultural sector. The sector employs only 7% of the total population. The movement towards industrialization and urbanization can explain reduction in the level of agricultural productivity. The main crop cultivated in South Korea is rice. It accounts for 90% of grain production. Other agricultural products produced in South Korea include b arley and vegetables.Advertising We will write a custom essay sample on South Korean Economy specifically for you for only $16.05 $11/page Learn More South Korean industrial sector accounts for about 40% of the total GDP. The largest industries in the South Korea include shipbuilding, telecommunication and automobile industry. In 1980s, South Korea was ranked sixth worldwide in the production of electronic products such as watches, PCs, microwave ovens, televisions in addition to semiconductors such as memory chips. South Korea is ranked fifth after such countries as the U.S. and Germany in production of automobiles such as Renault and Hyundai. The country produces about 4.3 million automobiles every year. Following the greatest number of the users of broadband in South Korea, the country has developed wide communication networks.7 The companies involved in shipbuilding include Samsung Heavy Industries and Hyundai Heavy Industries. Currently, South Kore a invests much in the service industry considering that 68% of the workforce is employed in service sector. Summary South Korea is one of the four Asian Tigers that have developed fast during the last four decades. Admittedly, this is a promising market to enter. The government supports international investment. Therefore, it is possible to obtain favorable conditions for the development of business. However, there can be certain limitations as the government restricts import of certain goods. Nonetheless, it is possible to focus on production in such profitable spheres as automobile industry, shipbuilding or telecommunications. It can be even more effective to concentrate on agricultural industry as this niche is underdeveloped. Therefore, there is not much competition in the sphere. Of course, the sphere of services is also quite a promising sector. However, there are certain risks. In the first place, the country is still vulnerable to various economic constraints. Apart from eco nomic difficulties, there is still tension between North and South Korea. Therefore, conflicts between the two countries can become a threat to political stability in South Korea, which in its turn will lead to financial instability. Conclusion South Korea remains a viable locality for various foreign investors. It was earlier recognized that South Korea’s government had placed strict measures with regard to foreign investment within the territory of South Korea. However, the government began encouraging foreign investments. Considering that South Korea is endowed with sophisticated technology, any company investing in South Korea would be assured of competitive technology.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, the highest per capita would mean that South Korea labor is quite expensive. It is also apparent that South Korea is dominated by competitive firms that may give any foreign company tough competition. Nonetheless, there are certain sectors where competition is rather low. For instance, agricultural sector can be a promising sphere for investors. This sector is underdeveloped at present. However, it is still important to take into account such factors as legislation, environment, workforce, etc. Finally, certain political constraints should be also considered as South Korea can have conflicts with North Korea in future. Though, these political issues can hardly drastically affect business, they should not be left out of attention. Endnotes Helen Milner, â€Å"Globalization, Development, and International Institutions: Normative and Positive Perspectives,† Review Essay 3, no. 4 (2005), pp. 37-43. Charles Hill, International Business: Competing in the Global Marketplac e (Boston: McGraw-Hill Irwin, 2011). Susan Douglas and Samuel Craig, â€Å"Global Portfolio Planning and Market Interconnectedness,† Journal of International Marketing 4 (1996), pp. 93-110. Randall Stone. â€Å"How to Reform the IMF,† Current History 109, no. 730 (2010), pp. 98-105. Martin Wolf, Why Globalization Works (Sydney: Yale University Press, 2004). Eugene Gholz and Daryl Press. â€Å"Protecting the ‘Prize’: Oil and the U.S. National Interest,† Security Studies 19, no. 3 (2010), pp. 24-45. Sebastian Rosato. â€Å"Europe’s Troubles: Power Politics and the State of the European Project,† International Security 35, n. 4 (2011), pp. 77-86. This essay on South Korean Economy was written and submitted by user Liberty Z. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

buy custom The Mongol Empire essay

buy custom The Mongol Empire essay The Mongol empire was strictly governed by its great ruler, Genghis Khan called Yassa which means Order or decree. This code became their standard rule and anybody caught violating severely faces the consequence. Like for instance, it was decreed that a mounted soldier must pick anything dropped by his companion ahead of him. If he fails to do so, death penalty will be imposed. This is how strict Genghis was in imposing his laws which greatly amazed the European travelers. Under this rule, the officials were chosen based on their credibility and religious tolerance. Thief and robbery was strictly forbidden as well as destruction of private properties. The Mongols are governed by non-democratic parliamentary-style ruling called Kurultai wherein the high-ranking officials gather and discuss legal issues with their highest ruler no other than the Great Khan. The Great Khan was liberal and tolerant when it comes to the belief of other people and nobody was prosecuted because of his/her religious background. Roger Bacon (1202-1292) commented that this may be due to their advanced culture and knowledge though some historians during the 20th century believed that it was a matter of military strategy so as not to inflict war on other countries. When Genghis Khan fought against Sultan Muhammad of Khwaresm, other Muslim leader did not join the Sultan as they viewed it as a personal fight between the two and not on religious issues. During the time of Genghis Khan, each religion was free to find their converts ranging from Buddhism, Christianity, Manichaeism and Islam. To avoid conflicts, Genghis established a non-sectarian institution though he was a shamanist by belief. Under his domain, religious leaders were exempted from taxes and public service. Religious debates were organized by the Mongol emperors through members of the clergy with larg e audience to participate. The lifestyle of the Mongols was somewhat nomadic in nature so there were only few worship places in formal setting. During the Mongolian Empire, communication was vastly enhanced. Trading routes were created and the postal system called yam was established. Traders, couriers and travelers from China, Middle East and Europe made use of the system. Somtimes, capitals were made available for the Merchants as part of their partnership with the Mongols hence; they likewise enjoy the protection of the Mongols as they passed through the Mongolian realms covering from Mediterranean basin going to China which was later known as the famous Silk Road by the travelers. Genghis Khan introduced literacy through education in writing by using Uighurcharacters in Mongol language which is still being used in Inner Mongolia today. Although taxes were heavy to other individuals in the empire, teachers, lawyers and artists were exempted from paying their taxes. On the other hand, he imposed massive heavy punishment to those who disobeyed the Mongol orders by destroying the cities and the populace slaughtered. After Genghis, the merchant partner business continued to flourish under his successors Ogedei and Guyuk. Merchants brought clothing, food, and other provisions to the imperial palaces, and in return the Great Khans gave the merchants tax exemptions, and allowed them to use the official relay stations of the Mongol Empire. Merchants also served as tax farmers in China, Russia and Iran. If the merchants were attacked by bandits, losses were made up from the imperial treasury During the time of %u04E6gedei, he established respective places of worship in Karakorum for his followersalongside the palaces. Though his wife was a Mongol Christian the dominant religion was Shamanism, Tengriism and Buddhism. His other brothers were converted to Islam faith. After the death of Genghis Khan, %u04E6gedei and Guyuk continued with the partnership in mercantile business. Merchants bring in food, clothing and other necessities to the palaces. In return, the merchants were exempted from paying taxes. Further, they were sanctioned to use the Empires official relay stations. Policies gradually changed during the rule of Mongke, the Great Khan. Due to excessive money laundering and overtaxing, he ordered all merchants to pay revenue taxes. This policy continued until Kublai Khan came to the throne. Kublai Khan founded the Yuan Dynasty and Yuan communication system. More relays with hostels were made. Consequently, different successions took iits part. The fall of the mighty Mongolian Empire led to the downfall of trade and commerce on the Silk Road. In 1368, the Yuan Dynasty was overthrown by the native Chinese and establish their own; the Ming Dynasty and lived independently, totally isolated from other outside forces. Genghis Khans conquests had greatly changed the demography of its people. Its mortality rate decreased considerably though research indicates that the Black Deathduring the 13th century or better known as Bubonic Plaguecaused the vast decline of population from China, Mongolian Empire and across Europe up to 14th century. It was said that when the Genoese traders came to Crimean peninsula, they were under siege by the Mongolian warriors who were already getting weak being infected by the disease. They scattered the infected corpses as their biological weapon. The Genoese traders left bringing with them the plague into their ships which rapidly spread towards Europe. An estimate of about 75 Million people died from the pandemic. China declined by half. Others said that it was the result of Mongol ferocity but scholars like Frederick W. Mote asserted that the fear of being captured and enslaved by the Mongols caused the people to just disappear altogether. William McNeill and David Morgan likewise argue that the main reason of demographic decline was the Bubonic Plague. After the fall of Mongolian Empire it was a Blessing in Disguise for the people during the 15th century. Perhaps, people got tired to war and captivity for a hundred years that all they want during the 15th century was a renaissance for everybody. I therefore conclude that the renaissance was a turning point for all individuals who had suffered the bitterness in war during the 1300 to 14500 and the Black Death had greatly changed the peoples lives from the Dark Era to a more promising renaissance. The chart above shows the effect of the Black Death and its impact. Despite of everything, Genghis Khan has shaped and had led history into the world of contemporary art and technology. Buy custom The Mongol Empire essay