The first country we are going to look at interdependence with is the United States. South Korea is very dependent on the United States, as we are the largest trading partner and the largest foreign investor. (Ho-Jin, L. n.d.) I view the interdependence between the two countries as both positive and negative. For positives, the United States receives technology as well as automobiles from South Korea. As I was talking to a salesperson today, ironically, he was discussing that the Korean automakers (Hyundai and Kia) actually topped the sales dominated in recent years by Honda and Toyota. However the downside of globalization is local goods are sometimes not as cheap as an import because of several factors so it eats into the profits of the local company.
The second country we are going to look at interdependence with is China. South Korea and China. Their main interdependence is through trade. They both have considerable trade between the two countries. South Korea is also heavily invested directly in China, with billions of dollars being invested in China per year. 2004 alone saw 8.9 Billion US dollars. (Kim, J., Kim, Y., & Lee, 2006) I view the interdependence between the two countries as mostly positive, seeing as both sides are mainly trading goods, and China has one of the largest markets in the world, and the largest in Asia. So South Korea gains a lot as well in investing in China, but with all stocks there is some risk involved. The current crash is proving that, but I think South Korea's economy would survive. The last country we are going to look at interdependence with is Saudi Arabia. I really feel this is a no brainer due to earlier in this assignment I found out that South Korea does not produce any of its own oil. So in exchange for South Korean goods, the Saudi Arabia kingdom supplies billions of dollars in oil to South Korea. (Yahya, 2014) I feel this is a good interdependence because with South Korea not producing its own oil it has to come from somewhere and the Middle East region produces much of the worlds oil. Ho-Jin, L. (n.d.). Economic Interdependence Between Korea and the United States. Retrieved August 3, 2015, from http://keia.org/sites/default/files/publications/06.Lee.pdf Kim, J., Kim, Y., & Lee, C. H. (2006, September 26). Trade, Investment and Economic Interdependence between South Korea and China [Electronic version]. Asian Economic Journal, 20(4), 379-380. doi:doi: 10.1111/j.1467-8381.2006.00243.x Yahya, S. (2014, November 4). South Korea, Saudi Arabia bolster investment ties. In Al Arabiya News. Retrieved August 3, 2015, from http://english.alarabiya.net/en/business/economy/2014/11/04/South-Korea-Saudi-Arabia-bolster-investment-ties.html |
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