• KDI Journal of Economic Policy
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• v.35 no.1
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• pp.1-32
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• 2013

Economic sanctions and inducements are types of 'policy instruments' based on 'economic tools' to influence other international actors. Ongoing debates on sanctions and inducements have exposed drawbacks for relying on individual case studies. There are some studies in the literature that attempt theoretical analysis of sanctions and inducements, but they are mostly based on rational choice theory. In reality, however, there exist so many cases that cannot be explained by rational choice theory. These are called anomalies or exceptions. The literature introduces specific variables to interpret these anomalies and thus sacrifice the universality of the theory. From this point of view, prospect theory would present an effective tool to analyze economic sanctions and inducements. It is a behavioral economic theory that tries to model a decisions making process in reality. The theory says that people make decisions based on subjective value of losses and gains from an individual reference point, and that people evaluate these losses and gains using heuristics. Thus prospect theory could offer a different frame which has greater explanatory range without adding new variables. As a result of this study, target's losses of 'back down' towards economic sanctions loom larger when the reference point level increases, therefore, the effectiveness of sanctions decreases. However, target's losses of 'stand firm' towards economic inducements loom larger under the same condition of reference point, therefore, the effectiveness of inducements increases. The findings of the paper suggest meaningful implications to the economic policy towards North Korea.

• International Commerce and Information Review
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• v.1 no.1
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• pp.87-105
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• 1999

A objective of this study is to examine a commercial practices and analyze a trade environment for a successful launch of Indonesian market. In general, Indonesian trade environment is composed of a natural environment, religious peculiarity, history and politic, an economic prospect. In order to understand a commercial practice exactly and then be possible a favorable business achievement, a natural character, a mode of living, custom of a meal and invitation, custom of gift, religious taboo, a human relationship, commercial power, a tendency of product preference should be recognized. The results of the study indicate mostly that even though an excellent brand image, a good Quality and an efficient sales network are a basic factor for making of a successful business. However practically it is more important to understand a business custom and a natural character of Indonesian. Because business is made up of through relation between human being eventually.

• Journal of Internet Computing and Services
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• v.17 no.6
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• pp.113-122
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• 2016

Information and Communication Technology (ICT) has revolutionized the world and has profound impact on the social and economic development of a country. Implementation, practice and accessibility of ICT is viewed as an integral part of any countries' strategy today. These new technologies are becoming popular due to their ability to produce, distribute and provide instant access to massive information in no time. ICT has pervaded almost every aspect of human endeavor that may include health, education, economics, governance, entertainment etc. Tourism is one such vital industry that find enormous application of ICT in its strategic and operational level, to promise long term benefits and enhance economic growth. Tourism industry in western world and some developed countries of Asia have applied ICT for more than 30 years, and have gained tremendous benefits. Nepal which is also growing as one of the favourite tourist destinations lacks proper implementation of ICT in this industry. In our study we examined how the ICT can play a vital role in developing the tourism industry of Nepal. This study is an exploratory research based on primary data collected from tourist visiting Nepal, supported by information from tour operators, government agencies, NGOs and INGOS. A framework is devised on the basis of data and information collected and finally, discussions elaborate on the prospect and challenges of implementation of ICT in tourism industry of $Nep{\grave{a}}l$.

• Journal of the Korean association of regional geographers
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• v.2 no.1
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• pp.87-114
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• 1996

This paper is the second part of a research which aims to look into the regional development process and the quality of life of Youngnam area. and to suggest a prospect and tasks for the future development of the region. All cities and regions including Youngnam area seem to be involved in a rapidly changing process of conditions for development, because of a recent economic and political transformation in the national and global scale. It can be thus said that, taking such a process into consideration seriously, each city or region needs to establish a long-term prospect and goal, and to set up and practicize its development plan. From this point of view, this paper reconsiders the changing process of conditions for development of Youngnam region, and suggests an alternative development plan. At the first, the changing conditions of regional development are investigated in economic, political, social, cultural and environmental aspects. Secondly, some actual planning practices in this regions are examined and their problems are pointed out. Thirdly, an alternative model for regional development is suggested and development tasks in each aspects are discussed in relation to each other. Finally some regional development strategies are provided in the spatial as well as the sectoral dimision. As a results of this research, it is argued that the development of Youngnam region should pursue both an improvement of socio-cultural and ecological institutions for ensuring humane life of dwellers within the region, and a enforcement of economic and political self-sufficiency in an organic relation between regions and to the whole society. This kind of argument can be applied to every city or region. But it would more significant for Youngnam region, because this region, which once experienced a rapid economic growth but now is fallen into a serious economic stagnation, tends to contrive material plans to redevelop regional economy, while ignoring social plans to improve quality of life.

• Journal of Distribution Science
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• v.14 no.12
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• pp.99-105
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• 2016

Purpose - In the present study, it has become the most important necessity in our daily lives that consumers' psychological factors affect the use of smartphones, and it has been analyzed through behavioral economic approaches. In this respect, the present study is intended to apply the heuristic theory and the prospect theory among behavioral economics theories to examine how psychological factors affect consumers' product selection. Research design, data, and methodology - In the present study, using smartphone repurchase as a dependent variable, whether regulatory focus effects have interaction effects on behavioral economic theories and behavioral economic effects such as possession (ownership) effects, framing effects, and brand recollection. As an analysis method, questionnaire surveys conducted with university students in Incheon were examined through Two-Way ANOVAs using the SPSS23 package. Results - The analysis from the results are as follows. Using smartphone repurchase as a dependent variable, the main effects and interaction effects on two variables; satisfaction difference with product functions and positive framing variable were statistically significant. Using repurchase as a dependent variable was statistically significant, there was no interaction effect between the two variables; satisfaction difference with product functions and the difference of brands in possession. Using smartphone repurchase as a dependent variable, interaction effects on two variables; satisfaction difference with product functions and the lengths of product possession periods were not statistically significant. The results from the analyses of interaction effects of brand recollection and brands type were statistically significant in possession using repurchase as a dependent variable. The results from the analyses of the main effect of the brands type were statistically significant in possession using repurchase as a dependent variable. Conclusions - The implication of the present study is that it suggests the factors that became important for customers' smartphone purchase following the change in the meaning of smartphones from practical products in the past to hedonic products. Limitations of the present study are first, the study subjects are limited to students and the number of copies in questionnaires is only approximately 130, which is insufficient, so that the present study is not sufficient as a study for entire smartphone users.

• Journal of Distribution Science
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• v.11 no.5
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• pp.63-76
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• 2013

Purpose - For the past several decades, behavioral economics or behavioral decision theory has undergone rapid development. This study provides a critical review of the development of behavioral economics with a focus on what are deemed to be core theories in the field. Starting from the utility function proposed by Daniel Bernoulli in the 18th century, the development history of utility functions until the emergence of the prospect theory is thoroughly reviewed. Some of the experimental results violating the traditionally assumed utility function and supporting the prospect theory value function are summarized. The most representative principles of rational choice are transitivity, independence from irrelevant alternatives (IIA), and regularity. The development of behavioral economics has been triggered by finding counter-examples to these principles. Some of the choice behaviors discussed in this study as counter-examples to the traditional theories of rational choice are the St. Petersburg paradox; the Allais paradox; gambling behavior; and the various context effects including the similarity effect, attraction effect, and the compromise effect. The Elimination-by-Aspects (EBA) model, which was proposed as an explanation for the similarity effect, is discussed in detail as well. Based on the literature review and further analysis, this study summarizes the relationship between the context effects, prospect theory, and EBA model. Research design, data, and methodology - This study provides an extensive literature review on several important theories in the field of behavioral decision theory and adds some critical comments to the theories and the relationships among them. This study first reviews the development of utility functions. Daniel Bernoulli introduced the concept of utility function to solve the St. Petersburg paradox. In the mid-20th century, Herbert Simon proposed the "satisficing" heuristic and presented a value function with a shape different from traditional utility functions. This study highlights the strengths and weaknesses of several utility functions proposed until the emergence of the prospect theory value function. Results - This study posits that prospect theory and EBA model are the two most important theories in the field of behavioral decision theory. They can explain various choice behaviors that traditional utility maximization analysis has been unable to. The application of these models to various fields is further increasing nowadays. This study explains how prospect theory and the EBA model can be used to explain the context effects. Conclusions - The traditional economic theory relies on a single variable called "utility" in explaining consumer choice. However, this study argues that, in investigating consumer choice, several other variables should also be considered. These are the similarity among alternatives, an alternative's prototypicality within the category, the dominance relationship between alternatives, and the reference point in evaluating alternatives. Due to the development of behavioral economics, we are now closer to a more complete understanding of consumer choice behavior than in the past when we had only a single tool called utility.

• Journal of Agricultural Extension & Community Development
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• v.24 no.1
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• pp.33-48
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• 2017

Returning to farming and rural village is one of the most hot social issues in Korea. Therefore, the government has tried to make up a policy program, which aims to support for the urban residents to get appropriate informations and to make right decisions about returning to farming and rural village. For the sparsely populated rural communities, this phenomena are some good opportunities for their sustainable development. The government needs the resasonale prospect on returning to farming and rural village, because their policy program should be made on the basis sound data and information. But, with the current data about returning to farming in Korea, it is impossible to make an econometrical model that can forecast the population who will return to farming and rural village. So, we tried a delphi method to sketch the future returning to farming and rural village. The delphi panels gave us some prospects on the issues. They anticipated that the population of returning to farming will increase for the next five years. And, they recommended some policy directions.

• Journal of Korea Port Economic Association
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• v.21 no.3
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• pp.115-148
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• 2005

In the liner market, a strategy is hard to sustain as competitors can easily imitate the strategy. For examples, when a number of shipping companies pursue this space exchange strategy in a liner market, their competitors are likely to build a cooperative alliance, following similar strategic pattern without any difficulty. Such strategic imitations are universal in international liner market. Therefore, the success of global alliance requires following critical considerations. First, the strategy of global alliance should be designed the way it gives the liner operators an economy of scale, which could be a key advantage in the competitive market. Second, thorough global alliance the lines should be able to improve their transport service through the reduction of operating costs and the business rationalization. The international alliance today is characterized by a strategic cooperation among a limited number of 'mega-carriers'. Such cooperation between the large-sized operators has come in many different forms. However, the trend has been towards the space exchange agreement, where a carrier on a route offers to another carrier a fixed number of spaces for a fixed period of time. the major carriers have been entered into groupings by integrating their services structures to increase market power. With reference to the above, this study has the following primary objectives: (1) to explore the present status of global alliance in liner shipping industry, (2) to prospect the future trend of the global alliance.

• Journal of Korea Port Economic Association
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• v.19 no.2
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• pp.141-158
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• 2003

There are several Customs Free Zone in Korea. Those are Susan Port, Kwangyang Port, Inchun Port. and International Airport Inchun. And there are several zone which will be appointed soon, Busan Port area, Kwangyang Port area, Inchun Port and International Airport Inchun area. But there are many problems to operate CFZ in Korea. This paper aim at pointing out for the problems and drawing up the plan. The problems are an unreasonable incentive standard, security of the behind site related to CFZ, present customs law not to process and assemble, and several similar system related CFZ. Globalization and regionalization are major trends in the international economic system recently. So we have to make desperate efforts to win the severe competition among many countries in economic aspect and make a good plan to solve the problems related CFZ in future.

• The Journal of Economics, Marketing and Management
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• v.11 no.3
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• pp.1-10
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• 2023

Purpose: The purpose of this study is to explore how to apply socially responsible corporate management and public policy to perceive awareness and adoption of electric vehicles for global sustainability. This study examined i) how perceived factors such as economic, environment, convenience, uncertainty, and efficiency factors differ based on experiences of electric vehicles, ii) how actual and potential customers perceive management and policy issues on electric vehicles differently, iii) how proposed factors including policy planning for the management of electric vehicle, prospect of electric vehicles, and socially responsible corporate activities affect overall attitudes toward electric vehicles? iv) how overall attitudes affect growth of electric vehicle industry and development of automobile industry? Research design, data and methodology: This study conducted an online survey and applied t-test, ANOVA, factor and regression analysis. Results: This study found that policy planning for the management of electric vehicles, prospect of electric vehicles, and corporate activities affect overall attitudes toward electric vehicles and actual and potential customers showed mean differences on management and policy on electric vehicles. Conclusions: This study provides managerial and policy implications. This study suggests promoting policies for better adoption of electric vehicles and regulatory policies to enhance global sustainability and prospect of electric vehicles.