• International Commerce and Information Review
• /
• v.16 no.3
• /
• pp.225-251
• /
• 2014

This study was intended to confirm a positive correlation between a understanding and utilization and performance results of the FTA in Gangwon-do. To this end, eighty-six companies(90% SMEs) which participate in both import and export were surveyed regarding their understanding and utilization of the FTA, and current performance was analyzed. The research results are as follows. First, we found a positive correlation between 1) a company's global orientation (as measured in export density as a percentage of profit) and 2) its competitiveness (as measured in annual sales), and a company's degree of utilization of FTA provisions. Second, we found that increased awareness of the provisions of Korea's FTAs was positively correlated with the degree to which companies were able to benefit financially from Korea's FTAs. Third, however, at the time of this study's completion, FTA utilization was not yet positively correlated with statistically significant performance results. Therefore, to increase the utilization and performance of FTA, the Korean government have to make a efficient business models for each industry and support the small and mid-size businesses including Gangwon province's SMEs.

• Korea Trade Review
• /
• v.41 no.5
• /
• pp.41-62
• /
• 2016

This study made an analysis of the effects of performance and learning orientation for the existing FTA on the intention to use a trilateral FTA among Korea, China and Japan. The results of the empirical analysis of Small and Medium-sized Enterprises(SMEs) located in Gwangju and Jeonnam provinces are as follows. First, there is a positive correlation between the effects of performance for the existing FTA and intention of a trilateral FTA. This result suggests that SMEs' performance feedback can be used as an asset of corporate experience and will be helpful to increase the intention to use a trilateral FTA by contributing to have sustainable competitive advantage of companies. Secondly, there is a positive correlation between the SMEs' learning orientation about FTA and intention to use a trilateral FTA. This result indicates that SMEs have more learning orientation for FTA. They actively acquire and diffuse information. These activities can be helpful for having prior knowledge and absorptive capacity. In conclusion, this study is considered to provide useful theoretical and practical implications that can contribute to enhancing the using intention of a trilateral FTA by explaining the significance of performance feedback and learning orientation.

• Korea Trade Review
• /
• v.42 no.5
• /
• pp.93-112
• /
• 2017

The purpose of this study is to analyze the effects of FTA information learning in export SMEs. Therefore, this study has constructed an integrated model including the moderating effects of FTA information learning on the of export performance in SME. The relationship between SMEs' localization strategy, product innovation capacity, and FTA information learning was linked to export performance, and an empirical analysis was conducted on 195 export SMEs. The path analysis was performed using the structural equation model(SEM), and six hypotheses including the control effect were tested. As a result, the localization strategy of SMEs positively influenced product innovation capacity. On the other hand, FTA information learning did not show significant results. Product innovation capacity and FTA information learning as an antecedents showed significant results in terms of export performance. In the moderated effects analysis, the moderated effect between the localization strategy and FTA information learning did not show significant effect on the product innovation capacity. Whereas the moderated effect between the product innovation capacity and the FTA information learning significant influence on the export performance of SMEs.

• International Commerce and Information Review
• /
• v.19 no.3
• /
• pp.3-23
• /
• 2017

With the globalization of the world economy, international trade networks are expanding beyond geographical proximity, and the expansion of such trade networks is playing a role in promoting globalization. Korea has established itself as a strong FTA for the past 13 years, starting with the Korea-Chile FTA. Successful establishment of a short-term FTA network has shown positive economic effects such as increased trade volume with partner countries and market share in overseas markets. Other countries are also turning to the paradigm of economic development through the formation of a regional economic integration and a bilateral trade agreement network, and it is time to investigate new opportunities through understanding the entire RTA and FTA network. In this study, we analyzed the status of RTA and FTA from the 1960s to 2010s, analyzed network structure and centrality through SNA(social network analysis). The results of the study show that the structure of the FTA network is gradually expanding, and the FTA network, which has been expanding to the center of the early European countries, is changing toward the Asian countries such as Korea, China and Japan. As a result of the analysis of the degree of centrality, Korea was ranked as the top in all the degree of centrality(Degree, Betweenness, Closeness and Eigenvector) indicators for a short period of time and it means that Korea's FTA strategy was evaluated as very successful. This study examines the FTA among the global RTAs, assesses the structure of the FTAs and evaluates Korea's FTA strategies and the FTA network from a network perspective.

• The Journal of shipping and logistics
• /
• v.35 no.2
• /
• pp.245-264
• /
• 2019

With the first agrement in 2004, Korea(ROK) has been one of the most active countries participating in FTA. Companies should meet some requirements to use preferential tariff benefits of FTA. For example, it is required for firms to fulfil the origin criteria and direct transportation principles. This study is designed to provide important factors determining reliability of FTA Origin Certificate. In specific, characteries of firm(trade experience, professional expertise), country (FTA participation, economic development) and product(processing level, value pricing) are investigated as determinants of how trust FTA origin certificate. According to the theoretical foundation and previous studies, this study made 6 hypotheses. SEM(Structural Equation Modeling) was used to test empirically the hypothesized relationships among variables. The empirical findings show that trade experience, professional expertise and FTA participation are important determinants. In other words, firms can trust more FTA Origin Certificate by trading partners with more trading experiences and professional expertises located in countries where participate actively in FTA.

• Journal of Digital Convergence
• /
• v.14 no.12
• /
• pp.55-63
• /
• 2016

Recently, FTA may go beyond the agreement of the two countries, and also FTA is tinged aspects of Mega FTA between the economic sphere, under the situation that FTA and the business model are mutually intertwined in convergence industrial environments. Since South Korea came into force in 52 countries and 15 cases of FTA, South Korea have completed FTA network with the United States, as well as ASEAN and most of OECD member countries, and South Korea is now a critical time to take advantage of the FTA to determine the South Korea's economic performance. This paper examined the previous studies of FTA utilization and analyzed practical usages and problems of SMEs' FTA utilization. Through analysis, this paper suggests that the Training Plans of SMEs' Origin Management Specialist for the Improvement of FTA Utilization is as follows: to build up the effective management system of origin supports, to enrich the origin management competency, to reinforce the operation of supporting system, and to strengthen practical capacity of Origin administrative staff. Based on the results, it is expected to provide the policy implications for the FTA utilization in the future.

• Korea Trade Review
• /
• v.41 no.5
• /
• pp.255-283
• /
• 2016

This paper empirically analyzes the relationship among the perception variables on the EU and Korea-EU FTA. According to the empirical results, first of all, while Korean university students understand the importance of EU less than those in the US or Japan, they understand the importance of EU more those in China. The understanding and importance of Korea-EU FTA are measured somewhat lower than Korea-US FTA. Second, Contingency Tables show that there exist some associated relationships between the sex and the understanding of the regions, and Korean university students have some differences in understanding the importance of the EU by sex. ANOVA shows that the more they understand the EU and recognize the importance of Korea-EU FTA, they recognize that the Korea-EU FTA's contribution to Korean economy and EU's & EURO's contribution to world economy will be bigger. Third, the cannonical correlation test shows that by the academic grade and sex there are some significant differences in understanding the importance of the EU and main countries and regions. The discriminant analysis shows that there exist some differences in recognizing the contribution of Korea-EU FTA's to Korean economy.

• Asia-Pacific Journal of Business
• /
• v.13 no.3
• /
• pp.475-491
• /
• 2022

Purpose - This study analyzed the correlation and effect of FTA environmental factors (company internal environmental factors, corporate external environmental factors) between FTA utilization and performance of Shandong companies in China. Design/methodology/approach - To test the hypothesis, SPSS 24.0 statistical packages were used based on the collected data. Findings - First, it was confirmed that internal environmental factors (international marketing orientation, corporate competitiveness, and corporate awareness of FTA) of companies had a positive(+) effect on FTA utilization. Second, The government's support for FTA utilization will have a significant positive (+) effect on companies' FTA utilization.Non-tariff barriers will have a negative (-) effect on companies' use of FTA. Third, A company's FTA utilization will have a significant positive effect on FTA performance. Research implications or Originality - If Shandong companies want to increase the utilization of FTAs, they should strengthen international marketing, such as collecting information on competitors and improving product quality and price competitiveness, and increase corporate competitiveness through active export activities to the global market.In order to increase the awareness of FTA among enterprises in Shandong Province, the government should strengthen the relevant education of enterprises about FTA.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.10 no.5
• /
• pp.1043-1051
• /
• 2009

This study intends to discuss the influence on behaviors of won/dollar exchange rate after a FTA between Korea and US come into effect. The change of behaviors of won/dollar exchange rate has been looked into concerning other countries who have signed a FTA pact with the US, and these examples were compared with that of Korea so as to find similarities and differences. As a result of analyses, behaviors of exchange rate between FTA-pact countries were showed differently. Volatility and risk premium somewhat decreased after the FTA took effect except for Chile. As for Chile, showing intense volatility, foreign exchange risk premium rather increased. It can be concluded that the relationship between volatility and risk premium of individual exchange rate is established and FTA can influence change of these behaviors of exchange rate depending on the situation of individual country. This study will contribute to offer informations to Korea trading companies related to IT that will have to prepare for the uncertainties of change of exchange rate due to FTA between Korea and US.

• International Commerce and Information Review
• /
• v.14 no.3
• /
• pp.139-158
• /
• 2012

FTA is one of the most important trade policies for the motor car industry. Due to the large amount of employment and production the motor car industry provides in a country, in a lot of cases, the protective trade policies that countries employ are targeted for the motor car industry. In this point of view, it can be said that the Latin American FTA strategy such as the 'Korea-Columbia FTA', 'Korea-Peru FTA' and 'Korea-Chile FTA' has a large influence in the development of Korea's car industry. This paper analyses changes in factors influencing car export before and after the signing of the Korea-Chile FTA to forecast the export of motor cars to Latin America and aims to propose an action plan. Research shows that out of the variables 'exchange rate', 'GDP', and 'oil price, 'GDP' showed a strong corelation with export before and after the FTA. Regression analysis also showed that only 'GDP' has an impact on export rates and that its impact is most highest after the exhibition of FTA's effects. This suggests that FTA has an important effect in motor car export to Latin America but export is also strongly interlocked with the local country's economic condition which highlights the requirement for an action plan such as the establishment of local production systems.