This paper is to study globalization motives and strategies of Japanese and Korean industries by analyzing the causes and patterns of foreign direct investment (FDI) of the firms of the two countries during the 1980s and 1990s. First we develop a FDI function from the profit maximizing model of firms. Then we use regression analysis to determine internally driving-out factors and externally-inducing factors. Japanese FDI strategy has gone through three different stages; from natural resource-seeking investment in the 1950s and 1960s to market-expansion investment in the 1970s and 1980s and to a combination of cost-reducing (low-cost labor-seeking) investment and market-penetrating investment in the 1990s. On the other hand, Korean FDI behavior has gone through four different stages; from the learning stage with small investments in the 1970s, to natural resource-seeking investment in the early and mid 1980s, to the growth stage in the late 1980s and the early 1990s, to the maturity stage of the mid and late 1990s. The last two stages were characterized by a combination of cost-reducing investment and market-seeking investment. As a late comer, Korea began its FDI two decades later than Japan, but caught up the patterns of Japanese FDI by the mid 1990s and is in a competing position with Japan. Our findings show that both Japanese FDI and Korean FDI in Asia and other developing countries tendto be in labor-intensive sectors where their firms are losing their comparative advantages at home. The main motive for FDI into these regions is low-cost resource seeking. On the other hand, both Japanese FDI and Korean FDI in the U.S. and Europe tend to be knowledge-intensive sectors where Japanese and Korean firms attempt to internalize transaction and information costs by globalizing its production. The main motive for FDI into these regions is market-seeking. Firms in both countries have increased their investments in Mexico and Western and Eastern Europe in order to penetrate large economic blocs such as the EU and NAFTA area. Korean firms are more aggressive in expanding into new and untested markets than are their counterpart in Japan. Evidence of this can be seen in the scarcity of Japanese FDI and abundance of Korean FDI in Eastern Europe and China.
One of the biggest challenges in export activities of SME is the increasingly cultural diversity that requires especially export managers to adapt their doing business in many different kinds of cross-cultural situations effectively. A relative newly developed concept 'Cultural Intelligence' has been evaluated as a key element for the success in international business activities. This study aims to investigate empirically the role of Cultural Intelligence(CQ), one component of cultural competence, on export marketing adaptation. The statistical method used to test the hypotheses was Structural Equation Modeling using PLS. The results of this study are follows. The moderating role of Cultural Intelligence between information seeking and information using abilities is more stronger in marketing rather than relationship adaptation. Cultural Intelligence moderates between them. Critical factors affecting Cultural Intelligence are also discussed; foreign language fluency, business travels in abroad, characteristics of the business travels, multi-lingual ability, pre-education related cultural subjects, and visit experience in foreign countries. Especially, export managers' foreign language ability leads to much stronger influence on cultural intelligence. The result of the empirical study provides important implications for export SME and export supporting organizations. Export firms and supporting organizations must expand programs widely in multi cultural training and education to help managers gain a better understanding in a various export environment.
When the international insurance market is expected to change rapidly, the insurance barriers of some key countries in OECD have been studied. Many foreign insurers within the U.S. can enjoy national treatment in their market access, establishement and operations. but it can be viewed as an easy country to access and operate when we understand socio-cultural surroundings more deeply than their laws and regulations Japan, our neighbourhood is seeking the liberalization in the provision of international insurance services by the new insurance law in 1996. However, its main barriers are the official gazette and rules of the administrative authorities. EU, after the intergation, is running after the supervision of home country, to say nothing of the liberalization and the deregulation. The particular protectionist measure might be justified by the corresponding rationale.
An empirical study was conducted on fashion cultural products with Korean image, targeting Korean and American consumers. Its purpose was to identify Korean and English consumers' attitude and purchase intention and to compare difference of its influence factor toward fashion cultural products of which design sources were derived from the Korean culture. The quantitative research using on-line questionnaires was targeted at American and Korean consumers. A total of 400 responses were used in the analysis. Results of data analyses using SPSS 13.0, are as following. First, for American consumers, uniqueness-seeking had a positive effect on attitude toward of cultural product with Korean image, followed by service of salespersons, change-seeking, and appearance of salespersons. For Korean consumers, easy accessibility was significantly related to attitude. Second, for American consumers, uniqueness-seeking and appearance of salespersons had a significant influence on the purchase intention of the cultural product with Korean image. For Korean consumers, no attributes were related to purchase intention. This research about fashion cultural products that will compete in the global market presents exploratory information targeting domestic and foreign consumers and will contribute to the strategic aspect of newly growing high-added-value industries.
Kim, Yeon-Hee;Bae, Jung-Hoon;Park, Jae-Ok;Lee, Kyu-Hye
Journal of the Korean Society of Clothing and Textiles
/
v.31
no.5
s.164
/
pp.670-679
/
2007
Contemporary consumers interested in fashion develop global tastes regarding consumption and senses on how much certain products cost in the global market place. Demand for foreign brands and products produced a new type of e-tailor called surrogate Internet shopping malls. Due to the unfamiliarity of such retailers, consumers may perceive different types of risks and may show different styles of seeking informations. The research interest of this study was to investigate the differences of risk perception and information search between surrogate e-mall shoppers and general e-mall shoppers. In addition, we examined the influence of these two variables on consumer satisfaction. A survey questionnaire was developed. Measures of three types of e-shopping risks (delivery, transaction, service), information search and satisfaction were included. Data from surrogate e-mall consumers and general e-mall consumers were statistically analyzed. Surrogate e-mall shoppers showed a higher level of product delivery risk and customer service risk than general e-mall shoppers. They also spend more time in seeking information before making purchases. Regression analysis showed that perceived risk had significant influence on information search and consumer satisfaction for surrogate e-mall shoppers, whereas for general e-mall shoppers, no significant influence was detected. The findings should assist marketers and academics in their understanding of the surrogate e-shopping malls.
Korea has established a code for the economic and cultural industry that covers a wide range of classes unlike the old information era which was limited to the simple knowledge, technology, tools, morals, and customers that had been established in our society. On the other hand, 'culture marketing' is a series of marketing activities in which value-added items are created and shared. The combination of business management and culture seemed pretty awkward considering how rapidly the world was changing, however, the nature of today's culture has changed and the economic nature of culture products has resulted from those changes. In this paper, two authors who expressed the cultural identity in the culture products are studied through a comparison analysis; the author Min Yeongsoon expressed the identity confusion that she experienced in a foreign country and how she overcame homesickness in her work; and the author Kim Ata expressed his confidence in Asia and used his clear and loud voice to express the culture in his work. In addition, today's culture products are affected by the surrounding cultures such as the member's traditional society, environmental culture, and individual's culture. It is a good source for good works of art. In this study, the efforts of seeking the cultural identity, structuring the concept, seeking a new market and possibilities are used to make a consistent process in order to make a series of the systems required for planning and developing culture products.
The home furnishing and living market is growing because of the increasing interest of consumers in living spaces. In this trend, global fashion companies are seeking to increase sales by expanding their businesses by launching their own home lines or brands early, taking advantage of the various advantages of each brand. In response, this study was designed to examine the strategies necessary for domestic fashion brands to pursue their business in the future by conducting a case study and characteristics analysis of the living brands of foreign fashion companies in line with the trend of expanding their living-related businesses. The following is an analysis of the characteristics of the living brands of global fashion companies. First of all, utilizing the brand awareness of fashion companies; second, the strength of unique textile designs; and third, the expansion of synergy through the expansion of the business into various fields. Fourth, the lack of diversification in materials suitable for living products; fifth, the lack of information on quality; sixth, the lack of space and contents for living areas. Finally, a living brand strategy of a domestic fashion company was proposed as follows. First, it proposed collaboration with textile design companies and designers; second, it proposed exploring business models through the inclusion of brand licenses; and third, it proposed expanding the planning of living products of private brand by distribution companies.
As stage equipment export markets along with special lighting service lack the attraction for already globally established businesses, such markets can be viewed as an advantageous opportunity for SMEs as in general. In reality, global businesses tend to focus on large construction projects and this indicates relatively less substantial markets such as stage equipment and special lighting service export are more suitable for SME businesses. However, possible problems may be recognized as following; doubtful capabilities by such businesses to join in the vast and competitive global market and pursue manufacturing and service based export. This point is also supported by the fact that such in general SME businesses have substantially less experience in exporting products and services abroad. Realizing the distinctive features of the Korean economy, it is unarguable that every sector and area of global market must be regarded and monitored closely. Hence, it can be argued that there is an imminent need for establishment of supportive institution to assist export process of combination of stage equipments and special lighting service. This study emphasizes the need to improve export process of stage equipments, special lighting services as well as other related products and services which have been focused in domestic market only until now. Further, it also analyzed the potential prospect of such direction reconciling current crisis our manufacturing industry is facing. Even though it maybe regarded as one of the niche market for export of Korea in the short term view, stage equipment and special lighting service industry may rapidly grow as the global cultural industries have grown along with the increase of national income earnings overall. Due to such advantageous features, it can be expected that such industries will show strong growth in the near future. After analyzing the fact that Korea's plants (eg. powerplants) export sector is at its boom, there is a need to transform stage equipment and special lighting service export market into a primary market from a secondary(niche) market for SMEs. This study is viewed from the Korean economic and export sector aspect in the aim of seeking a solution to conquest our realistic limit in our export sector by developing a suitable export model. There have been cases of very few attempts to expand abroad by SMEs who have failed miserably due to their failure to adapt to foreign culture, practice and languages as well as substantial lack in experience in export marketing. Despite this, neglecting our manufacturing industry as it is which is showing its limit and problems is out of option therefore, it is imminent that we come up with an effective measure to address this problem and service export can be suggested as one of them. This study reveals manufacturing-service export model of stage equipment and special lighting service and its related areas is recognized as a field with a very strong future and furthermore, it is expected to bring synergy effects in manufacturing and services sector as well. Further, the operation strategy contains combination, composition and fusion(convergence) of manufacturing and service sectors which could derive various of export products which displays greater success probability or this export model. The outcome of this research is expected to become a useful source for enterprises related to such industry which are seeking a possible global expansion. Furthermore, it is also expected to become a catalyst which fastens the process of global expansion and not only that, we are firmly assured that this study will become an opportunity to improve our current policies and institutions related to this area's export market.
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