• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.61
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• pp.303-325
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• 2014

As the development of information and globalization of world economy enters new condition, the stake of every nation's makes more complwx, and multilateral negotiation lead by WTO is seriously delayed. But the number of agreement about FTA increase exponentially. In this study we aim to consider whether Korean FTA affects the relation of the trade of Korea and Japan or not, especially Automobile industry. The composition of this paper is as follows. Chap. 1 is Introduction. In Chap. 2, we consider the change of the Trade Policy of Korea focusing in FTA. In Chap. 3, we consider how Korean FTA affect the structure of Japan's Trade, especially the automobile industry of Korea and Japan. In Chap. 4, we have conclusion. As the conclusion, the impact to the automobile industry of Korea and Japan is that Korean FTA works to Korean automobile industry advantageously in micro level, but in macro level, the competition of world automobile industry move into a next generation technology market.

• East Asian Economic Review
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• v.24 no.4
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• pp.349-388
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• 2020

The US-China trade war forced a reluctant semiconductor industry into someone else's fight, a very different position from its leading role in the 1980s trade conflict with Japan. This paper describes how the political economy of the global semiconductor industry has evolved since the 1980s. That includes both a shift in the business model behind how semiconductors go from conception to a finished product as well as the geographic reorientation toward Asia of demand and manufactured supply. It uses that lens to explain how, during the modern conflict with China, US policymakers turned to a legally complex set of export restrictions targeting the semiconductor supply chain in the attempt to safeguard critical infrastructure in the telecommunications sector. The potentially far-reaching tactics included weaponization of exports by relatively small but highly specialized American software service and equipment providers in order to constrain Huawei, a Fortune Global 500 company. It describes potential costs of such policies, some of their unintended consequences, and whether policymakers might push them further in the attempt to constrain other Chinese firms.

• Korea Trade Review
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• v.47 no.4
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• pp.15-33
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• 2022

This study is to investigate multilateral environmental agreements,mainly UNFCCC on the primary export industry of Korea and to make a policy recommendation. Mostly literature reviews are focused on the traditional multilateral environmental agreements and the for the most part analysis are conducted prior to the Paris agreement. The result of survey indicates that many companies have not yet felt burden on their business due to UNFCCC(decarbonization) and have monitored the related policies. But the companies ask the government for strong incentives. The paper implies that enforcing strong government incentives, upgrading usage of the nuclear power, improving the related government legislation, setting up the special task force team with government and private sectors are needed.

• Korea Trade Review
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• v.46 no.5
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• pp.153-171
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• 2021

The purpose of this study is to compare and derive the importance of motivating factors for start-up when deciding to start a business in the logistics and trading industries, and to compare, derive, and identify which motivating factors have an important influence on the start-up decision. In this study, 4 high-level factors such as career factors, policy/institutional factors, environmental factors, and economic factors and 12 low-level factors were derived from those four factors. Based on this, a questionnaire was distributed to established and prospective entrepreneurs, and the results were analyzed using the AHP (Analytic Hierarchy Process) technique. Manufacturing companies recognized the individual's capabilities and government support for them as important. Beside, service companies recognized the industrial environment that could generate economic benefits as important. Although there are differences in perception by group, it can be seen that factors that are recognized as important within each group have connectivity and show the same directivity.

• Korea Trade Review
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• v.44 no.4
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• pp.169-188
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• 2019

This study aims to analyze the effects of the smart technologies acceptance on global supply chain innovation and export performance in Korean small and medium trading companies. As the world prepares for the advent of the 4th industrial revolution the level of smart technology acceptance by Korean small and medium trading companies has not yet reached the level that is compatible with the change of international paradigm. In this respect, this study aims to promote the acceptance of smart technologies and suggest a need of more practical policy for securing international market competitiveness through innovation of global supply chain structure of Korean trading companies. According to the empirical research results, the smart technology acceptance had a significant effect on both the internal supply chain innovation and the export performance. Also, the external supply chain innovation significantly affected export performance. These results suggested that Korean trading companies need to be more active and positive in accepting smart technology so that they can gain more competitive advantage in the 4th industrial revolution era.

• East Asian Economic Review
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• v.21 no.4
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• pp.295-315
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• 2017

This paper derives the gravity equation with intermediate goods trade. We extend a standard monopolistic competition model to incorporate intermediate goods trade, and show that the gravity equation with intermediates trade is identical to the one without it except in that gross output should be used as the output measure instead of value added. We also show that the output elasticity of trade is significantly underestimated when value added is used as the output measure. This implies that with the conventional gravity equation, the contribution of output growth can be substantially underestimated and the role of trade costs reduction can be exaggerated in explaining trade expansion, as we demonstrate for the case of Korea's trade growth between 1995 and 2007.

• Korea Trade Review
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• v.44 no.1
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• pp.57-73
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• 2019

The purposes of this study are to propose exhibition planning and management skills of trade fair organizers and to provide suggestions on the direction of government policies related to fair items. This study analyzes exhibitor objectives of exhibition participation and exhibition choice attributes using revised importance-performance analysis. This research uses visitor level, organizer services and market attraction of hosting country, as explanatory variables affecting companies' trade show choices. It also utilizes sales and non-sales purposes of participants as variables of exhibitors' objectives. As a result of the empirical analysis and examination of prior research, this study presents some recommendations for exhibition organizers and governments of hosting countries. First, the exhibition organizer should consider the importance of the number of visitors. Thus, the organizer should focus on prior marketing activities to attract visitors. Second, the organizer should make a trade fair plan in compliance with participants' needs. Third, policy authorities should provide environment of free competition among players.

• East Asian Economic Review
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• v.24 no.4
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• pp.389-416
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• 2020

This paper provides empirical evidence on the reorganization of GVCs in East Asia, highlighting that structural trends explain a decrease in the fragmentation of production after 2011 but that it is not the result of rising trade costs along the value chain. Using harmonized inter-country input-output tables, the paper first analyzes the global import intensity of production to document changes in the structure of GVCs. It then calculates theory-consistent bilateral trade costs for intermediate and final products using an approach derived from the gravity literature and introduces a new index of cumulative trade costs along the value chain. These data are used to discuss whether the decrease in global imports is the consequence of shifts in demand, efficiency-enhancing strategies of firms or rising trade costs. Between 2011 and 2016, cumulative trade costs have decreased in East Asian GVCs. However, as COVID-19 is likely to intensify trade and investment uncertainties, trade costs could increase in the future. Policies aimed at reducing uncertainties and preserving the gains from trade and investment liberalization will be key in this new environment.

• International Commerce and Information Review
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• v.13 no.1
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• pp.179-196
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• 2011

This study aims to measure the relative importance of trade insurance using AHP developed by Thomas Saaty of Pennsylvania in early 1970s. Moreover, it provides help in the development of a comprehensive strategy of trade insurance. To obtain priority of trade insurance in its functions, this study discovered significance and relative importance of two evaluation standards and four individual evaluation items. Of the two evaluation standards, importance of credit exposure was 63%. It was discovered that it was more important than political means (37%). Of the four individual evaluation items, importance of banking supplementation was 60%. It was more important than credit investigation of overseas traders (40%). Importance of trade promotion policy was 69%, which was more important than removal of anxiety in trade (31%). As a result of comparing priorities of the f tire evaluation items, priority of banking supplementation was 38% followed by trade promotion policy means (26%), credit investigation of overseas traders (25%) and removal of anxiety in trade (12%).

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.39
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• pp.143-175
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• 2008

The documentary letter of credit is the most preferred and frequently used method in International Payment System in Korea, as it has less possibility of occurring credit risks in export than any other payment system. That's because the exporter can get payment from the issuing bank(confirming bank) by delivering the goods and presenting documents following the required procedure under the letter of credit, as the payment is affirmed by the issuing bank(including the confirming bank in case of the confirmed letter of credit) regardless of the buyer's payment. However, the pattern of payment methods used in international trade of Korea is changing dramatically like the importance of the credit is decreasing continuously among the payment methods while the remittance is increasing. The increase of remittance has a positive aspect that International Payment System are changing into those of advanced countries, but the decrease of the credit also has a negative aspect that the exporter might have a greater credit risks. Therefore, we need a systematic device to deal with this. Exporters in Korea usually have used the export credit insurance to deal with the credit risks However, the export credit insurance also have a limitation as the policy finance due to the limitation based on the credit status of the business and the limitation of acceptance from the lack of financial resources of the government, etc. Korea, which is the 11th export power in the world, has a basic limitation to deal with the credit risks by depending on the export credit insurance only. So, in this thesis, I have studied on the international factoring, forfaiting, which are advanced export finances and widely used in advanced countries, as substitutes to deal with the credit risks. the international factoring is an trade financing in which a factor offers full services such as credit cover, offering prepayment, collection, account receivables, management, etc, instead of the exporter on the account receivables occurred by the exporter's delivering goods to the importer. This international factoring has a high possibility of using as a means to deal with the credit risks, because it offers prepayment without recourse. the forfaiting is another export financing in which a forfaiter purchases the draft, the promissory note and other negotiable instruments issued from the international trade, with fixed interest rate without recourse from the exporter or previous holder. By using this method, they can avoid foreign exchange risks, contingency risks as well as credit risks, as the conveyances like the promissory note, etc are issued with the note warranty so-called 'per aval' in business practice. These trade financing are good substitutes to deal with the credit risks in export, but they are not widely used in Korea. Though it can be explained with various reasons, the common reasons are the lack of understanding on the use of advanced export finance, the lack of experts to manage the advanced trade finance, the conservative way of thinking of domestic organizations related to trade financing, the lack of organizations supporting the trade financing, etc.