• Title/Summary/Keyword: International trade policy

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The Impact of Environmental TBTs on Exports of Korean Manufactures (환경 TBT가 국내 주요 제조업 수출에 미치는 영향)

  • Sun-Kyung Huh;Sul-Ki Lee
    • Korea Trade Review
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    • v.48 no.1
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    • pp.193-213
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    • 2023
  • The impact of each country's environmental protection and climate change policies on trade is increasing. The strengthening of trade barrier resulted in an increase of Technical Barriers to Trade(TBTs). This international trend carries important implications for Korean manufacturers, which is highly dependent on trade. Discussions on the trade effects of TBT are still ongoing. This study that quantitatively analyzed the effect of TBT on trade have employed a gravity model. As a result of the analysis using the basic model, it was found that the effect of environmental TBT notifications on trade is positive(+) overall. However, the electrical machinery and equipment·electronics industries are negatively affected by environmental TBT. There is a pressing need to preemptively identify the impact of environmental TBT in major countries on the exports of Korean manufacturing industries in order to strengthen the competitiveness of domestic industries and pursue countermeasures.

FTA Negotiation Strategy and Politics in the Viewpoint of the Three-Dimensional Game Theory: Korea-EU FTA and EU-Japan EPA in Comparison (삼차원게임이론의 관점에서 바라 본 유럽연합의 FTA 협상 전략 및 정치: 한-EU FTA와 EU-일본 EPA의 비교를 중심으로)

  • Kim, Hyun-Jung
    • Journal of International Area Studies (JIAS)
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    • v.22 no.2
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    • pp.81-110
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    • 2018
  • In this paper, we examined the regional economic integration, the trade negotiation strategy and bargaining power of the European Union through the logical structure of the three - dimensional game theory. In the three - dimensional game theory, the negotiator emphasized that the negotiation strategy of the triple side existed while simultaneously operating the game standing on the boundary of each side game, constrained from each direction or occasionally using the constraint as an opportunity. The study of three-dimensional game theory is aimed at organizing the process of coordinating opinions and meditating interests at the international level, regional level and member level by the regional union as a subject of negotiation. This study would compare and analyze the recently concluded EU-Japan EPA (Economic Partnership Agreement) negotiation process with the case of the EU FTA, and summarize the logic of the three-dimensional game theory applicable to the FTA of the regional economic partnership. Furthermore, the study would illustrate the strategies of the regional economic cooperatives to respond to negotiations. The area of trade policy at the EU level has already been completed by the exclusive power of the Union on areas where it is difficult to politicize with technical features. Moreover, the fact that the policy process at the Union level has not been revealed as a political issue, and that the public opinion process is a double-step approach. In conclusion, the EU's trade policy process constitutes a complicated and sophisticated process with the allocation of authority by various central organizations. The mechanism of negotiation is paradoxically simplified because of the common policy decision process and the structural characteristics of the trade zone, and the bargaining power at the community level is enhanced. As a result, the European Commission would function as a very strong negotiator in bilateral trade negotiations at the international level.

A study on The U.S.-Korean Trade Friction Prevention and Settlement in the Fields of Information and Telecommunication Industries (한미간(韓美間) 정보통신분야(情報通信分野) 통상마찰예방(通商摩擦豫防)과 해소방안(解消方案)에 관한 연구(硏究))

  • Jung, Jay-Young
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.13
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    • pp.869-895
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    • 2000
  • The US supports the Information and Communication (IC) industry as a strategic one to wield a complete power over the World Market. However, several other countries are also eager to have the support for the IC industry because the industry produces a high added value and has a significant effect on other industries. Korea is not an exception. Korea recently succeeded in the commercialization of CDMA for the first time in the world, after the successful development of TDX. Hence, it is highly likely to get tracked by the US. Although the IC industry is a specific sector of IT, there is a concern that there might be a trade friction between the US and Korea due to a possible competition. It will be very important to prepare a solution in advance so that Korea could prevent the friction and at the same time increase its share domestically and globally. It will be our important task to solve the problem with the minimum cost if the conflict arises unfortunately in the IT area. The parties that have a strong influence on the US trade policy are the think tank group and the IT-related interest group. Therefore, it would be important to have a close relationship with them. We found some implications by analyzing the case of Japan, which has experienced trade frictions with the US over the long period of time in the high tech industry. In order to get rid of those conflicts with the US, the Japanese did the following things : (1) The Japanese government developed supporting theories and also resorted to international support so that the world could support the Japanese theories. (2) Through continual dialogue with the US business people, the Japanese business people sought after solutions to share profits among the Japanese and the US both in the domestic and in the worldwide markets. They focused on lobbying activities to influence the US public opinion to support the Japanese. The specific implementation plan was first to open culture lobby toward opinion leaders who were leaders about the US opinion. The institution, Japan Society, were formed to deliver a high quality lobbying activities. The second plan is economic lobby. They have established Japanese Economic Institute at Washington. They provide information about Japan regularly or irregularly to the US government, research institution, universities, etc., that are interested in Japan. The main objective behind these activities though is to advertise the validity of Japanese policy. Japanese top executives, practical interest groups on international trade, are trying to justify their position by direct contact with the US policy makers. The third one is political lobby. Japan is very careful about this political lobby. It is doing its best not to give impression that Japan is trying to shape the US policy making. It is collecting a vast amount of information to make a correct judgment on situation. It is not tilted toward one political party or the other, and is rather developing a long-term network of people who understand and support the Japanese policy. The following implications were drawn from the experience of Japan. First, the Korean government should develop a long-term plan and execute it to improve the Korean image perceived by American people. Second, the Korean government should begin public relation activities toward the US elite group. It is inevitable to make an effort to advertise Korea to this elite group because this group leads public opinion in the USA. Third, the Korean government needs the development of a relevant policy to elevate the positive atmosphere for advertising toward the US. For example, we need information about to whom and how to about lobbying activities, personnel network who immediately respond to wrong articles about Korea in the US press, and lastly the most recent data bank of Korean support group inside the USA. Fourth, the Korean government should create an atmosphere to facilitate the advertising toward the US. Examples include provision of incentives in tax on the expenses for the advertising toward the US and provision of rewards to those who significantly contribute to the advertising activities. Fifth, the Korean government should perform the role of a bridge between Korean and the US business people. Sixth, the government should promptly analyze the policy of IT industry, a strategic area, and timely distribute information to industries in Korea. Since the Korean government is the only institution that has formal contact with the US government, it is highly likely to provide information of a high quality. The followings are some implications for business institutions. First, Korean business organization should carefully analyze and observe the business policy and managerial conditions of US companies. It is very important to do so because all the trade frictions arise at the business level. Second, it is also very important that the top management of Korean firms contact the opinion leaders of the US. Third, it is critically needed that Korean business people sent to the USA do their part for PR activities. Fourth, it is very important to advertise to American employees in Korean companies. If we cannot convince our American employees, it would be a lot harder to convince regular American. Therefore, it is very important to make the American employees the support group for Korean ways. Fifth, it should try to get much information as early as possible about the US firms policy in the IT area. It should give an enormous effort on early collection of information because by doing so it has more time to respond. Sixth, it should research on the PR cases of foreign enterprise or non-American companies inside the USA. The research needs to identify the success factors and the failure factors. Finally, the business firm will get more valuable information if it analyzes and responds to, according to each medium.

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Some Devices for increasing the Exportation of Professional Services (FTA와 전문직서비스산업 수출증대방안 - 교육.의료서비스를 중심으로 -)

  • Seo, Jung-Doo
    • International Commerce and Information Review
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    • v.8 no.3
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    • pp.23-42
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    • 2006
  • Services, despite the difficulty of its exact definition, can be defined as deeds, efforts, or performances by economical bodies, attributing to four unique characteristics - intangibility, inseparability, heterogeneity, and perishability. This study aims to research the global competition and problems of the local professional services, especially educational services and health services, and to suggest some devices for increasing the exportation of both educational services and health services. Educational services and health services were reserved in the multilateral negotiation to open the WTO parties' markets because of its national public benefits. But it is indispensable to open our local market by the bilateral FTA negotiation. Legal restrictions, therefore, related to both education and health should be erased according to the basic rule of the market competition, and it is advisable to control the national public benefit of these services by enacting the different legal systems. For recovering from minus balance of payment in the educational services or health services, furthermore, it is necessary to drive rather some offensive exporting policies than the defensive policy against supply from the foreign countries. In conclusion, the korean Foreign Trade Act and other relative acts should be revised, and both educational services and health services should be contained within the definition of "the international trade" for the governmental benefits of supporting the services exportation.

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Does FDI Affect Domestic Employment in OECD Countries?

  • WANG, Mengzhen;CHOI, Baekryul
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.12
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    • pp.283-293
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    • 2021
  • To verify the employment impact of two-directional FDI, the study analyzes panel data composed of 26 OECD countries from 2006 to 2018 by using the system GMM. Furthermore, we decompose domestic employment into types of industries and skill compositions to identify the heterogeneous employment impact. The results show that inward and outward FDI at lag one period promote domestic employment at the overall level. In terms of workers' skill levels, lagged inward FDI significantly persistently promotes high-skilled workers' employment, likewise, the positive employment impact also appears with a time lag in low-skilled labor subgroups. Outward FDI, on the other hand, initially inhibits both high- and low-skilled labor demand, but then changes to a positive effect in the highskilled labor subgroups. Although there is a time difference between inward and outward FDI, it has a significant and positive impact on employment in the manufacturing and service industries. The results indicate that the relationship between manufacturing and service employment is a mutual substitute. To attract international investors, governments should promote a favorable investment climate and maintain stable economic growth. Because low-skilled labor is more susceptible to changes in FDI, policy measures are required to ensure employment stability.

The Impact of Bilateral Free Trade Agreements on International Trade Volume of Bulk Shipment at the Port of Korea: Focusing on Korea's FTA with Singapore, India, and United States (한·단일국가 FTA체결에 따른 우리나라 벌크물동량 영향분석 : 싱가포르, 인도, 미국을 중심으로)

  • Lee, Kyong-Han;Choi, Nayoung-Hwan
    • Journal of Navigation and Port Research
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    • v.40 no.6
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    • pp.485-494
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    • 2016
  • The primary purpose of this study is to analyze the impact and determinants of bilateral Free Trade Agreements on international total bulk shipment trade volume at the port of Korea using the Panel Gravity Model. The model estimates the aggregated panel data of exports and imports (excluding transshipment) as a dependent variable during the period from 1996 to 2015. GDP, GDP per capita, distances between bilateral countries, and FTA dummies are included as independent variables. And the economic integration of FTAs including ASEAN+3 and NAFTA3 countries were used as dummy variables. Study results show that GDP and GDP per capita have positive impacts on bulk shipment trade volume at the port of Korea. In addition, Korea's bilateral FTAs with Singapore, India and the United States have positive effects on total bulk trade volume in Korea. This is the so called trade creation effect. On the other hand, ASEAN+3 and NAFTA have negative effects on the total bulk trade. This is the so called trade diversion effect. Also, the distance between Korea and its trade partners has a negative impact. These findings provide insights for: further academic research, site operators who work in related trade and maritime sectors, and policy makers engaged in port and maritime operations. The results can be used to develop strategies for maximizing bulk port throughput.

A study on the rules and policy of the maritime and aviation supply chain security (해상 및 항공물류보안의 법규 및 정책에 관한 연구)

  • Choi, Byoung-Kwon
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.42
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    • pp.247-274
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    • 2009
  • The supply chain security programs are designed to prevent terrorist attacks on world transit system, and to help protect the passengers and workers who use these systems on a daily basis. as evidenced by the train bombings in London and Madrid in recent years, the threats to America's transit systems are real. After 9 11 terrors in 2001, security problem is appearing to every nations and international organizations main pending issue than any problem and various countermeasure is prepared. Security is the major issue in international trade, with significant potential costs and economic impact. So, We need to ensure that supply chain security does not become a new non-tariffs barrier. The aim of this study is to examine the international maritime and aviation law on the supply chain security. Also I review the supply chain security in U.S. and other countries.

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The Effects and Subjects of Port Hinterland Policy in Korea (한국 항만배후단지의 정책적 효과 및 과제)

  • Kang, Yun-Ho;Cho, Kyung-Woo
    • Journal of Navigation and Port Research
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    • v.36 no.5
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    • pp.419-427
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    • 2012
  • The paper evaluated the effects of port hinterlands and suggested the policies to improve them in Korea. The results of evaluation indicated that it is difficult for the effects to be evaluated so good. It seems that a lot of efforts should be made to make port hinterlands carry out their own functions well, in that, in particular, they have had so bad effects in carrying out such functions as production, international trade, and city. Policy actions were suggested including reduction of rent, strengthening international logistics networks, and governmental funding etc.

Determinants of the Competitiveness of Women-Owned Small- and Medium-Sized Enterprises: An Empirical Study from Vietnam

  • DAO, Tien Ngoc;LE, Ha Thi Thu;CHU, Phuong Thi Mai;PHAM, Ngan Hoang;LUONG, Trang Thi Dai;TRAN, Dung Tri
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.12
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    • pp.345-352
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    • 2021
  • Guided by a resource-based theory, this study is the first one that takes a quantitative approach to identify determinants of competitiveness of women-owned small and medium enterprises (SMEs) in Vietnam. The study employs time series data of Vietnamese SMEs extracted from the Vietnam Small and Medium Enterprises Survey conducted biennially from 2005 to 2015 in ten Vietnamese provinces. Firm competitiveness hereby is indicated by revenue, market share, profitability, and export volume. The research reveals a number of determining factors, of all, research and development, labor skills, business environment, technology investment are the most important factors, followed by capital and headcount. It is indicated that the determining factors have different influences on competitiveness obtained by different measurements. Therefore, it is based on specific targets and situations to make wise business decisions. The authors also make comparisons among groups of women-owned enterprises divided by their firm age, location, ownership, export, age, and educational background of business owners. The findings serve as critical empirical evidence and provide policy recommendations for improving the competitiveness of women-owned SMEs in Vietnam. The recommendations range from technology support, education and professional support for female entrepreneurs, access to capital and human resources to business environment improvement.

A Study on the Characteristics of Companies Using Technologies of the 4th Industrial Revolution in Response to Global Competition (글로벌 경쟁에 대응한 4차 산업혁명 기술 활용의 기업 특성 연구)

  • Jung-Hwan Cho;Tae-Hwang Kim
    • Korea Trade Review
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    • v.46 no.2
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    • pp.355-368
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    • 2021
  • The purpose of this study is to analyze the factors affecting innovation activities related to the introduction of the 4th Industrial Revolution technology for Korean firms faced to the severe global trade and competition environments. This paper conducted an empirical analysis using the 'The Survey of Business Activities' distributed by the Statistics Korea in 2019. According to the results of the analysis, it was found that the firm size, labor cost, R&D, and intellectual property rights had a significant influence on the firms' adoption of the 4th industrial revolution technology. It was also found that the dummy variables such as strategic alliance between companies, review of entry into a new business, transfer of main business operations, and holding of subsidiaries had statistically significant effects on innovation activities. In addition, this paper showed that the firm characteristics had impacts on innovation activities of firms by the 4th industrial revolution technology type. In order for Korean firms to adapt to the challenges by the 4th Industrial Revolution, it is important to provide policy support and an environment in line with the characteristics of the firms.