China's "Foreign Trade law" 16.4 revised in 2004 like "Foreign Trade law" 16.2 in 1994 is still stipulated resource restriction to protect domestic resources and it does not satisfy the introduction of article 20 and section (g) of GATT 1994. Through an interpretation of related regulations and China-EU cokes dispute, the paper points out that China's "Foreign Trade law" 16.4 has no validity of the introduction of article 20 and section (g) of GATT 1994. Comparing China's "Foreign Trade law" 16.4 to GATT 1994 20(g), China's "Foreign Trade law" 16.4 does not include important conditions of GATT 1994 20 introduction such as not being arbitrary or unjustifiable discrimination and disguised restriction on international trade. For example, based upon China's "Foreign Trade law" , if she restricts or prohibits important natural resources that Korea mainly relies on China, it will effects not only trade between two countries but also our lives and securities. Hence, it is highly time to analyze China's the Validity of the China's Resource Export-Quota Restrictive Measures under the GATT/WTO. In the process of resolving China-EU cokes dispute in 2004, ministry of Commerce of China shows well its characteristics of dispute settlement and also we can find out EU's logical countermeasures. Therefore, because of the high possibility of disputes between Korea and China in the area of natural resources, Korea needs to pay attention to the China's resource protecting policies, and if it violates GATT 1994 20 introduction and (g), we should consider to sue China to WTO. The paper believes that it will play an important role as an aggressive demand and effect on amendment of China's "Foreign Trade law" in the long term.
This paper studied the effects of anti-dumping measures on the imports to investigate whether the trade restriction effect of an anti-dumping duty is dominant. Our results indicate that a 1% increase in the anti-dumping duties decreases the import of the targeted product by about 0.43~0.51%. The actual statistics, however, show that the total import of the targeted products increased by about 30 percent while an anti-dumping duty was in force. That indicates that an anti-dumping duty is just a temporary import relief. This paper also investigated whether an anti-dumping duty is terminated in the case that the injury would not be likely to continue or recur if the duty were removed. The hazards model estimates show that increase in market share, MFN tariff rate, and dumping margin decrease the hazard of termination of an anti-dumping duty, but the increase in value added increases the hazard of termination. Generally speaking, this result indicates that the WTO member countries have regulated the overuse of an anti-dumping measure. The findings of this paper show that there is a country- and industry-wise heterogeneous characteristic in the effect as well as termination of an anti-dumping duty.
International trade has been changed from traditional trade to e-trade due to the fast expanding of information technology like e-marketplace, EDI (Electronic data interchange) using Internet since mid of 1990's. e-Trade, as a new trade method, could handle every trade procedure such as market research, contract, customs clearance, logistics and payment using IT like internet without restriction of time and space. The evolution of transaction-based business model is upon us. The business models of many e-Marketplace in their early stages have typically been based on transaction fees. Many e-Marketplaces have even called out transaction revenues as a core element of their business plans. The transaction business represents the most simple of business models, but it does not provide a long-term sustain able advantage. For buyer's convenience, wide selection and test price hold appeal. For suppliers, the extended global market reach and direct access to customers and consortiums of customers is powerful. To maximize leverage of these new e-marketplace, you must from both a buyer perspective as well as a supplier perspective. Also required is a strategy that takes in account all of the various e-Marketplace transaction standards and one that allows the easy accomodation to new e-marketplace as the market change. These new e-marketplace will need to be factored into the sales channel strategies. To be successful, integration with these e-marketplaces should occur at a complete business process level. This study would suggest on the role of buyers and sellers for e-trade which could maximize effect of e-trade in order to cope with rapid changing IT environment and global trade environment. Therefore, this study suggests top priority tasks for implementing on the specialization strategy of e-trade process.
This paper discusses the types and importance of service trade. The service trade, which has become increasingly important, is shaped by the General Agreement on Trade in Services (GATS). However, the availability of trade data is still low. The service is expected to increase the value added of the manufacturing industry and to lead the trade enhancement effect beyond the current stagnant commodity trade. Such effects are also confirmed by studies using the OECD Service Trade Restriction Index. Korea's service trade is relatively low compared to commodities's, and some items are still in a chronic deficit. In order to overcome such a situation and develop the service industry, it may be considered to pursue active service opening around major industries. It is also possible to suggest a Korea Standard that mediates between developing and developed countries.
Recently, the antitrust tribunal of Seoul High Court revoked the disposition of Korea Fair Trade Commission(hereafter 'KFTC'). While KFTC determined that the restriction of Korea Pediatrician Association violated article 26 of the Monopoly Regulation and Fair Trade Act(Korean antitrust law), Seoul High court viewed that KFTC failed to prove the compulsory measures and the restraint of competition required in article 26. The 'restriction' of article 26 should be interpreted as 'excessive restriction'. Since entrepeneurs' organization is allowed to limit its member's activities, KFTC could regulate entrepeneurs' organization on a very exceptional basis. In addition, though entrepeneurs' organization did not use compulsory measures to enforce its resolution, its 'excessive restriction' could fit into the notion of 'restriction' of article 26. Under the current medical care system, the price of medical care is decided by Korean government. Therefore the restriction of Korea Pediatrician Association is not likely to have effect on the price. However, the resolution of Korea Pediatrician Association was aimed to decrease the supply of medical care. Therefore the resolution is capable of having effect on the competition. In this sense, though KFTC failed to submit direct evidence to support the decrease of quantity, there could be possibility of restraint of competition. The Seoul High Court's decision has important implications. The leading case on restraint of competition(Supreme Court 2002Du8628, Posco case) was delivered in 2007. However the remaining issue such as the standard and scope of restraint of competition is not clear. Through reappeal case of this decision, Supreme Court has to decide the line between competition and its restraint.
The purpose of this paper is to analyze theoretically and empirically spillover effects of fishery quota on related markets through their demand curves. Theoretically, the spillover effects of a change in quota can be captured through the directly distorted market alone by computing surpluses associated with the new and old equilibrium. This study estimates empirically demand functions in the context of both the partial equilibrium and general equilibrium. The spillover effect can be computed from the difference between these two estimates. The econometric methodology to estimate the demand curves in the context of general equilibrium is presented and illustrated. The empirical result of fishery markets shows that spillover effects transmitted across other markets are not small and approximately account for 43.3% of the partial equilibrium welfare effects.
Illegal transactions such as blackmarketing and smuggling allegedly result from too restrictive trade policies. A recent U.S. Senate hearing on the blackmarketing of American goods imported into Korea for the purpose of supporting United States troops and their dependents stationed in Korea concluded with the allegation that Korea's highly restrictive trade practices are responsible for the emergence of the black market. It has also suggested that the removal of such restrictive trade policies would eliminate black market activities. This study addresses the relationship between trade policy and blackmarketing by investigating whether trade liberalization results in the reduction of illegal transactions, and whether the eradication of blackmarketing indeed improves social welfare. When both legally imported goods and illegally exchanged items command the same price, trade liberalization, meaning a decrease in tariff rates or an increase in import quotas, will increase the quantity of legal imports at the expense of illegally transacted goods on the black market. But the price of legally imported goods usually differs from that of illegally sold ones. In this case, a change in the relative prices of these two groups of goods due to a change in trade policy will give rise to income, as well as substitution, effects. Initially, a decrease in the import price due to a decrease in import tax rates or an increase in the allotted quota will reduce illegal transactions, since the decrease in the import price will induce the substitution of legal imports for illegally exchanged, but otherwise, identical goods. On the other hand, the demand for the illegally transacted goods will rise, because of the income effect of the reduced import price. Thus, assuming the positive income effect overwhelms the negative substitution effect, the demand for illegal goods will increase, thwarting the reduction of blackmarketing through trade liberalization. Yet, stepping up the enforcement measures which are geared to preventing blackmarketing itself will drastically reduce the extent of illegal transactions, since it increases the cost of blackmarketing and hence the price of the illegally transacted goods. What this study suggests is that the emergence of the black market in Korea should be attributed more to the excessive supply of duty-free goods imported through U.S. commissaries and exchanges than to the excessive demand for foreign goods. On the other hand, blackmarketing, in most cases, improves economic welfare, since it constitutes an increase in the "actual" amount of imported goods. Suppressing blackmarketing through stepped-up enforcement methods is beneficial only when the substitution effect of the legally transacted goods resulting from the increase in the price of the illegal goods prevails, since the increase in the demand for legal imports must override the decrease in the demand for black market goods as well as the negative income effect.
It is known that weak competitiveness of micro enterprises can be overcome when they are organized with enterprise associations, franchise systems, and joint affiliation. In this paper, we empirically analyze the determinants of organization of micro enterprises, and propose the policy implementations to enhance the competitiveness of micro enterprises as a measure to reduce trade conflict due to SSM entry restrictions. Logit estimation results based on survey data consisted of 467 samples, show that insufficient labor force and high material costs had negative effects on organization. The unexpected findings generally support the rationale that organization is not helpful to solve insufficient labor force and high material costs. However, the decrease in sales due to the economic recession and the decreasing number of customers due to customer transition to large enterprises had a more positive effect on organization than usually expected. There are differences in estimation results between two types of business(restaurants and retail). In case of the restaurant business, insufficient labor force, high material costs and a decreasing of number of customers are important factors for organization, while the sales decrease is a relatively important factor in the case of retail businesses.
Journal of Korean Society of Industrial and Systems Engineering
/
v.40
no.1
/
pp.95-104
/
2017
This paper deals with solution methods for discrete and multi-valued optimization problems. The objective function of the problem incorporates noise effects generated in case that fitness evaluation is accomplished by computer based experiments such as Monte Carlo simulation or discrete event simulation. Meta heuristics including Genetic Algorithm (GA) and Discrete Particle Swarm Optimization (DPSO) can be used to solve these simulation based multi-valued optimization problems. In applying these population based meta heuristics to simulation based optimization problem, samples size to estimate the expected fitness value of a solution and population (particle) size in a generation (step) should be carefully determined to obtain reliable solutions. Under realistic environment with restriction on available computation time, there exists trade-off between these values. In this paper, the effects of sample and population sizes are analyzed under well-known multi-modal and multi-dimensional test functions with randomly generated noise effects. From the experimental results, it is shown that the performance of DPSO is superior to that of GA. While appropriate determination of population sizes is more important than sample size in GA, appropriate determination of sample size is more important than particle size in DPSO. Especially in DPSO, the solution quality under increasing sample sizes with steps is inferior to constant or decreasing sample sizes with steps. Furthermore, the performance of DPSO is improved when OCBA (Optimal Computing Budget Allocation) is incorporated in selecting the best particle in each step. In applying OCBA in DPSO, smaller value of incremental sample size is preferred to obtain better solutions.
Journal of Korean Society for Atmospheric Environment
/
v.33
no.6
/
pp.570-582
/
2017
In recent years, national and local government's air quality management and climate change adaptation policy has been significantly strengthened. The measures in the two policies may be in a relationship of trade-off or synergy to each other. Greenhouse gases and air pollutants are mostly emitted from the same sources of using considerable amounts of fossil fuels. Co-benefits, in which either measure has a positive effect on the other, may be maximized by reducing the social costs and by consolidating the objectives of the various policies. In this study, the co-benefits were examined by empirically analyzing the effects of air pollutants and greenhouse gas emission reduction, social cost, and cost effectiveness between the two policies. Of the total 80 projects, the next 12 projects generated co-benefits. They are 1) extend restriction area of solid fuel use, 2) expand subsidy of low-$NO_x$ burner, 3) supply hybrid-vehicles, 4) supply electric-vehicles, 5) supply hydrogen fuel cell vehicles, 6) engine retrofit, 7) scrappage of old car, 8) low emission zone, 9) transportation demand management, 10) supply land-based electric of ship, 11) switching anthracite to clean fuel in private sector, 12) expand regional combined-energy supply. The benefits of air pollutants and greenhouse gas-related measures were an annual average of KRW 2,705.4 billion. The social benefits of the transportation demand management were the highest at an annual average of KRW 890.7 billion, and followed by scrappage of old cars and expand regional combined-energy supply. When the social benefits and the annual investment budgets are compared, the cost effectiveness ratio is estimated to be about 3.8. Overall, the reduction of air pollutants caused by the air quality management policy of Gyeonggi-do resulted in an annual average of KRW 4,790.2 billion. In the point sources management sector, the added value of $CO_2$ reduction increased by 4.8% to KRW 1,062.8 billion, while the mobile sources management sector increased by 3.6% to KRW 3,414.1 billion. If social benefits from $CO_2$ reduction are added, the annual average will increase by 7.2% to KRW 5,135.4 billion. The urban and energy management sectors have shown that social benefits increase more than twice as much as the benefits of $CO_2$ reduction. This result implies that more intensive promotion of these measures are needed. This study has significance in that it presents the results of the empirical analysis of the co-benefits generated between the similar policies in the air quality management and the climate change policy which are currently being promoted in Gyeonggi-do. This study suggested that the method of analyzing the policy effect among the main policies in the climate atmospheric policy is established and the effectiveness and priority of the major policies can be evaluated through the policy correlation analysis based on the co-benefits. It is expected that it could be a basis for evaluation the efficiency of the climate change adaptation and air quality management policies implemented by the national and local governments in the future.
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