Purpose: The AEO (Authorized Economic Operator) program, created in 2001 in the United States due to 9.11 terrorist's attack, fundamentally changed the trade environment. Korea, which introduced AEO program in 2009, has become one of the world's top countries in the program by ranking 6th in the number of AEO certified companies and the world's No. 1 in MRA (Mutual Recognition Agreement) conclusions. In this paper, we examined what trade-economic and non-economic effects the AEO program and its MRA have in Korea. Research design, data and methodology: In this study we developed a model to verify the impact between utilization of AEO and trade-economic effects of the AEO and its MRA. After analyzing the validity and reliability of the model through Structural Equation Model we conducted a survey to request AEO companies to respond their experience on the effects of AEO program and MRA. As a result, 196 responses were received from 176 AEO companies and utilized in the analysis. Results: With regard to economic effects, the AEO program and the MRA have not been directly linked to financial performance, such as increased sales, increased export and import volumes, reduced management costs, and increased operating profit margins. However, it was analyzed that the positive effects of supply chain management were evident, such as strengthening self-security, monitoring and evaluating risks regularly, strengthening cooperation with trading companies, enhancing cargo tracking capabilities, and reducing the time required for export and import. Conclusions: When it comes to the trade-economic effects of AEO program and its MRA, AEO companies did not satisfy with direct effects, such as increased sales and volume of imports and exports, reduced logistics costs. However, non-economic effects, such as reduced time in customs clearance, freight tracking capability, enhanced security in supply chain are still appears to be big for them. In a rapidly changing trade environment the AEO and MRA are still useful. Therefore the government needs to encourage non-AEO companies to join the AEO program, expand MRA conclusion with AEO adopted countries especially developing ones and help AEO companies make good use of AEO and MRA.
Local pharmaceutical companies in Korea, which have grown focusing on domestic markets, have recently faced difficulties such as market saturation, price control policies and market-opening pressures by FTA. It seems to be an urgent issue for them to export pharmaceuticals to developed countries comprising the greater part of the global pharmaceutical market. Hence, this research was conducted to investigate and benchmark the strategies employed by India industry for the successful access to the global pharmaceutical markets. Drug policies as well as their influences on pharmaceutical market changes between India and Korea for the last 40 years have been searched and the differences have been comparatively analyzed. The pharmaceutical industry of India has the following strengths: low costs; experienced labor pool; excellent reverse-engineering skills; powerful IT; marketing capability; and established distribution network. After 2000, consolidations, M&A and alliances with domestic and multinational companies have been sharply increased in the industry of India. Indian companies unfolding both competition and cooperation with multinational corporations currently move up the value-added chain, and this enthusiastic strategy should be learned by local pharmaceutical companies.
Domestic materials & components industry is making a shift from quantitative growth to qualitative growth, while the paradigm of a future society is changing rapidly to energy, mobility, smartification and etc. The main features of materials & components industry are analyzed broadly based on three aspects that are: ① industry Status, ② the value chain structure, ③ the competitiveness. With regard to the national aspect, it is shown that the number of an export and a trade surplus increased consistently after the government advanced the policy on materials & components and Korea's trade deficit with Japan has been decreased. Moreover, the state's export ranking increased from tenth place in 2001 into sixth place in 2017, dedicating to the growth of a national economy. The analysis of the chain value indicates that specifications of an end product are set when the materials & components are combined with manpower, infrastructure and technologies. In terms of the competitiveness, it requires a long time and high costs to develop technologies on materials and it is important for components to have a process innovation and credibility wired. Following the industry structure with priority given on materials, Jeonnam Province accounts for 14.8% of national material production. As a result of analyzing Jeonnam's export competitiveness, it is measured that a serious polarization exists, revealing there are 6 major technology industries by 11 categories for materials & components, Jeonnam has presented 6 major materials & components considering the key industry and the new industry in future to remedy the mentioned problem so far, and plans to knock on the industry development through 10 different strategies.
IC industry is one of the foundation and core industries of modern information industry. Therefore, the study of this industry has important theoretical and practical significance. The main purpose of this study is to measure the degree of close correlation between the two indexes through correlation analysis of the selected indicators, so as to study the development trend and direction of IC. Based on the theory of induced innovation and the theory of comparative advantage, this paper analyzes the correlation between the profit of the IC industry and the following three indicators by using chart analysis method, covariance analysis method and correlation coefficient analysis method. These three indicators are R&D expenditure, new product development costs and annual export amount of IC. The selected data are mainly from CHINA STATISTICS YEARBOOK ON HIGH-TECHNOLOGY INDUSTRY. Through the research, it is found that the profit of China's IC industry is positively correlated with the first two indicators and negatively correlated with the annual export amount.
Purpose - The purpose of this paper is to examine the welfare effects of standards harmonization between technologically asymmetric countries, and to determine optimal harmonization strategies for a country with mid-level technological advancement. Design/methodology - Following Salop's circular city model (Salop, 1979), this study constructs a simple, horizontally-differentiated oligopoly model in which three firms and three countries exist. Each country adopts different compatibility standards and each firm incurs conversion costs for foreign market access due to differences in standards. The conversion costs are related to technology; standards harmonization removes these costs between participating countries. The paper considers three cases: i) no harmonization; ii) harmonization with the more technologically-advanced country and iii) harmonization with the less technologically-advanced country. Findings - The paper first considers a scenario in which all three firms occupy some share of the market in each country. It shows that standards harmonization with both the technologically moreor less-advanced country always increases consumer surplus and social welfare. In addition, the producer surplus will increase if the harmonization partner has a higher technology level, whereas it may decrease if the partner has a lower technology level. It also shows that if most domestic export goods are in sectors with conversion costs above a certain level, harmonizing standards with a technologically more-advanced country should be prioritized. Such strategies, moreover, should be emphasized when there exists a large technology gap among countries. Lastly, the paper considers another scenario, in which harmonization leads to the foreclosure of the non-member firm from the member countries' markets. It shows that harmonization improves the social welfare of a mid-level technology country regardless of its partner's technology. It also shows that the country should prioritize harmonization with the technologically less-advanced country. Originality/value - Though some of the existing studies consider the welfare effects of harmonization, their main assumption is that firms have the same conversion technology. Since complying with standards often requires substantial technological advancement and technical expertise, harmonization of compatibility standards between countries with gaps in technological ability carries different implications. This paper investigates the welfare effects of this harmonization and determines an optimal harmonization strategy while considering technological asymmetry among countries in standards compliance.
This study is to analyze Gwangju's trade structures with China, Japan and the United Sates, and to contribute, through clarification of product competitiveness, to minimizing free-trade-induced costs as well as maximizing profits from free trade. To obtain this study purpose, two export competitiveness indicators are used; they are Trade Specialization Index (TSI) and Grubel & Lloyd(GL) Index. Intra-industry trade is examined to see if there exists a technological gap between nations. Intra-industry trade is divided into two; Low Quality Vertical Intra-Industry Trade (LQVIIT) and High Quality Vertical Intra-Industry Trade (HQVIIT). Gwangju's trade with China is HQVIIT; Gwangju exports high-quality and high-priced items to China, and imports low-quality and low-priced ones. On the other hand, Gwangu's trade with Japan is mainly LQVIIT; Gwangju exports low-quality and low-priced processed stuffs to Japan, and imports high-quality and high-priced ones from Japan. While Korea-US is mainly of both high-quality and low-quality Vertical Intra-Industry Trade; Gwangju exports low-quality and low-priced items as well as high-quality and high-priced items to the USA. Based on the analysis result, export marketing strategies are presented as follows: the transition to high value-added export system, the local entry networking, government support for trade exhibition, offer of special program on local small businesses.
Journal of the Korea Academia-Industrial cooperation Society
/
v.18
no.10
/
pp.48-53
/
2017
One of the policies of the Ministry of Agriculture, Forestry and Livestock Food and Livestock aims to export $10 billion worth of products. Although it was not easy to achieve the export goal of $ 6.5 billion in 2016, the policy should be pursued continuously. Accordingly, a facility modernization project and high-tech greenhouse project are being implemented to facilitate exports. Moreover, it is possible to consider substitution of imports in the policy shift. Imports of temperate and tropical fresh fruits totaled 1.2 trillion won in 2016. Accordingly, identification of alternatives to tropical and temperate fresh fruit imports will enable farm income to increase and the fresh fruit industry to grow. The major obstacle to tropical fruit production in Korea is high heating costs. However, Jeju Island apple mango farmers found that using non-taxable kerosene and hot water from power plants could reduce heating costs by 42.5%. Indeed, using hot wastewater can reduce heating costs by more than 40%. To improve competition with imported fruits, farmers can change their heating systems using financial support plans (e.g., 20% government subsidies, 20% loans, 30% subsidies from local governments). The income effect and import substitution effect of fruit tree farmers should be carefully analyzed in the future and the study will be closed to discuss the policy direction.
Global pork markets are becoming more competitive, riding the wind of the bilateral free trade agreement. China is the world's largest pork producer with nearly 50% of the world's total production. China's fast growing economy has provided its people with higher purchasing power, resulting in a rapid expansion of the Chinese swine industry over the past decades. Worldwide, China consumes the greatest amount of pork and it is believed that this trend will continue. Japan is the world's largest pork importing country, even though it also produces a lot of pork. The Japanese swine industry encounters weighty obstacles in production costs and environmental limitations which result in reduced domestic supply and creates the situation in which Japan has to import a significant amount of pork for their consumption. South Korea is also a large buyer of pork, with a status greatly influenced by the struggle that the country has faced with Foot and Mouth Disease (FMD) which occurred in 2000, 2002 and 2010. High production costs, low production efficiency, and forced culling following the FMD outbreak resulted in the loss of many hog farming households in the country, reducing supply of domestic pork in the face of continued demand. Overall, pork production in these economically important countries can greatly impact the industry globally. The goal of this review paper is to describe pork production in China, Japan, and South Korea and discuss these countries' role in global pork export markets.
In many countries, a Single Window system for simplifications is establishing in order to reduce works submitted double data and compliance costs. A Single Window is defined as a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements. A Single window can bring improved level of security, faster clearance and reduced compliance costs. UN/CEFACT released "Recommendation and Guidelines on establishing a Single Window to enhance the efficient exchange of information between trade and government". Also, WCO has made progress several projects to assist effective establishing a single window, i.e. CDM, UCR, ICT. Korea has being established a single window system, "e-trade platform" connected with trade, clearance, logistics, marketing and payment system. Some suggestions to establish a effective single window system in Korea are as follows. Firstly, it is necessary to clearly define roles and responsibilities of a lead agency in a single window system and form a organic relationship with PGA. Secondly, a single window system has to be progressed by stages, namely, customs clearance portal system should be established first, and later established e-trade platform. Lastly, the Korean government has to take part in CDM project to gain an advantage over other countries.
Park, Byung-Joo;Choi, Hyung-Rim;Kim, Hyun-Soo;Jun, Jae-Un
Journal of Navigation and Port Research
/
v.32
no.4
/
pp.295-304
/
2008
In order to achieve a sustainable competitive advantage in the expanding maritime transportation market, most shipping companies are making every effort to reduce transportation costs. Likewise, the car shipping companies, which carry more than 80% of total car import and export logistics volume, also do their utmost for transportation cost saving. Until now many researches have been made for efficient maritime transportation, but studies for car shipping companies have rarely been made. For this reason, this study has tried to develop a maritime transportation planning support system which can help to save logistics costs and increase a competitive power of car shipping companies. To this end, instead of manual effort to solve the routing problem of car carrier vessels, this study has used an integer programming model to make an optimal transportation planning at the minimum cost. Also in response to the frequent changes both in the car production schedule and ship's arrival schedule after the completion of transportation planning, this research has developed a decision support system of maritime transportation, so that users can easily modify their existing plans.
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