• Journal of Korea Trade
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• v.26 no.1
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• pp.20-32
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• 2022

Purpose - This paper intends to make theoretical analysis and empirical test on the factors influencing China's export to South Korea, and draw conclusions about China's export efficiency and trade potential. Based on the conclusions, the reasons for China's trade deficit with South Korea are found, and a solution is put forward for solving the problem of China's trade deficit with South Korea. Design/methodology - Based on the data of 2004-2017 years in China, this paper uses the stochastic frontier gravity model to analyze the influencing factors of China's export to South Korea, as well as the export efficiency of each province and the export potential that can be explored. Findings - First, in terms of the factors affecting China's export trade to South Korea, the GDP of the provinces and cities in China, the FDI of South Korea to the provinces and cities in China, the GDP of South Korea, the population and education level of provinces and cities in China can significantly promote the export scale of Chinese provinces and cities to South Korea. The distance between Chinese provincial capitals and the South Korean capital significantly hinders Chinese exports to South Korea; Second, in terms of export trade efficiency, the trade exchange rate of the economically developed cities along the eastern coast of China and several provinces that are close to South Korea is higher than that of the cities in the central and western regions; Third, economic globalization makes trade more convenient, the average export trade efficiency of China's exports to South Korea showed an upward trend. However, under the influence of the 2008 global financial crisis, the export trade efficiency declined from 2008 to 2009, indicating that the impact of the financial crisis on the trade efficiency cannot be ignored. Originality/value - This paper finds out the influencing factors of China's export to South Korea, analyzes the export efficiency of different provinces and cities, excavates the export potential, and puts forward some suggestions for the balanced development of China and South Korea trade in the next step.

• Journal of Korean Society for Quality Management
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• v.38 no.1
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• pp.34-41
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• 2010

This paper proposes the compliance collaboration index(CCI) which can be useful to measure the level of supply chain's compliance collaboration quantitatively. It can be shown that the proposed index is quite flexible when applied in real situations at the request of the index user. For instance, even if only one company of many companies in trade supply chain to be tested through the AEO certification test is not satisfied the required specification. the index is designed in such a way that the score can't be higher than a certain predetermined value. The proposed CCI can be used as the guidance for a trade company's collaboration process control strategy to increase the efficiency of compliance improvement activity. In this paper, we use the Analysis Hierarchy Process(AHP) which is one of the methods recommended by ISO/ICE as a measurement of weight to be assigned to the relevant parameters considered in the CCI.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.10
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• pp.49-59
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• 2022

This paper examined the impact of real exchange rate volatility on trade balance in Malaysia by using quarterly data from year 2000 until 2019. Generalized Autoregressive Heteroscedasticity (GARCH) model was used to extract the volatility component of real exchange rate before examining its impact on trade balance. Furthermore, Autoregressive Distributed Lag (ARDL) model was used to investigate the long-run relationship and short-run dynamic between trade balance, money supply, national income and volatility of exchange rate. Empirical results show the existence of co-movement between variables under study in the long-run. However, the results also suggest that volatility of real exchange rate does not significantly affect trade balance neither in the long-run nor short-run. The risk which is associated in the movement of exchange rate do not influence trader's behaviour toward Malaysia exports and imports. Thus, it should be note that any depreciation or appreciation in Malaysian Ringgit do not have an impact towards trade balance either it is being further improved or deteriorates. Hence, exchange rate volatility may not be too concern for policymakers. This may be partially due to manage floating exchange rate regime that has been adopted by Malaysia eventually eliminated the element of risk in the currency market.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.7
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• pp.35-47
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• 2020

An economic downturn can occurred through unexpected events in various fields, such as the subprime mortgage crisis and the outbreak of Coronavirus Disease-2019 (COVID-19). Trade credit is important for small- and medium-sized enterprises (SMEs), especially during a monetary contraction, as it is the last option for firms that lack bank credit. This study aims to determine whether trade credit is profitable for the buyer and supplier firms during and after a financial crisis. We use panel data consisting of all trade credit transactions and financial statements of 5,751 Korean firms during the period 2008-2012. It shows that trade credit is more profitable for both buyers and suppliers in the post-crisis period than during the crisis. Moreover, trade payable is more effective for unconstrained buyers than for constrained buyers. Finally, a mixed strategy is superior to an aggressive or passive strategy of SMEs. The results suggest less profitability of trade credit during a period of contraction and greater sensitivity of the buyer SMEs, emphasizing the idiosyncratic liquidity strategy of each firm. This study can be helpful to develop a strategy of profitable trade credit for SMEs and to establish a policy of managing liquidity for the authority.

• The Journal of Economics, Marketing and Management
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• v.3 no.4
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• pp.5-11
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• 2015

The study examined the socio-economic factors influencing the participation of rural farming households in barter trade in Ondo State, Nigeria. The objectives were to compare the socio-economic characteristics of the participants and non-participants in barter trade, analyze the preference for barter trade and identify the constraints to it. Also, the factors affecting respondents' participation in barter trade were identified. Empirical results indicated that there were significant differences in the socio-economic characteristics of the participants and non-participants in barter trade. The SWOT analysis showed that possession of agrarian attributes by the locality where the trade is practiced was the strongest factor ensuring the survival of barter in the study area. Double coincidence of wants was found to be the most prevailing weakness associated with barter while the major reason for participation by some households was that the quantity of commodities received is usually higher compared with cash transactions. Transportation cost to barter markets was found to be the greatest threat to the continued existence of barter trade in the area. The results of the Probit model showed that age, household size, transportation cost to cash markets, farm size, distance to barter markets, and formal education significantly affected the probability participating in barter trade.

• International Commerce and Information Review
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• v.12 no.1
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• pp.55-73
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• 2010

The thesis examines new innovation of various aspect to overcome lots of problems which come by when we execute simplification of trade procedure and administration fairly. Practical implications regarding the innovation of electronic trade infrastructure are as follows. First, it will propel the standardization of electronic trade section in the technical side and the construction atmosphere of international authentication system must be created. The work process should be redesigned in order to implement export-import procedures that meet the relevant standards. Second, the improvement of system for electronic process is necessary in the law and institutional aspect. In order to eliminate any obstacles to the trade procedure, clearer legal grounds regarding legitimate controls and minimum necessity must be established. Also, laws should be revised to admit mutual recognition among certification organizations, in lieu of international agreement-based mutual recognition between government. Third, the detailed improvement for the integration of the electronic trade infrastructure will be demanded. Additionally, user-centered quality management protocols should be established via connections with the systems already existing in governmental bodies. Fourth, various trade institution should harmonized and interconnected with other partners through mutual cooperation for standardization of operational system. A system which can monitor and remotely diagnose and resolve system errors should be established to provide tailor-made service and improve operational efficiency. At the same time, it is necessary to build a cooperative system to share information and promote comprehensive management for efficient operation.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.72
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• pp.115-137
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• 2016

Trade can be greatly influenced by the change of international trade environment due to the characteristics of remote transactions. Furthermore, in the circumstance of emphasizing the national security again, the importance of the risk management of special materials has been increasing. As it was noted at Chapter 4, significant results such as the threat of enterprises' sustainable growth can be occurred when companies are related to the unlawful export of strategic materials or experience discouragement of export of main products. As the decision of strategic materials greatly depend on a specialized knowledge there is a possibility of misjudgement of strategic materials in terms of ordinary companies which is not accustomed to them. Furthermore risk management is more difficult due to the inclusion to the items of export license. To prepare such a risk of export of strategic materials, firstly, it should be checked to find whether counter traders are working in the industry which is not related to the spread of weapons of mass destruction, secondly, an appropriate process shall be designed and operated for products to be safely delivered to the trade counter. Therefore, our export enterprises have to introduce CP(Compliance Program), AEO or ISO28000 considering suitability for their actual situations not only to promote export and but also to avoid risk of export control and additional expenses. Through these appropriate processes, an efficient and effective management of the trade risk of strategic materials can be accomplished.

• Journal of Korea Trade
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• v.23 no.3
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• pp.20-37
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• 2019

Purpose - The purpose of this paper is to analyze the trade structure and competitiveness of China's information technology (IT) industry in comparison to that of Korea and the United States, particularly in terms of quality. Design/methodology/approach - Indices such as trade specialization index (TSI), Revealed Comparative Advantage (RCA), and Market Comparative Advantage (MCA) are used. Further, an Intra-industry Trade (IIT) index is used to analyze qualitative changes in horizontal intra-industry trade and intra-industry trade of high- and low-quality goods. Findings - China's IT industry has a comparative competitive advantage over that of Korea and the United States, and mainly exports goods of inferior quality and imports goods of superior quality. Further, China's horizontal intra-industry trade has been decreasing, while its vertical intra-industry trade has been increasing and vertical trade of inferior quality goods outweighs that of superior quality goods. This shows that China is rapidly catching up with Korea and the United States, even though its qualitative competitiveness has not significantly improved. Research limitations/implication - This study has academic and political implications, as it analyzes changes in China's IT trade competitiveness. However, it is somewhat limited as factors determining qualitative aspects has not been considered. Originality/value - Most studies aggregate analyses of export competitiveness using methodologies such as TSI, RCA, and market share. However, the focus of these methods is price competitiveness. Hence, an examination of the objective and qualitative trade competitiveness of China's IT industry is necessary. this study the trade structure and quantitative competitiveness of the industry by analyzing intra-industry trade focusing on the quality of competitiveness. Therefore, the changes in China's IT industry in the USA and Korea and in foreign trade competitiveness and quality competitiveness are clarified. The results show that the academic and policy implications of these changes in the IT industry will be a useful resource. This is the first study in Korea to attempt such an analysis. This is the first study in Korea to attempt such an analysis.

• Journal of Korea Trade
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• v.24 no.1
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• pp.59-81
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• 2020

Purpose - This study analyzes the scope of due diligence and risks of banks and K-Sure in trade finance covered by EFF focusing on Moneual case, one of the latest and biggest trade finance fraud cases in Korea. Also, we suggest anti-fraud measures in trade finance on the part of banks and K-Sure in order to give them a desirable way of due diligence and reasonable risk management of export insurance. Design/methodology - Based on Moneual case of trade finance fraud, this study employs the methodology of an extended literature review and analysis of court decisions. Findings - Seoul High Court of Korea failed to decide whether K-Sure was wholly obliged to pay the insurance against the banks' EFF claims, but issued a compulsory mediation order, judging that both the banks and K-Sure were responsible by 50:50. The court may have judged that both the parties had lacked their due diligence in the trade finance. It is quite difficult for trade finance providers to manually investigate whether the transaction is suspected of trade finance fraud, so digitalization of trade finance which can facilitate the prevention and detection of trade fraud needs to be realized quickly. Since there has been no international rule available for open account trade finance up till now, clearly stipulated EFF terms on the exporter's genuine export obligation might have protected K-Sure from the disaster. Originality/value - This study investigates the due diligence of the banks and K-Sure in Moneual case which few researchers have considered, to the best of our knowledge. This study also suggests several practical methods (including block chain) to prevent complicating trade finance fraud amid increasing use of an open account, and further offers reasonable risk management of EFF employing international factoring rule which is also related to problematic open account trade finance.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.56
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• pp.101-120
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• 2012

Changes in the global business environment continue at an accelerated pace. The 21st century maybe remarked, perhaps, for its hot issues on globalization and diversity. Diversity may arise in terms of ethnic, gender, age and culture. Cultural diversity out of all stands out in front in modern times as more multinational companies operate internationally resulting more people to start living abroad and work with people from different cultures. In recent years, these multinational companies realized the important roles human resource management play in international trade since cultural diversity is very influential on their work performance. A well-managed human resources will ensure organizations' success to a great extent. This paper touches the field of cultural diversity and introduces human resource management of international trade as a way to handle diversity matters faced by international organizations.