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An introduction to the economic environment of South Korea Sharntele Molloy

Sharntele Molloy BX3082 International Marketing Presentation

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An introduction to the economic environment of South Korea

An introduction to the economic environment of South KoreaSharntele Molloy

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Formally known as the Republic of Korea South pacific region, southwest of Japan North and South have been separated since the war in 194811th largest economy in the world

Outline the current economic profile of South KoreaDiscuss its external economic relationsEvaluate the strengths and limitations of its economyAddressing the impact that this all has on South Korean market entry for Sanctum Organic Cosmetics

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Economic SnapshotGDP - $1.41 trillion (2.27% of the international economy)GDP annual growth % - 3.3%Inflation rate 0.7%Consumer Price Index Housing, water, electricity, gas, fuel, food, education, transport and health.Interest rates 1.5%$4.3 billion USD trade surplus in August 201550.4 million peopleIncome per capita $28,101 USD

Imports/ExportsPrimary exports automobiles, wireless communication devices, semiconductors, petroleum products, shipbuilding parts & LCD screensPrimary exports to Australia: refined petroleum, automobiles, heating/cooling equipment, iron/steel/aluminium structuresPrimary imports oil, semiconductors manufacturing parts, petroleum products and steelPrimary imports from Australia: iron ore, coal, crude petroleum, beef and education servicesTotal exchange between Australia and South Korea $34.5 billion

External Economic RelationsIn 2014, Australia and The Republic of Korea both signed the Korean Australian Free Trade Agreement (KAFTA).Eliminates 99.8% of trade tariffs on Australian exportsResidency for Australian traders and their families for up to two years.Member of WTO since 1995

Strengths and Weaknesses Strengths:Historical exportsKorean Australian Free Trade Agreement2018 Winter Olympics held in Pyeongchang

WeaknessesMiddle Eastern Respiratory Syndrome (MERS)Lack of exports this year specifically due to low oil prices and the value of the Korean Won in China and Japan.

Ramifications Of Economic Environment The Asian EraSouth Korea is the 4th largest Asian economyKAFTA means lower costs for consumers due to less trade tariffsRising organic beauty trend in South Korea