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Domestic vs International Trade (South Korea Trade (US-Korea Trade…
Domestic vs International Trade
South Korea Trade
laws and national regulations
foreign exchange transaction laws
domestic branch of foreign companies
foreign investment promotion act
foreign investments more protected
US-Korea Trade Agreement
can export 50,000 cars a year to SK
must follow SK safety standards
limit SK steel exports
SK has 10% tariff on aluminum
US agriculture exports duty free
current tariff on imports for SK
agricultural 54%, non agriculture 6.6%
current tariff on imports for US
agricultural 9%, non agriculture 3.2%
SK 2017 exports totaled $573,694 M
US 2017 exports totaled $1,546,724 M
SK 2017 imports totaled $478,478 M
US 2017 imports totaled $2,409,495.1 M
Increase trade with SK means more jobs for Americans
Domestic
definition
trade within geographical boundaries
pros
low transaction cost
faster production
more sales
encourages small scale enterprises
facts
low standards
less capital investment
easy to research
free mobility
less competition
homogeneous customers
few restrictions
International
definition
trade between 2+ countries
pros
large customer base
multiple country resources
expanded trade and investment
facts
global standards
huge capital investment
many restrictions
heterogeneous customers
difficult to research
restricted mobility
dynamic and complex competiton
cons
barriers to entry
tariffs
quotas
political factors
sociocultural factors
economic factors
heterogeneous customers
dynamic and complex competition