ECN 802 Lecture Notes - Lecture 3: World Trade Organization, South Korea
17 Jul 2014
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Document Summary
Size of population in $ is 1. 3 billion. Gdp= ranked 4th in terms of controlled measures of gdp. Purchasing power price comparison and 2nd largest in the world firece competition low labor cost/textiles and engineering goods. Major risk: if china stumbles then the whole region is in recession. New younger generation and political power shift new political movement conflict between younger and elder people. Recent sub-prime mortgage crisis in 2008 commodity price stumbled - minerals, copper, iron, nickel banking crisis in usa, europe. These crisis did not strongly affect/impact in the asian market. After 1997 the asian banks were forced to restructure bank and supervision was strengthened. High tarriffs provided protection and subsidized loans and semi-monopolies. Semi-monopolies - is not free entry market and the economy is based on monopoly playersonly few players controlling each product. After 1997- the semi-monopoly protection was removed and corporation had to survive on own.
