Mgt 370 Week 5 Final

The United States' seventh largest export market is to South Korea. Some of the products that exported to Korea from the US are civilian aircraft, instruments used for medical purposes, devices for semi-conductors, and cereal. “South Korea’s $1 trillion economy, which is primarily an export-driven market, is the third largest market in Asia behind Japan and China and was the 13th largest world economy in 2010 (Embassy of the United States, 2014)”. As a primary export market, there are bound to be issues that will arise along the way. In order to locate these issues early on, a supply chain assessment must be performed. A well thought out transportation plan must be put into place, so that that eveyone in the supply chain is aware of how the goods are going to be moved to South Korea.

A major advantage that South Korea has over other countries is the number of free trade agreements that they have in place. Free trade agreements help to lower barriers; which in returns increases the amount of exports that are able to be transported into the country. It also protects the interests of the United States as well as enhancing the rule of law in South Korea. The biggest advantages though that it provides is the stability it provides cheaper export costs. The number of FTAs that South Korea has in effect is 5 plus another 3 that has ended negotiations and another 19 that currently are being negotiated. In 2007, the Korea-US Free Trade Agreement was completed and signed; which is the largest FTA to date. It aides in liberating about 95% of any trade tarriffs that exist between South Korea and the US.

The major downfall for South Korea is their lack of natural resources. It has to dependent upon other countries to receive those resources and industrial supplies. It is also overpopulated causing the internal consumer market to swell. “Despite the South Korean economy's high growth potential and apparent structural stability, South Korea suffers perpetual damage to its...