Technology and Trade in South Korea Essay

Introduction

Technology plays a important function in the development of states. It is really of import both for developed states and developing states as engineering advancement will enable states to be more competitory in the planetary market. Thus advancement in engineering helps states to develop the economic system and strengthens their trading places in the competitory planetary market ( Sabir, 2010 ) . With the development of engineering, hi-tech merchandises will go the major participants in international trade. The traditional primary merchandises and ordinary fabrication goods will account for less in the international trade concern than earlier. In order to exemplify the impact of engineering on trade and development for the state, this essay will take South Korea, a developed state and the Samsung merchandises as illustration to analyse the manner the engineering influences the state ‘s development and its trade.

Technology development in South Korea

The development of engineering can make up one’s mind the hereafter of the state in footings of its economic system growing and its place in the international community. South Korea, as all we know, is a lively illustration in the engineering research and development. Forty old ages ago, South Korea was still a dilatory agricultural state and was empty in scientific discipline & A ; engineering Fieldss. However, during 40 old ages ‘ enterprise, South Korea has made outstanding public presentation and accomplishments in the engineering development. Its invention capableness is improved a batch and the distance to developed states sing the engineering facet is going closer. Since 1970s and 1980s, the scientific discipline & A ; engineering policies of South Korea have been bit by bit shifted from debut & A ; imitation theoretical account to self-development and invention ( Viotti, 2002 ) . Therefore, since so, hi-tech undertakings, such as sophisticated electronics, new stuffs, semiconducting materials, preciseness chemical science etc. have been developed quickly in South Korea. That Semi-conductors endeavors, such as Samsung, can successfully vie in the international semiconducting material market can non divide from the independent technological invention. Thankss to the engineering advancement, South Korea has made great development in economic system. As we know, economic system and engineering are two necessities which can non be separated from each other for the state. The advancement of engineering will advance the development of the state ‘s economic system, meanwhile, economic system growing will enable the state more capital to the engineering research. From the experience of developed states, their fast development in economic system can non be separated from their advancement in engineering. Technology is going the nucleus for the developed states ( Hausmann and Rodrik, 2003 ) .

Impact of engineering on trade and economic system growing

Economic development of South Korea started in 1950s and achieved a take-off in economic system growing in 1960s. In the initial phase, South Korea applied inward economic system growing scheme ; nevertheless, since 1962 the state began to implement an export-oriented economic system development scheme. South Korea is badly dependent on the external markets since its internal market is really limited. The state is extremely focused on the export concern to make foreign exchange and import the scarce resources. With the development in high-technology Fieldss, South Korea has realized to increase the exports of the high-tech merchandises which have successfully contributed to a rapid economic growing for the state. South Korea has achieved a considerable growing in its GNP from 87 USD in 1962 to 10 936 USD in 2001. This is near to the highly-developed states. Among the exporting volumes, the hi-tech merchandises are increasing twelvemonth by twelvemonth. In 1988, the hi-tech merchandises accounted for 15.97 % of the entire exportation volume. In 1999, the hi-tech merchandises reached to 32.2 % ( Kwon, 2010 ) . The advancement in engineering has greatly helped South Korea in accomplishing good consequence in the planetary trade market and resulted in a great growing in GDP and its overall economic system.

Samsung Electronic is a typical successful illustration in the research and development of engineering for South Korea or even for the whole Asiatic states. Many technological and electronic makers in Asiatic states are seeking to larning from Samsung Company. Samsung Electronic Company has made great part to South Korea ‘s economic development. Samsung has got its white goods and other merchandises such as nomadic phones celebrated in the planetary market place. In 2000, the export sum of Samsung Electronic has reached to 18.6 billion US dollars which accounted for 11 per centum of the entire exporting value. In 2004, Samsung has made a discovery of 50 billion US dollars of exporting value and accounted for 21 % of the entire export value in South Korea ( Kang and Jin, 2006 ) . The ground why Samsung merchandises can take a great market portion in the planetary trade market is extremely dependent on the engineering advancement. Take Samsung mobile phone as illustration, with the uninterrupted invention and advancement made in the technological field, Samsung mobile phone is now become one of the taking nomadic trade names in the universe. It has already posed a menace to Nokia and Motorola ‘s prima places in the planetary nomadic phone market ( Uimonen, 2000 ) . Confronting the ferocious competition environment in the planetary nomadic phone market, Samsung mobile phone maintains its scheme to place high-end merchandises for the people with certain devouring capableness. High-end merchandises need high-technology to back up and uninterrupted betterment in the engineering invention to keep the high monetary value. Therefore, Samsung ne’er stops its engineering research and contributes considerable sum of money into new engineering research and invention every twelvemonth. Besides the nomadic phone country, Samsung is besides doing attempts to spread out its other electronic merchandises with high engineering, such as Television, LED, icebox, and other white goods in the planetary markets ( Bonaglia, Goldstein and Mathews, 2007 ) . Of class, China is its largest trading spouse and Samsung merchandises have covered a comparatively big market portion in China.

Decision

In decision, engineering advancement is the major power and beginning to rush up the development of the societal economic system for a state. Nowadays, as peace and development are the major subject for the international communities, high-technology is attached great importance in hiking the economic system growing for a state. At the same clip, under the globalisation tendency, the development of engineering will assist the state to be more competitory in the planetary trade market therefore to hike the state ‘s economic system development.