For International Political Economy IPE paper assignment, I chosen South Korean as a case study for country that having experienced an improvement in the economic system. As we know, economic system is a manifestation of a nation’s history, characteristic, natural resources, and political policies. Major historical events are the core in the development of a country economic system. When we go back to South Korean history, we know Korean were under the Japanese Colony before the year 1945, and developments during these colonial periods are major in shaping the structure of Korean economic system. Korean was under Japanese colonization for 35 years began 1910 and ended in 1945. Korean had a backward agriculture economy before Japanese attack, and Japan later introduced a modern merge of industrial capitalism. During the Japanese colonization, there were non-stop protests against the Japanese Colonization. The Japanese power ender in petition by the United State and the Soviet Union in 1945. Liberation and Korean War from 1950 to 1953 is another major historical event that helped to shape today’s Korea. Korean War split Korea into the Republic of Korea, South, and the Democratic People’s Republic of Korea, North. South Korean reproduce these historical background in their national characteristics, and have strong determination in liberation and building national identity. As for South Korea, although experienced the Japanese colonization, it already won its liberation over North Korea and put on its status as a country internationally. And in addition, although South Korea is officially separated from North Korea politically, they remain to be enemies. Through military, economic, and political means, South and North Korea have been fight a competitive struggle for reputation, legitimacy and survival for more than five decades. South Korea also continuously struggle to distinguish its identity from North Korea by dissimilar performances in economy, also nowadays some South Korean are known to be one of the best in exacting profession such as musicians and scientists. Still today, South Korea make every effort to increase global recognition through their economic performances, and successfully became one of the Asian countries with GDP per head of over 15,000USD. HOW SOUTH KOREA MANAGING FREE MARKET
The term free market economy mainly means a system where the buyers and sellers are only responsible for the choices they make. Free market gives the absolute power to prices to determine the allocation and distribution of goods and services. These prices, in turn, are fixed by the forces of supply and demand of a respective commodity. In cases of demand falling short of the supply of a respective commodity, the price will fall as opposed to a price rise when the supply is insufficient to meet the growing demand of a good or service. Free market economy is also characterized by free trade without any tariffs or subsidies imposed by the government. According Han Duk-soo, South Korean Ambassador, “ South Korea today is a developed, Free market, and industrial economy. South Korea today is Asia’s fourth largest and the world’s 15th largest economy and is the world’s ninth largest trading country. South Korea has grown into a global hub of free trade with full access to two-thirds of the world’s markets, representing about half the global population.” Here we can see, South Korea able to manage competition among others country. Koreans possesses high achievement needs. Achievement needs, measured by “aggressiveness in materialistic pursuit,” “frugality in consumption,” and “materialistic outlook on life,” were higher among Korean workers. In contrast to the decline in commitment to work, the achievement orientation of Korean workers and managers increase slightly between 1966 and 1978 (Kim, 1992). South Korea adapted an export oriented economic strategy to increase its economy, and in 2010, South Korea was the...
References: Chung, K, H. & Yi, H. C. (1997). Korean management: global strategy and cultural transformation.
New York: DeGrruyter.
Rhee, J, C. (2002). The state and industry in South Korea: the limits of the authoritarian state.
Kwong, K, S. (2001). Industrial development in Singapore, Taiwan, and South Korea.
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