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An Analysis of the Market Characteristics in Latin America and Korean Globalization Strategy

Author Kim(H.J) Suh(D.H) Oh(H.N) Date 1997.07.01 Page 0
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In the 1980s, Latin America experienced a time of serious economic stagnation, which came to be called the "lost decade". However, at the beginning of the 199 0s, the economic situation in Latin America began undergoing changes. Latin Ame rica has now developed into an emerging country with excellent prospects. This dramatic improvement is the result of economic policies dealing with the stabil ization of hyper-inflation and expanding growth, industrial capability and expo rts. In addition to these domestic polices, foreign direct investment from over seas has become very helpful for economic reconstruction. According to significant achievement in Latin America, the world economies have become interested in this area. A lot of firms have plans to invest not only in the manufacturing sector, but also in infrastructure and financial markets. The competition in this area is becoming intense and very fierce. Although international cooperation between Latin America and Korea is essential for globalization of the Korean economy, the level of cooperation is very low. Therefore, we would like to contribute to the development of policies that enco urage the building of cooperative relations between the Korean government and f irms and the growing Latin American countries. In this study, we examine the previous research works and use various kinds of methodology including econometrics and a questionnaire survey on Korean firms i nvesting in Latin America. In chapter two, we examine the economic reforms and market integration in Latin America through previous studies. Then in chapter three, we evaluate the perfor mances of their reform and integration policies. Their performance is evaluated according to the economic growth, inflation, trade, foreign direct investment a nd foreign debt of each side. Next, in chapter four, we analyze Korea`s interna tional cooperation with Latin American countries comp