An Analysis of the Market Characteristics in Latin America and Korean Globalization Strategy
Kim(H.J) Suh(D.H) Oh(H.N)
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