Abstract

Export competition is often conceptualized as most likely among countries targeting the same overseas markets. Export competition, that is, is important because with globalization, more and more countries become outward-looking and compete globally. However, this conceptualization overlooks the fact that domestic markets are the key to the success of many domestic firms. In addition to export competition, import competition, that is, the competition with foreign firms for domestic markets, should also play an important role in businesses’ daily life and related domestic politics. However, the considerable part of the received FDI inflows through acquisitions and greenfield investments were directed in the national banking sector, that together with higher government control contributed to a greater efficiency and restructuring of the domestic banking sector. The aim of this paper is to choose most suitable greenfield FDI inflows for “HS8501-electric motors/generators” product group. Tis study analyzes HS8501, which not only shows a continuous trade deficit, but also has a widening deficit. In addition, unlike the existing approaches through CAD or CAF, we take an approach that attracts greenfield FDI. For this, greenfield investment countries are selected by analyzing the export competitiveness of HS8501 to Korea’s major exporting countries, the competitiveness of major countries’ HS8501 global market, and the structure of the import market.

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