Automobile Industry in Korea: Rising or Falling?

IntroductionKoreas Automobile Indus discipline is the 5th largest in the manufacture of cars and its parts merely imported from Japan and U.S. Today, Korea is excessively one of the most highly developed in production of automobiles. By 1980s, the ability of Korea in auto sedulousness has increased more than what they energize expected. Producing 1.1 one thousand thousand units was really a great achievement, preferably in southwestern Korea.Since economic boosted Korea for the past years, this made them partly one of the influential countries here in Asia. Its government supported the growth of this persistence and other programs created to manufacture a strong and developed industrial base, which created opportunities particularly in p arentage and other industries in the country. Not notwithstanding in automobile effort that Korea has expertise, but overly in the field of electronics, particularly cell retrieve manufacturing, etc.DiscussionOver the past decade, Korea has turn up its ability in the production, manufacturing and exporting of automobile way back in 1980. The manufacturings growth has expanded five times of what the Koreans expected. The motility is, why or why non make the investment in the Korean automobile industry?Korea, presently divided into North Korea and southwest Korea. A small country, yet one of the most civilized one. Because of their advanced technology as of Singapore and Japan, this made them one of the most continuous tense countries here in Asia.Automobile industry in Korea has been stable in the past years as founded in charts. However, competition is withal stable. When the tierce big companies namely Hyundai Motor Co., Kia Motors, and GM Daewoo of auto industry in Korea were launched, a growing number of competitors immediately followed. Koreas growing industry changed the lifestyle of the Koreans, bailiwickers regret a jobless revival, everyone protest of increasing worldly concern and housing prices but their wages became similar to western countries, labour unions were in addition banned.South Koreas investment in china in 2004, primarily steel and cars, passed Japans investment. Koreans believed that they have an expediency in china because they do not suffer from post state of war hostilities than of companies in Japan. With the growing number of jobs, Korea experienced increased number of labourers and employment suppleness. They even hired workers from other countries just to increase the number of employees that they motivating in a particular fraternity.Korea is now facing an economic perceptual constancy and government financial situation. They continue to improve their work, and this means a go on financial problems. Korea has its door to potential and capital markets for their products are renowned globally. Their importers were also acclaimed to be among of the prima(p) countries in Asia and in the world like U.S and Japan, which are also their primary m anufacturers.Despite these problems, Korea still emerged as one of the leading countries in Asia in terms of investments and exports. For the next two years, the automobile industry planned to increase their sales from 28% to 50%.ConclusionKorea proved that it is worth to make an investment with them in automobile industry, for they are financially stable they had stable workers and are supported by their government policies. parentage opportunities also increased due to their implementation of the Import Diversification computer program, which pushed Korean firms to transfer purchases from Japan to purchases from U.S. this gave Korea a great opportunity in the business world, especially in automobile industry.One of the dangers of investiture in Koreas auto industry is its competition to other neighboring countries that also manufactures automobile like chinaware, which they say that they would enter the world market. It is also tell that China produced over a million automobi les in 2004, which was really a great start.Another danger is the constantly changing of the country is labor policies.Korean government controlled the formation of labour unions, which is why their policies are continuously changing. Because Koreas economy grew rapidly, personifys of necessities increased rapidly. They need more persons to work in their companies, because jobs increased as their economy grew larger and wider. Sure, they have access in other countries like U.S and Philippines their only problem is the number of workers that would try their luck in working in the country.Though Korea claims that their automobile industry aims a great success, we believed that it is not that worthy to invest there because of Chinas entering in the world market, the restrictions of labour unions and the attempts of the labourers to conduct company strikes. Maybe, investors will increase if they still improve the status of their growing business. It is not that bad to invest in the a uto industry of Korea, only if China would not be a great competitor. By 2020, industry tycoons do agree that China could produce a mass of 20 million cars yearly.This proves that China could really make it ahead of Korea in the auto industry. China is also one of the most exporters of cars and cell phone units, which range from 27-30% than of Korea that only gained 26-28% in the past years. If Korea could only improve their way of treating exporters, they would probably nark as much customers like of China. Koreas only edge in China is that their currency, the won, improved a lot better for it threatened the cost of U.S dollars as seen in charts and in newspapers. Were not saying that investing in Korea now is bad, only that the competition is not that healthy than of their earlier years.ReferencesSavada, Andrea Matles and William Shaw. South Korea A Country Study. (1990). 17 June 2007. http//countrystudies.us/south-korea/50.htm.Brooke, James. The New York measure. 18 October 20 05. 17 June 2007.http//www.iht.com/articles/2005/10/18/business/koreaJones, Heather S. disdain America. 31 August 1987. 17 June 2007. http//findarticles.com/p/articles/mi_m1052/is_v10/ai_5151117.