Americans used to threaten Korean negotiation parties with unfair trade measures in the resolution of trade conflicts between Korea and U.S.A. But Korean trade representatives are unwilling to use retaliation measures. Why? The interdependence can exp...
Americans used to threaten Korean negotiation parties with unfair trade measures in the resolution of trade conflicts between Korea and U.S.A. But Korean trade representatives are unwilling to use retaliation measures. Why? The interdependence can explain it. The Korean economy is highly dependent on the USA's, especially for balance of payments. On the other hand, the American economy is not dependent on Korea's. Dependence is related to bargaining power and negotiation strategies. This Dependence means no power. In addition to this interdependence, three more variables are highlighted here to analyze and develop trade negotiation strategies between two countries. (1) calculation method of social benefit; (2) the effectiveness of government intervention into the international market; (3) the difference of negotiators' personal characteristics.