In today world economic orders, as protectionism is widely spread, the Uruguay Round has been helding for promoting bilateral trade without any restriction of trade in the contrary GATT is weaking in degree.
Futhermore, regionalism, economic block fo...
In today world economic orders, as protectionism is widely spread, the Uruguay Round has been helding for promoting bilateral trade without any restriction of trade in the contrary GATT is weaking in degree.
Futhermore, regionalism, economic block formed by adjacent country fo bilateral cooperation in same area, come to birth as new world economic trend.
It is mention that EC and NAFTA are the major economic block. EC is the distinguished economic block made by Western European countries and NAFTA is another economic block consisted of America, Canada, Mexico.
The main reason to make economic block is to enhance the efficence of raw material and to maximize the economies of scale and economies of scope. But, economic block make external economy decrease profit of trade through trade diversion effect.
Most of the manufacture business in Pusan region working for labor intensive industry and they depend on OEM export. This method of export cannot run their company with the long-term project.
Therefore, we stand a position to lose large market in EC and NAFTA in the case they take trade restriction to us.
For this reason, we should make an acts this new trend.
The countermeasures are as follows.
The first, we should strengthen competitiveness in exports.
1) industry structure has to be changed and advanced to the high level
2) new product development
3) technical innovation
4) productivity raise
The second, we should intensify economic cooperation their company within economic block
1) Pusan export business an effort to have good relationship with administration of EC and NAFTA.
2) Pusan export business have to search for suitful site in economic block.
The third, We should be planning and operating effective export strategy.
1) marketing with our own brand.
2) market segmentation in EC and NAFTA market.
3) after-service to be assured.
4) stiffening non-price competition.
The forth, We should introduce one-stop service in trade complex.
1) establishing trade exposition center.
As we review above, if we do these measure Pusan export business will be actively and our export environment will be improved.