Automobile Industry in Korea: Rising or Falling?

IntroductionKoreas Automobile Industry is the fifth largest in the manufacture of cars and its parts provided imported from Japan and U.S. Today, Korea is besides one of the most highly developed in production of railroad carmobiles. By 1980s, the ability of Korea in auto constancy has change magnitude much than what they have expected. Producing 1.1 million units was really a prominent achievement, preferably in South Korea.Since economic boosted Korea for the early(prenominal) years, this made them partly one of the prestigious countries here in Asia. Its government supported the growth of this industry and early(a) programs created to build a squ ar and developed industrial base, which created opportunities particularly in business and other industries in the country. Not solely in automobile industry that Korea has expertise, but also in the field of electronics, particularly cell phone manufacturing, etc.DiscussionOver the past decade, Korea has proved its ability in the production, manufacturing and exporting of automobile way dressing in 1980. The industrys growth has expanded five times of what the Koreans expected. The doubt is, why or why not make the investment in the Korean automobile industry?Korea, presently divided into North Korea and South Korea. A small country, yet one of the most cultivate one. Because of their advanced technology as of Singapore and Japan, this made them one of the most progressive countries here in Asia.Automobile industry in Korea has been stable in the past years as founded in charts. However, rival is also stable. When the three 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, workers regret a wild revival, everyone protest of increasing land and housing prices but their wages became similar to western countries, labour unions were also banned.South Koreas investment in china in 2004, mainly steel and cars, passed Japans investment. Koreans believed that they have an advantage in China because they do not suffer from mark war hostilities than of companies in Japan. With the growing number of jobs, Korea experienced increased number of labourers and employment suppleness. They even engage workers from other countries just to increase the number of employees that they need in a particular company.Korea is now facing an economic stability and government fiscal situation. They continue to mitigate their work, and this means a continued financial problems. Korea has its access to potential and capital markets for their products are renowned globally. Their importers were also acclaimed to be among of the stellar(a) countries in Asia and in the world like U.S and Japan, which are also their primary manufacturers.Despite these problems, Korea still emerged as one of the leading countries in Asia in terms of inv estments and exports. For the next two years, the automobile industry planned to increase their gross 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. Business opportunities also increased due to their implementation of the Import Diversification 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 investing in Koreas auto industry is its argument to other neighboring countries that also manufactures automobile like China, which they say that they would set down the world market. It is also said that China enkindled over a million automobiles in 2004, which was really a great start.Another danger is the constantly changing of the country is laboring policies. Korean government controlled the institution of labour unions, which is why their policies are always changing. Because Koreas economy grew rapidly, costs 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 auto 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 get 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 previous 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 2005. 17 June 2007.http//www.iht.com/articles/2005/10/18/business/koreaJones, Heather S. Business America. 31 majestic 1987. 17 June 2007. http//findarticles.com/p/articles/mi_m1052/is_v10/ai_5151117.