목차
1)서론
2)본론
3)결론
2)본론
3)결론
본문내용
How can Korea prepare of US Dollar collapse?
South Korea economy is seemingly fine as if nothing is going to happen negatively, but in fact Korea has been suffering from the U.S economy which is not showing visible signs of recovery. Some people believe that the debt crisis in the U.S will have limited impact on South Korea’s real economy, so we do not have to worry about that too much. However, the situation is not that optimistic, because the U.S debt and trade imbalance could affect Korea.
As we know the fact that Korea is the highest economic dependence on experts and imports, Korea economy is quite dependent on the fluctuation of U.S Dollars. If the value of Dollar is getting high, the expert is getting decrease. Korea has an experience of financial crisis in 1997, so that Korea now ranks as a 7th holder of US Dollars as a reserve currency in the world to deal with any sudden warning.
To reduce the debt and make trade deficit convert into surplus, the U.S has signed Free Trade Agreement with South Korea recently. The U.S has huge trade deficits in electronics and motor vehicles and parts with South Korea, so the U.S International Trade Commission predicts that the U.S trade deficit in these products will dramatically increase if the Korea FTA were to enter into force. But Korea, expecting some deficits and fierce opposition by people, should also open the agricultural industry market such as rice, beef, and so on. What if Korea never accepts the proposal of the U.S wants to make up their deficits in any ways, the U.S would insist that FTA is involved in “globalization”.
South Korea economy is seemingly fine as if nothing is going to happen negatively, but in fact Korea has been suffering from the U.S economy which is not showing visible signs of recovery. Some people believe that the debt crisis in the U.S will have limited impact on South Korea’s real economy, so we do not have to worry about that too much. However, the situation is not that optimistic, because the U.S debt and trade imbalance could affect Korea.
As we know the fact that Korea is the highest economic dependence on experts and imports, Korea economy is quite dependent on the fluctuation of U.S Dollars. If the value of Dollar is getting high, the expert is getting decrease. Korea has an experience of financial crisis in 1997, so that Korea now ranks as a 7th holder of US Dollars as a reserve currency in the world to deal with any sudden warning.
To reduce the debt and make trade deficit convert into surplus, the U.S has signed Free Trade Agreement with South Korea recently. The U.S has huge trade deficits in electronics and motor vehicles and parts with South Korea, so the U.S International Trade Commission predicts that the U.S trade deficit in these products will dramatically increase if the Korea FTA were to enter into force. But Korea, expecting some deficits and fierce opposition by people, should also open the agricultural industry market such as rice, beef, and so on. What if Korea never accepts the proposal of the U.S wants to make up their deficits in any ways, the U.S would insist that FTA is involved in “globalization”.
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