By-

Anurag Singh

Ankush Gupta

Gaurav Vohra

Siddharth Aggarwal

SOUTH KOREA

Area 98,480 sq. mtr

POPULATION 48,636,068

GDP $1.364 trillion

Un employment rate

3.6%.

GDP Income per capita200120022008

U$S 6.200U$s 7.900U$s 7.500

South Korea

Growth Trend

Transformation of the Korean Economy (1945-2007)

Liberationfrom JapaneseColonial Rule

6 Five-Year-Economic- Development Plans

FinancialCrisis

2007P19801962 1970 1995

5,000

10,000

67 87

11,432

7,355

1953

Per Capita (US$)GNI

1990

1945

12,646

OECDMember100(1964)

1,000(1977)

1998

POLITICAL

•South Korea's government is divided into three branches: executive, judicial, and legislative.

•South Korea maintains diplomatic relations with more than 188 countries.

•The country has also been a member of the United Nations since 1991.

•South Korea is also negotiating a Free Trade Agreement with Canada and another with New Zealand

•In November 2009, South Korea made its accession to the OECD Development Assistance Committee marking the first time a former aid recipient country has joined the group as a donor member. South Korea has also agreed to host the G-20 Summit in Seoul in 2010.

•ECONOMICAL

•It is Asia’s 4th largest economy ,World’s 15th(in terms of GDP) & 12th (in terms of PPP) economy.

•The economy is export-driven, with production focusing on electronics, automobiles, ships, machinery, petrochemicals and robotics.

•South Korea has a technologically advanced transportation network consisting of high-speed railways, highways, bus routes, ferry services, and air routes that criss -cross the country.

•Construction of South Korea's largest airport, Incheon International Airport, was completed in 2001. By 2007, the airport was serving 30 million passengers a year. Other international airports include Gimpo, Busan and Jeju. There are also seven domestic airports, and a large number of heliports.

PESTEL Analysis

TECHNOLOGICAL

South Korea is the world's fifth largest nuclear power producer and the second-largest in Asia as of 2010.

Fostering nuclear energy as a strategic export industry;

Playing a leading role in the improvement of human welfare and themadvancement of science and technology by expanding the use of nuclear technology;

Nuclear power in South Korea supplies 45% of electricity production

Fuel production and waste handling technologies have also been developed locally.

LEGAL

Product Safety and Product Liability

Marketplace Behavior

Product Origins

Legal Jurisdiction

Contd…

ENVIRONMENTAL

During the first 20 years of South Korea's growth surge, little effort was made to preserve the environment. Unchecked industrialization and urban development have resulted in deforestation and the ongoing destruction of wetlands such as the Songdo Tidal Flat.

However, there have been recent efforts to balance these problems, including a government run $84 billion five-year green growth project that aims to boost energy efficiency and green technology.

The greening initiative includes such efforts as a nation wide bike network, solar and wind energy, lowering oil dependent vehicles, backing daylight savings and extensive usage of environmentally friendly technologies such as LEDs in electronics and lighting.

The country - already the world's most wired - plans to build a nationwide next-generation network which will be 10 times faster than current broadband facilities in order to reduce energy usage.

Contd…

Changes in Industrial Structure

Changes in Employment Structure

Manufacturing

63.07.9

28.3

1960

Service Sector

19.2

71.5

9.3

Service Sector

Agriculture / Fisheries

Manufacturing

Agriculture / Fisheries

200832.5

63.2

4.3

Service Sector

Agriculture /Fisheries

Manufacturing

36.8

15.9

47.3

Manufacturing

Agriculture /Fisheries

Service Sector

Changes in GDP Structure

Changing Industrial Structure: from Agriculture to Manufacturing /

from Light Industry to Heavy and Chemical Industry

1960 1970 1990 1999 1980

HCI Product

Agricultural Product

Light Industry Product

50%

Wig Automobile SemiconductorTextile

2008

Semiconductor, Mobile Phone, DTV, Display, Automobile, Ship-building, etc.

84.8%

12.4%

2.8%

(ICT, 27.6%)

Changes in Export Commodity Profile

DURING CRISIS

Macro economics mismanagement especially in exchange rates.

Regulatory and structural problem especially in finance sector.

Volatility of international finance market.

Political uncertainty.

POST CRISIS

After the bounce back from the crisis of the late nineties, the economy continued strong growth in 2000 with a GDP growth of 9.08%.

Restructuring of Korean conglomerates (chaebols), bank privatization, and creating a more liberalized economy with a mechanism for bankrupt firms to exit the market remain Korea's most important unfinished reform tasks.

Growth slowed again in 2004, but production expanded 5% in 2006, due to popular demand for key export products such as HDTVs and mobile phones.

Financial Crisis

ARGENTINA

ArgentinaCountry ARGENTINA

CapitalBUENOS AIRES

Surface2.766.890

Km2

Climate TEMPERATE

Population 36,6 mill.

Literacy rate 96%GDP Income per capita200120022005

U$S 7.500U$s 2.900U$s 4.500

Argentina has a market-oriented economy with abundant natural resources, a well-educated population, an export-oriented agricultural sector and a relatively diversified industrial base.

It is an upper-middle income country and is considered an emerging economy.

Agriculture accounted for 7.5% of GDP in 2009, and nearly one fifth of all exports (not including processed food and feed, which are another third).

Manufacturing is the nation's largest single sector in the economy with 21% of GDP.

The service sector is the biggest contributor to total GDP, accounting for over 60%.

ECONOMY

PRE - CRISIS

In 1999, following the 1998 international crisis, GDP fell by 3% and Argentina entered into a recession.

Argentina quickly lost the confidence of investors and the flight of money away from the country increased.

unemployment had risen to a critical point, and the undesirable effects of the fixed exchange rate were showing forcefully.

DURING CRISIS

In 2002, Argentina's GDP sunk by 11%; GDP fell to its 1993 level and on a per capita basis, to that of 1968.

Public Protests and violence due to aggressive government policies.

Agriculture was also affected: Argentine products were rejected in some international markets, for fear they might arrive damaged from the poor conditions they grew in, and the USDA put restrictions on Argentine food and drugs arriving at the United States.

FINANCIAL CRISIS

POST CRISIS

The government encouraged import substitution and accessible credit for businesses, staged an aggressive plan to improve tax collection, and set aside large amounts of money for social welfare, while controlling expenditure in other fields.

As a result of the administration's productive model and controlling measures (selling reserve dollars in the public market), the peso slowly revalued, reaching a 3-to-1 rate to the dollar. Agricultural exports grew and tourism returned.

Argentina has managed to return to growth with surprising strength; the GDP jumped 8.8% in 2003, 9.0% in 2004 and 9.2% in 2005.

A chart showing the inter-annual variations of the Gross National Product of Argentina, from 1999 (beginning of the last recession) to 2004 , showing the economic crash and the recovery.

ECONOMIC ENVIROMENT

GDP (2008): $326.7 billion. Annual real growth rate (2008): +6.8%. Per capita GDP (2008 estimate): $8,219.Natural resources: Fertile plains (pampas); minerals--lead, zinc, tin, copper, iron, manganese, oil, and uranium. Agriculture (10% of GDP; including agribusiness, about 58% of exports by value): Products--oilseeds and by-products, grains, livestock products. Industry (21% of GDP): Types--food processing, oil refining, machinery and equipment, textiles, chemicals and petrochemicals. Trade: Exports ($70.6 billion)--oilseed by-products, vegetable oils, cars, fuels, grains. Major markets--MERCOSUR 23%; EU 19%; NAFTA 10%. Imports ($57.4 billion)--machinery, vehicles and transport products, chemicals. Major suppliers--MERCOSUR 35%; EU 17%, NAFTA 16%. Imported goods from the United States totaled approx. 12% of Argentine imported goods.

POLITICAL ENVIROMENT

Type: Republic.Constitution: 1853; revised 1994.Independence: 1816.Branches: Executive--president, vice president, cabinet. Legislative--bicameral Congress (72-member Senate, 257-member Chamber of Deputies). Judicial--Supreme Court, federal and provincial trial courts. Administrative subdivisions: 23 provinces and one autonomous district (Federal Capital).Political parties: Justicialist (Peronist), Radical Civic Union (UCR), numerous smaller national and provincial parties.Suffrage: Compulsory universal adult.

PESTLE ANALYSIS

LEGAL ENVIROMENT

•Protection Of Property Rights

•Patents

•Copyrights, trademarks, trade secrets, and semiconductor chip layout design

•Software Piracy

•Privacy

TECHNOLOGICAL ENVIROMENT

Argentina has enjoyed an international respect since the turn of the 1900's, when Dr. Luis Agote devised the first safe and effective means of blood transfusion as well as René Favaloro who has been a pioneer in the improvement of the bypass surgery . Argentina has since then had three Nobel Prize winners in the sciences.

Argentine scientists are still on the cutting edge in fields such as nanotechnology, physics, sciences and cardiology, the latter of which Dr. Domingo Liotta revolutionized with the first purely artificial heart, in 1969.

They have likewise contributed to bioscience in efforts like the Human Genome Project, where Argentine scientists have successfully mapped the genome of a living being, a world first..

Argentina has its own satellite programme, nuclear power station designs (4th generation) and public nuclear energy company INVAP, which provides several countries with nuclear reactors.

Other projects are focusing on IT, nanotechnology, biotechnology, helicopters, farming machinery and military defensive systems. Space research has also become increasingly active in Argentina. Established in 1991, the CONAE has since launched two satellites successfully.

SOCIAL ENVIROMENT

•Population growth rate (avg. annual %) 2005-2010 1.0

•Urban population (%) 2007 91.8  

•Population aged 0-14 years (%) 2009 25.1  

•Population aged 60+ years (women and men, % of total) 2009 16.7/12.4  

•Sex ratio (men per 100 women) 2009 96.3  

•Life expectancy at birth (women and men, years) 2005-2010 79.1/71.6  

•Infant mortality rate (per 1 000 live births) 2005-2010 13.4  

•Fertility rate, total (live births per woman) 2005-2010 2.3  

THE REASONS OF THE CRISIS

•CONSTANT GROWTH OF PUBLIC DEBT (FROM 60 BILL IN 1991 TO 170 BILL IN 2001)

•FRAGILITY TO FACE EXTERNAL CRISES (MEXICO, RUSSIA, SOUTHEST ASIA, BRAZIL, ETC.)

•MASSIVE PRIVATIZATIONS WITHOUT GOVERNMENT CONTROL (LOSS OF SOVEREIGN RISK – RODRIK)•REGRESSIVE TAX SYSTEM – INSUFFICIENT FISCAL PRESSURE – 16% O/GDP - INEFFICIENT ADMINSTRATION

•SOCIAL SECURITY BANKRUPTCY

•SUDDEN HALT OF INFLOW CAPITALS

THE ECONOMIC RECOVERY

A. TAKE ADVANTAGE OF DEVALUATION

B. EMERGENCY FISCAL POLICY

C. RE-NEGOTIATE EXTERNAL DEBT

D. FINANCIAL SYSTEM RECOVERY

E. ECONOMIC ACTIVITY RECOVERY

F. NEW INTERNATIONAL CONTEXT

THANK YOU