BUS357 Week 2 Discussion 1 Free Trade Agreement (Debate)

Because South Korea is the country I’ve decided to research, I’ll give the FTA a lot of my attention. This summarizes the trade pact: The KORUS FTA is another name for the United States of America–South Korea Free Trade Agreement. It entered into force in 2012 to facilitate trade and increase collaboration between the two economies. Investments, intellectual property rights, and commodities and services are only some areas the agreement covers.

Impact on doing business in South Korea:

The free trade agreement has significantly impacted South Korean business practices. It has made the Korean market more accessible to American enterprises by lowering tariffs and removing several non-tariff barriers. U.S. exporters now have more opportunities than ever to grow their business in South Korea, where there are more than fifty million potential customers thanks to the easing of trade restrictions.

Impact on business in the U.S.:

U.S.-based businesses have also benefited from the KORUS Free Trade Agreement. This has facilitated U.S. companies' entry into the Korean market and increased their competitiveness in several sectors. The agreement has also led to greater U.S. (A Zakari et al. 2020). investment in South Korea, which has deepened the economic ties between the two countries, helped create new employment, and boosted economic growth in the United States.

Who profits the most and least:

The KORUS FTA has been beneficial for both nations. However, it has significantly impacted some sectors more significantly than others. The agriculture sector in the United States has significantly benefited from increased exports to South Korea, particularly beef and pork. However, as tariffs have been gradually lowered, South Korean automakers have seen a rise in the number of automobiles they export to the United States. If you’re looking for credible evidence of the advantages of the KORUS FTA, you can do no better than the website of the United States Trade Representative. The Korea-United States Free Trade Agreement was the subject of an information sheet published by the United States Trade Representative in March 2021. The agreement’s impact on the economy as a whole and specific sectors of the economy is broken down in detail.

In conclusion, the United States-Korea Free Trade Agreement has improved the ease with which enterprises in the United States and South Korea can trade with one another and operate in South Korea (T.S. Adebayo et al. 2021). The United States of America and South Korea have benefited from their economic relationship, with exporters in the former country gaining more access to markets and manufacturers in the latter region, increasing their presence in the former’s largest market. While some sectors have profited more than others, the partnership has benefited both countries overall.

References

Adedoyin, FF and A Zakari (2020). Energy consumption, economic expansion, and CO2 emission in the U.K.: the role of monetary policy uncertainty. Science of the Total Environment, 738, 140014

Adeniyi, O and T Kumeka (2020). Exchange rate and stock prices in Nigeria: Firm-level evidence. Journal of African Business, 21(2), 235–263.

Kirikkaleli, D and TS Adebayo (2021). Do renewable energy consumption and financial development matter for environmental sustainability? New global evidence. Sustainable Development, 29(4), 583–594.