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Research on South Korean Companies’ Choice of the Globalization and Localization Strategic in China

Author: ZhaoLing（Jo Lyeong）
Tutor: ChenTaoTao
School: Tsinghua University
Course: Applied Economics
Keywords: South Korea Foreign Direct Investment Korea ElectronicsIndustry Integration Localization
CLC: F416.63
Type: Master's thesis
Year: 2012
Downloads: 20
Quote: 0
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Abstract


China is not only becoming the “World Factory” to the developed countries, butalso “Big Market” to all the countries. They all want a space to be in the market as a“Winner”. It will be hard for foreign companies to get that space without theworld-class competitiveness and low value-added products. South Korea as one of theneighboring countries wants to enter the Chinese market is understandable. Now,especially after the diplomatic relation between China and South Korea being made,this kind of close association was more outstanding and has been mutually beneficialrelationship. The global economic crisis in2009did not stop China’s economic growth.China’s GDP achieved8.7%growth let more South Korean companies’ investmentsget into China market. South Korean companies invest mergers and acquisitionsoverseas enterprise in order to find a new growth engine for rapid restructuring ofoverseas markets and develop companies’ competitive abilities after the globaleconomic crisis.Many developing countries are trying to replicate the way how South Koreadevelops the Electronics Industry. The competitiveness of the South Korean’sElectronics Industry is from the government and companies’ strong support for theresearch and technological innovation. Electronics industry is one of the mainstays ofthe South Korea’s economy. Economic globalization brings not only opportunities fordevelopment but also challenges. Investment in China is obviously imperative for theSouth Korean electronics companies. In the context of cultural pluralism andglobalization, the South Korean electronics companies will face the choice ofintegration or localization strategy development problem to enter the Chinese market.

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CLC: > Economic > Industrial economy > The world's industrial economy > Industrial sector economy > Electrical and electronics industry > Electronics Industry
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