Essay on A South Korean Company that Operates in China

A South Korean Company that Operates in China This report address’s the requirements at hand to select a South Korean company that has operations in China Executive Summary: In 1992, Samsung Electronics adopted the form of a wholly owned subsidiary as the entry mode into China. It’s entry into China was in order to maintain growth due to the tough competition in Korea. China was selected in order to take advantage of its low wages for the mass production of low to medium priced products. The initial manufacturing ground was at Tianjin due to its costal location hence making it easy to export abroad and to major locations in China. The original focus of producing low cost products resulted in a cheap image of Samsung in†¦show more content†¦After a decade of rapid economic growth, in 1997 many South-East Asian countries were subject to a catastrophic economic crisis. The problems endured involved both immediate crisis management in unstable financial markets and the medium-term restructuring and repositioning of their economies in the face of intensified export competition. South Korea had a large current account deficit and the maintenance of pegged exchange rates encouraged external borrowing and led to excessive exposure to foreign exchange risk in both the financial and corporate sectors. Economists have advanced the impact of Mainland China on the real economy as a contributing factor to the crisis. China had begun to compete effectively with other Asian exporters particularly in the 1990s after the implementation of a number of export-oriented reforms. Western importers sought cheaper manufacturers and found them, indeed, in China whose currency was depreciated relative to the dollar. The report will address the corporate re-alignment by Samsung in order to ride out the economic filtering of the region in which it was operating. [1] Entry Mode and Rationale behind Choice Pre-1997 Asian Economic Crisis: Initially, in 1992 Samsung adopted the strategy of a wholly own subsidiary (WOS) as the mode of entry into China. Samsung opted to expand its production of consumer-electronic good in China as a WOSShow MoreRelatedThe Media And Its Effects On The Western World962 Words   |  4 PagesThe success of Hallyu, Korean wave, including dramas, films, music, and advertising, is dominating most of the East Asian countries and gradually spreading towards the Western regions. South Korean celebrities then can, as cultural icons, share representative symbols and messages to the mass audiences via advertising campaigns and, as influential icons, have a massive impact on brand associations as well as retailing businesses, both inside and outside of Korea. Celebrities as endorsers are usuallyRead MoreEsl Destination : China Vs. 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