Environment of world trade has been changing very much. Growth rate of worl trade was only seventeen(17%) to eighteen percent(18%) during the year of 1972, but it was about thirty percent(30%) during 1973.
But world trade forcast rate will be less th...
Environment of world trade has been changing very much. Growth rate of worl trade was only seventeen(17%) to eighteen percent(18%) during the year of 1972, but it was about thirty percent(30%) during 1973.
But world trade forcast rate will be less than seven percent(7%) in the following ten years.
Ascending price rate of export and import trade was very high during a few last years.
Especially oil price of 1974 became five and half (5.5%) times more expensive tha nd that of 1970.
Those countries who have natural resourses are nationalizing then resources.
European Economic Community was enlarged by the participation of three countries.
And it has nine member countris. Enlarged Eunopean Ecoromic Community seems to have a little more exclusionism.
It thresteus the system of General Agreement on Tariffs and Trade which has been doing very much role for free trade.
American commercial policy is becoming very close to protectionism in order to their national problems. According to the "Commercial Trade Act of 1973" president of the United States has almost all authorities on Foreign Trade and Tariffs.
In short, environmental of world trade is getting more difficult.
If we have a look at the structure of world trade, we can not miss that volumes of machine trade is to be about thirty percent(30%) of all the trade volumes.
Developing countries need very many kinds of machine for the development of their industry.
Therefore, developing countries will import machine and advanced countries will export it. In order to stand comparison with world tendency of world trade, the structure of Korean industry has been changing.
By 1981, the rate of heavy and chemical industrialization will he fifty one percent (51%). More than ninety percent(90) of all export product of Korea will be industrial product.
we found that industry is generally more desirable and profitable than agriculture, heavy and chemical industry than light industry among industries, techonology intensive and capital intevsive and heavy and chamical industry than labour intensive and resource consuming heavy and chemical industry among heavy and chemical industries.
So resource consuming heavy and chemical industry is enough if it could supply enough materials for heavy and chemical products for export.
In order to enrich our country to dromote to an advanced country, we should achieve the goal through export. Export marketing strategy, pricing phisical districution, advertising pensonal selling and so on.
Among many strategies product is the most important, because profitable export could be attained from foreign customers who buy and use the product exported.
So exporters should know when, where, what, why and how foreign customers want.
With these informations they should manufacture most suitable product economically.
We call this export product strategy. And exporters should be able to check the life cycle of export products.
Then we can take any suitable strategy to enrich their firmand our country.