Discuss the influence of globalisation on the Korean economy.

Essay by angelani3High School, 12th gradeA-, January 2013

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Discuss the influence of Globalisation on an economy other than Australia.

Globalisation is the act of integrating economic and social systems towards one global market. South Korea has been greatly influenced by globalisation over the past four decades. From a third world country in the 1960's, South Korea has developed into having one of the world's largest economy in 2012, evidence that globalisation is a positive and beneficial force. This is demonstrated through the contrast between South and North Korea. Both countries came out of the Korean War as third world dictatorships but North Korea chose isolation while South Korea industrialised and attracted international companies and has gradually become a strong force in the international economy. South Korea's increased integration with other nations has increased GDP, trade and living standards among the general population on average. Negative effects have also emerged from globalisation including the income inequality, corruption and increased vulnerability to international conditions.

One of the influences that globalisation has on South Korea is the increase in economic growth and Gross Domestic Profit. GDP per capita rose substantially from US$67 in 1960 to US$32,100 in 2011. Before the Asian Currency Crisis, South Korea often experience growth rates up to 10% per annum, due to the industrialisation of their economy and increased exports. South Korea was able to recover quickly from the Global Financial Crisis and experienced a growth rate of 3.6% in 2011 due to government intervention and was greatly helped through large export successes of large business conglomerates (chaebols). Economically, South Korea is one of the strongest in the world. In 2011, they had a $1.5 billion surplus budget, $306.4 billion in reserve and gold, and exports had increased from 2010, from $461.5 billion to $552.8 billion and a relatively low public debt ranked 105th lowest in...