In the recent days, international trade has become a common feature of all global business enterprises. The adoption of globalization and the creation of regional trading blocs have greatly contributed to the increased international trade activities.
This paper seeks to examine the interactions and relationships between the USA and Japan and Korea in the context of international trade. In the past, the US- Japan and US- Korea economic relationships have proved to be strong and mutually advantageous in various ways. These economies have a great integration through capital flows and trade in goods and services. Each country forms a significant market for each other’s exports and a reliable source of imports. The analysis will discuss the impact of international trade on various areas as follows:
Question 1
Creating Value in home and host countries
Damaging or improving the physical environment
The trade in automobiles and electronic goods is usually accompanied by numerous exhaust gases that are released into the environment. The trade between the US, Japan and Korea has a great percentage made up of automobiles (13.1% for Korea and 21.4%) for Japan. This is also aggravated by the trade in rubber and other no biodegradable items. The exhaust fumes from automobiles and other industries are responsible for environmental pollution which has been associated with the depletion of the ozone layer and rising global temperatures.
The trade in engines and other technical equipment such as earthmovers has also contributed to infrastructural developments in these countries. They have enabled the construction of modern roads and railways that also contribute to economic success. (Branch)
Creating opportunities for the people and improving the economic conditions for the nations
Japan being the worlds’ fourth largest exporter enjoys highly advanced automobile, consumer electronics, computers, iron and steel industries. The import- export trade between both countries provides each party’s residents with readily available trade goods and services for use. For instance, the USA people rely on Japanese passenger cars for mobility. Mobility is a crucial economic factor since people and trade goods have to be moved from one point to another as need may arise. The trade between Japan and the US also creates employment opportunities for the people who are directly or indirectly employed in the Import- Export businesses. The investors in the import and export business also earn profits and make a living from the bilateral trade between the two countries.
Korea and the US also entered in the KORUS – The US- Korea Free Trade Agreement in March 2012 with the aim of eliminating all bilateral tariffs by 2017. The impact of this agreement was multifaceted. There came up more market access for Americas auto workers as Korea agreed to address the automotive environmental standards to allow US auto exports into Korea. The adjustments and cuts on tariffs were meant to spark economic growth in both countries since there were minimal tariffs in trade. The agreement is also responsible for the expansion of opportunities for the trade between both countries and the establishment of a relaxed regulatory environment to enable ease of access to markets. The car business in the USA also serves as a source of employment for the Korean and USA citizens working in the assembly plants. It also contributes to the GDP of the countries as well as increased per capita income hence higher living standards for the people.
Question 2
The magnitude of differences displayed by the human nature and the dynamics therein justifies the existence of numerous cultures, languages, religions, worldviews and personalities. These differences usually pose a great challenge to the establishment of a common system of communication whenever individuals with such differences come together either for business, education or any other form of interaction. Culture stands at the core of all human differences. Some cultures will view a certain practice as immoral or unholy while another culture will support and uphold the same practice. Cultural differences remain one persistently hidden barrier in international trade. Business partners, clients and suppliers are usually influenced by their own cultures which differ from one environment to another as defined by the social structures, family lives and business organization.
The preference by every person to interact and communicate with people, who share a common culture, ethnicity and personality, is the greatest undoing for the management of business and trade operations present in multicultural countries. For any business to achieve success regardless its location, there is a great need for the business to understand all the dynamics of the target market. Upon understanding one’s own culture and their hindrance from cross-cultural communication interaction an individual would learn how to overcome such challenges and fit in any culture. There is a great need to understand the following:
Language- languages differ from one region to another and it’s important for everyone to understand the language barrier between them and the other people probably in the new market. Such an understanding could be a sufficient basis for one to learn the new language and thus overcome the language challenge.
Cultural differences might be relatively hard to resolve but once an individual is aware of the imminent cultural difference, they can align themselves in a manner to respect the other culture or adjust to fit in the same.
Religious dominance and gender roles are direct derivatives of culture and definitely differ from one place to another. It is therefore necessary for an individual to beware of such new and different religions as well as gender roles, and adjust to fit in. (Vulture)
The understanding of one’s own culture and communication style, and the underlying barriers to positive cross-cultural communication serves as the first step towards resolving communication barriers. This is enabled by the fact that once an individual has a clear understanding of the cultural differences, they are at free will to decide whether to adopt such and interact with the people or leave it and avoid the interaction. (Konya 494-507)
References
Branch, Foreign. "Foreign Trade - U.S. Trade With Korea, South". Census.gov. N.p., 2016. Web. 30 Apr. 2016.
Vulture, Culture. "Export And International Trade: Cultural Differences". Kwintessential.co.uk. N.p., 2013. Web. 30 Apr. 2016.
Konya, Istvan. "Modeling Cultural Barriers In International Trade". Rev International Economics 14.3 (2006): 494-507. Web.
