GLOBALISATION AND KOREAN FOREIGN INVESTMENT To Sara and Chang-Hee with love Globalisation and Korean Foreign Investment 'Edited by JOHN A TURNER University of Surrey YOUNG-CHAN KIM University of London First published 2004 by Ashgate Publishing Reissued 2018 by Routledge Park Square, Milton Park, Abingdon, Oxon OX14 4RN 711 Third Avenue, New York, NY 10017, USA Routledge is an imprint of the Taylor & Francis Group, an informa business ©John A Turner and Young-Chan Kim 2004 John A Turner and Young-Chan Kim have asserted their moral right under the Copyright, Designs and Patents Act, 1988, to be identified as the editors of this work All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers A Library of Congress record exists under LC control number: 2004007701 Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe Publisher’s Note The publisher has gone to great lengths to ensure the quality of this reprint but points out that some imperfections in the original copies may be apparent Disclaimer The publisher has made every effort to trace copyright holders and welcomes correspondence from those they have been unable to contact ISBN 13: 978-0-815-38924-8 (hbk) ISBN 13: 978-1-351-15736-0 (ebk) Contents List of Figures List of Tables List of Contributors Acknowledgements vii viii x xi Introduction: Interpreting the Idea of a Global Economy John Turner and Young-Chan Kim The Theory of Korean Foreign Direct Investment Young-Chan Kim and Yongrok Choi 17 Paradoxes of Globalisation: Some Thoughts on a Much Abused Concept Carlos A P Machado 39 Global Capitalism and the Asian Financial Crisis DouglasJ Sikorski 60 Korean Direct Investment in EU: Global Koreanisation Judith Cherry 81 Inward Foreign Direct Investment Policy and Practice: an Anglo-Korean Comparison John Turner and Young-Chan Kim 106 Globalisation or De-Globalisation: What Role for the World Trade Organisation? Stephen Young and Thomas L Brewer 134 Globalisation and Korean Foreign Investment VI Whither Global Capitalism? John Dunning Bibliography Index 153 192 204 List of Figures 2-1 2-2 2-3 2-4 2-5 2-6 2-7 2-8 2-9 2-10 2-11 5-1 5-2 6-1 6-2 8-1 8-2 8-3 8-4 8-5 8-6 8-7 Foreign Direct Investment vs Export toward N America Production Decision by Factor Analysis Foreign Direct Investment vs Export toward S Asia Synthesis of Foreign Direct Investment theories Foreign Direct Investment Trend by Invested Total Amount and Projects Foreign Direct Investment Trend by Industry Foreign Direct Investment by Industry Foreign Direct Investment by Manufacturing Type Foreign Direct Investment by Region Foreign Direct Investment Trend by Size Foreign Direct Investment by Equity Ratio The Business Environment and Korean Government Policy 1963-1986 Changes in the Business Environment and Korea Government Policy 1987-1996 IBB Organisation Chart in 2000 KISC Organisation Chart in 2000 The Institutions of Global Capitalism Market Intermediate Associations Government Supra-National Entities The Moral Understanding of the Global Capitalism Diamond Illustrations of Three Perceived Ways in which Global Capitalism Might Fail 19 20 23 25 27 30 31 32 33 34 35 98 99 124 125 162 164 167 171 175 180 185 List of Tables 45-1 5-2 5-3 5-4 5-5 5-6 5-7 5-8 6-1 6-2 6-3 6-4 6-5 6-6 677-2 7-3 7-4 7-5 Pre-Crisis Current Account Balances Korean Foreign Direct Investment, 1968-1996 Korean Foreign Direct Investment: By Sector, 1968-1979 Korean Foreign Direct Investment: By Region, 19681979 Korean Foreign Direct Investment: By Sector, 1980-1985 Korean Foreign Direct Investment: By Region, 19801985 Korean Foreign Direct Investment: By Sector, 1986-1996 Korean Foreign Direct Investment: By Region, 19861996 Korean Foreign Direct Investment in the EU and the World, Annual Growth Rates, 1968-1996 Inward Foreign Direct Investment by Industrial Sector 1962-1972 Inward Foreign Direct Investment by Industrial Sector 1973 -1978 Foreign Loans and Direct Investment 1959-1980 Foreign Direct Investment: Liberalisation Status, 1980November 1992 Foreign Direct Investment on an Arrival Basis 1962-1990 Foreign Direct Investment by High-Technology Foreign Companies in Korea Inward Foreign Direct Investment Proportions by Country The Uruguay Round - Investment Related Agreements The World Trade Organisation and Globalisation - Areas of Inquiry Summary Features of Uruguay Round Agreements Relevant to Investment-Related Issues Trend Over Time in Number of GATT and World Trade Organisation Dispute Cases Selected Patterns of World Trade Organisation Dispute Cases, January ,1995-December 31 1998 63 82 84 85 86 87 90 91 95 109 111 113 116 117 120 122 138 139 140 142 143 L ist of Tables 8-1 8-2 8-3 8-4 8-5 8-6 8-7 8-8 Feature of Three Stages of Market Based Capitalism Some Indices of Globalisation Cause of Global Capitalism Three Possible Future Scenarios of Global Capitalism The Governance of Global Capitalism The Impact of Global Capitalism on the Role of National and Sub-National Governments What are the particular Moral Virtues which a Knowledge and Alliance Based Globalising Economy Demands? Illustrations of Four ‘Failures’ of Global Capitalism as Revealed in the Case of Recent Economic Events in Seven Countries ix 157 158 159 161 162 174 181 187 Bibliography 193 Bartlett, Christopher A & S Ghoshal (1989) Managing across Borders: The Transnational Solution, Harvard Business School Press, Boston Bardett, G and Lawrence, B Z (1998), Globaphobia: Confronting Fears about Open Trade, Washington: The Brookings Institution Basu, PK, (1998), panelist at a seminar organised by Faculty of Business, National University of Singapore, 29 October (1998), The Road to Asia’s Recovery: New Markets and Opportunities Ben-Ner, A and Gui, B (ed.) (1993), The Non-Profit Sector in the Mixed Economy, Ann Arbor: University of Michigan Press Bhagwati, Jagdish, (1998), ‘The Capital Myth,’ Foreign Affairs May-June Birchfield, Vicki (1999) ‘Contesting the hegemony of market ideology: Gramsci’s “good sense” and Polanyi’s “double movement”’, Review of International Political Economy, 6,1, 27-54 Brech, Michael & Margaret Sharp (1984), Inward Investment: Policy Options for the United Kingdom, Royal Institute for International Affairs, London Boyer, Robert & Daniel Drache (1996) ‘Introduction’ in idem (ed.) States against markets The limits of globalization, Routiedge, London & New York, 1—27 Brewer, T.L and Young, S (1998), The Multilateral Investment System and Multinational Enterprises, Oxford University Press Buckley, Peter J and Pervez Ghauri (editors), (1993), The Internationalization of the Firm: A Reader, London: Academic Press Burda, Michael C & Barbara Dluhosch (1998) ‘Globalization and European Labour Markets’, Centre for Economic Policy Research, Discussion Paper Series no 1992 Business Korea, ‘Outgoing to meet new challenges’, March 1996, pp 17-21 Buzzell, R (1968) ‘Can you standardize multinational marketing?’ Harvard Business Review, Nov.-Dee 1968,102—113 Cantwell, John (1995) ‘The globalisation of technology: what remains of the product cycle model?’ Cambridge Journal of Economics, 19,155-174 Chandler, A D Jr (1990), Scale and Scope: The Dynamics of Industrial Capitalism, Cambridge, MA: Harvard University Press Cho Ki-ch’ang (1996) WTO shidae-ui haewoe chikchop t’uja hwaktae chollyak mit chongch’aek kwaje (Policy issues and strategy for the expansion of foreign direct investment in the WTO era.) Master’s Degree dissertation Seoul: Sogang University Graduate School of Economics, Department of International Economics Choi Yong-rok (1996) Haewoe t'ujaron: Iron-gwa shilmu (Foreign investment theory and its application.) Seoul: Pagyongsa Chong Hon-bae (1995) ‘EU shijang t’uja kiob-ui kyongjaeng uwi-wa hyonji chogung’ (The competitive advantage of firms investing in the EU and their adaptation to the local area.), in Han’guk kiob-ui kukche kyongnyong chollyak (The international management strategy of Korean firms.), edited by Chong Ku-hyon and Lee Kwang-ch’ol, Seoul: Pommunsa 194 Globalisation and Korean Foreign Investment Choudhry, Saud (1997) ‘Women Workers in the Global Factory: Impact of Gender Power Asymmetries’ in Satya D Gupta (ed.) The Political Economy of Globalization, Kluwer, Boston, pp.215-36 Coker, Margaret (1999) ‘In Moscow, phone wars can get nasty A murder highlights the struggle to seize the cellular market’, Business Week, May 31,1999 Cordelia, Tito & Isabel Grilo (1998) ‘“Globalization” and Relocation in a Vertically Differentiated Industry’, International Monetary Fund Working Paper/98/48, Washington D.C Croome, J (1995), Reshaping the World Trading System, Geneva: WTO Davidow, William H & Michael Malone (1992) ‘The Virtual Corporation’ Business Week, February 1993 Dean, James W, (forthcoming) ‘East Asia Through a Glass Darkly: Disparate Lenses on the Road to Damascus,’ in Geoffrey Harcourt, editor, Essays in Honour of Mark Perlman, (forthcoming) Dicken, Peter, Mats Forsgren & Anders Malmberg (1994) ‘The Local Embeddedness of Transnational Corporations’ in Amin, Ash & Nigel Thrift (ed.) Globalization, Institutions, and Regional Development in Europe, Oxford University Press, Oxford & New York, 1994, pp 23-45 Doremus, P N., Keller, W W., Pauly, L W and Reich, S (1998), The Myth of the Global Corporation, Princeton, NJ: Princeton University Press Douglas, Susan & Yoram Wind ( 1995) The Myth of Globalization’, Columbia Journal of World Business (reprinted in Meloan, Taylor W & John L Graham (ed.) International and Global Marketing, Irwin, Chicago, 1995) Doz, Yves L., K Asakawa, J.F.P Santos & P.J Williamson (1997) The Metanational Corporation’, INSEAD Working Paper 97/60/SM, Fontainebleau, 1997 Drucker, Peter, (1997), The Global Economy and the Nation-State,’ Foreign Affairs September/October Dunleavy, Patrick (1997) The Globalization of Public Services Production: Can Government be ‘Best in World’?’ in Andrew Massey (ed.) Globalization and Marketization of Government Services Comparing Contemporary Public Sector Developments, Macmillan & St Martin’s Press, Houndmills & New York Dunning, J H (ed) (1997), Governments, Globalization and International Business, Oxford: Oxford University Press Dunning, J H (ed) (2000), Regions, Globalization and the Knowledge Based Economy, Oxford: Oxford University Press Dunning, John (1997b) ‘Resolving some Paradoxes of the Emerging Global Economy: Small Nations as Trailblazers’, CIMDA Working Paper 1997/E/33, University of Antwerp Dunning, John (1999) ‘Globalization and the theory of MNE activity’ in N Hood & S Young (ed.s) The Globalization of Multinational Enterprise Activity, Macmillan, London, 1999 Dunning, John H (1997a) Alliance Capitalism and Global Business, Roudedge, London Economist, The, (1994) 12 November 1994, ‘A Survey of Asian Finance,’ 14pp Bibliography 195 Economist, The, (1995) 18 November 1995, What’s Under Asia’s Mattress?’ 97-8 Economist, The (1997) ‘Schools Brief, from October 18th to December 6th, 1997 Economist, The, (1998) 11 April 1998, ‘Towards a New Financial System,’ pp 62-4 Economist, The (1999) ‘The best and the rest A survey of pay’, May 8th 1999 Economist, The, (1999a) 30 January 1999, ‘A Survey of Global Finance,’ 18pp Economist, The, (1999b) 22 May 1999, pp 71-72 Etzioni, A (1996), The New Golden Rule, New York: Basic Books Feldstein, Martin, (1998), ‘Refocusing the IMF,’ Foreign Affairs April Frankel, Jeffrey A, (1998), ‘The Asian Model, the Miracle, the Crisis and the Fund,’ paper delivered at The U.S International Trade Commission, 16 April 1998 Frankel, Jeffrey A., (1999) ‘IMF-Supported Programs in Indonesia, Thailand and Korea: A Preliminary Assessment,’January 19th 1999 Ganesan, A.V (1997), ‘Development-Friendliness Criteria for a Multilateral Investment Agreement’, Transnational Corporations, Vol 6, No 3, pp 135-142 Garten, Jeffrey E (1999) ‘Labor peace is in the air at Boeing New era: The global economy is making improved labor relations imperative, and the planemaker may set a pattern’ Business Week, May 10,1999,14 General Agreement of Tariffs and Trade, Analytical Index 1994, Geneva: GATT Gray, H Peter (1999) Global Economic Involvement A Synthesis of Modern International Economics, Copenhagen Business School Press Gray, J (1998), False Dawn, New York: The New Press Greider, W (1997), One World or Not: Ready or Not: The Manic Logic and Global Capitalism, New York: Simon and Schuster Guehenno, Jean-Marie (1999) ‘Americanisation du monde ou mondialisation de 1’Amerique?’ Politique Etrangere, 64,1, 7-20 Gummett, Philip (1996) ‘National Preferences, International Imperatives and the European Defence Industry’ in Philip Gummett (ed.) Globalization and Public Policy, Edward Elgar, Cheltenham, pp 143-160 Gundlach, Erich & Peter Nunnenkamp (1998) ‘Some Consequences of Globalization for Developing Countries’ in John H Dunning (ed.) Globalization, Trade and Foreign Direct Investment, Pergamon/Elsevier, Amsterdam, pp 153-174 Gustavsson, Peter et al (1994) ‘Learning to glocalize’ in Paul Shrivastava et al (ed.) Interorganizational Relations and Interorganizational Strategies, JAI Press, Greenwich & London, pp 255-88 Handy, C (1997), The Hungry Spirit, London: Avon Books Hansenne, M (1999) ‘Globalization and Employment in Developing Countries’, CIMDA Discussion Paper 1999/E/37, University of Antwerp Hedlund, Gunnar (1986) ‘The hypermodern MNC: A Heterarchy’ Human Resource Management, 25, 9—35 Hedlund, Gunnar (1994) The future of the global firm, Institute of International Business, Stockholm, RP 94/8 Heilbroner, R L (1992), Twenty-first Century Capitalism, London: UCL Press 196 Globalisation and Korean Foreign Investment Himmelfarb, G (1995), The De-moralization of Society, London: IEA Health and Welfare Unit Choice in Welfare No 22 Hirata, Helena & Helene Le Doare (ed.) (1998) ‘Les paradoxes de la mondialisation,, Cahiers du GEDISST, n°21, L’Harmatan, Paris & Montreal Hirschman, A (1970), Exit, Voice and Loyalty: International Differences in WorkRelated Values, Cambridge, MA: Harvard University Press Hirst, P and Thompson, G (1996), Globalization in Question, Cambridge: Polity Press Hirst, Paul (1996) ‘Globaloney’ Prospect, February 1996, 29-33 Hirst, Paul Q & Grahame Thompson (1996) Globalization in Question: The International Economy and the Possibilities of Governance, Polity Press, Cambridge Hoehn, Thomas & Stefan Szymanski (1999) The Americanization of European football’, Economic Policy, 28, 205-233 Hoekman, B and Kostecki, M (1995), The Political Economy of the World Trading System, Oxford University Press Holland, Stuart (1975), The Socialist Challenge, Quartet Hossein-zadeh, Esmail (1997) ‘Nafta and Labor: A Global Strategy for the Global Economy’, in Satya D Gupta (ed.) The Political Economy of Globalization, Kluwer, Boston, pp.287-313 Howells, Jeremy & Michelle Wood (ed.) (1993) The Globalisation of Production and Technology, Belhaven Press, London & New York Humphreys, Peter & Seamus Simpson (1996) ‘European Telecommunications and Globalization’, in Philip Gummett (ed.) Globalization and Public Policy, Edward Elgar, Cheltenham, pp 105-124 Huntington, S P (1996), The Clash of Civilizations, New York: Simon and Shuster IMF (1997), World Economic Outlook May 1997: Globalization, Opportunities and Challenges, Washington, International Monetary Fund, May IMF Staff (1998), ‘Should Equity be a Goal of Economic Policy?, Finance & Development, Vol 35, No (September), pp 2-5 International Herald Tribune, 30 April 1996, ‘Asian Banking and Finance’ (Sponsored Section): I Investment Canada (1990),The Business Implications of Globalization, Ottawa: Investment Canada Working Paper No V Jo Sung-hwan (1981) ‘Overseas direct investment by South Korean firms: Direction and pattern’, in Multinationals from developing countries, edited by K Kumar and Maxwell McLeod, Massachusetts: Lexington Books Jovanovic, M N (1997) International Economic Integration, London and New York: Routledge, Critical Perspectives on the World Economy (4 volumes) Jun Yongwook and Simon, Denis Fred (1992) ‘The pattern of Korea’s foreign direct investment’, in Economic reform and internationalisation: China and the Pacific region, edited by Ross Garnaut, St Leonards, New South Wales: Allen & Unwin Bibliography 197 Jun Yongwook (1987) ‘The reverse direct investment: The case of the Korean consumer electronics industry’, International Economic Journal, Vol 1, No 3, pp 99-102 Jun Yongwook (1989) Kukchehwa shidae-ui haewoe t'uja chollyak (Overseas investment strategy in the era of internationalisation.) Seoul: Sanop Yon’guwon Kaul, Inge et al (ed.) (1999) Global Public Goods: International Cooperation in the 21st Century, Oxford University Press for the United Nations Development Program Kemp, Murray C & Koji Shimomura (1999) ‘The Internationalization of the World Economy and Its Implication for National Welfare’ Review of International Economics, 7,1,1-7 Kennedy, P (1996), ‘Globalization and its Discontents’, the 1996 analysis lecture, London: BBC Kerr, Clark (1983) The Future of Industrial Societies: Convergence or Continuing Diversity? Harvard University Press, Cambridge Khor, Martin, (1998), ‘IMF Policies in Asia Come Under Fire.’ Asia House Essen, 22 January 1998 Kiernan, Terrence Gerard (1994) ‘Outward bound’, Economic Report, June, pp 2627 Kilminster, Richard (1997) ‘Globalization as an Emergent Concept* in Alan Scott (ed.) The Limits of Globalization Cases and Arguments, Routledge, London & New York, pp 257-283 Kim Shi-jung, Min Ch’ung-gi, Yu Chae-won (1992) Haewoe chikchop t’uja-ui hyunhwang-gwa chongch’aek munje (The current status of and policy issues in foreign direct investment.) Seoul: Taewoe Kyongje Chongch’aek Yon’guwon Kim Young-Chan, (2002), Japanese Inward Investment in UK Car Manufacturing, Ashgate Kissinger, Henry, (1998), ‘The IMF’s Remedies are Doing More Harm Than Good,’ International Herald Tribune, October 1998 Kitson, Michael & Jonathan Michie (1995) Trade and Growth: A Historical Perspective’, in J Michie & J G Smith (ed.) Managing the Global Economy, Oxford University Press, pp 3-36 Kitson, Michael & Jonathan Michie (1998) Globalisation, unemployment and government policy, Full Employment Forum Pamphlet, Bath Kleinknecht, A and ter Wengel, J (1998), The myth of economic globalization’, Cambridge Journal of Economics 22, 637-647 Kobrin, Stephen J (1997) The Architecture of Globalization: State Sovereignty in a Networked Global Economy’ in John H Dunning (ed.) Governments, Globalization, and International Business, Oxford University Press, pp 146-171 Koh, William, (1998), panelist at a seminar organised by Faculty of Business, National University of Singapore: The Road to Asia’s Recovery: New Markets and Opportunities, 29 October 1998 198 Globalisation and Korean Foreign Investment Kozul-Wright, Richard (1995) ‘Transnational Corporations and The Nation State’ in J Michie & J G Smith (ed.) Managing the Global Economy, Oxford University Press, pp.135-171 Krugman, Paul (1996) Pop Internationalism, The MIT Press, Cambridge Krugman, Paul, (1998), ‘Saving Asia: It’s Time to get Radical,’ Fortune Vol 138 No 5, September 1998, pp 32-38 Krugman, Paul & Anthony J Venables (1995) ‘Globalization and the Inequality of Nations’, The Quarterly Journal of Economics, cx, 4, 857-880 Kung, H (1998), A Global Ethic for Global Politics, New York and Oxford: Oxford University Press Kustin, Richard A (1994) ‘A special theory of globalization: A review and critical evaluation of the theoretical and empirical evidence’ Journal of Global Marketing, 7, 3, 79-101 Kuttner, Robert (1999) ‘When free markets threaten family values’ Business Week, May 17,1999 Kwak Young-sup (1999) ‘Dried up funds: Korean firms slash direct investment abroad’, Newsreview, 15 May, pp 26-27 Kwan Chi Hung, (1996), ‘A New Wave of Foreign Direct Investment in Asia,’ in Dilip K Das (editor), Emerging Growth Pole: The Asia-Pacific Economy, Singapore: Prentice Hall Lazar, Fred (1996) ‘Corporate Strategies The costs and benefits of going global’ in Boyer, Robert & Daniel Drache (ed.) States against markets The limits of globalization, Roudedge, London & New York, pp 270-296 Lazonick, W (1991), Business organization and the myth of the market economy, Cambridge: Cambridge University Press LeClair, Mark S (1997) Regional Integration and Global Free Trade Addressing the fundamental conflicts, Ashgate, Aldershot Lee Chae-min (1997) Tlri nara haewoe chikchop t’uja-ui t’ukching mit songgwa punsok’ (The characteristics of Korean foreign direct investment and an analysis of business performance.) Suun chosa wolbo, October, pp 4-34 Lee Hyung-koo (1996) The Korean economy: Perspectives for the twenty-first century Albany: State University of New York Press Levitt, Theodore (1983) TTie Globalization of Markets’, Harvard Business Review, May-June 1983,92-102 Levy-Livermore, Ammon (ed.) (1998) Handbook on the Globalization of the World Economy, Edward Elgar, Cheltenham Iipsey, Richard G (1997) ‘Globalization and National Government Policies: An Economist’s View’ in John H Dunning (ed.) Governments, Globalization, and International Business, Oxford University Press, pp 73-113 Luttwak, E 1999), Turbo-Capitalism, New York: Harper-Collins Mann, Michael (1997) ‘Has globalization ended the rise and rise of the nation-state?’ Review of International Political Economy, 4, 3, 472-496 Markusen, A (1996), 'Sticky places in slippery space: a typology of industrial districts,’ Economic Geography 72 (3), 293-313 Bibliography 199 Martin, H P & Schumann, H (1997), The Global Trap, London and New York: Zed Books McCraw, T K (1997), Creating Modern Capitalism, Cambridge: Harvard University Press Messner, D (1999), Towards a new Bretton Woods’, Development and Cooperation 1,4-5,19 Monnier, Claude (1997) ‘En defense de la mondialisation’ in Gilbert Rist (ed.), La mondialisation des anti-societes Espaces reves et lieux communs, Presses Universitaires de France, Paris, pp 145-7 Moran, Michael & Bruce Wood (1996) The Globalization of Health Care Policy?’ in Philip Gummett (ed.) Globalization and Public Policy, Edward Elgar, Cheltenham, pp 125-142 Mowlana, Hamid (1998) ‘Globalization of Mass Media’ Cooperation South, New York: United Nations Development Programme, 2, 22-39 Murshed, S Mansoob (1997) ‘Does Trade with the South Disadvantage Unskilled Workers in the North?’ in Satya D Gupta (ed.) The Political Economy of Globalization, Kluwer, Boston, pp 129-46 Mytelka, L.K (1999), ‘Locational Tournaments for FDI: Inward Investment into Europe in a Global World’ in N Hood and S Young (ed.), The Globalization of Multinational Enterprise Activity and Economic Development, London:Macmillan, forthcoming Nalebuff, Barry J & Adam M Brandenburger (1996) Co-opetition, HarperCollins, London Nayyar, Deepak (1997) ‘Globalization: The Game, the Players and the Rules’ in Satya D Gupta (ed.) The Political Economy of Globalization, Kluwer, Boston, pp 13-40 Noland, Marcus (1998), The Financial Crisis in Asia,’ statement before the House International Relations Committee Subcommittee on Asian and Pacific Affairs, and International Economic Policy and Trade, February 1998 Nonaka, I & H Takeuchi (1995) The Knowledge Creating Company, Oxford University Press, New York OECD (1996) ‘Globalisation of Industry Overview and Sector Reports’ Paris Offer, Avner, The First World War: an agrarian interpretation, Oxford University Press, Oxford Ohmae, Kenichi (1989) ‘Managing in a Borderless World’, Harvard Business Review, May/June 1989 Ohmae, Kenichi (1995) The End of the Nation State The Rise of Regional Economies, The Free Press Organisation for Economic Co-operation and Development (1976), Guidelines for Multinational Enterprises Paris: OECD Osborne, D and Gaebler, T (1992), Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector, Reading, Mass.: Addison Wesley 200 Globalisation and Korean Foreign Investment Page, John, (1994), ‘The East Asian Miracle: Building a Basis for Growth,’ Finance Sc Development March 1994, Pak Sang-ho (1995) Haewoe t’uja shilmu maenyuol (An overseas investment practice manual.) Seoul: 21 Segi Buksu Parker, Barbara (1998) Globalization and Business Practice Managing Across Boundaries, Sage Publications, London Perlmutter, H V (1969) The tortuous evolution of the multinational corporation’ Columbia Journal of World Business, Jan.-Feb 1969 Petrella, Riccardo (1996) ‘Globalization and Internationalization The dynamics of the emerging world order’ in Boyer, Robert & Daniel Drache (ed.) States against markets The limits of globalization, Roudedge, London & New York, pp 62-83 Phuah Eng Chye, (1998), panelist at a seminar organised by Faculty of Business, National University of Singapore: The Road to Asia’s Recovery: New Markets and Opportunities 29 October 1998 Pintado, Xavier (1999) ‘O desencanto global’ Diario de Noticias, May 27,1999 Polanyi, Karl (1944) The Great Transformation: Political and Economic Origins of Our Time, Beacon Press, Boston, 1957 reprint (1944) Poppi, Cesare (1997) *Wider horizons with larger details Subjectivity, ethnicity and globalization’ in Alan Scott (ed.) The Limits of Globalization Cases and Arguments, Roudedge, London & New York, pp 284—305 Porter, Michael (1990) The Competitive Advantage of Nations, The Free Press, New York Rayp, G (1999) ‘Globalisation, Competitiveness, Unemployment and the Coordination of Social Protection’, CIMDA Working Paper 1999/E/40, University of Antwerp Rhodes, Martin (1996) ‘Globalization, the State and the Restructuring of Regional Economies’ in Philip Gummett (ed.) Globalization and Public Policy, Edward Elgar, Cheltenham, pp 161—180 Rifkin, J (1995), The End of Work, New York: G P Putman's Sons Rist, Gilbert (ed.) (1997) La mondialisation des anti-societes Espaces reves et lieux communs, Presses Universitaires de France, Paris Robins, Kevin Sc James Cornford (1994) ‘Local and Regional Broadcasting in the New Media Order’ in Amin, Ash & Nigel Thrift (ed.) Globalization, Institutions, and Regional Development in Europe, Oxford University Press, Oxford Sc New York, 217-238 Rodrik, D (1997), Has Globalization Gone too Far?, Washington: Institute for International Economics Rodrik, Dani, (1998), *Where Did All the Growth Go? External Shocks, Social Conflicts, and Growth Collapses,’ NBER Working Paper #6350, Cambridge, Mass.: National Bureau of Economic Research Roubini, Nouriel, (1998), ‘The Asian Currency Crisis of 1997: An Empirical Analysis’ in Part of An Introduction to Open Economy Macroeconomics, Currency Crisis and the Asian Crisis: 21 Bibliography 201 Rugman, A (2000), 'Multinational enterprises and the end of global strategy,’ in Dunning, J H and Mucchielli, J L (ed.) Multinational Firms’ Strategies and the New Global Competition, Reading: Harwood Academic Publishers Sachs, J and Warner, A (1995), Economic Convergence and Economic Policies, Cambridge, MA: NBER Working Paper No 5039 Sachs, Jeffrey, (1997), ‘IMF is a Power Unto Itself,’ Financial Times 11 December 1997 SaKong II (1993) Korea in the world economy Washington: Institute for International Economics Saiamon, L M and Anheier, H K (1997), Defining the Non-Profit Sector, Manchester (UK): Manchester University Press Sally, Razeen (1996) Tublic Policy and the Janus Face of the Multinational Enterprise: National Embeddedness and International Production’, in Philip Gummett (ed.) Globalization and Public Policy, Edward Elgar, Cheltenham, pp 64—82 Schwab, Klaus & Claude Smadja (1996) ‘Start Taking the Backlash Against Globalization Seriously’, Address to Davos Forum, January 1996 Searle, G R (1998), Morality and the Market in Victorian Britain, Oxford: The Clarendon Press Sengenberger, Werner & Frank Wilkinson (1995) ‘Globalization and Labour Standards’ in J Michie & J G Smith (ed.) Managing the Global Economy, Oxford University Press, pp 111—134 Shahin, M (1997), ‘Multilateral Investment and Competition Rules in the World Trade Organization: An Assessment’, Transnational Corporations, Vol 6, No 2, pp.171-211 Shin Sang-hyup (1998) European integration and foreign direct investment in the EU: The case of the Korean consumer electronics industry London: Roudedge Shin Woong Shik and Oh, Eugene J (1990) ‘Recent developments in Korea’s foreign investment’, Journal of World Trade, Vol 24, No 6, pp 31-56 Shintaro, Ishihara, (1998), ‘Behind the Asian Crisis,’ Asiaweek, 11 December 1997 Silber, S D (1983) ‘The Export Performance at the Firm Level: The Brazilian Case’, Ph.D dissertation, Yale University, 1983 Singh, Pritam & Shinder S Thandi (ed.) (1996) ‘Globalisation and the Region: Explorations in Punjabi Identity’, Association for Punjab Studies, Styvechale Smart, T (1998), ‘Globalization: a dream or a deadly fantasy?’, International Herald Tribune, 10th November Soros, G (1998), The Vision of Global Capitalism, London: Little Brown and Company Soros, George (1997) ‘The capitalist threat’, Atlantic Monthly, February 1997 Soros, George (1998) ‘The Crisis of Global Capitalism Open Society Endangered’, PublicAffairs, 1998 Strange, Susan (1997) ‘An International Political Economy Perspective’ in John H Dunning (ed.) Governments, Globalization, and International Business, Oxford University Press, pp 132—45 202 Globalisation and Korean Foreign Investment Streeck, Wolfgang (1996) Tublic power beyond the nation-state The case of the European Community’ in Boyer, Robert & Daniel Drache (ed.) States against markets The limits of globalization, Routledge, London & New York, pp 299316 Tang, Paul J.G & Adrian Wood (1999) ‘Globalisation, co-operation costs and wage inequalities’, mimeo, January 1999 Tanzi, Vito (1998) The Demise of the Nation State?’ International Monetary Fund Working Paper WP/98/120, Washington D.C Thomas, Henk (ed.) (1995) Globalization and third world trade unions: the challenge of rapid economic change, Zed Books, London Thorelli, Hans B (1986) ‘Networks: Between Markets and Hierarchies’, Strategic Management Journal, 7, 37-51 Tombazos, Christis G (1999) The role of imports in expanding the demand gap between skilled and unskilled labour in the US’, Applied Economics, 31, 4, 509516 UN (1998), World Investment Report 1998: Trends and Determinants, Geneva and New York: UN Unger, Brigitte (1999) limits of Convergence and Globalization’ in Satya D Gupta (ed.) The Political Economy of Globalization, Kluwer, Boston, pp.99-127 United Nations Conference on Trade and Development (1986), International Investment Instruments: A Compendium, Geneva: UN United Nations Conference on Trade and Development (1997) Sharing Asia’s dynamism: Asian direct investment in the European Union New York: United Nations Van Til, J (1998), Mapping the Third Sector - Voluntarism in a Changing Social Economy, Washington DC: Foundation Center Vernon, R (1998), In the Hurricane’s Eye: The Troubled Prospects of Multinational Enterprises, Cambridge, Mass.: Harvard University Press Waitt, Gordon (1993) The composition and direction of the Republic of Korea’s outward foreign direct investment’, Asian Profile, Vol 21, No 3, pp 201-215 Wang Yun-jong (ed.) (1997) Han’gug-ui haewoe chikchop t’uja hyonghwang-gwa songgwa: Shimch’ung pogo (The current status and results of Korean foreign direct investment: An in-depth report.) Seoul: Taewoe Kyongje Chongch’aek Yon’guwdn Wee, Larry, (1997), Why Hedge Funds Cheer as Asian Rates Explode,’ Business Times, 28 October 1997, pi Wood, Adrian (1998) ‘Globalization and the Rise in Labour Market Inequalities’, The Economic Journal, 108,1463-82 Wood, Ellen Meiksins (1997) ‘Modernity, postmodernity or capitalism?’ Review of International Political Economy, 4, 3, 539-560 World Bank (1993) The East Asian Miracle: Economic Growth and Public Policy, World Bank Policy Research Report, New York: Oxford University Press World Trade Organization (1995), International Trade, Trends and Statistics, 1995, Geneva: WTO Bibliography 203 World Trade Organization (1998), Report (1998) of the Working Group on the Relationship Between Trade and Investment to the General Council, WT/WGTI/2, December, Geneva: WTO Yip, George S (1995) Total Global Strategy Managing for Worldwide Competitive Advantage, Prentice-Hall, Englewood Cliffs Young, S and Hood, N (1999), ‘Globalization and Economic DevelopmentOverview and Conclusions’ in N Hood and S Young (ed.), The Globalization of Multinational Enterprise Activity and Economic Development, London: Macmillan, forthcoming Yu Kwan-son (1994) Han’guk kajon kiob-ui tae-EU chikchop t’uja pangan-e kwanhan yon’gu: D chonjasa-ui tae-p’urangsu t’uja sarye-rul chungshim-uro (A study of direct investment by a Korean home appliance company in the EU: A case study of the investment in France by D Electronics.) Master’s Degree dissertation Seoul: Sogang University Graduate Business School Yun Tong-jin (1993) Han’guk kajon kiob-ui kukchehwa kwajong-gwa kyongjaeng uwi (The internationalisation process and competitive advantage of Korean consumer electronics firms.) Doctoral dissertation Seoul: Koryo University Graduate School, Department of International Business and Trade Index ‘Act Before Thinking’ 120 Actual Capitalism 154,155,164 Allen 22 Alliance Capitalism 53,165,181 American Chamber of Commerce in Korea (AMCHAM) 119,120 American Economic Imperialism Amin and Thrift 42 Anglo-American Desire 11 Anglo-Korean Economic Institute (AKEI) 131 Archetypal Military Taxation State ASEAN 22,151 Asia-Europe Meeting (ASEM), 93 Asian Capitalism 60,64,72,78 Asian Crisis 78 Asian Crony Capitalism 60 Asian Development Bank 71 Asian Economic Crisis 1,178 Asian Financial Crisis 60,67,69,70,79 Asian Miracle 74 Asian Monetary Fund 69, 72 Asian Pacific Economic Cooperation (APEC) 151 Autarkically-Minded Policy-Makers 112 Bandwagon Effect 20,66 Bank Central Asia 73 Bank of England 46 Bank of Korea 26 Behavioural Approach 20 Bilateral Investment Protection 88 Bloc-ism 102 Boom Years 92 Borderless Competition 104 Brech and Sharp 107 Bretton Woods Agreement Bretton Woods System 2,66 Bull Market Year 77 Bulog 73 Busjeet 22 Capital Intensive European Enterprises 11 Centralisation vs Decentralisation 55 Chinese Economy Chosun Ilbo 131 Chun, Doo-Whan 112 Civil Society Co-operation Costs 51 Cold War 2,7,8 Committee for Administrative Reforms 118 Committee for the Relaxation of EconomicAdministrative Regulations 118 Committee on International Investment and Multinational Enterprises (CIME) Communist Manifesto 42 Compassion 180 Conditional Optimist 152 Conditionality 68 Conspiracy Theorists 67 Cooperate Feudalism 56 Cooperation 180 Creativity 180 Crisis Manager 67 Crony Capitalism 69 Cross-Border Trade Cross-Border Transactions 4,156,167 Cross Border Markets 156 Croynism 64 Daewoo 36, 81, 93 Dahrendorf, Ralf 180 Davos 152 Democratic Theory 49 Department of Trade and Industry (DTI) 107, 123 Developmental States Dispute Settlement Understanding (DSU) 138, 139,142 Down-the-line Entrepreneurship 52 Drucker, Peter 65 Dunning J 21,132 East Asian Miracle 70,71 Eclectic Theory 21 Economic Hegemony Economic Integration 16 Economic Liberalisation 51 Economic Logic of Capitalism 49 Economic Migration Economic Planning Board (EPB) 113 Economism 49 Index Economist, the 39, 50, 61, 69, 74 Electronic Commerce 156 Electronic Industry Promotion Law 103 End of Nation State 47 Enlightened Despots Environmental Policy 56 Equity Market 76 Ethno-Political State 6, European Common Market European Common Market European Community 92 European Free Trade Area Exchange Rate Misalignment 63 Export-led Industrialisation Policy 96 Export-Promotion Policies 12 Export Slowdown 63 Extensive Mergers and Acquisitions 106 Fair Trade Commission (FTC) 118 Far Eastern Economic Review 113,115,117 Federal Reserve 47, 57,71 Financial Crisis 63 Financial Risk 60 Financial Times 150 Firm Behaviour 42 Five Year-Plan 103 Fledgling Bond Markets 76 Followed-the Leader’ behaviour 15 Foreign Capital Inducement Law 114 Foreign Currency Management Law 26 Fortress Europe 11, 93, 98,129 Free Movement of Capital Free Rider 182 G.C Diamond 161,163,181 General Agreement Tariffs and Trade (GAIT) 2, 3,7,135 Global Capitalism 159,161,180,182 Global Civil Society Global Disenchantment 39 Global Ecumene 40 Global Financial Community 65 Global Geography 182 Global Integration 10 Global Market Global Trap 152 Globalisation and De-globalisation 134 Globalisation Theory 40 Globalisation vs Regionalism 52 Going Global 48 Governance of Global Capitalism 162 Greenspan, Alan 69 Gulf Oil 109 205 Hanseng Index 72 Heavy and Chemical Industry Drive 26, 32 Heckscher-Ohlin theory 12 Hirata and Le Doare 43 Hirch 21 Hirschman 166 Hirst and Thompson 39 Hollowing Out 88 Hong, Jae-Ik 119 Hortsman and Markusen 13 Hot Foreign Money 67 Human/Moral Values 49 Hyundai 36 Idea of Ethnic Homogeneity Ideal Capitalism 155,156 Ideal Global Capitalism 177 Import-Substitution Industries 108 Industrial Organisation Theory Infant Industry 108 Intangible Assets Theory 21,22 Intellectual Capital 181 Interest Rate Parity 65 Intermediate Associations (IAs) 167,173 International Economy International Herald Tribune 75 International Institute for Management Development in Switzerland 119 International Monetary Fund (IMF) 7, 134, 135,155,171,177 Internationalisation Advantage 21 Interregional/Geographical/Location Economies 47 Intra-bloc Cooperation 104 Intra-Firm Trade 22 Investment Britain Bureau (IBB) 107, 122, 123 Investment Consulting Team 127 Investment Project Team 126 Inward Foreign Direct Investment (IFDI) 106,110 Japanese Yen 71 Johanson and Mattsson 61 Joint-Venture Scheme 117 Jun, Youngwook 82 Keiretsu 61 Kemp and Shimomura 57 Keynesian Toolbox Kim, Dae-Jung 106,107,121 Kim, Hyun-Chul 121 Kim, Jae-Ik 112 206 Globalisation and Korean Foreign Investment Kim, Young-Sam 101,106,107,117,121 Kissinger, Henry 69 Kitson and Michie 55 Kleinknecht and ter Wengel 158 Knickerbocker 15 Knowledge Industries 130 Knowledge Orchestrating 48 Knowledge Structure 43 Kobrin 41 Kodak-Fuji Film Case 149 Kojima 22, 35 Korea Development 83 Korea Inc 102 Korea Investment Service Centre (KISQ 107,112,123,125 Korea Trade-Investment Promotion Agency (KOTRA) 107,122,123 Korean Asset Management Corporation 74 Korean Foreign Direct Investment 81 Korean Oil 109 Korean Trader’s Association 83 Korean War 8,82 Korean won 65, 97 Koreanisation 81 Krugman, Paul 40 Kung, Hans 180 Labour-Inensive-Medium and Small Sized Companies 27 Lall 17 Lean Production 42 Lee, Chaemin 81 Lee, Kuan-Yew 64 Levy-Livermore’s Handbook 38 LG 81 Local Embedded ness of Transnational Corporation 56 Localisation Advantage 21 Long-Term Plan for the Enhancement of Electronics Industry 103 Maastricht Treaty Macro Organisational Strategy 174 Macroeconomic Factor 44 Mahathir 69, 74 Major Government 128 Market Fundamentalism 49 Market Values vs Social Values 49 Marshall Plan Material and Non-material Resources 48 Matsushita case 61 Medium and Long Term Bank Loans 88 Mesco-Economy Metanational Corporation 48 Mexican Debt Crisis 62Mexican Peso 72 Military-Taxation State 5, Minister of Finance (MOF) 113,114 MITI129 Moore, M 148 Moral Hazard 63 Moral Imperatives 180 Mounting Backlash against Globalisation 52 Muddling Through 113 Multilateral Agreement on Investment 151 Nash Equilibrium 13 National Champions 9,11 * National Elites 10 Neo-Classical Theory 13 New Economic Plan 117 Noland, Marcus 62 Non-Governmental Organisations (NGO) Non-Profit Organisation (NPOs) 169,170 Non-Tariff Barriers (NTB) 8,12,28,135 North American Free Trade Area (NAFTA) 3,92,97,118 Nurture Organisational Values 53 Nut-Cracker Situation 12 OECD 101,108,118,179 Old Managed Float Regime 72 Old Product Life Cycle Model 47 Oligopolistic Competition 20, 21, Olympic Games 114,125 Original Equipment Manufacture (OEM) 97,100,104 Osborne and Gaebler 174 Outward-Looking Development Strategy 12 Overseas Fixed Currency Rates 66 Overseas Investment Screening Council 72 Ownership 10 Ownership Advantage 21 Paris Economic Conference Park, Chung-Hee 108, 111 Park, Jae-Yoon 120 Pegged Currencies 60 Political-Economic Doctrine 78 Political Correct 67,69,74 Political Imbroglios 60 Political Pull and Push Factor 24 Pop Internationalism 40 Portfolio Investment 107 Postmodernism Theory 40 Product Life Cycle theory 20 Index Pseudo-Paradox 49 Pull Variable 22 Push Variables 22 Race to the Bottom 53 Rayp 47 Real-Name Estate Registration System 118 Real-Name Financial Transaction System 118 Regional Capitalism 154 Renaissance of Small to Medium Size Firm 55 Revisionists 70 Roh, Taew-Woo 114 Rugman, Alan 16 Rule of Thumb 29,36 Sachs, Jeffrey 68 Samsung 36,81 Scale of Technology 41 Schumpeter 20 Sector-Specific Encouragement 88 Securities and Exchange Commissions 77 Segyewha 101,103 Semi-Manufactures Goods 3,6 Short-term Competitive Advantage 102 Short-term Foreign Borrowing 62 Singapore Telecom 77 Single European Market (SEM) 3,11,93 Single Society 1,4, Smadja, Claude 180 Small and Medium Size Enterprises 90,91 Socio-Economic Objectives 73 Sociological Definition 40 Soros, George 46,70 Structural Irreversibility 82 Sub-National 4,171 Subsidiary Companies 10 Suharto 65 Supra-National Tang and Wood 51 Technical Cooperation Team 127 Technocratic Governments 115 207 Technology-Related Factors 44 Thai baht 65 Thai Currency 62 Thatcher Margaret 128 Theory of Imperfection 21 Theory of International Economic Involvement 47 Third World Debt Crisis 66 Three T>’ 97 Total Global Strategy 48 Trade Related Intellectual Rights (TRIPs) 138,141,147 Trade Related Investment Measures (TRIMs) 138,141,147 Transaction-Cost Intensive 167 Transparency 68 Ttiadization 53 Tung, Chee-Hwa 72 U-shaped Patterns of Global Economic Change 46 UNCTAD 100,161,175 UNESCO 130 Uruguay Round (UR) 100,118,137 US Trade Representative (USTR) 145 Verdon 20 Virtual Money 65 Weak Financial Institutions 62 Whiter Global Capitalism 152,185 Winner-Take-All Society 51 World Bank World Economic Forum 152 World Economic Organisation 178 World Money 65 World Order World Trade Organisation (WTO) 4, 101, 102,134,161,171,178 Yair Aharoni 20 Yun, Tong-Jin 82 Zenith Corporation 36 ... Balances Korean Foreign Direct Investment, 1968-1996 Korean Foreign Direct Investment: By Sector, 1968-1979 Korean Foreign Direct Investment: By Region, 19681979 Korean Foreign Direct Investment: ... 1980-1985 Korean Foreign Direct Investment: By Region, 19801985 Korean Foreign Direct Investment: By Sector, 1986-1996 Korean Foreign Direct Investment: By Region, 19861996 Korean Foreign Direct Investment. . .GLOBALISATION AND KOREAN FOREIGN INVESTMENT To Sara and Chang-Hee with love Globalisation and Korean Foreign Investment 'Edited by JOHN A TURNER University