Week 8 - Friday (City Analysis)

1. Where does Seoul fall in the hierarchy of Central Places?

            Seoul, South Korea, is a national metropolis. The word metropolis comes from Greek, meaning "mother of a city." If any city deserves this title, it would be Seoul. The criteria of metropolis lies in its size, its presence as a center for economic, political and cultural activities as well as its being a hub for international connections, commerce and communications.

            Seoul is the world's second largest metropolitan area with almost 26 million residents after Tokyo, Japan. Seoul has the world's fourth largest metropolitan economy with a GDP of USD 773.9 billion after Tokyo, Los Angeles and New York City. Seoul also boasts of cultural landmarks such as Lotte World (the world's largest indoor theme park), Moonlight Rainbow Fountain (the world's longest bridge fountain) and CGV Starium (the world's largest movie screen).

            As a world leading technology hub, it headquarters multinational companies such as Samsung (the world's largest technology), LG and Hyuudai-Kia. Seoul's advanced technology infrastructure allows the world's fastest internet connections. The quality of life in Seoul is higher than those of New York City and London but lower than those of Tokyo and Paris according to the United Nations.

            The Seoul Station, the main terminal of Korean high-speed rail and the Seoul subway system, is the world's largest subway network by length and is considered one of the best. Seoul also is connected to Incheon International Airport, which is rated the world's best airport for seven years in a row by Airports Council International. Seoul hosted 1988 Summer Olympics, 2002 FIFA World Cup, and the 2010 G-20 Seoul summit.

2. What does Seoul offer that would not be available in a smaller place? What is unavailable locally, but that would be available in a higher order city?

           

            Compared to other Korean cities, Seoul offers variety of choices one can make. It has more college and universities than any other cities. It offers consumers with more choices in clothing, bars, drinks, restaurants and other things. The variety of people is also available. Home over 632,000 international residents, one can definitely spot more foreigners on the streets of Seoul than on those of other smaller cities.

            Seoul as a national metropolis has everything any other major cities can offer. An interesting question, we can ask ourselves is what can a hamlet offer that Seoul cannot? Something Seoul cannot offer is very specified demands. Let's say that the owner of Samsung wants a pair of shoes from a certain Italian shoemaker. If the shoemaker happens to live in a small town or a hamlet, then the hamlet or the town has something that Seoul cannot possibly offer. Of course, the variety of shoes that Seoul has will never be outmatched by the hamlet, but it is interesting to note that even a national metropolis has something that does not have locally.

Week 8 - Friday (EGT Consulting: Vehicle Market Executive Summary)

Republic of Korea is a very developed country. Starting a new business is easy and simple.  The country is open to global trade and investment and the rule of law is upheld. However, some corruption exist denting the foundation of Korean economy.

            Motor scooters, which is geared towards low-income countries, will have a little market potential in South Korea.  The luxury limousine will have some market potential, but a lot lower than that of the sedan. Thus, we strongly recommend the sedans, which will be best sold.

            The chosen product is most likely be shipped to Busan Port: the largest port in South Korea. Once the containers arrive in Busan, they will be distributed by Korea Railroad Corporation (Korail) using freight trains. Finally, the two main competitions are Hyundai Motor Company and the public transportations.

Week 8 - Wednesday (News Assignment)

Recently, low-income families debt holdings stood low whereas income growth remained unchanged. So, on May 9th, the Bank of Korea cut the seven-day repo rate by a quarter percentage to 2.5 percent. As part of government's stimulus drive, the cut aimed to ease low-income families debt burdens. The rate reduction will gift the lowest 20 percent income group with yearly savings of 16,000 won in interest-payment costs. However, their interest income can decline by an average of 27,000 won annually.

            "The calculation was made based on the premise that their savings and financial debt move in tandem with changes in interest rates." However, their calculation can take another turn for worse as it gives households incentives to borrow more money while easing the burden of repaying interest.

            The economic downturn led to a situation where the low-income families hold savings worth an average of 10.87 million won and financial debt of 63.2 million won on average. A rate reduction is effective only for some low-income families with high debt, but not for the lowest income group in general. The calculation must have been made with those with financial debt among the lowest 20 percent income bracket, in which the rate cut could bring such people a profit of around 14,000 won annually. Thus, the better way to fix the problem would be to take into account of all the low income families, not just ones with debt crisis. The ones with a lot of debt should be treated separately, that way more people can benefit from the policy. The new policy will take time and money, but eventually it will lead to better future for Korea.

Bibliography:
"Rate Cut May Not Help Ease Poor Families' Debt Burdens-The Korea Herald." Rate Cut May Not Help Ease Poor Families' Debt Burdens-The Korea Herald. N.p., n.d. Web. 13 May 2013.

Week 6 - Friday (The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger)

a. Identify a selection from this chapter that you found particularly interesting and explain why you selected it.

"What is it about the container that is so important? Surely not the thing itself. A soulless aluminum or steel box held together with welds and rivets, with a wooden floor and two enormous doors at one end: the standard container has all the romance of a tin can. The value of this utilitarian object lies not in what it is, but in how it is used. The container is at the core of a highly automated system for moving goods from anywhere, to anywhere, with a minimum of cost and complication on the way."

The selection basically summarizes everything the chapter has to offer and poses the question that everyone should ask first: what really is so special about the container anyways? Containers have no engine, no wheels. It does not provide people with enough fascination to captivate their attentions unlike ships, trains and planes. They lack the flash to draw attention from those who study technological innovation. What effect can this possibly have on global economy? According to author, its impact is grand.

b. How does author see the development of the shipping container contributing to globalization?

            Just as you should not judge a book by its cover, do not look down on the shipping container because it lacks fancy look. The author speaks very highly of it, because of its impact on globalization. "The container is at the core of a highly automated system for moving goods from anywhere, to anywhere, with a minimum of cost and complication on the way." The container made it possible for the shipping system to become cheap and impact global economy.

One thing author admits is that it destroyed the old economy. However, it led to a new one, if not better one. "Sleepy harbors such as Busan and Seattle moved into the front ranks of the world's ports." Large new ports popped up in England and Thailand where none existed before.

            "Those who had no wish to go international, who sought only to serve their local clientele, learned that they had no choice: like it or not, they were competing globally because the global market was coming to them. "This new system allowed firms whose ambitions had been purely domestic to become international companies; it became feasible to export their products to faraway places just as easily as to places nearby.

c. Who do you see gaining & losing from this transformation of global transportation?

Winners:

1) Consumers: they enjoy more choices due to the global trade the container has stimulated. "By one careful study, the United States imported four times as many varieties of goods in 2002 as in 1972." Also, the ready availability of inexpensive imported consumer goods has boosted living standards around the world.

2) Exporters and importers: they have easier time transporting their products in and out of the country.

Loser:

1) Customs inspectors and security officials: although each container has listing of its contents, neither ship lines nor ports can vouch that the list is telling the truth. Also, there exists no easy way of checking: "opening the doors at the end of the box normally reveals only a wall of paperboard cartons."

Week 6 - Wednesday (News Assignment)

            Korea aim to develop infrastructure projects around the world. South Korea is known as one of Four Asian Tigers, whose exceptionally high growth rates and fast industrialization between 1960s and 1990s developed the nations into advanced and high-income countries. With "rapid growth largely took place in line with strategic infrastructure development" Korea is inspiring other developing countries worldwide.

            Korea is excellent in new town development, water management and traffic administration. Korean infrastructure builders are recognized widely especially for their construction speed; their skills also combine advanced information technology with the facilities of the newly built cities. Through the implementation of the four-river restoration project, which helped prevent floods and droughts, Korea proved itself in excellence in water management. Finally, Korea's skills in transport infrastructure can be looked at with high-speed railways and international airports that have long been recognized as model examples for their efficiency. With such high level of skills comes extra demand. Increase in demand will lead to increase in Korea's income level and eventually its GDP.

            More so than other systems, Infrastructure needs the government’s active assistance and leadership. Good news is that the ministry’s target for overseas construction deals this year is $70 billion, almost five billion increase from the original $64.9 billion. With such high goal, continued development and promotion of Korea infrastructure is crucial.

Bibliography:

"Korea to Export Infrastructure Development Know-how-The Korea Herald." Korea to Export Infrastructure Development Know-how-The Korea Herald. N.p., n.d. Web. 07 May 2013.

Week 6 - Monday (Blog Assignment Part Five)

 1. Water Transportation

a. Major Ocean Port: Busan Port

*It is located in Busan Metropolitan City, which is Korea's second largest city after Seoul. With its population reaching approximately 3.6 million, the port is the largest port in South Korea and world's fifth busiest seaports by cargo weight with transportation and shipping among the most high profile aspects of the local economy. Starting from 1978, the port added three additional container ports: Jaseungdae, Shinsundae, and Gamman.

As of 2013 and as one of the one of the world's largest ports, it take on up to 13.2 million TEU shipping containers per year. The Busan-Jinhae Free Economic Zone Authority was established to reassert Busan's status as a traditional international trading centre. The place is a huge attraction for ships from all over the world and the surrounding area. Its goal is to become a regional financial centre as well.

b. Other Ports

*Gangneung Port:

It is another port in the city of Gangwon-do. The area has a population of 229,869. It is a economic center for Yeongdong region of Gangwon-do (Gangwon Province). Other than the port itself, it is a very popular tourist attraction, famous for its sun rise. The area also is a home to one of Korean National League soccer: Gangeung City FC and K-League soccer team: Gangwon FC.

*Incheon Port:

It is the second largest port in South Korea after Busan Port. The area is located in northwestern South Korea. Today 2.76 million people live in the city, making it Korea’s third most populous city after Seoul and Busan. The development of port was due to its natural advantages as a coastal city and its closeness to the South Korean capital at Seoul. Incheon Port led the economic development of Korea by opening its port to the outside world, issuing in the modernization of Korea as a center of industrialization. In 2003, the city was designated as Korea’s first free economic zone. Starting then, large companies and global enterprises invested in Incheon Free Economic Zone.

2. Land Transportation

a. Freight through Railroad:

*Korea Railroad Corporation (Korail) is the national railroad operator in South Korea. With its headquarter located in Daejeon, Korail operates passenger and freight trains throughout South Korea.

b. Passenger Railroad Service:

*Korea Train eXpress (KTX), Korea's high-speed rail system, is operated by Korail. Starting construction in 1992, KTX services were officially launched in 2004.

Another construction of a high-speed line began 2009 and will be opened in 2015.

KTX operates to Incheon International Airport and will have a new line to Gangneung for 2018 Winter Olympics.

c. Highway and Road Network

South Korea has a nationwide system of national highways (administered by the Ministry of Land, Transport and Maritime Affairs) as well as expressways. Expressways follows closely to Interstate Highway System in the United States; the icons of the South Korean Expressways are notably similar to those in the United States. The highways are used throughout Seoul and other parts of the nation. Especially during holiday season, when people go south to countryside to gather with extended families, they become highly congested.

3. Air Transportation

a.  International Airports

*Incheon International Airport:

It is the largest airport in South Korea, the primary airport serving the Seoul National Capital Area, and one of the largest and busiest airports in the world. For seven years in a row it was given the best rating as the best airport worldwide by Airports Council International. IIA is only one of three airports in the world to receive a five-star rating by Skytrax (a world-renowned aviation research organization). The airport consists of a golf course, spa, private sleeping rooms, ice skating rink, a casino, indoor gardens and even a museum. It is renowned for fastest customs processing in the world. Its duty-free shopping mall has been rated the world's best for three years in a row in 2012 by Business Traveler. IIA also boasts of its 0.0001% baggage mishandling rate.

It currently is Asia's eighth busiest airport in terms of passengers, the world's fourth busiest by cargo traffic, and the world's eighth busiest in terms of international passengers in 2010.

 

*Gimpo International Airport:

It is location lies in the far western end of Seoul. It was the main international airport for Seoul until IIA in 2001. It is now the second largest airport in Korea after Incheon International Airport. In 2011, 18,513,927 passengers used the airport.

b.  Other Airports

Location	Name of the Airport
Cheongju	Cheongju International Airport
Daeju	Daeju International Airport
Gwangju	Gwangju Airport
Jeju	Jeju International Airport
Muan	Muan International Airport
Busan	Gimhae International Airport
Yangyang	Yangyang International Airport