International business Essay Example | Topics and Well Written Essays - 1000 words - 1

International business - Essay Example The foundation of this approach is that the developing country takes up industrialization and upgrades its own industries by capitalizing on the learning opportunities that are made available through its external relations with the more advanced countries. Japan is the primary source of inspiration for South Korean business because it has been the hub of industrialization in the post war scenario. Manufactured goods and primary commodities arrived mostly from Japan, which has also been the largest source of Foreign Direct Investment in South Korea. Diversification, stabilization and growth momentum are three aspects of the Japanese economy that have been vigorously adapted by South Korea. For example, in the post war reconstruction scenario, the South Korean state undertook early import substitution projects in cement, fertilizers, oil refining and synthetic fibers, utilizing Japanese imports as a means to standardize and develop its own products. Kim (1987) has explained how the Japanese tradition of considering bureaucratic careers as a means of legitimacy for State initiatives was also followed in South Korea, where the bureaucracy and the military have managed to retain themselves as elite groups. The most powerful bureaucratic organ was the Economic Planning Board, which coordinated economic policy through a control of the budgetary processes. Managers of the EPB were promoted into ministries, which produced strong ties between the regime and the largest conglomerate businesses, Chaebol, paving the way for rapid economic development by establishing its legitimacy in accordance (Evans, 1995). These Chaebols like Samsung and Hyundai were modeled along the lines of Japanese firms such as Sony and Toyota a group of formally independent firms that are operating in diverse industries and are controlled by family members, congregate into a large business group that is able to overcome market imperfections through the creation o f