Pre-Midterm Homework Notes
(F) Day of the week: Saturday Class: IS206 Created Time: April 25, 2020 7:03 PM Database: Class Notes Database Date: April 25, 2020 7:03 PM Days Till Date: Passed Last Edited Time: June 9, 2021 10:39 AM Type: Homework
Reading
Competition between the rising East(USSR) and the rich west (US) in the 1960s
- The space race: USSR’s Sputnik, first in space
The quickness of USSR’s growth was due to the large increase in Input
Problems:
- Efficiency of each input unit or output > Larger and larger input
- Sacrifice current consumption for the sake of future production
- Input focused production is bound to hit industrial expansion limit
Technological advancements ⇒ increase in growth in both input and efficiency.
Mobilizing of resources ⇒ increase in growth in input
Asian Newly Industrialized Countries have the same mobilizing of resources method of growth
- Increased size of labor force
- Increased education
- Physical Capital
Singapore succeeded because it already had a quiet good efficiency of production, it just lacked capital, labor, and inputs
Video Reflection Paper
South Korea grew from being the poorest country, to the 14th largest economy in the world today
|1945: Korea got independence from Japan
|1950: Start of Korean War (5 million died)
After: they focused on education sector
- Compensatory primary and secondary schools
Korea relied mostly on foreign aid, after some time, foreign aid stopped
|1961: military takeover
-
focus on economic growth
-
5 year plan
Funded by West Germany, still not enough
Expansion of light textile industry
- Low skilled labor
- Higher wages = more costs
⇒ Investment in more industries (industrial machinary, steel…)
The steel industry was a foundation for Korea to industrialize making other productions possible
- Automobiles
- Ship building
- Construction
|1970s: the Saemaul Undong method of managing funding for society was put in some places
- To fund villages that shows promising growth and dedication in growing
- Eventually the Sammal Undong made it’s way into all of Korea to facilitate growth
Effective Sammal Undong + Global Economic Boom = fast economic growth
Took advantage of crisis
|1973: the Yom Kippur War
- Raw material price increase ^
- Inflation
- Middle East need of construction (from oil crisis) ⇒
- Korean took advantage and went to construct for middle east
- Korea invested in it’s steel, oil, chemical, machinery, ship building sectors
- The second oil crisis ⇒ Korea restructure it’s economy system
The Asian Financial Crisis (from Thailand)
- Korea affect (6/10 firms bankrupt)
|Nov, 21, 1997: IMF Relief loan
Took Advantage again:
- Merged financial institutions merged & businesses resturcted
- Focused more on competitions policies
Paid off IMF loan
Korean Good Acts
Middle east war: only Korean coorporates stayed for works
|1997: Financial Crisis ⇒ National Gold Campaign
|2009: Swine Flu ⇒ Koreans in Mexico continued work (with face masks)
1980s boom of automobile industry in Korea
- Led to US based Korean automobile factories
Semi-conductor: become world leader producer
Information Technology: in a few years…
Switch from Heavy Industry sector or digital technology industry
Korean Culture: “Korean Wave” spread music, drama, culture to the world
Bad Impacts: Big inequality
More focus on service industry currenly