Analysis of South Korean Macro Environment for Canadian Business Expansion

Running head: INTERNATIONAL BUSINESS
International Business

INTERNATIONAL BUSINESS 1
Executive Summary
The above report has presented a detailed analysis of the South Korean macro environment in
order to understand the level of development and growth present in the nation. The basic aim
of the paper is to identify the opportunities for a Canadian Business to expand its operations
in the South Korean market. From the analysis, it has been analyzed that South Korea has a
stable economic and political environment, which support different businesses to expand their
operations in the country. Besides this, the country was involved in different free trade
agreements to offer development opportunity to different countries. The report has
recommended Canadian Business to expand its operations in the South Korean market to
grow and develop.

INTERNATIONAL BUSINESS 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Macro Environment Analysis................................................................................................3
Description of South Korea................................................................................................3
Political Situation and Stability..........................................................................................5
Legislation Affect Inward Foreign Investment..................................................................6
Economic Condition and Stability.....................................................................................7
Cultural Issues....................................................................................................................7
Factor Endowments................................................................................................................8
Labor..................................................................................................................................8
Capital................................................................................................................................8
Entrepreneurship................................................................................................................8
Analysis..................................................................................................................................9
Conclusion and Recommendations..........................................................................................10
References................................................................................................................................11
Appendix..................................................................................................................................13
Appendix 1...........................................................................................................................13
Appendix 2...........................................................................................................................13
Appendix 3...........................................................................................................................14
Appendix 4...........................................................................................................................14
Appendix 5...........................................................................................................................15
Appendix 6...........................................................................................................................15

INTERNATIONAL BUSINESS 3
Introduction
The intent of this paper is to highlight the importance of international business in the context
of expanding business operations in different international countries. The paper is based on
discussing the highlights of South Korean market in order to suggest a Canadian company
whether or not to expand its business operations in the country. A detailed macros
environment analysis will be elaborated under this paper by taking consideration of different
forces that can be the barrier in the direction of the company while expanding business
operations.
Macro Environment Analysis
Description of South Korea
South Korea is known, as the Republic of Korea, a nation that is established in East Asia,
instituting the southern zone of the Korean Peninsula. The name of the country was derived
from Goguryeo, the one with great powers in the region of East Asia. The total population of
the country is 51 million accommodated over 38,375 square miles. In the Asian market, the
South Korea economy is considered to be the fourth largest and across the world 11th largest
(Gone 2 Korea, 2019). It is a mixed economy, which is conquered by family-owned
corporations known as chaebols; however, the supremacy of the chaebol is questionable to
last for longer duration and engenders danger of decreasing the Korean economy
transformation for the profit of future generations. The country is well known around the
world for its remarkable development from the poorest nation of the world to the most
developed one, with high-income in just a few generations. Additionally, South Korea is also
called as a Launchpad for the mobile market, where creators get advantages of the value of
the market. The nation possesses an increasing innovation and inventions trend of different