1. International Commercial Policy (Kangwon National University)
Introduction
1st semester 2017
Hyun-Hoon LEE
(Kangwon National University)

2. World Trade and Investments
PART I
World Trade and Investments
An Overview

3. The world, in terms of nations

4. The world, in terms of trade
Source: WTO, World Trade Statistical Report 2016.

5. The world, in terms of trade
Source: WTO, World Trade Statistical Report 2016.

6. World trade: merchandise trade vs. trade in commercial services
Source: WTO, World Trade Statistical Report 2016.

7. World exports of parts and components
Source: WTO, World Trade Report 2013.

8. World’s leading traders
Source:

9. Korea’s trade has been increasing very rapidly and has been an engine for economic growth.
Source: Bank of Korea

10. Korea’s current account balance, yearly
Source: Bank of Korea

11. Korea’s top 10 export items (%)
Rank
1970
1980
1990
2000
2010
2015
Item
Share 1
Textiles
40.8
Garments
16.0
11.7
Semiconductor
15.1
10.8
11.9 2
Plywood
11.0
Steel Plate-rolled Products
5.4
7.0
Computer
8.5
Vessel
10.5
Automobile
8.7 3
Wigs
Footwear
5.2
6.6
7.7
7.5
7.6 4
Iron ores
5.9
3.6
Video Apparatus
5.6
Petrochemical products
5.3
Flat penal display
6.9
Wireless telecom
6.2 5
Electronic goods
3.5
Audio Apparatus
3.4
4.4
4.9
6.7
6.1 6
Confectionery
2.3
Man made filament fabrics
3.2
3.9
4.6
Parts of Automobile
4.8 7
Footwears
2.1
Rubber Products
2.9
3.8
Synthetic Resin
4.0
Flat Display and Sensors 8
Tobaccos
1.6
Woods & Wood items
2.8 9
Iron products
1.5
2.6
2.7
Steel Plate
3.1 10
Metal products
2.5
3.0
1.9
Electronic Application goods
Total
81.1
47.6
53.4
56.6
62.0
58.0
Source : KOTIS; Online Nation indices(

12. Korea’s top 10 import items (%)
1996
2000
2005
2010
2015
Item
Share 1
Crude Oil
9.6
15.7
16.3
16.1
11.9 2
Semiconductor
7.0
12.4
7.5
8.7 3
Gold
3.9
Computer
4.9
Natural Gas
3.3
5.1
7.6 4
Petroleum Product
2.9
3.1
3.0
4.2
6.2 5
2.8
2.4
coded and wireless telephone
4.1
Wireless telecom
6.1 6
Other Machinery
2.2
Semiconductor production equipment
2.3
Iron panel
Coal
Automobiles
4.8 7
1.7 8
Measuring analyzer
2.1
Cable communication Product
1.6
3.5 9
Aircraft parts
1.5
Electronic applications
Precision instrument
Fine chemical materials 10
Motor and pump
1.4
alloyed wire
Plastic resins
1.9
Clothing
36.9
47.1
45.9
49.2
42.7
Source : KOTIS; Online Nation indices(

13. Korea’s top 10 export markets(%)
Rank
1970
1980
1990
2000
2010
2012
Country % 1 2 3 4 5 6 7 8 9 10
U.S.
Japan
Hong Kong
Germany
Canada
Netherlands
U.K.
Vietnam
Singapore
Sweden
47.3
28.1
3.3
2.3
1.6
1.5
1.3
0.9
Saudi Arabia
Iran
Indonesia
26.3
17.4
5.4
5.0
4.7
3.5
2.1
2.0
Hong Kong
Taiwan
France
29.8
19.4
5.8
4.4
2.8
2.7
1.9
1.7
China
Malaysia
21.8
11.9
10.7
6.2
3.1
3.0
India
Mexico
25.1
6.0
3.2
2.5
Russia
24.5
7.1
4.2
2.9
2.2
Total
91.4
71.6
72.9
68.8
62.4
64.8
Source : KOTIS; Online Nation indices(

14. Korea’s top 10 import markets(%)
Rank
1980
1990
2000
2010
2012
Country % 1 2 3 4 5 6 7 8 9 10
Japan
U.S
Saudi Arabia
Kuwait
Australia
Ira
Germany
Malaysia
Canada
U.K
26.3
21.9
14.8
7.9
3.1
2.9
2.1
1.7
1.4
Japn
China
Indonesia
26.6
24.3
4.7
3.7
3.2
2.5
2.3
1.8
Arab Emirate
Taiwan
19.8
18.2
8.0
6.0
3.3
3.0
Qatar
16.8
15.1
9.5
6.3
4.8
3.4
2.8
2.6
15.5
12.4
8.3
7.6
4.9
4.4
3.5
2.7
Total
84.8
73.4
70.8
67.4
65.8
Source : KOTIS; Online Nation indices(

15. Global FDI Trend,
Source: UNCTAD, World Investment Report 2016.

16. Global FDI: Top 20 host economies vs. top 20 home economies
Source: UNCTAD, World Investment Report 2016.

17. Global FDI
Source: UNCTAD, World Investment Report 2016.

18. Global FDI: greenfield vs. M&A
Source: UNCTAD, World Investment Report 2015.

19. History of globalization
First globalization: From the 1st Industrial Revolution to World War I
Second globalization: From World War I to Great Depression
Third globalization: From World War II to present
Source: Bordo, M. (2003), "Globalization in Historical Perspective", NBER Working Paper

20. End of the third globalization?
World trade (as percent of global GDP) was increasing until late 2000, but has no longer been increasing since then.
출처: The Economist, 2017

21. End of the third globalization?
Global value chain and FDI also have no longer been increasing in recent years
출처: The Economist, 2017

22. End of the third globalization?
Non-tariff barriers have been on the rise in recent years
World
European Union
WTO, Integrated Trade Intelligence Portal (I-TIP)

23. PART II
Syllabus

24. Hyun-Hoon LEE: Your instructor
Professor, Department of International Trade and Business, Kangwon National University, Korea - Current
Dean, Asia-Pacific Cooperation Academy, Kangwon National University, Korea
Senior Analyst, Asia-Pacific Economic Cooperation (APEC) Secretariat
Senior Environmental Affairs Officer, United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP)
Visiting Professor at Keio University, University Melbourne, University of British Columbia, and Bank of Korea, etc.
Ph.D. in Economics, University of Oregon, U.S.
Mobile:

25. Course outline This course will
(1) review the basics of international trade theory;
(2) review the basics of international trade policy; and
(3) study recent issues in world trading system.
Various means of education will be utilized including the traditional in- class lectures, on-line lectures, group presentations, and lots of discussions.

26. Grading Mid-term exam (40%) Team project (40%)
Class participation (10%)
Attendance (10%): absence of more than five times will result in automatic failure of the class

27. Academic Integrity
A student's work for academic credit should be the work of the student's own.
All papers submitted for the course may be subject to textual similarity review for the detection of plagiarism.

28. Hyun-Hoon Lee