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The Economic Effects of Outward Foreign Direct Investment: A Case Study of Samsung Electronics Co.

Moon, Hwy-Chang,박지민/Jimmyn PARC

Seoul National University

Published: January 2014 · Vol. 18, No. 3 · pp. 125-146
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Abstract

South Korean government currently places high priority on creating jobs as part of the efforts to reinvigorate the country’s slowing economic growth. Several media outlets and policy makers argue that Korean companies should bring their overseas’ manufacturing facilities back in Korea to create more jobs for the Korean people. However, overseas and domestic employments are complementary, rather than alternative. This is because the competition structure has been changed from domestic to international scope in today’s world. In this paper this is proven by a case study of the mobile division of Samsung Electronics Corporation (SEC). SEC is not competing against other small and medium sized companies in Korea, but against the global system of Apple. Furthermore, SEC’s growth is beneficial for its partners as well, by creating their jobs and strengthening their competitive skills. This paper presents a better way to understand corporate international strategy and suggests useful policy implications for the government.
Keywords: 해외직접투자국제화 전략삼성전자