This 3 page paper examines the Harvard Business School case study and provides suggestions. The Korean economy, and how it runs, is central to the discussion. No bibliography.
Name of Research Paper File: RT13_SA548Kor.rtf
Unformatted Sample Text from the Research Paper:
grow at a significant rate, but would have problems, it is revealed that the Korean system is not like others as instead of relying on the stock market, the economy
relies on the banking system. Also, according to the case, the economy had been dominated by multibusiness organizations which are called chaebols. In examining this case, it seems that there
are positive and negative aspects of the Korean system. Of course, overall, there are more problems that there are in more stable economies. Still, there are some redeeming features in
Koreas system of governance. The merits and detriments of a stock versus banking system are numerous. The case study explains that the primary difference between the two is that when
it comes to a banking system, the government regulates the banking industry. One can take an example in the U.S. where the interest rates are tweaked. One can imagine that
if the economy would rely solely on the banking system, and the fears of the Fed, then consumer confidence could plummet. Instead, the economy today is robust as there is
consumer confidence. Jobs are being added and there are other positive indicators. That is simply one observation. However, there are detriments of relying solely on the market as demonstrated during
the Stock Market crashes of 1929 and 1987. Even during the closure after 9/11, there were jitters. As a part of the case, it is noted that Korea had
an economic problem tied to the Asian economic crisis in 1997. This was a serious time for many Asian countries and not just Korea. The baht fell and the people
in Thailand had a lot of outstanding loans. A similar situation occurred in Korea as well. It seems that to prevent another bad loan problem in Korea, some changes for