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1、153 Copyright © Canadian Research accepted 9 May 2013 Abstract Korea is still to be developed, there are many industries vulnerable in the Republic of Korea must adhere to the high-tech industry. First of all, t

2、he effects of the FTA have little to do with it. Per IT and shipbuilding, the effect is already being conducted by the duty-free. Cars exported to the United States, only 2.5% duty. Among already exported to the Unit

3、ed States, 70% of the cars and the Hyundai-Kia has local production there. Instead, the Republic of Korea’s agriculture, financial services, hospital, high-tech industry seems to be smashed. The Free Trade Agreement

4、 (FTA) will be more kinds of products by greatly reducing or even eliminating tariffs on trade between the countries is much cheaper to buy and sell to each other suggesting that agreement. Traditionally, tariffs and

5、other restrictions between the countries made it difficult for free goods across the border both incoming and outgoing. By eliminating or minimizing such constraints, it is FTA like within same country the buying an

6、d selling of goods among other countries. Key words: Duty-Free; FTA; IT; Shipbuilding; High-Tech industryJae-Sung, Lee (2013). A Study on FTA Between Korea and USA. International Business and Management, 6(2), 153-157.

7、 Available from: http://www.cscanada.net/index.php/ibm/article/view/j.ibm.1923842820130602.1135 D O I : h t t p : / / d x . d o i . o r g / 1 0 . 3 9 6 8 /j.ibm.1923842820130602.1135INTRODUCTIONAs Korea who is depending

8、 on international trade, especially the situation that export volume to USA is absolutely enormous, if FTA between Korea-USA is conducted, green light will be on in the export side. In case export is activated, dome

9、stic economic growth rate will be increased into so that point. Additionally, domestically, foreign capital investment increase as well as industrial activation which eventually result in expectation for employment r

10、ate increase. With political viewpoint, Signing of FTA between Korea-USA will make improve Korea-USA alliance relationship as well as pave crucial basement that Korea will be developed into hub of Northeast Asia. On

11、 the other hand, when we see NAFTA case, we can figure out failure of Korea-USA FTA. It’s only USA who got favor through NAFTA. Per Canada, they got into trouble as they wish to realize welfare policy as well as the

12、unemployed is increased gradually. In case of Mexico, Jae-Sung, Lee (2013). International Business and Management, 6(2), 153-157155 Copyright © Canadian Research & Development Center of Sciences and Cultures1.

13、5 Non-Violation Petition In case Korean government give corrective measure to US-based enterprises’s illegal act, US-based enterprises may release lawsuit against Korean government that as US-based enterprises do ge

14、t “expected profits” because of Korean government and ask Korean government to pay back indemnity for “expected profits”.1.6 Responsibility for Government’s VerificationThere are responsibilities that scientific met

15、hod should verify any restrictions that are indispensable.Namely, mad cow disease occurs and though Korean government try to restrict import of US beef, Korean government should verify mad cow disease directly and du

16、ring verification period, mad cow disease will be spread.1.7 Compensation for Damage About Indirect Accommodation The Americans and US enterprise advance into Korea are applied by clause of Korea-USA FTA instead of

17、 Korean government law as superior law. Therefore, even though US-based enterprises conducts illegal act, Korean government cannot restrict US-based enterprises according to Korea-USA FTA clause and in case Korean g

18、overnment try to restrict them, they will release law suit against Korean government in the name of hinder of sales activities.1.8 Concession to Non-Business Set-Up Right Even though US-based enterprises do not esta

19、blish advance entry into Korea enterprise, they are available to run their own business. Overseas affiliated company who do not report registration is not able to be restricted, punished or tax levied by Korean domest

20、ic law. 1.9 Absolute Privatization for Public Corporation and Abolition of Restriction to Foreigner’s Holding Shares US-based enterprises and capitalism can take over Korean high-valued public enterprise. US enterpr

21、ise and US capitalism can attend tender for privatization for medical insurance corporation, Korea electricity, Korea oil corporation, KT, Korea agricultural & fishery product corporation, Korea housing corporati

22、on, Korea water resource corporation, KBS, Korea railway corporation, Korea subway corporation, Korea postal corporation, etc. In case the public corporations who give crucial effects to ordinary people economy is t

23、ransferred into US enterprise or US capital system and is out of control from Korean government, a great rise of public utility charges cannot be controlled at present. As they get out of profits only instead of re-i

24、nvestments, national major industries will be devastated.1.10 Absolute Open for Finance and Capital MarketUS based capital can possess 100% shares of Korean domestic banking institutions. US capital can establish lo

25、an company in Korea and interest rate will be managed through autonomy system.1.11 Clause of No Re-Negotiation Above 11 clauses are not allowed to re-negotiate under any circumstances.2. ANALYSIS OF COMPETITION POW

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