A case study on:

“Schools of Thought in Context: South Korea and Argentina”

A student analysis

Submitted by:

Cornista, Claire L.

Khalil, Shehairah

Khalil, Shehanah

Rivas, Kimberly Anne L.

Submitted for:

Economic Development - AEC 14 (Block ACD)

Submitted on:

July 16, 2019

Introduction

For this case study, we will be tackling about the examination of two countries - South
Korea and Argentina. The four broad approaches to development will help us know the
difference development process of the two. Based on what we have read, out of the two
countries, South Korea is the one who is rapidly ascending.

Its stages of growth shows how investment ratio rose dramatically to 37% of GNI by 1990.
Their structural pattern shows the increasing of agricultural productivity, the steady growth
of the capital stock and of education and skills, and the high to low fertility. Despite South
Korea’s dependence on US, they were able to graduate as a developed-country. And last
but not the least, their neoclassical counterrevolution shows how South Korea provides
an example to a government overcoming coordination failures. However, what is
happening in Argentina is the complete opposite. The four approaches of development
instead served as vindication for them and has posed challenges to their universal
importance.

Problem Statement

Government failure exists in Argentina because the country lets the export real prices fall
lower than imports.

Alternatives

1.Build & create viable manufacturing export industries

Argentina is unable to create these because of multinational corporations. With

these they’d be able to focus more on improving the country’s export and there would be
control and management over it.

2.Higher Non Tariff Barrier

This is a way to restrict trade using trade barriers in a form other than tariff. It
includes quotas, embargoes, sanctions, and levies. As part of a political or economical
strategy, large developed countries frequently use these barriers to control the amount of
trade they conduct with other countries.

Proposed Solution

By raising the prices of imported products and making them less attractive consumers
or restricting the availability in favor of domestically produced versions of the same
good, non tariff barriers will help protect the domestic producers from foreign
competition.

Recommendation

Applying Licenses, quotas and ad valorem tariffs to foreign products. A license is

granted o a business by the government that allows the business to import a certain
type of good in the country. Import Quotas are restrictions placed on the amount of a
particular good that can be imported. Ad Valorem Tariff is a tax imposed on the basis of
the monetary value of the good.