chapter  9
22 Pages

Globalization and Korea's Development Trajectory: The Roles of Domestic and Foreign Multinationals

This book started out as an exploration of Korean ODI and the rapid expansion of indigenous multinationals in the 1990s. This last chapter builds on all the contributions of the book to interpret the recent turnaround in favor of a more open policy towards FDI. It draws on the conclusions of the various chapters with respect to

the two major issues studied in the book. First, the analysis of the specific profile of the Korean multinationals shows that they had relatively weak competitive advantages and that they have been pushed to internationalize too rapidly by a mix of protectionist pressures and oligopolistic rivalry or, alternatively, by the need to source technology abroad. This goes a long way towards explaining that their ambitious international strategies were not sustainable.