ABSTRACT
This chapter focuses on trade between the two countries is much more important for Korea than for the United States, and the US trade and payments position and policy regime are better known than Korea's, the Korean situation can be emphasized. Trade structure can be analyzed according to the distribution of exports and imports by commodity and country. Korea's export structure has become more capital and technology intensive in accordance with shifts in comparative advantage as investment in physical and human capital has outpaced labor-force growth. Some features of Korea's trade and payments have contributed recently to growing trade friction with the United States. Shifts in comparative advantage, for example, have caused Korea's new exports to compete with previously unaffected domestic products in the US market. Another problem is that concentration of Korean exports in the US market increases any disruption that might result from new competition.
