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1) US fast food franchises are famous the world over, McDonalds, Burger King and Wendy’s are the three biggest fast food chains in American. Hardee’s is a Canadian fast food chain and Hardee’s has broken into a little alcove in the American market. The American Fast food market is one of amazingly high competitiveness and is overly saturated so the companies have begun to look over seas. South Korea you would thing would have felt the full force of American fast food chains in their country considering that, the young teen population are loving anything for the West. Plus the fact that the highly respected Wall Street Journal published a risk analyses of a 129 countries and South Korea came in at 27th after all the risks where accessed. The reasons for the low level of foreign investment comes down to three visible and invisible things 1, the trade restrictions imposed by the government on foreign investors (Visible) 2, the South Korean domestic business unwillingness to let foreign competitor compete (invisible) and 3, the unsure felling older generation have of the American people after the Korean war (invisible).
So what trade restrictions do the Hardee’s encounter when working in the South Korean trade system will steam from the three reasons I have just mentioned.
The South Korean government has made foreign investments really difficult. ...
1) The Government has put high tariffs and limits on certain product the fast food companies have to bring in. ... While the South Korean government have privately pledged not to target imports, it has not publicly objected to rallies against promotion of unfounded imported food safety scares by government-funded “ consumer groups”. ... The government also make it difficult for Hardee’s to bring in capital from the US the Korean government can refuse the company from bringing in capital from outside South Korea.
5) Due to the lack of education the South Korean consumers have about foreign companies the Domestic businessman uses this to make it difficult for foreign companies to compete. ... The Korean war has made South Korean’s wary of the US and companies, Although the young teens love everything American the older remember the war and still hold resentment so Hardee’s should be wary of anti American feeling from older generations.
2) Cultural Environment
Investing in South Korea is very attractive with Seoul (the capital city) young population crying out for all things American. So why when the young people really want American fast food and music does the South Korean businessmen and government apposes foreign investment. ...
After the Korean war 50-53 and divide of North and South Korea. An anti-American feel grew in South Korea as it took a long time for South Korea to get back on its feet after the war. South Korean individuals are inclined to view themselves as tightly knit national community with a common destiny. They have a very intense sense of nationalism and pride with where South Korea’s place in the world is.
Approximate Word count = 2508
Approximate Pages = 10
(250 words per page double spaced)
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