Focusing on the unique problems of small and medium businesses that are engaged in international trade, this paper constructed strategic Free Trade Agreement (FTA) implementation models for the four top most competitive industries namely food, cosmetics, automotive parts and accessories, and biomedical instruments in Gangwon province. This study found that for all of these industries, where applicable, undergoing a Change in Tariff Classification (CTC) is the easiest method of gaining a tariff reduction. Where this is not applicable, meeting either Wholly Obtained Criterion (WO) or Value Added Criterion (VAC) is usually a possible alternative. This study further determined that in some industries, a logistics hub strategy will reduce both tariffs and transport costs. It is hoped that this research will increase the utilization of Korea s various FTAs among Gangwon province s small and medium businesses. Furthermore, this research could also be done in other provinces of Korea so that the FTA provisions could be utilized more across the country.
Abstract
Ⅰ. Introduction
Ⅱ. The Present Condition of Gangwon Province s Competitive Industries
Ⅲ. Product Specific Rules
Ⅳ. FTA Business Model
Ⅴ. Conclusions and Future Study
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