Procedures that you need to follow when exporting
After establishing that South Korea is an economy with an increasingly more liberal economy, there are some problems for foreign direct investment, mainly through non-transparency and burdensome regulations (Heritage Foundation). In order to take it a step further and to perform a complete analysis of the business environment, it is necessary to compare the business procedures when doing business. As an industry, the imports of foreign goods procedure will be analyzed and contrasted with neighboring countries in order to have a complete snapshot of the business environment.
Firstly, The country of interest: South Korea. In what the import of foreign goods is concerned, South Korea has a relatively quick and easy process. Importing procedures are estimated to take 7 days, (2 days for each: preparation of documents, port handling and inland handling and approximately 1 day for customs clearance). The cost of the procedures for the 7 days is estimated to be $790 (World Bank Doing Business, 2011). This information, at first glance seems positive. The procedures are fairly quick and the $790 cost is not an absurd amount of money paid in order to import goods. The bureaucracy is simple. The documents needed are: the bill of lading, customs import declaration and terminal handling receipts (World Bank Doing Business, 2011).
Corruption Perception Index
The latest corruption perception index by transparency international in 2008 includes five sets of data. These include: the 2008 Corruption Perception Index (CPI) score, the amount of surveys used, the standard deviation, the high low range and the confidence range. Before the analysis of the data, it is important to understand what each variables represent. (ICGG, 2008)
To best study the corruption perception index of South Korea we will compare it with the neighboring countries of Japan and China. South Korea has a CPI score of 5.6 and is ranked in the 40th place, China has a score of 3.6 which ranks the socialist country in the 72nd position and finally Japan ranks 18th in the world with a score of 7.3 (ICGG, 2008).
China, being the closest to zero is the most corrupt of the three. South Korea on the other hand is ranked in the middle with a score of 5.6, which tells us that with a 0.6 difference from the median scale, they have a tendency to be more transparent than corrupt but are still far from being considered as transparent as Japan with the score of 7.3 out of 10 (ICGG, 2008)
The standard deviation, which represents the difference in values of the sources, shows that in the case of Japan the sources are in agreement with a score of 0.5. On the other hand the Peoples Republic of China and the Republic of South Korea have a score of 1.1, which represents an important level of disagreement of the sources. This can be seen in the high low range where the values of Japan range from 6.3 to 8.1 and those of South Korea range from 3.8 to 8.0 and...