South Korea Vs. Brazil Automotive Industry Final Paper Essay

4027 words - 17 pages

Comparative Display of South Korean and Brazilian Automotive Industrial Policies in the 20th
and 21st Centuries
The evolution of the automotive industries in South Korea and Brazil have proven to show
impressive results throughout the years. Around half way through the 20th century the
automotive industry began to play an important role in the economy of not only these two
countries, but on a global scale. Although there are many countries such as Malaysia and
Thailand, who also experience growth as a result of the development of their automobile
industries, the focus is on a national level, specifically with desires to satisfy local demand.
Countries such as Brazil and South Korea, however, have displayed desires to implement
themselves in the center of world market. Both South Korea and Brazil are late industrializing
countries, and have only recently in the past decades began to become “developed” and
economically prosperous. However, although they are "late" to the game of industrialization, this
by no means reflects a lack of success in industrialization and growth, which has evidently
occurred throughout the past 70 years. The use of strong protectionist measures characterizes the
industrial policy related to automobiles within South Korea and Brazil at the beginning of their
development. Similarities between South Korea and Brazil begin to diverge when observing
specific strategies that governments use in order to advance the industry, especially during times
of crisis. Specifically, the 1980’s, 90’s and early 2000s financial crises prove to have significant
effects on the industrial development of the automotive industry within each country. The
following analysis will give a structured display of the similarities and differences displayed
within the policies targeted towards the automotive industries of South Korea and Brazil within
the past 60-70 years and how such policies effected the industry’s growth.
To begin, it is important to understand the conditions under which the automotive
industries emerged within South Korea and Brazil in the 20th century. For South Korea, the
automotive industry can attribute its beginning to the rise of Park Chung Hee in 1961. When
Park came into power, he began addressing economic issues by implementing his five-year plan.
This five year plan was aimed at encouraging economic development; at the center of its policy
was import substitution industrialization (Kurien, SK history 1). The government aimed to gain
control over the economy by focusing its resources towards specific industries such as the
shipbuilding industry, electronic industry and the automobile industry. Through this plan, the
government began to gain a lot of control over the production procedures of automobiles as well,
and desired to have control over imports, specifically completed automobiles, coming in to South
Korea (Wells, 103). In general, the government made it extremely difficult for foreign made cars
to enter in to the...

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