The trade effects of the EU South Korea free trade agreement

Abstract

The dissertation concerns the EU-South Korea Free Trade Agreement. It begins by providing a historical development of international trade after World War II. The discussion then focuses on trade in the EU, where three strategies that affected EU trade and its relations with other countries are outlined. Trade in South Korea is also disclosed, covering how South Korea transformed and expanded its economy. Trade relations between the EU and South Korea, how they came about and its significance for both signatories is also conveyed. A case-study design was employed to examine the research question. The analysis of the research question will be examined from a data and a theoretical perspective. Thus, a mixed method of qualitative and quantitative data was utilised. The data was collected primarily through the OEC platform and illustrated in the graphs. The analysis displayed the trade agreement’s effects and determined if it facilitated Member States’ exports to South Korea. The data gathered was analysed using trade theories, such as the Ricardian and Heckscher-Ohlin Model, in terms of comparative advantage, and Krugman’s New Trade theory in relation to Intra-Industry Trade. In essence, the FTA was successful for both signatories, however, certain challenges still persist between them.