Economic Factors Essay

1281 WordsJun 26, 20146 Pages
ECON616-1402B-02 United States and South Korea Professor V. Edginton June 8, 2014 Donna Calloway The differences between the United States (US) and South Korea (SK) have had their individual ups and down as to their overall economy. The following will address several factors such as the comparing of the Gross Domestic Product (GDS), unemployment, interest rates and inflation between each country. The comparison will allow for a clear view as to the overall ability to handle possible adjustments between leaving the company established in SK or to move the company to the US. Gross Domestic Product (GDS) GDP within SK, which is KRW 1,134,864.06 Billion with the real GDP expressed in billions. In 2012, the GDP was 1,103,467.20 stated in billions (Economy Watch, 2014). There is a forecasted amount for 2014, which is 1,179,061.32 billion. The US currently has a GDP of 16,779.7, which is lower than South Korea. “United States GDP decreased at an annual rate of 1.0 percent in the first quarter of 2014, according to the second estimate released by the Commerce Department, which is the worst performance in three years” (Trading Economics, 2014). “It became lower than a preliminary estimated 0.1 percent expansion, due to a sharper fall in private inventory investment and a bigger trade deficit” (Trading Economics, 2014). The overall price index for the domestic purchases increased 1.3% in the first quarter in 2014. Unemployment Rates Unemployment for 2013 in SK is at 3.3%, which makes it ranked 94 in the world ranking, and the forecasted unemployment for 2014 is to be 3.30%, which is the same as 2013 (Economy Watch, 2014). In the US, the unemployment has declined by 1.2% and 1.9 million, respectively. The amount of long term unemployed was unchanged at 3.4 million and that individuals accounted for 34.6% of the unemployed. The labor force was rated

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