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Dynamic Consequences of a Korea-U.S. Free Trade Agreement: Foreign Direct Investment
Published May 25, 2011
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The trade agreement between Korea and the United States will have implications beyond trade. Chief among these is the probable stimulation of direct investment into Korea by U.S. companies and those from other countries. Despite rapid increases in foreign investment during the past decade or so, Korea is notable for its relatively low receptivity to foreign firms. Therefore, the likely increase of such activities will have a disproportionate effect on the Korean economy.

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