Saturday, December 11, 2010

The FTA and the problem

As the trading become more freely since the FTA, there is damage to week industry in the certain country. For example, in case of South Korea, as the agricultural markets opened, the domestic agricultural was severely hit because people prefer the cheaper one from foreign countries. That is why the farmers in South Korea are strongly against opening domestic agricultural markets to the United States. It could cause the extinction of Korean best quality cow, in other word, yellow cattle. Compare to Korean beefs, American beefs are much cheaper, so it is obvious that people want to buy beefs from America(Korean restaurants tend to sell American beef in cheaper price by lying that it is Korean beef). This leads to a reduction of the Korean beef and famers. As a result, United States will increase the price of their beef by assuming that Korea has a lack of productivity, which means that we have to eat beefs that are much more expensive. Second of all, it could also lead to the centralization of population to the city because people know that the livestock industry in Korean is unstable, and lastly, people might feel a danger in their food security due to the weakness of livestock industry in South Korea.

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