A big disaster comes from 'Subprime mortgate' and impact of this in Korea
About 2 years ago, a huge credit crisis happened from America. That was so serious. So many people lost their work and became homeless. There were even some people who suicide due to it. As you know, now is globalization and America is one of the best country in the world. Thus, the impact was so big and wide against other countries. Many countries also was damaged because of this. The main reason that it happened was subprime mortgage. Many people who loan the money from bank when they invest the real estate or buy house could not return the money. So, big banks faced the worst situation.
As I mentioned, because now is globalization, the money can flow other country freely. So many American investors wanted to withdraw their investment from other countries and they did. So naturally, many countries lost much dollar and the value of the dollar highly increased. As a result many countries faced credit crisis. This is also damaged to South Korea.
Firstly, I can say that South Korea economic is depend on the situation of export. According to economics theory, when the value of the dollar increased, many exporters can get much benefit. Unfortunately, because South Korea doesn’t have any resource, when Korean companies make some products, we have to import the main ingredient from other countries. So we have to pay much dollar when we buy main ingredient. Also when the situation of the American economic is worst, American tend not to import products from other countries and America is the main country of exporters of Korea. Thus, South Korea had damages.
Secondly, it is also related the increased value of the dollar. During this season, I could read sad news in newspaper. Frankly speaking, Korean parents have much interest about education of their children. So there are parents go to America to improve their children’s English ability. Also there are also some families to live separately. In this situation, many fathers send the money to their family who stay in America. So during the season, many fathers felt hard because the value of the South Korean money decreased. Thus, many father had to send and earn much money than before. Finally, there were even some fathers who suicide because they had much burden. So whenever I saw these news, I felt sad.
I just write about a short of background and impact of the crisis in Korea with examples. Now, the credit crisis also has not solved clearly and many countries still feel hard. In this situation, many economics have to find some clear solution to solve this problem. And we also have to study economics hard and know the situation exactly.
As I mentioned, because now is globalization, the money can flow other country freely. So many American investors wanted to withdraw their investment from other countries and they did. So naturally, many countries lost much dollar and the value of the dollar highly increased. As a result many countries faced credit crisis. This is also damaged to South Korea.
Firstly, I can say that South Korea economic is depend on the situation of export. According to economics theory, when the value of the dollar increased, many exporters can get much benefit. Unfortunately, because South Korea doesn’t have any resource, when Korean companies make some products, we have to import the main ingredient from other countries. So we have to pay much dollar when we buy main ingredient. Also when the situation of the American economic is worst, American tend not to import products from other countries and America is the main country of exporters of Korea. Thus, South Korea had damages.
Secondly, it is also related the increased value of the dollar. During this season, I could read sad news in newspaper. Frankly speaking, Korean parents have much interest about education of their children. So there are parents go to America to improve their children’s English ability. Also there are also some families to live separately. In this situation, many fathers send the money to their family who stay in America. So during the season, many fathers felt hard because the value of the South Korean money decreased. Thus, many father had to send and earn much money than before. Finally, there were even some fathers who suicide because they had much burden. So whenever I saw these news, I felt sad.
I just write about a short of background and impact of the crisis in Korea with examples. Now, the credit crisis also has not solved clearly and many countries still feel hard. In this situation, many economics have to find some clear solution to solve this problem. And we also have to study economics hard and know the situation exactly.
Sounds like the crisis has hit every country very hard! I find it interesting to read how the Koreans send (parts of) their family abroad in order to learn to speak English properly.
ReplyDelete