Gumi, South Korea (Furlong Colony 1) - Production at the Daewoo Electronics located in Gumi was stopped Monday due a dramatic decrease in exports sold to the United States. Workers have been given a three week vacation until unsold product is sold. At the end of the three week vacation, company workers are to receive a welfare check from the government, paid to them from the Korean government's mutual fund investment profits.
By Wednesday, Samsung and LG factories in the area had followed Daewoo Electronic's lead. Analysts had initial thought that only Daewoo Electronics employees would be given vacation time, because Daewoo doesn't have a strong market presence domestically. LG and Samsung are big sellers here in Korea, hence assuring them an influx of revenue even if their export sales decrease.
Wednesday, November 26, 2008
Receding Export Sales Bench Factory Workers in Gumi
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8 comments:
The weak shall fail. The strong shall survive. Daewoo is dependent on a failing economy, poor strategy. They deserve to fail. But no worries, the world is not ending, South Korea can still buy their TVs as they have two other domestic electronics companies that can stay profitable without the US economy.
You seem to be forgetting about LG and Samsung.
Those are the two companies I referenced.
The international economy is not a collection of domestic economies, Josh. It's integrated. When transnationals start going down, entire economies go down.. Samsung and LG and Hyundai are massive chunks of the South Korean economy.
And companies will learn to profit from selling products to countries other than the US.
Yeah, Zambia has a lot of natural wealth..
Who is talking about Zambia?
I'm suggesting that natural wealth is an important factor to the rise of an economy. I'm also suggesting that Korea only has limited resources and is hence forced to export.
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