Terms Of Trade, Net Export Capacity And Employment Rate Of South Korea

Terms of trade is an important economic indicator in the field of trade. It can be explained by a country's exports and imports exchange price, which can reflect the status of business between different countries is weather good or bad, the transition of the terms of trade whether has inseparable relationship with country's economic development. Net export balance of foreign trade is known as the balance between the total exports and imports of a country or region in a certain period of time. The growth of foreign trade and the improvement of net export capacity bring a lot of foreign exchange to national income, boost the enlargement of a country's GDP and keep a country's economic improvement fast. Employment is essential to people's daily life. The transformation of a country's terms of trade, the enlargement of trade, the fast improvement of net export can improve domestic labor employment and promote the development of domestic economy. They have a lot of relevance, keeping contact and good relations among them, which is very important for a country to formulate foreign trade development strategy, keep the economic policy efficiently, keep the domestic economic grow fast and society being steadily.Since the 1950 s, the South Korean's economic leap and development is closely related to the growth and development of trade. Foreign trade is very important to South Korean. The expansion of South Korea's export trade development make domestic economic grow rapidly, make gross domestic product grow quickly, make the domestic unemployment rate in South Korea keep to driven down year by year.In this paper, terms of trade is as the basic factors of the study. I analysis the price terms of trade index reflecting the interests of the south Korean in the period of 1985-2012, domestic economic development, the ability of import and export and the ability of employment, especially, keep the empirical analysis contact with the change of the terms of trade, it is concluded that the transition of the terms of trade is very significant to economic growth, import and export capacity increase and the influence of the labor employment, which explains the trade development how to promote social and economic development.South Korea has actively adopted the export strategy for many years, which promoted the enlargement of foreign trade and achieved the fast development of South Korea. Through the above studies,I can conclude that: The development of South Korea's foreign trade of country is very important to integrate into the international division of labor system, translate the style of economy, facilitate the distribution of resources, keep the domestic economic grow rapidly, increase the domestic employment, make the national income increase rapidly, which has made much experience and enlightenment. In order to achieve this target, we must transform government functions, put more emphasis on the guiding role of market; improve the export industrial structure; keep constant economic growth to boost the augment of the domestic employment; take advantage of the introduction of foreign capital and advanced technology from abroad to boost national economy.