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Considering Korea's highly skilled labor and less competitive wages, the country needs a strategy to attract high-tech firms and distribution service businesses in order to lure more foreign direct investment.
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Meanwhile, the trade body's recent poll of 246 local exporters found that 26 percent of them had moved their production facilities overseas, while another 48 percent plan to do so. More than 70 percent of those planning to move out of Korea said that they would do so within three years. .
A great majority of the local exporters that had moved or plan to relocate their production bases overseas picked China for their destination. They cited the need to cut costs, have a secure labor force and expand overseas markets.
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Separately, another survey by the trade association discovered local makers of Korea's top-10 export goods wanted the government to take measures to address the shortage of cheap blue-collar labor, to reduce distribution costs and to provide tax benefits necessary for facility investments so that the companies can sell more of their products in overseas markets. The top-10 export products - including semiconductors, automobiles and wireless telecommunication equipment - account for about 60 percent of Korea's total exports.
As the economy has grown and investor confidence has increased, inquiries about franchises are more common. With a continued rise in consumer spending, opportunities in this sector are expected to increase. Limited communications and mail delivery capacity in El Salvador are obstacles to direct marketing. However, with privatization, telecommunications are improving and the government is making efforts to upgrade its mail system. Door to door sales and direct-from-television sales are increasing. A joint venture is a contractual agreement in which "a merchant is bound to share, with one or more persons contributing goods or services, the profits or losses arising from one or more of his/her enterprise's operations or its turnover".