Professor gives keynote address in South Korea

Professor Alan Rugman wanted to put his already-extensive credentials to better use.\nWhen he was offered the opportunity to be the keynote speaker at a nationwide symposium on South Korea's foreign direct investment policy, he jumped at the chance.\nIn his second trip to the country, Rugman — the L. Leslie Waters chair in international business, professor of management and business economics and public policy and director of the IU Center for International Business Education and Research — visited South Korea from Oct. 30 to Nov. 4 of this year. While visiting the country, Rugman met with the country's president, prime minister and the minister of commerce, industry and energy.\n"It was a long trip," Rugman said. "The events I was involved (in) were very interesting. I was impressed with the competence of the ministry of commerce, industry and energy. They have largely English-speaking officials, and they interact with foreign investors."\nDuring his visit, Rugman attended various events with the chief executive officers of companies such as Fuji Xerox, 3M Korea and Magna International Korea. These corporations are sending signals that they want to attract foreign investment and want to have high quality knowledge-based investment, he said.\n"Korea has come up the curve; it's no longer a cheap labor place," Rugman said. "That role is filled by China. Korea has very skilled workers and is developing clusters of firms, which include foreign and Korean firms."\nOne of the issues discussed on his trip was the need for free-trade agreements between South Korea and other major industrial countries. Currently, negotiations are underway for a free-trade agreement between South Korea and the United States and between South Korea and Canada, Rugman said. When he met with the Korean president, Rugman learned there is talk of free trade between South Korea and the European Union. \n"The reason they need these free-trade agreements is that the (World Trade Organization) has failed to include a multilateral agreement," Rugman said. "Countries like Korea have to do these bilateral trade agreements with Canada, the European Union and so on."\nRugman said he spoke in favor of these agreements because they help promote the economic development of Korea, they give access to the American market and they allow American firms to invest in the country.\nPrior to his visit, Rugman co-authored a paper titled "Multinationals, Globalization, and Public Policy Towards FDI in the Republic of Korea" with In Hyeock Lee, a graduate student. The paper details his reasons why South Korea should have an open door for foreign investment. His argument is that foreign investment would help upgrade its economy and, in turn, produce Korean multinationals.\nLee, who had experience working for the Korean government under the minister of commerce, industry and energy, said Korea started to attract foreign direct investment because the country wanted to overcome a financial crisis. This is why Rugman was contacted to give the keynote address, he said.\n"Professor Rugman is a big name in international business, focusing on foreign direct investment," Lee said. "So, he must be the most credible expert in foreign direct investment."\nLee said Rugman's meeting with Korean officials is important because he can give advice so the Korean government can formulate better ways to make direct foreign investment.\n"I believe he made a great contribution toward public policy in Korea," Lee said.\nP. Roberto Garcia, clinical associate professor of international business and one of Rugman's colleagues, referred to him as one of the leading scholars in the field of international business. Garcia also said Rugman is a very important academic and researcher in the field.\n"He's very active in the application of international business theory by helping governments and companies," Garcia said. "That's very valuable. It's valuable in terms of students and our field. It communicates that his research is applicable and has relevance in the real world"