Korea's Export Transformation 04 | From Domestic to Overseas Production: How Exports and Profit Models Change
Korea's Export Transformation 04 Contents The starting point: production at home, sales abroad Overseas production changes the measurement boundary Export substitution and new export demand can coexist Assess the complete cost of producing abroad A worked example: revenue is not profit Where SME suppliers can enter Frequently asked questions Final checklist Key takeaway A Korean company’s overseas sales are not the same measure as Korea’s customs exports. Local production abroad can replace finished-goods exports while creating demand for Korean components, equipment and services. Track production location, the selling entity and value retained in Korea separately. 1. The starting point: production at home, sales abroad When a factory in Korea sells its output to a foreign buyer, domestic production and the physical export shipment are closely connected. Even in this simple model, export re...