Do you remember your childhood very well? When you were a child, maybe your parents bought you many toys like a doll, a robot, or a miniature car. In addition, you played with the toys. Many of the toys your parents bought you, there was probably a boomerang; a piece of flat curved wood or plastic material. If you throw a boomerang, the boomerang flies to the sky and comes back to you. When the boomerang flew and returned to us, we were very interested and excited to see its flying figure and course.
There is an economic phenomenon similar to the boomerang’s figure flying to the sky and coming back. It is called the Boomerang Effect. The boomerang effect is the phenomenons that after developed countries give economic aid or invest in developing countries’ local markets, and then the industry of the developing countries re-exports to developed countries and starts to compete sharply with the markets in the developed countries. Furthermore, the industry in the developing countries re-exports to developed countries and overwhelms the industry in developed countries. In globalization, the boomerang effect is becoming a more frequent event than in the past times of our life.
The Boomerang Effect occurs in economic relationship of individuals, teams in a country. Nevertheless, many people have taken more interest in Boomerang Effect occurrences between a country and another country. The worldwide Boomerang Effect is a matter of common interest among globalists, and a growing interest to most people. In addition, in the current trend, many press agencies have used the Boomerang Effect as a news item.
There are various parts to the occurrences of the Boomerang Effect that is near to our living. First, there is the typical economic Boomerang Effect. Another representative example of the Boomerang Effect is the impressive improvement of Japan and Germany after World War II finished. Japan and Germany were in severe ruins after the war because they were war criminal nations. However, several developed countries including America helped Japan and Germany. Several countries invested money to Japan and Germany and they took the technical assistance offered. These aids helped make these two countries, Japan and Germany to grow prosperous again. Especially, Japan’s industrial part is impressive. Cars, appliances, and the heavy chemical industries made in Japan have re-exported and threatened America and many developed countries in Europe.
Another example is Korea. Semiconductor production technology in Korea is the best in the world. However, the production technology was not developed by Korea. A long time ago, America and Japan, these nations developed semiconductor production technology, and then helped Korea. They initiated the technology into Korea. At first, Korean enterprises tried to improve the semiconductor industry in Korea. After making the foundation in their own nation, they started to extend their business to world market. At first, because of powerful nations, already advanced in the world semiconductor market, Korean enterprises had a difficult time selling semiconductors. As time went by, Korean enterprises succeeded in world market, and made inroads into the nations, having taught the Korean companies. Now, the relations are converse. The Korean companies are threatening America, Japan, and so on.
This Boomerang Effect is also occurred in sports. Athens Olympic in 2004 is an example that makes you understand well the Boomerang Effect in sports. In the Athens Olympics, Taekwondo was officially recognized as a regular game. Moreover, Taekwondo is a Korean traditional sport; so many people expected to win all games and get all medals by Korean athletes. However, contrary to our expectations, Korean athletes fell in the games. Because Korean coaches taught foreign athletes and they overwhelmed Korean national athletes. Although a Korean Taekwondo athlete, Moon Dae-sung, won the final game and saved face as he got the gold medal. The Athens Olympic games were a serious problem to officials in Taekwondo. At that time, the Association of Taekwondo officially warned all national players and coaches about the Boomerang Effect.
Moreover, archery was in the Boomerang Effect. Archery is a sport that Korean players do best in the world. Like Taekwoundo, many Korean people expected to win in tournament series in male singles. However, because of an Australian player educated by a Korean coach, the Korean star players fell off. After the game was over, the Korean coach said, “ The Boomerang Effect in archery is very serious”.
Then, why is the Boomerang Effect occurring in the world today? In nations where technology or industries are more developed, individuals are helping them and translating the technology to nations where technology or industries are not more developed. Because there are yet capacities for improvement in developing countries. These capacities and the translated technologies can meet in developing nations.
However, there are not only positive side effects. The Boomerang Effect has a negative side, too. Developing countries improve and develop the technology initiated by developed countries that educated developing countries. In addition, the technology gets back to developed countries. That is, there can be more serious and complicated competition than exchange relations.
For example to be representative positive and negative sides related to the Boomerang Effect is extending to the Chinese market of worldwide IT (Information Technology) enterprises. First, worldwide IT enterprises were enchanted by great and bright Chinese market. Therefore, they made a new market. China became their student. According to a statistical data about the Boomerang Effect, 90 percent of about 100 worldwide IT enterprises made tChina their market. The worldwide IT groups educated China and China’s IT technology could improve more and more. Therefore, the worldwide IT companies could gather great wealth in their Chinese market, and China could improve their IT technology.
However, as time went by, China’s IT tech surpassed developing countries’ technology markets and took the foreign markets developed countries had already made by using an aggressive sales strategy.
Especially, Korea IT technology is more serious than other countries IT companies. Korean companies have wanted to establish production factories in China. In addition, they have propelled to cooperate with Chinese IT groups for production. Nevertheless, there are great possibilities that China’s government will take the systematic policies for their IT technology. Therefore, we have to think of the Boomerang Effect.
In the future, economic exchanges between a country and another country will be more and more universal to us. Therefore, helping each other will be more frequent and the Boomerang Effect will be more serious and more common, too. If so, is there any method to prevent the negative side effects of the Boomerang Effect? How will we avoid negative side effects of Boomerang Effect? We must know figure out how to measure the Boomerang Effect. If the figure of the Boomerang Effect is not changed, the flying course of Boomerang is also not changed. That is the Boomerang Effect’s figure means that the current technology and capitalism is improving technology.
The Boomerang Effects flying course is serious in its fluctuations and current technologies of competitors are working as expected. That is to say, if the thing that we are doing right now is like the Boomerang Effect getting back to us some day, we have to foresee accurately the figure of flying boomerang and prepare to hold safely the returning boomerang. Therefore, we should think again of the Boomerang Effect that has already deep infiltrated into our life.