Final answer:
South Korean automobile producers use an Export-oriented production strategy, focusing on selling abroad rather than just domestically. This approach has fostered development and industry growth, aligning with international trade principles and economies of scale.
Step-by-step explanation:
When South Korean automobile producers sell more of their Korean production overseas than they do in South Korea, their business strategy emphasizes Export-oriented production. South Korean corporations like Daewoo, Samsung, Kia Motors, and Hyundai have grown a substantial manufacturing sector focused on the global market, showcasing South Korea's dynamic comparative advantage. The strategy is rooted in international trade and economies of scale, enabling these producers to supply large quantities of automobiles around the world, providing competition and consumer choice while optimizing production costs.
No country has found sustained success through a strategy of import substitution where the goal is to manufacture goods domestically rather than import them. In contrast, South Korea has successfully implemented an export-led growth strategy, which has contributed not only to its development but also to global economic dynamics that foster competition and innovation in the automobile industry.