Event

Effect

The price of McDonald's "Big Mac" hamburgers in South Korea increases.

This statement is true. Even though most of the ingredients of a "Big Mac" can be obtained in Korea (and thus are not affected by the drop in the value of the won), the Korean restaurant must pay fees to the McDonald's Corporation in dollars. As these dollars are now more costly, the restaurant in South Korea must increase it's prices to compensate. Of course as the price of Big Mac's increases, the sale of hamburgers decreases, causing some McDonald's restaurants in South Korea to close.

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Predicted Effects of the Economic Crisis in South Korea

Event	Effect
Koreans flock to United States colleges as the price of college tuition increases at South Korean universities.	This statement is false. Actually many South Korean students attending American universities are having to return home as their parents can't afford to pay tuition to American colleges that now cost much more in terms of Korean won.

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Predicted Effects of the Economic Crisis in South Korea

Event

Effect

American tourists increase purchase of souvenirs in South Korea.

This statement is true. As the value of the South Korean won decreases in terms of dollars, tourists from the United States will find they can purchase much more in Korea with the same number of dollars. This fact is actually helping some American corporations. United Parcel Service expects to ship many more parcel from South Korea to the United States this year as a result of Americans taking advantage of bargains in South Korea.

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Predicted Effects of the Economic Crisis in South Korea

Event

Effect

Americans with relatives living in Korea send dollars to their families.

This statement is also true. Americans with relatives living in Korea are sending dollars (which are now worth many more South Korean won) to their family members. These dollars are especially useful to those who have lost their jobs in South Korea due to the effects of the currency crisis. Relatives are also sending gold jewelry home as the price of gold in terms of South Korean won has increased as well.

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Predicted Effects of the Economic Crisis in South Korea

Event	Effect
Electronics firms on Maryland's Eastern Shore increase production as sales to Korea soar.	This statement is false. Actually at least one Eastern Shore firm has closed because of the drop in sales of its products to South Korea.