Question

Questions:

1. Explain why has North Korea been imposed with economic sanction?

2. Justify how does a business is done in North Korea?

3. Determine the challenges of foreign businesses faced when doing business with North Korea?

4. There is a study conducted by 2018 Global Slavery Index compiled by the Walk Free Foundation, more than 2.6 million people in North Korea are subjected to forced labor and exploitation by the state. Explain forced labor and exploitation that were done by the North Korea government?

5. Discuss whether the political economy of North Korea could be a potential market if the UN lifted the economic sanction. Would you suggest your company to invest and has business relationship with North Korea?

Answer 1

1] North korea has continued to work on developing & testing Missiles . And the same program is continued for Nuclear weapons . So U.S. continiously kept pointing at this in U.N.O  & it resulted into cold war between U.S & North Korea.   

2 ] In North korea , state companies are declining & private firms are rising as government is supporting private firms to increase employment . work force labours are created by force to run the business economy .  Now the economy is purely a command economy .

3 ] In Foreign businesses , Importers & exporters from North korea & other countries both side faced lot of economical problems . Major exporters of OIL such as saudi arabia & other countries faced loss .  

4 ] Due to lot of Economic sanctions there is a huge negative trade balance in  North Korea . The supply of oil to North Korea has been stopped . As we know oil is essential for fuel - the backbone of trade& transportation is has become scarce . so North Korean government have banned on private vehicles & only public transport is allowed to save fuel .    so under these situations , it has become necessary to start production of various commodities to make the country self dependent as much as possible . As a result , 2.6 million people  in North Korea are subjected to forced labor and exploitation were done by North Korean government .

5 ] If the U.N lifted economic sanctions , theres a possibility that North korean govt would important steps to attract foreign investments & highly increase import & export which would be highly beneficial for business partner countries. because North korea is suffering from   ' economic lockdown ' ( may be equal to or worst than covid -19 lockdown recession )  from few years .

In current situation , its not just a trade war . Its an international political war . before U.N imposed economic sanctions on North Korea , U.S. started to impose Economic restrictions on countries trading with North Korea . The U.S president had already threatened world for not to co operate with North Korea at any level . The barrier is not just U.N , actually its the U.S govt & especially the U.S president . So under such situations , I would not  suggest my company to invest and has business relationship with North Korea .