Comparative Economic System Term Paper Example | Topics and Well Written Essays - 1750 words

Comparative Economic System - Term Paper ExampleOn the contrary the politics of North Korea in order to improve the economic system plans and develops strategies and nonetheless focuses on its major goal of being prosperous and a strong nation. The North Korean government gives more importance to the foreign investment and considers this to be the tool for improving living standard of the region. However the overriding concern of the government is its political restrainer that is likely to inhibit certain fundamental reforms in the present economic system of the region.According to Gregory & Stuart (2013), the economy of South Korea grew enormously and the structure of the economy has even transformed radically since 1962 with the support of First Five Year Plan of Economic Development. The gross national product of the region had expanded by 8% annually. In 1962 GNP of South Korea was US$2.3 billion which developmentd rapidly and in 1982 it became US$204 billion. The economic gr owth that rapidly increased however slowed down in the twelvemonth 1989. In comparison to the previous year, the growth rate was decreased to half and even there was an increase in inflation rate which was associated with rapid increase of wages. In the year 1990, the region even had witnessed a trade deficit and the various forms of developments indicated slowing down of an economy that was rapidly maturing. However the domestic contend of South Korea was increasing that clearly stated that the economic system would be healthy until there is no such political crisis that would create an adverse kernel on the economy. The growth of industrialization in the country was majorly due to the adoption of a system that was more of outward looking in the year 1960. This strategy proved to be very effective as the natural resource endowment was very poor in this region, the domestic market was small and nest egg rate was also low. There have been great economic reforms in