Breaking Bread: Potential Solutions
With any economic issue, it is a multi-faceted problem that can have any number of solutions to fix it. My first suggestion, and the most realistic option, is to specialize the economy. South Korea cannot possibly muster up the ammunition to compete with larger markets, but they possess valuable trading partners all across the globe, in particular both the U.S. and China. Korean-made electronics and computer products are both high-performance and low cost. However, the political situation in South Korea is a bit tumultuous, as former President Park has been removed from office following a bizarre corruption scandal, one involving a manipulative cult leader. Because of these recent events, it makes it difficult for foreign trading partners to make long-term business decisions with a nation whose government has lost the trust of the global community. With that in mind, I believe it could be of the benefit of South Korea to offer temporary tax incentives for businesses and exported goods. Profits in the short-term will diminish slightly, but the expectation is that Korean-made goods will still sell, and future industries will have a bonafide financial incentive to develop the Korean marketplace. Another solution I have been probing, but I consider far less likely, is to achieve a lasting peace between both North and South Koreas. While there is plenty of bad blood and propaganda on both sides, both nations would immediately benefit in the short-term by having each other as trading partners. In addition to gaining a new economic pipeline, the hope is that opening up North Korea to the world could usher in a whole new flow of people, ideas, services, and goods. What can be easily observed though is how the participation in a global economy can bring great benefit. In essence, North Korea is ultimately damaged by their position in the global economy. However, in conclusion, it is imperative that South Korea acts swiftly to regain the trust of the global community before they lose their niche in the economy as specialized producers of goods (Soo Cha, M).
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