Chapter 5
TRADING INTERNATIONALLY
Opening Case Discussion Guide
For those who question the value of trade, the opening case makes a very convincing case
for the benefits of trade although it is not a totally air tight case. It presents the evidence:
Korea was split into two countries (north and south) that were similar in many ways
(language, culture, etc.) except in terms of their political economic systems and policy
regarding trade. South Korea was relatively free and embraced trade and North Korea
was just the opposite. Today North Korea is among the poor countries of the world and
South Korea is among those that are more prosperous.
1. Why does North Korea choose to isolate itself economically?
2. Why does South Korea embrace international trade?
3. Why has North Korea remained very poor, whereas South Korea has become a
developed economy?