How is it possible for North Korea's economy to grow in spite of United Nations sanctions on North Korean exports of iron, coal, lead, seafood, textile, labor, and North Korean import of oil.
North Korea has developed into a country where everyone is essentially out to make money to survive. Nearly every organization in North Korea - whether government or private - is a revenue-generator to survive.
The central state firms of North Korea has developed sophisticated methods of evading sanctions, including networks of ever-changing front companies with fake registration, multiple bank accounts, and vague or misleading documentation. North Korea's diplomatic outposts around the world have become the locations for front companies and brokers.
Ordinary North Koreans have built up small private, unregistered business, buying and selling wares in private marketplace and engaging in their own foreign trade.
Because North Korea ban private enterprise, private companies, original owners are hired as managers by the cooperative state official and they gain political protection for a fee and a cut-off the profits.
North Koreans have built strong smuggling networks, with the consent of North Korean and Chinse government officials. North Koreans have developed a range of means of importing and exporting goods across the China-North Korea border. Boats cross the Yalu and Tumen rivers in the summer and trucks drive across the ice in the winter, as paid-off border guards look the other way. At sea, Chinese smugglers meet their North Korean partners in international waters to exchange goods.
The smuggling networks between North Korea and China became efficient because North Korea is such an economic basket case. Many traders prefer smuggling because it allows them to minimize the impact of North Korea's political instability.
http://foreignpolicy.com/2017/10/10/how-to-succeed-in-business-in-north-korea/
North Korea has developed into a country where everyone is essentially out to make money to survive. Nearly every organization in North Korea - whether government or private - is a revenue-generator to survive.
The central state firms of North Korea has developed sophisticated methods of evading sanctions, including networks of ever-changing front companies with fake registration, multiple bank accounts, and vague or misleading documentation. North Korea's diplomatic outposts around the world have become the locations for front companies and brokers.
Ordinary North Koreans have built up small private, unregistered business, buying and selling wares in private marketplace and engaging in their own foreign trade.
Because North Korea ban private enterprise, private companies, original owners are hired as managers by the cooperative state official and they gain political protection for a fee and a cut-off the profits.
North Koreans have built strong smuggling networks, with the consent of North Korean and Chinse government officials. North Koreans have developed a range of means of importing and exporting goods across the China-North Korea border. Boats cross the Yalu and Tumen rivers in the summer and trucks drive across the ice in the winter, as paid-off border guards look the other way. At sea, Chinese smugglers meet their North Korean partners in international waters to exchange goods.
The smuggling networks between North Korea and China became efficient because North Korea is such an economic basket case. Many traders prefer smuggling because it allows them to minimize the impact of North Korea's political instability.
http://foreignpolicy.com/2017/10/10/how-to-succeed-in-business-in-north-korea/
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