Answer to Question #263273 in Economics for Nalyn

Question

How does the form of economic system of South Korea and North Korea affect their state of

economy?

Answer 1

South Korea operates one of the world's most advanced market economies, while to the north its neighbor is a military dictatorship with command economy that keeps a tight fist on the economy. The North continues to face challenges in food and nutrition among other difficulties.

While North Korea's trade with the outside world has almost totally ceased, South Korea has become one of the world's most important exporters.