Reunification

Let us assume that situation of North Korea is quite similar to that of East Germany just before the fall of the Berlin Wall. Suppose that a new government led by moderate pragmatists emerged in North Korea. South and North Korean governments began high-level talk to discuss stabilization of North Korea and eventual reunification of two Koreas. If you were the South Korean top policy-maker, what are your economic policies for reunification? Use the experience of German unification to prevent the collapse of North Korean industry and the economic and social division after the reunification.

Sample Solution

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