Final answer:
The economic differences between North and South Korea include separate currencies, number of trading partners, and dependence on China, with South Korea being a democratic state with a market-oriented economy.
Step-by-step explanation:
The differences between the economic systems of North Korea and South Korea can be identified in terms of their currencies, political and economic structure, level of international trade, and dependency on foreign aid. Specifically:
- Separate currencies: North Korea and South Korea each have their own distinct currencies, reflecting their separate economic systems.
- Number of trading partners: South Korea has a broad network of trading partners. North Korea's trade is limited due to its isolated stance and international sanctions.
- Dependence on help from China: North Korea is significantly dependent on China for economic support and trade, whereas South Korea has a more self-sustained and diversified economy.
North Korea's political structure is that of a closed, communist, totalitarian regime, while South Korea, a democracy, has achieved economic growth through state-controlled capitalism. South Korea's high standard of living is a result of a robust manufacturing sector that produces automobiles, electronic goods, and textiles for export.
The concept of regional complementarity can be seen in how South Korea's economy might benefit from the natural resources of North Korea, such as coal, should the political barriers between the two countries be reduced.