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This case serves to trigger a basic discussion on the ethics and risk involved in doing business with totalitarian regimes, exemplified by the case of North Korea. Discussion participants are exposed to a possible real-world business case scenario in which they are urged to carefully weigh ethical and risk-related concerns while coming to a decision on whether or not to do business with North Korea.
Students should be capable of analysing the case by weighing up the business risks and opportunity factors against ethical considerations and make decisions about specific potential ethical or commercial dilemmas that may arise.
This case focuses on the following questions:
What arguments speak for North Korea being an attractive market?
What ethical concerns are involved when doing business with North Korea?
What commercial risks are involved when doing business with North Korea?
Why should DIY Korea care about the Western press?
What would you recommend CEO Cass to do?
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Frank, R. (2013). Exhausting its reserves? Sources of finance for North Korea’s “Improvement of People’s Living”, 38 North (Dec 12, 2013), source: http://38north.org/2013/12/rfrank121213/. Accessed 10 Nov 2014.
Goldman Sachs. (2009). A United Korea? Reassessing North Korea risks (part I). Global Economics Paper, 188.
Kim, J., & Pearson, J. (2013). Insight: Kim Jong Un, North Korea’s master builder, Reuters (Nov 23, 2013), source: http://www.reuters.com/article/2013/11/23/us-korea-north-kim-insight-idUSBRE9AM0CF20131123. Accessed 1 Dec 2014.
Roberts, D. (2012). Emerging markets North Korea, New land of opportunity? Bloomberg Businessweek Magazine, January 19, 2012, source: http://www.businessweek.com/magazine/north-korea-new-land-of-opportunity-01192012.html. Accessed 22 Jan 2013.
Yoon, S. (2012). Kempinski to operate world’s tallest hotel in North Korea, Bloomberg, November 1, 2012, source: http://www.bloomberg.com/news/2012-11-01/north-korea-gets-world-s-tallest-hotel-as-kempinski-opens-tower.html. Accessed 20 Jan 2013.
- Power Tools for Gold: Doing or Not Doing Business with North Korea?
- Chapter 7
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