Impact of North Korea International Cooperation

Introduction: North Korea 

North Korea is also referred as DPRK (Democratic People's Republic). The headquarters of this nation is situated in Pyongyang. The establishment of North Korea as a state started in 1910 when Imperial Japan annexed Korea. The implication of this was the creation of south and North Korean countries. About politics, most power is owned by the ruling family members who lead the "Workers' Party of Korea (WPK). The ruling government is responsible for funding and subsidizing services such as food production, housing, education, and healthcare. Over the years, North Korea has adopted the self-reliance or "Juche" policy which isolates the country with others in the world. The research will evaluate the impact that North Korea will have should they decide to end the "Juche" policy and open their doors to the world. The analysis will focus on the economic implications of this state opening its door for cooperation and trading with other countries. 

Economic Background of North Korea 

North Korea operates in a centrally planned system economy where market allocation mechanism remains limited. According to the latest data, in 2017, this country recorded a nominal GDP of $30.7 billion. The GDP makes the country to be rated 125 th when compared to other countries nominal GDPs. The per capita GDP at the same time was $1,300. Other multiple economic indicators explain the actual operation of markets in North Korea. For instance, in 2013, the country experienced an unemployment rate of 25.6%. The country's economy is dependent on the primary industries that provide the necessary goods and foreign exchange. The leading sectors include food processing, textile, military products, metallurgy, and mining industry. The latter contains precious metal, lead, zinc, iron ore, graphite, limestone, coal, and magnetite. In 2016, the country exported goods worth $2.985 billion. The leading export destination at the time included China (87% of total export), Pakistan (1%), the Philippines (1.9%), and India (2.5%). The leading goods being exported to these countries included metallurgical products, minerals, manufacturers, fishery, and agriculture products. During this fiscal period, the country imported $3.75 billion worth of goods from China, Philippines, Thailand, and India. North Korea imports comprised of grain, textile, machinery, coking coal, and petroleum. 

The country’s economy has been experiencing fluctuations over the last decade. In 2017, North Korea suffered a decline in GDP by 3.5%. This drop is one of the highest recorded shrinking since the worst economic performance of 1997 when growth reduced by 6.5%. The reason for this poor performance is attributed to the increased sanctions on the country for her continued effort to develop nuclear power. These sanctions reduced the demand for the country's exports, especially for goods such as coal and other mining products. Over the last decade, the country experienced some increased growth especially in 2016 when the GDP increased by 3.9%. A similar trend was also witnessed in 2012 when North Korea’s GDP grew by 1.3%. The graph below illustrates the changing economic growth of this state from 2009 to 2017. 

North Korea’s Economic Growth 

Source: Trading Economic (2019) 

North Korean Resources that are Interest to Nations 

North Korea continues to perform poorly about economic development. The poor performance is astounding given that the country continues to enjoy a vast endowment of natural and humanmade resources that could be used to increase the country's production. According to an article by Debra Killalea (2017), North Korea have about $10 trillion of untapped natural resources that could otherwise be exploited to improve the economic growth and sustainability in this state. The value of these resources includes over 200 different minerals such as molybdenite, magnesite, graphite, coal, zinc, copper, and gold. The country has eight significant reserves that contain mica, magnesite, fluorite, copper, tungsten, graphite, barite, and molybdenum. These reserves make North Korean to be listed among the top ten states that have leading resource reserves in the world. The leading iron ore reserves are ranked as follows. The magnesite reserves make North Korea to be listed as 3 rd in the global rating system after Russia and China. The gold reserves are 8 th , graphite is 4 th , and tungsten is listed as the 4 th largest deposit in the world. On average, the country is ranked number 6 as one of the leading states to have high quantities of mineral deposits. 

Countries are willing to exploit these mineral resources, especially by helping the country maximize their mining processes. Since the early 2000s, the country has been experiencing a sharp decline in producing mining products as sanctions on this state leads to lower demand for exports. Such sanctions, especially by the U.S have reduced the production by almost a half if these statistics are to be compared with the mining trends in the early 1990s. The mining of elements such as tungsten, zinc, and gold is reduced to a third or less in any fiscal period. Nations such as the U.S, China, and South Korea are interested in tapping into these reserves as it will translate in the acquisition of over 21 million tons of Zinc that remains untouched. The country is also estimated to have 6 million tons of magnesite, 5 million tons of anthracite, graphite (2 million tons), barite (2 million), copper (3 million), limestone (6 million), iron (5 million), and gold (having a reserve of 2 million tons). A 2011 research article by Choi Kyung-soo also notes that this country continues to sit on a vast resource endowment that most of them remain underutilized and underexploited. For instance, the survey indicates that manganese reserve is about 300,000 tons while anthracite is approximately 4.5 million tons. The summary of reserved mineral resources has been illustrated in the table below. 

North Korea Reserves in 2009 

Source: Korea Resources Cooperation 

Countries continue to show interest in tapping these resources as they will increase trade activities with Korea peninsula. However, these resources remain underutilized and exploited as the country's mining activities have not fully integrated the latest technologies to ensure massive production. The government also has strict control over these activities and uses most of the raised avenues to finance expensive military projects such as the construction of the nuclear weapon. If North Korea opens up to increased international cooperation and trading, then trading countries will easily direct foreign investment that will see increased utilization and exploitation of these resources. 

Nations’ that have most Interest in North Korea 

The possibility of North Korea opening trading with other countries stands to benefit most countries. Most of these beneficiaries are states who are already in bilateral deals with North Korea. The increase in trade activities will have an immediate impact on the trading operations with the country’s trading partners. Russian is one such nation that would have a keen interest in this development. This country is one of the key trading partners with North Korea with their 2017 trade activities being estimated to be $1.7 billion (Workman, 2018). The other nation that is paying keen interest in opened trading is South Korea. The realization of effective policies to encourage the movement of goods and other resources to and from North Korea presents a possible boom to the two Korean countries. 

Other trading partners will be interested in the possibility of increased economic activities with Pyongyang, especially after the elimination of existing sanctions. China stands to be a principal beneficiary given that it is the biggest consumer of the country's export. The 2017 financial report indicated that China alone consumed 90% of this country's export. The value of this trading was about (US$1.7 billion). Other trading states that are closely monitoring the development of North Korea include Malaysia, Brazil, Nigeria, Mexico, Pakistan, France, India, and Sri Lanka. As revealed in the 2017 fiscal report, the country also continues to trade with Ethiopia, Suriname, Mozambique, Philippines, and Saudi Arabia (Workman, 2018). The report indicates that North Korea was also benefiting an increased number of importers for the country’s goods. As illustrated by Daniel Workman, this nation exported goods worth US$1.844 billion. During the time, Ethiopia had increased their demand by 28.8%, Saudi Arabia (32%), Malaysia (141%), and Suriname (19.9%). Therefore, rationally, these countries already have ties that will translate keen interest in maximizing gains from trading with North Korea. 

Reasons for Most Interest 

The above countries are likely to have the most interest in North Korea since the country presents them with an opportunity to exploit more resources. For instance, China has an interest in trading with this state as it shows the Chinese economy with prospects of growth and sustainability. The two nations engage in interactive trading activities with either side benefiting from importations of goods that they demand. For North Korea, China is vital in ensuring the stability of Kim Jong-un regime as it provides this country with products despite the existing trade sanction by the U.S. The trading activities with China is thus fundamental as it helps to reduce the refugee influx into this state and also increases the economic gains of North Korea. The country benefits from trading with China by importing grain, textiles, machinery and equipment, coking coal, and petroleum. 

As for China, trading with North Korea presents an opportunity for them to import fishery and agricultural products. China also gets a chance to acquire mineral products including lead, zinc, copper, graphite, iron ore, coal, and limestone. The critical issue that a country like China continues to monitor the political and policy changes in North Korea is because the trading with this nation results in a positive balance of payment (BOP). As of 2015, China recorded a BOP surplus of $380 million. The positive economic result was the fourth consecutive surplus BOP since 2012. The implication of this is that China enjoys an increased demand for her products and services in this country. North Korea- China trade has been illustrating in Figure 2 below. 

Figure 2: North Korea- China Trade Volume 

Source: Eleanor Albert (2019) 

Pakistan is yet another state that always set a keen interest in North Korea. The country follows the development in North Korea as they share extensive economic and diplomatic ties. The two states established bilateral relations in the early 1970s and continue to utilize these as a means to empower their respective economies. The onset of these bilateral ties can be attributed to Prime Minister Zulfikar Bhutto who visited North Korea in the 70s. The two countries share a unique relationship as they both face hostile trade ties with the U.S., in Pakistan, is ranked amongst the leading states that show open political hostilities, especially to Americans and their leaders. The sharing of a common enemy between these two explains why they continue to trade regardless of sanctions. North Korea has been able to supply missiles that continue to strengthen the military power of the Pakistani government. In return, Pakistan supplies North Koreas with experts in nuclear technology. Apart from these ties, the two engage in other economic activities with data indicating that Pakistan is the third highest importer of products from North Korea. The country mostly imports chemicals and rolled iron. Therefore, the prospects of North Korean opening up to the world will translate to better trade operations with Pakistan since there would be limited restrictions and sanctions. 

India also enjoys the most interest in trade and economic development in North Korea. According to the latest statistics, India is a key bilateral partner for DPRK, making them an essential ally in the international platform. As at the moment, the full capacity of this bilateral trade engagement has not been fully realized as India is finding it difficult to overcome the sanctions imposed on North Korea. According to Chaudhury (2018), India is trying to adhere to trade prohibitions as set by the UN Security Council. The organization limits commerce with the country as it results in helping them build on their military’s operational capabilities. Regardless of the ban, India continues to trade with this country by selling them medicine and food supplies. The limitation on the tradable goods has not limited a general increase of commerce value between the two countries. For instance, between 2000 and 2013, trade value involving the two states rose to $60 million from $10 million. During this period, India enjoyed a surplus in the balance of trade. On average, this surplus value was about $24 million in every fiscal period. However, in the 2016-2017 financial year, India increased her demand for North Korea products leading to them experiencing a deficit trade balance with DPRK. At the time, India’s imports were valued at US$85.39 while export was at $44.99million. The lifting of sanctions with DPRK will surely increase trade with India, especially opening the market for the latter to sell their oil and service products. The illustration in Figure 3 shows how India continues to be a key partner for North Korea. 

Figure 3: India and DPRK Relations 

Source: Trading Economics (2019) 

Russia is yet another state that pays close attention to economic and political development in DPRK. The trade and diplomatic association between the two nations started in 1948 after the Soviet forces supported them during the Korean War. The military intervention played a critical role in helping DPRK to set a Communist bloc. Currently, the two nations continue to enjoy good trading and political ties. The critical element of cooperation between the two states entails investment and collaboration in their respective regional areas. The geographical proximity between the two influences the continued cooperation as they share a 17-kilometer border along the lower Tumen River. At the moment, the existing U.N Sanction created in December 2013 continues to pose a substantial threat to trade between DPRK and Russia. The restriction limited Russia’s ability to engage in commerce as President Putin signed a decree to prohibit Russian companies from setting or offering technical aid to DPRK. Despite this, Russia continues to champion efforts that would be key in empowering economic and technological advancement in North Korea. A good example was in 2017 when it collaborated with China to oppose the oil embargo proposal by the U.S. If this proposal were successful, North Korea would have suffered a substantial loss of oil needed to stimulate the growth of nearly every industry. Therefore, the lifting of the ban and opening up of doors by DPRK is something that will indeed encourage bilateral growth with Russia. 

Nations possible Gain or Loss by dealing with DPRK 

The possibility of North Korea embracing international economies and lifting of the bans by the U.S. and the U.N means that it will have a direct implication on her trading partners. International cooperation is welcomed news in North Korea as it will translate into enhanced financial and trade investment. In theory, the highest beneficiaries of such a development will include China, Russia, and South Korea. All these states stand to benefit since they are closely located in North Korea. Therefore they will experience increased trading activities with Korea. China is an excellent example of countries that will benefit substantially from this development. In recent years, China has adopted some reforms and strategies that are encouraging its growth to a super economy alongside countries like the U.S. and France. It ranked as the largest on the issue of purchasing power parity. It is also ranked as the second largest globally when measured by nominal GDP. As a growing economy, China needs more market on the international platform. One such promising market is North Korea as the two nations have very often enjoyed close political and economic ties. Amid trade ban on DPRK, more than half Chinese foreign aid has been directed to Pyongyang. The likelihood of having a free North Korea, China will immediately supply DPRK with products such as grain, medicine, textiles, machinery, and equipment. The trade value with the two will likely increase given that they already have mechanisms such as trade routes infrastructure to aid trade. 

South Korea stands to benefit substantially by exploiting the North Korean market. The two Korean nations were at a point one before annexation in 1910 by the Empire of Japan. Since then bilateral ties have been difficult despite these countries sharing a common history, language, and geographical boundary. The start of the Korean War in 1950 fuelled the hostility engagement between the two nations. The aftermath of this warfare resulted in both countries suffering extensively especially in the loss of industries and the death of their citizens. The sour relationship continues to make it difficult for interactions in Korea as both states fear that possibility of a threat, invasion, or contamination of their culture. However, the recent political development casts a likely figure on the possibility of bilateral engagements. One of the most crucial commitment occurred in 2000 when Kim Dae-Jung became the first South Korean head of state to visit DPRK (Berstein, 2015). Also in 2018, the two Koreas signed the “Panmunjeom Declaration.” The decree advocated for unification, prosperity, and peace in the Peninsula region. The political dedication and increased international cooperation by DPRK will ensure that South Korean can easily and conveniently trade with their immediate neighbor. The move will encourage North Korea to exploit more minerals by sharing infrastructure from their southern counterparts. South Korea also proves a benefit to DPRK as they have a more advanced economy, about 36.7 times that of DPRK (Berstein, 2015). It will give North Korea a chance to exploit technological advancement with her neighbor. 

The resolution to embrace international cooperation might pose a threat to the existing bilateral ties with Pakistani. Over the years, these two countries have enjoyed a common enemy in the name of the U.S. government has often blamed Pakistan for providing material and expertise to DPRK that continues to aid the development of nuclear programs. In 2002, U.S. intelligence, the CIA, acquired documents showing the link between North Korea and Pakistan. The continued hostility by the U.S. has made Pakistan find an economic trade partner with North Korea. Just as North Korea, Pakistan continues to embrace the East by striking a strategic partnership with China. The implication of this has been that the U.S. feel betrayed by a country that has been set as a strategic location to control the situation in South Asia. In multiple occasions, the U.S. has imposed sanctions on Pakistan with a recent development being in August 2017 (Najam, 2018). During this time President Trump removed all the military aid to this state as he cited the failure by Pakistan to overpower militant groups. Such hostile relations by the U.S. plays a crucial role in North Korea and Pakistan as the two states seek to overcome the hardships that come with sanctions. However, with North Koreas showing signs of international cooperation and denuclearization with the U.S., Pakistan will lose a close ally and possibly affect the economic and political ties. 

The possibility of North Korean embracing international cooperation can be a gain and a loss in equal measure for a country like Russia. Kremlin has been an important trade and political ally to North Korea. Both Russia and China have very often imposed mechanisms that will ensure they avoid the political and economic isolation of North Korea. The existence of trade sanctions by the U.S. has made DPRK seek ties with enemies of the U.S. One such is Russia which presents herself as a strategical ally since Kremlin have very often opposed the political interference of the U.S. The possibility of a cooperating North Korea will be an opportunity to Russia as the two states will continue with their bilateral trading. The move will be an advantage since Russia will be able to cheaply import mineral products ranging from silver, iron ore, to gold. On a downside, an opened policy for North Korea implies that it will develop ties with the U.S. Although this might be a good thing for North Korea, it might be a strong development in Russia as they will lose their political influence on the region. The move will also enable DPRK to tap into other supplies of coal thus reducing the demand for this product from Russia. According to an article by Leo Bryne (2018), Russia exported more than 3700 tonnes of oil products to DPRK. The empowerment of North Korea will create a threat to a strategy being in play to benefit from this sanction-lade state. 

Resource-rich locations in North Korea 

North Korea enjoys one of the world’s largest mineral reserves. Most of these sites remain unexploited as companies fear political influence by political leaders. Most of these reserves contain magnesite, iron ore, gold, copper, coal, zinc, and silvers. These elements are located across different locations. Coal is one of the vital mineral reserves that can benefit this country is adequately utilized. DPRK is ranked as the 22 nd globally about having large coal (anthracite) reserves. Most of these resources are situated in Jikdong area. The reserves extend to the more significant parts of North Hamgyong Province. Mineral reserves 

Iron ore is yet another component that is exploited in North Korea. Most of the country’s deposits and reserves are located in the regions of Hwanghae-do, Pyongan-do, and Hamgyeongbuk-do. One of the vital areas from these locations is Musan County located in Hamgyeongbuk-do. The county lies on the border with China, where Tumen River separates the two states. The most notable feature about Musan County is that its geographical characteristics involve about 90% of inhabitable land which is very mountainous. It is in these locations that most iron ore reserves are located. 

Copper is yet an essential mineral that is heavily used in export and local production. It is estimated that despite North Korea importing most of her copper from Canada, the country has reserves containing over a million metric tons of this component. Most of the identified reserves for this component are in Yanggang Province. This area borders China at Jilin area. The provincial headquarters are situated at Hyesan. Hyesan is also the capital of copper reserves in entire North Korea. It explains the reason why most of the copper mining firms are located in this area. 

Magnesite reserves in DPKR are mostly situated in three provinces; the South Hamgyong Province, Kangwon, and North Hamygyong provinces. The rich location at South Hamgyong Province is located in Taikwayodo. In North Hamgyong, the known vast reserves are in Obok-tong and Hak-song-gun areas. Lastly, magnesite deposits in Kangwon Province are found in the Pyongyang-gun district. According to explorations, most of the reserves are in Tanchon City situated within South Hamgyong (World Atlas, 2019). 

Gold reserves in North Korea are estimated to have over 2,000 metric tons. These reserves are expected to have a value of $87 billion. DPRK has reserves across five provinces located in the country. They include North Hwanghae, South Pyongan, South Hamgyong, South Hwanghae, and North Pyongan provinces. The largest deposits are estimated to be in Yanggang Province. The country has very often exploited this resource with the highest mining occurring at Daebong Mine. The facility utilizes gold reserves at Gapsan and Woonheung area leading to a production of about 150 kilograms of pure gold every single year. 

Zinc is another natural resource that countries are wishing to exploit in North Korea. The estimated reserves in this country are about 400,000 metric tons (World Atlas, 2019). Most of the zinc reserves are located in Pyongyang. However, the leading location of zinc deposits is at Hamgyeongnam-do. This location is listed as the leading zinc deposit in East Asia. The importance of this component has led to its exploitation with existing mines estimated to have a capacity to produce over 10 million tons on an annual basis. 

Type of Infrastructure Present 

North Korea pays attention to the mining industry as it helps in raising funds to finance military activities. The country has established three sets of infrastructures that aid the mining industry. They include the power facilities, transport, and refining facilities. The latter is evident in Moon-Chon City. At this location, the Moon-Pyong Smelting Factory is mandated with the smelting and refining of lead and zinc ores (Yoon, 2011). The facility also produces about 40 tons of silver, 100 tons of cadmium, and 600 kg of gold on an annual basis. The other refining infrastructure present in North Korea is located at Heong-Nam. The facility is vital since it is used in the production of rare earth materials, gold, and copper that comes from Dan-chon and Hye-San mines. The other mines present in this nation include the Hae-Joo, 7.27 Gold, and the Nam-Po Minerals refineries. These facilities are essential in the refinery process of gold, silver, tin, copper cable, zinc, and other rare materials. 

Power facilities are also a critical component that is needed for the operation on machinery needed in mining. The state has many power plants which are conveniently located to supply electricity to coal and minerals mining industries. According to Yoon (2011), about 60% of the electricity produced in this country is consumed by the mining industries. Over the years, DPRK has relied on five major power stations that use heavy oil and coal to produce electricity. The five include the Pyong-Yang, the Book-Chang, Chong-Jin, Sun-Bong, and Kang-sun power plants. The production capacity for these power stations is determined by the level of demand for each specific plant. Most of these utilize anthracite (coal) in the production of electricity with only Sun-Bong Plant relying heavily on the use of heavy oil as their basic input for electricity production. The only challenge affecting these power-producing infrastructure is that they often fail as a result of the shortage in the supply of heavy oil and coal. Figure 4 provides a summary of important power plants in North Korea alongside their capacity and raw material used in producing electricity. 

Figure 4: Power Plants in North Korea 

Source: Yoon 2011 

North Korea utilizes the existing transport infrastructures to ship mining and movement of minerals and workforce from one location to another. The current type of transport infrastructure is the railway and road transport systems. The railway system in DPRK is specialized in freight transportation. Most of the rails are single lines with only a 97 km railways line between Chong-Jin and Moo-San being double track railway. These freights are used for the transportation of ore materials to the refinery plants before carrying them to other sectors in the economy. Most of the existing locomotives are electric. The mining industry also relies heavily on the utilization of road transportation infrastructure. The country has different classes of roads. For instance, roads linking provinces are regarded as a 1 st class. Those linking counties are second class while road systems interlinking county with towns is listed as a third class. Road transportation mostly affects the movement of gold and rare metal ores using the existing heavy trucks which are either imported from Sweden, China, Russia, or made locally. 

Infrastructure to help benefit the U.S. 

The rising interest in North Korea is influenced by the prospect of exploitation of existing and underutilized minerals. The U.S. under the regime of President Trump has renewed interest to improve international cooperation. The move is also aimed at ensuring both DPKR and the U.S. agree on bilateral trade. However, for the U.S. to fully exploit opportunities in this nation, necessary infrastructures need to be put in place. One of such infrastructure is the investment in the transportation sector. Although the country has railway and road systems, these two have not been effective in increasing productivity in the mining sector. The U.S. and North Korea can be involved in a joint effort to finance the improvement of both railway and road sectors. As for the roads, the focus should shift to the 2 nd and 3 rd class roads in the country. These roads are not fully tarmacked due to the shortage of asphalt supply in the country. Such a condition is making it difficult for the fast and efficient movement of mined materials to the desired destination. About railway infrastructure, the systems require a thorough rebuilding since the existing tracks were last replaced in the 1970s. The poor conditions of railway lines constitute fatal accidents that occur annually. Therefore, the maximum gain for the United States would be attainable if there are thorough reforms in the transport sector in the country. 

Another critical infrastructure that would have a direct gain for the U.S. is for the country to buy mining sites and incorporate their multinational companies to exploits these mines. The introduction of American-based mining and refinery facilities will ensure that these companies exploit all the available resources. These companies will come with latest and advanced mining technologies that will be appropriate to ensure high productivity levels for the organization. For example, the U.S. government can encourage a company like IMC Global to establish their mining plant in North Korea. The establishment of this firm will ensure that the country exploits aluminum resources that are present in the country. The U.S. can also tap the vast deposits of coal by facilitating a company like Alpha Natural Resources to have a refinery plant in DPRK. The company specializes in the production of low-sulfur, iron, and steel coal that is needed in the production of electric power. The introduction of this infrastructure in North Korea will encourage both countries to benefit from the increased capacity of electric power generation. 

The Benefit to the U.S. 

The U.S. stands to benefit from associating with North Korea in some ways. One is that the possible bilateral trade will provide a possible solution for the U.S. to unify her allies along the Korean Peninsula. Currently, the U.S. uses South Korea, Japan, Philippines, and Vietnam as strategic allies to exalt partial control in East Asia (Roggeveen, 2018). However, the nuclear threat posed by DPRK has cast doubts and division among these allied states. These countries are questioning the ability of the U.S. to guarantee safety should North Korea start warfare. Such sentiments create a negative image in the U.S. at a time when it is facing fierce global economy dominance by China. The creation of a good relationship with North Korea will act as a reassurance to these allied nations that the U.S. is still in control of the situation in Asia and around the world. 

The trade between the U.S and DPRK will have a direct economic implication on the U.S. The move will ensure that the country can tap into significant mineral resources that remain under-exploited in the state. For instance, the tapping into gold and silver will be a boost to jewelry manufacturers in the U.S. As a result of the increased supply of such minerals; more Americans will be employed in the affected sectors as a way to maximize economic gains. However, the highest economic benefit would be the saving of government military spending in South Korea. According to an article by Roggeveen (2018), President Trump argued that the establishment of peace with DPRK would mean that the U.S. recall over 32,000 soldiers who are situated in South Korea. The move results in the U.S reducing losses additional funding to increase vigilance on the economic situation in North Korea. In the end, the U.S. economy will be able to reduce the deficit balance of trade with South Korea. 

The Benefit to North Korea 

The opening up to global cooperation implies that North Korea can benefit, especially by engaging in bilateral dealing with the U.S. One of the ways is that it stands to enjoy increased economic growth and development. North Korea will borrow the latest technological advancement that will help establish necessary infrastructures in the farming and mining sectors. The direct association will see an increase in production efficiency in mining will be possible since the U.S. will ingest foreign investment into the country's economy. The result will be the lowering of production cost for both the U.S. and DPRK as they will trade in goods which they can efficiently produce. 

The other benefit of associating with the U.S. is that it will present Koreans with the ability to exploit a variety of goods produced by the U.S. and other nations. The onset of bilateral trade will be attainable after the U.S. has uplifted their sanctions on DPRK. As a direct implication, the U.S. will be able to sell their variety of goods to Korea. Some of the products that DPRK can easily import from the U.S. include organic chemicals, pharmaceuticals, vehicles, medical apparatus, oil, grains, and plastics. The most valuable import would be the possibility to import machinery including electrical equipment and computers that can be used in the mining sectors. The U.S. has advanced machinery that will revolutionize mining efforts in the country. It will spur growth in the mining sector as the affected companies will borrow technology, workforce, and processing mechanisms thus increasing productivity and improving sustainability in this sector. 

Conclusion and Recommendations for the U.S. 

The U.S. needs to utilize the prospect of trade with North Korea as a strategy to address the worrying threat of nuclear advancement. The U.S. government need to set conditions before lifting sanctions on DPRK as they will be vital in compelling the country to terminate their continued interest in developing nuclear weapons. North Korea has created nuclear weapons and ballistic missiles which can cause mass destruction. In 2016 alone, North Korea tested over 20 ballistic missiles and two nuclear devices. However, since the first meeting between Chairman Kim Jon-un and President Trump, the country has reduced its pace of creating more advanced weapons. The onset of trade with North Korea needs to be a step towards ensuring that the state has completely abolished their advancement of nuclear weapons. The result will be an advantage to the U.S. and other nations as it will mitigate the real threat posed by this country. 

The possibility of North Korea opening up to the U.S. and other states presents a chance for exploration and extraction of over 10 trillion unexploited resources. The U.S. should focus on the acquisition of copper and gold. In recent years, Pyongyang has provided funding to the development of advanced mines in Shin-pa, Gap-San, and Sang-Nong. The U.S. can focus on these two natural resources as there is increased productivity levels after increased investment into their respective mining processes. The high production levels will imply that the U.S. will buy copper and gold at relatively lower prices thus maintaining the right balance of trade. 

Lastly, if North Korea embraces international cooperation, the U.S. needs to tap into the unexploited rare-earth elements. North Korea poses significant reserves of features such as cerium, indium, and titanium. The exploitation of titanium, for instance, will ensure that U.S. based firms can use this element in creating alloys with molybdenum, manganese, copper, vanadium, aluminum, and iron (Yoon, 2011). The move will be a positive gain to companies which specialize in the production and manufacturing of castings, forgings, wire, metal bar, plate, and iron sheets. The focus on this will also have a positive gain to the U.S. effort to mitigate the rising dominance of China. As it stands, China produces about 97% of total rare-earth elements despite having only 30% of the global deposits (Yoon, 2011). Therefore, tapping and encouraging North Korea to focus on the mining of these elements will encourage a reduced dominance of China in this particular sector. 

References 

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