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According to Govindarajan Gupta (2001) the key to successful multinational teams is to cultivate a deep sense of trust among the members involved. Trust is a level of confidence among people which rests in mutual goodwill (Rajagopal Rajagopal, 2006, p. 245) Often trust is compromised due to hindrances in communication exacerbated by geographical, linguistic, and cultural barriers (Govindarajan Gupta).
The mass mobilisation of the population, along with Soviet and Chinese technical assistance and financial aid, resulted in annual economic growth rates estimated to have reached 20%, even 30%, in the years following the devastating 1950 53 Korean war.As late as the 1970s, South Korea languished in the shadow of the “economic miracle” north of the border.In the West, governments fretted that Communist backed North Korea was putting the Western backed, capitalist South to shame.But, as the decades passed, the limitations of Pyongyang’s economic strategy which spurned specialisation and trade in favour of developing “all round” industrial production and economic “self reliance” grew clear.North Korea’s economy, once hailed as a miracle, was written off as a basket case.With economic collapse, the power of the North Korean state to dominate every aspect of its citizens’ lives was diluted. For example, its “public distribution system” a food ration system used by the state to punish and reward the populace broke down.Meanwhile, hunger drove industrial workers out of the disciplined confines of factory life into the hills and fields, in search for food and fuel.North Koreans who once relied on the state for basic necessities were now forced to make do on their own.In the space left by the state, aspects of a market economy emerged.”I’ve visited North Korea in 1999, 2004, 2005 and then the last time in October 2007 so I can see the dynamic of this change,” Leonid Petrov, a North Korea historian at the Australian National University, told the BBC.”In 1999, even in Pyongyang, people were exhausted, malnourished, feeble. In 2004, the situation was very different the whole city looked like one big market.””There was activity everywhere, on streets, under the bridges, from the windows of apartments,” he said.Analysts agree that the North Korean state responded to this change in various ways.Some attempts were made to capitalise from it, such as an amendment to the constitution in 1998, pledging to guarantee the proceeds from some types of private economic activity.In July 2002, the government also unveiled a series of measures bringing prices and wages closer to black market levels, and introducing additional material incentives and autonomy for industrial workers and managers.In areas designated “special economic zones”, North Korea now invites foreign investors mainly South Korean to take advantage of cheap North Korean labour.Meanwhile, at the northern frontier with China, trade is thriving, and bribes can often buy passage across the border for North Koreans wishing to buy goods, visit family or flee the country.Chinese and Russian traders now move more or less freely around the country, though North Koreans remain subject to stringent travel restrictions..