Newly industrialised countries Flashcards
What are some famous NICs, and why?
Asian Tigers - Japanese TNCs seeked new areas within its neighbours.
Includes Singapore, Taiwan, South Korea and Hong Kong.
Looked for cheap labour/other costs.
What were the advantages for the Asian tigers to be chosen for the development of the manufacturing industry? 6
- Good infrastructure e.g. roads.
- Educated population - existing skills.
- Cultural traditions - education and achievement,
- Good geographical location e.g. Singapore - situated between the Indian and Pacific Oceans.
- Government support - low interest rates on bank loans.
- Less rigid laws/regulations on labour, taxation and pollution - more profit.
What happened as NICs economic expanded?
Large indigenous firms grew - helped by economic climate and government aid.
Chaebols (huge business conglomerates) of South Korea expanded - helped by government.
What is the second stage of NICs?
Wage levels/operating costs increased.
Japanese/US TNCs looking for a second generation to support operations.
E.g. improved human and physical areas, but still low wages.
Chaebols in South Korea, began moving manufacturing tasks to neighbours e.g. Thailand.
What is the third stage of NICs?
China and India both FDI (foreign direct investment) targets by TNCs.
1990 - both showed rapid/sustained economic growth.
Fast China growth - averaging a real per capita growth of 10+% per year.
