Summary
Summary to what extent is the growth of industry dependent on globalization
summary on globalization's impact on NIC's and how restricted they make them
[Show more]
Content preview
To what extent is the growth of industry in NICs dependent on G° ?NIC = a country that has not yet reached the stage of a developed country but has
outpaced its counterparts and no longer qualifies as an LEDC. It is characterized by rapid
economic growth, mostly due to exports.
Ex : China, India, Brazil
NICs are dependent on G°
- free trade = primary component of G° —> NIC economic growth due to heavy increase
in exports => no FT = no NIC
- FDI by MEDCs in LEDCs allow them to develop and become NICs (ex: helped them go
from agricultural economies to industrial economies)
- once they have a rapid economic growth they become even more attractive for foreign
investors => virtuous cycle
- use and borrow technology brought in by foreign companies to develop their own skills
NICs can also take some of the credit
- the four asian tigers (Taiwan, Singapore, HK, SK) = first NICS
- they spurred FDI arrival by offering tax incentives to TNCs (ex: Taiwan in 1960s)
- they heavily invested in infrastructure
- education in order to develop their human capital —> long term benefits
- advanced human K => leading in technological innovations => competitive advantage in
the world
- all 4 have become top level education centers
—> high-school students constantly outperform other nations in international maths and
science exams
—> have the most prestigious ranking universities
- SK according to classical liberal economic theory should have specialized in agriculture,
because that was its predominant activity, but with gvt will and investment,
- however, they also have low-labour costs, and hardly any fiscal and environmental
regulations => attract FDI but at the expense of social dvt
Ouverture
NICs are in turn responsible for G°
- they are actors of FDI in LEDCs (ex: China in Africa)
- the rise in living standards and wealth in NICs mean a greater consumption by the pop°
=> become a market for TNCs and thus become actors in G°
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller claranicolas. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £3.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now