A Study of a Newly Industrialising Economy

A Study of a Newly Industrialising Economy The rise of NIEs, Globalisation ã Companies in DCs were attracted by the competitive advantage offered by the LDCs ã Advancements in technology and communications have encouraged the shift ã Physical barriers and national barriers have been overcome ã World have become more connected as in information, ideas, cultures and values between countries are exchanged ã Process known as globalization ã ã ã ã ã ã ã ã ã ã Allowed companies to conduct their busine
of 5
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
  A Study of a NewlyIndustrialising Economy The rise of NIEs, Globalisation ã Companies in DCs were attracted by the competitive advantage offered by the LDCs ã Advancements in technology and communications have encouraged the shift ã Physical barriers and national barriers have been overcome ã World have become more connected as in information, ideas, cultures and valuesbetween countries are exchanged ã Process known as globalization ã Allowed companies to conduct their business on a global scale ã Companies known as TRANSNATIONAL CORPORATIONS TNCs ã Large and established thus have many regional headquarters located in other countries ã Set up units in LDCs ã Train people there to set up manufacturing operations and other aspects like marketing ã TNCs operations increase, level of Industralisation increase ã Result in LDCs to develop rapidly ---NEWLY INDUSTRALISATING ECONOMY NIEs ã First used by Organisation for Economic Co-operation and Development ã Used to describe countries that belong to less developed countries but highly successfulin industrialization process ã Can divided into first-tier, second-tier, third-tier NIEsFirst-tier   Started industralising rapidly in the 1960s  Achieved much industrial growth with high levels of productivity manufacturingoutputs and exports by the 1980s  People in these economies enjoy living high living standards close to levels of DCS  Singapore, Hong Kong, South Korea, TaiwanSecond-tier   Started industrailisation process only in 1980s  Enjoying rapid industrial growth  Mexico, Brazil, Philippines and MalaysiaThird-tier   Started in 1990s  Chile, Vietnam, China and India  China and India have achieved rapid economic growth similar to that of the first-tier but regional disparity exist in the two countries due to large populations  Characteristics of NIEs1.Fast rate of growth in manufacturing  Manufacturing sectors expand rapidly over the last few decades  Means that level of employment in industries and its share of total employment inNIEs rise accordingly  Accordingly to federal Research Division  Brazil employment in the manufacturing industry made uo only 14.1% of country total employment in 1950  Figure increased to 23.9% in 19802.Rising share of world exports in manufactured goods  Although many LDCs may have increase their output of manufactured products,a large part of it are catered for their local market  NIEs due to huge growth in manufacturing industries, they have become major exporters of manufactured products  Library of Congress Country Studies reveled that in 1970s First-tier NIEshad just a 2% share in world’s merchandise exports  By 2003, share in exports has rise to 9.4%3.Fast growth in real per capital income  Enjoys a fat growth in real per capita income  /wealth generated by each person in the country/  United States Conference on Trade and Development  Annual per capita income of South Korea increased from US$100 in 1963to about US$24500 in 2007  Generate more economic wealth , able to narrow the gap between themselvesand DCs  INDIA! ã 2006, India was Asia’s 4 th largest economy ã 2 nd fastest growing economy in the world ã India’s GDP was US$800 billion in 2005 , compared to US$ 460 billion in 2000 ã GDP growth was 9% in 2006 while it was 2% for the growth of Japan ã Rapid growth in industry had been attributed to the its growing industries, especially inmanufacturing and in services ã Contribution to the GDP by manufacturing and service sector increased between 1984and 2004, whereas contribution by the agriculture has decreased ã India’s manufactured products are gaining acceptance in the world markets even thoughthey contribute only 27% to the country GDP in 2004 ã In same year, India exported US$50 billion worth of manufactured goods with keycontributing sections being textile and apparel, automobile, specialty chemicals andelectronics product ã Electronics company showed potential to eventually manufacture the bilk of India’sexported productsElectronics industry in India ã Rise in electronics industry begin in 1960s ã India started to shift away from policy of import-substitution ã At that period most of the manufacturing activities were carried out by the government of india ã Mainly limited to basic defense and telecommunication products. ã As the economy began to expand in the 1980s, ã More consumer electronics such as radios and calculators were produced ã By 1990s, there were both local and foreign investments in the electronics industry tomeet rising demands for electronic products ã Rapid growth in India’s electronics industry had been largely due to the increasingnumber of TNCs setting up manufacturing bases in various parts of the country ã Industry was worth US$10 billion in 2006 and could grow up to US$40 billion in 2010 ã It would overtake its textile industry which was extimated to reach US$14.5 billion in2010  Why locate in India??Land  Electronics industry had become an important sector of India’s economy  Much land had been located for the industry in form of large industrial psrks that wereconstantly being expanded  2006, Technopark in the state of Kerala was considered on of India’s largest industrialparks  Occupied an area of 1.2km 2 as well as a build up space of 0.22km 2  2007, park houses more than 100 local and international companies that specialized inelectronics, software and other Information Technology products  As Technopark have been build on a extensive piece of land, plans were made toexpand the area of the park by at least 2km 2  Therefore enabling Kerala to meet the increasing demand for space in the electronicsindustrySkilled labour   Abundance of skilled labour available at lower costs as compared to other countries  Average labour cost of a skilled graduate workers in India was about US$7 per hour ascompared to an average wage of about US$40 in more developed countries likeGermany  Most of the skilled workers are proficient in English, which was in consideration for manyTNCs that had branched located in English-speaking countries  Chennai, capital city of Tamil Nadu  Area where the electronics industry take off quickly  Due to the large pool of workers that are well-equipped for jobs in the electronicsindustry  In 2007, the state consisted 250 engineering colleges , 230 polytechnics and as well asthe India Institute of Technology which provided the students with higher technologicaleducation  Tamil Nadu produced 43000 engineering graduates and 61000 diploma holders, makingone of the greatest source of educated workers in the countryGovernment support  Actively encouraging the growth of electronics industry in past 2 decades  Looking to attract more foreign investors and TNCs to set up branches in the country  To increase the amount of electronic products for export, which made up only 0.7% of global electronics industry in 2007  Introduced policies such as allowing foreign investors to have 100% private ownership of businesses that manufactured products solely for export  Special economic zones were set up around the country to provide incentives such astax exemptions on export income for a period of time


Oct 31, 2017

Lawyer File #8

Oct 31, 2017
Similar documents
View more...
Related Search
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks