Emerging Asia

Question 1

India - FDI

Answer 1

-FDI in pharmaceuticals, automobiles etc..

-Allows econ development

-Advances in exports, knowledge econ (So positive multiplier)

-$41b in 2023

Question 2

China- Special Econ Zones

Answer 2

-7 zones

-25% tax reduction, flexible planning, low labour cost

-Encourage TNCs so positive multiplier effect

-However, poor conditions and farmland degradation

Question 3

China - Subsidies

Answer 3

-5% annual GDP on subsidies

-Domestic industry thrives, so more export, more econ development e.g. cotton