NICs Flashcards
1
Q
NIC definition
A
Developing countries that are showing rapid manufacturing growth rates
2
Q
First generation NICs. What countries are the Asian tigers?
A
Hong Kong, Taiwan, Singapore & S. Korea
3
Q
Why were TNCs attracted to NICs?
A
- Cheap labour & land costs
- Weaker environment & planning laws
- Developments of infrastructure (Roads & airports)
- Improvements in telecommunications technology (allow TNC to control NIC in country of origin)
- Governments encouraged FDI by offering tax incentives
4
Q
Why did NICs develop as a country of origin?
A
- Growth of domestic markets & home based companies.
- Transfer of technology from TNCs
- Due to rising wage levels companies move to cheaper locations eg. S. Korea to China
