Phases Of NICs

Question 1

Asian tigers

Answer 1

Japanese TNCs were among the first to seek new areas for their operations- used less developed neighbours particularly South Korea and Taiwan

Question 2

Advantages of these countries for the development of manufacturing industry were:

Answer 2

• infrastructure
• education
• cultural traditions
• good geographical location
• gov support
• less rigid laws and regulations on labour, taxation and pollution than in TNC’s parent countries

Question 3

As the economies of NICs grew…

Answer 3

Large indigenous firms began to grow, helped by the economic climate and government aid

Question 4

As the economies of the Asian tigers grew..

Answer 4

Wage levels and costs increased. Causing TNCs to look for a second generation of countries that could support their operations.

Question 5

Third phase

Answer 5

Both China and India have emerged as targets for FDI by TNCs. Since 1990, they both have had rapid and sustained economic growth.