40 marker Globalization
‘Newly industrialised countries have been, and continue to be, the driving force of globalization’
(40 marker)
Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services, and allowed companies to become trans-national (TNC’s). Many TNC’s have headquarters located in more economically developed countries (MEDC’s), with manufacturing plants in NIC’s. NIC’s, or Newly Industrialised countries and normally in the first stages of development, such as China or India. There have been three phases of NIC’s, the first being the Asian Tigers which since the 1960’s have experienced rapid industrialisation and are now developing socially and politically. The second was other South East Asian countries that decided to mirror the Asian tigers, and finally came China and India in phase three. These two countries have been targets for Foreign Direct Investment (FDI) since the 1990’s when they started seeing economic growth.
There are many arguments supporting the statement that NIC’s are the driving force of globalization. Many such as China moved to a more export driven model, which allowed them to develop rapidly. This was because they focused on exporting their goods to the richer western market, exploiting the fact that they have a better economy. They have enabled and encouraged large companies to build manufacturing plants there, by offering many incentives and lower taxes. China created Open Cities and SEZ’s (Special Economic Zones) that were built to entice TNC’s and accommodate large factories to the country. They were able to do this, as they had a very large population of 1.357 billion and so a large work force to create a very fast rate of production with jobs having much lower wages. This was true for most NIC’s as they were developing. Many NIC’s also have good transport links, for example China, which has many
(40 marker)
Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services, and allowed companies to become trans-national (TNC’s). Many TNC’s have headquarters located in more economically developed countries (MEDC’s), with manufacturing plants in NIC’s. NIC’s, or Newly Industrialised countries and normally in the first stages of development, such as China or India. There have been three phases of NIC’s, the first being the Asian Tigers which since the 1960’s have experienced rapid industrialisation and are now developing socially and politically. The second was other South East Asian countries that decided to mirror the Asian tigers, and finally came China and India in phase three. These two countries have been targets for Foreign Direct Investment (FDI) since the 1990’s when they started seeing economic growth.
There are many arguments supporting the statement that NIC’s are the driving force of globalization. Many such as China moved to a more export driven model, which allowed them to develop rapidly. This was because they focused on exporting their goods to the richer western market, exploiting the fact that they have a better economy. They have enabled and encouraged large companies to build manufacturing plants there, by offering many incentives and lower taxes. China created Open Cities and SEZ’s (Special Economic Zones) that were built to entice TNC’s and accommodate large factories to the country. They were able to do this, as they had a very large population of 1.357 billion and so a large work force to create a very fast rate of production with jobs having much lower wages. This was true for most NIC’s as they were developing. Many NIC’s also have good transport links, for example China, which has many