Asian Tigers Essay
It is evident that the global economy has moved on from the Asian Tigers and the present and future of the global economy does in fact lie elsewhere, in particular India and China.
The Asian Tigers are a group of countries which are the first set of NIC 's; Taiwan, Singapore, Hong Kong and South Korea. They underwent rapid development in the 1960 's by encouraging TNC 's to invest by opening up manufacturing plants by offering cheap labour and less strict pollution laws. TNC 's also had the advantage of low cost and high availability of raw materials and land. Low trading tariffs and geographical locations are close by/accessible to TNC 's, resulting in cheaper importing and exporting costs. The cost of letting TNC 's exploit them lead to the benefit of climbing up the development ladder with around 9% growth average from 1960-1980.
However, this path of development had its own flaws, relying solely on exports meant if their target country was to become economically unstable or the TNC decided to end the contract, the Tiger 's would be greatly affected. Moreover, letting TNC 's exploit cheap labour could not be a permanent development technique, due to other competitions arising, in this case it was India and China that rivalled the Asian Tigers ' cheap labour. For example Nike manufactured food and clothing in Taiwan relocated to Vietnam and China due to more competitive rates in wages, and this had a detrimental effect on Taiwan 's economy .
What 's more is that their rapid growth lead to their own downfall. Fast expansion of their economy stimulated a rise in property prices, stocks and shares which became overvalued and resulted in the stock market to crash. This started the Eastern-Asian financial crisis in 1997.
Due to India and China, and other formidable rivals which have emerged and the Asian crisis set back. I agree that the Asian Tigers do not hold the global economy.
The Asian Tigers followed Rostow 's model by creating pre conditions for "take
The Asian Tigers are a group of countries which are the first set of NIC 's; Taiwan, Singapore, Hong Kong and South Korea. They underwent rapid development in the 1960 's by encouraging TNC 's to invest by opening up manufacturing plants by offering cheap labour and less strict pollution laws. TNC 's also had the advantage of low cost and high availability of raw materials and land. Low trading tariffs and geographical locations are close by/accessible to TNC 's, resulting in cheaper importing and exporting costs. The cost of letting TNC 's exploit them lead to the benefit of climbing up the development ladder with around 9% growth average from 1960-1980.
However, this path of development had its own flaws, relying solely on exports meant if their target country was to become economically unstable or the TNC decided to end the contract, the Tiger 's would be greatly affected. Moreover, letting TNC 's exploit cheap labour could not be a permanent development technique, due to other competitions arising, in this case it was India and China that rivalled the Asian Tigers ' cheap labour. For example Nike manufactured food and clothing in Taiwan relocated to Vietnam and China due to more competitive rates in wages, and this had a detrimental effect on Taiwan 's economy .
What 's more is that their rapid growth lead to their own downfall. Fast expansion of their economy stimulated a rise in property prices, stocks and shares which became overvalued and resulted in the stock market to crash. This started the Eastern-Asian financial crisis in 1997.
Due to India and China, and other formidable rivals which have emerged and the Asian crisis set back. I agree that the Asian Tigers do not hold the global economy.
The Asian Tigers followed Rostow 's model by creating pre conditions for "take