NEWLY INDUSTRIALIZING COUNTRIES María Sanz

Taiwan South Korea Hong Kong Singapore The 4 Asian tigers….

Newly Industrialising Countries (NICs)

Key Questions Newly industrialising countries are…… Examples of NICs include…….

WHAT ARE THE MAIN CHARACTERISTICS OF NEWLY INDUSTRIALIZING COUNTRIES?

In the 20th century many countries in east and south east Asia industrialised - including South Korea, Taiwan, Singapore, Japan, Philippines and Thailand. These nations are called newly industrialised countries or NICs. They are also sometimes referred to as tiger economies because of their rapid growth rate. The governments of these NICs kept close control over industrial development, and encouraged industries to export manufactured products. The profits generated by exports were re-invested in the domestic economy. Domestic businesses grew, wages rose, and workers spent their new wealth on home-produced goods and services. This is called the multiplier effect.The success of NIC economies has contributed to the decline, over the last 30 years, of manufacturing industries in MEDCs.

NICs (Newly industrialised countries) tend to have a large proportion of people working in secondary industries. The % of the population working in primary industry starts to decline. This is because people move from jobs in rural areas to urban areas to work in factories as the industrial base develops.

“Living Graph”

Where on the graph ? Yu Hui stares through the window of the TV shop and wishes she could afford one of her own. 200 new jobs are announced at the local microwave factory, which opened 10 years ago. Mr. Yamuichi gets a new job making cars for Daihatsu Kim has had to retrain from her job as a seamstress to working on a circuit board checking team. Jo has only 2 days off a month from his managerial job.

3 Stages…. 2 1 The country develops Import Substitution Industries (ISIs) at home to replace expensive imports, which are subjected to high levels of tax. This stage has traditional, labour intensive industries, using low levels of technology and local raw materials such as textiles. 3 The country moves into Export Orientated Industries (EOIs) which are high-technology and require a lot of capital investment. They require a lot of Research and Development (R&D), but generate rapid growth in the economy.

Changes in Singapore

“There is fierce competition with Malaysia as they offer cheaper rates at ports and industrial areas so Singapore is trying to widen its global market as it can't really under cut the prices of Malaysia.  Dyson vacuum cleaners are now made in Malaysia and even Royal Doulton have re located to Indonesia - lots of china clay there.”