HOW HAS GLOBALISATION SHAPED ASIAN ECONOMIC DEVELOPMENT SINCE 1960?
Published June 18, 2020, 3:16 p.m. by Moderator
The Asian economy has experienced rapid growth since the 1960s transforming from agriculture-based economies to fully industrialized economies. This rapid growth was fuelled by multinational corporations that were looking for cheap labor to manufacture their products. The four economies that benefited were Singapore, Taiwan, South Korea, and Hong Kong. They are commonly referred to as the “Asian Tigers”. These countries were ideal for outsourcing as they had well-developed infrastructure such as roads, ports, airports and railways. Their labor force was well-educated since oriental culture heavily emphasizes on educational achievements (Development & Globalization 2019).
The countries were also strategically located near international trade routes making them easily accessible thus reducing transport costs. Hong Kong is the highest recipient of foreign direct investment. Singapore is the highest ranked Asian nation (7th) in terms of GDP per capita. South Korea is one of the foremost manufacturers of electronic products (Development & Globalization, 2019).
China and India the worlds’ two most populous nations have immensely benefited from globalization. China overtook Japan in 2010 as the world’s second largest economy. The Chinese economy mainly relies on the manufacturing industries while India’s economy focuses on service based industries (Development & Globalization 2019).
Development & globalisation. (2019). The Asian Tigers. [online] Available at: http://developmentandglobalisation.weebly.com/the-asian-tigers.html [Accessed 20 Mar. 2019].