What are the impacts of NICs on the global economy?
- 0 votes
This is a 10 mark geography question for AQA A level and I think it is very vague and so not sure what to write. Any suggestions would be helpful. Thanks :)
- 7 votes
I would first describe what an NIC is and give an example. They have expercienced such rapid growth over last 40 years due to their ability to attract TNCs and appending FDI, with TNCs initially enticed by low labour costs, large English-speaking work force (possible link to population DTM and colonialism). Also offered reduced import/export tarrifs, weaker planning legislation expanding domestic markets - then perhaps case study like China and raw materail exploitation. Note that not all NICs became so due to maufacturing, India used service sector. I think most important point is the changing role over time (good link here to development continuum), like Four Asian Tigers who have matured, playing a key role in the global shift as, as a consequence of cumulative causation provoked by TNC presence, large population have gained increasingly disposable incomes and experienced social advancements intrinsic to development. Therefore Tigers started buying from emerging markets and outsourcing their businesses, permitting the development continuum to be sustained in reality. Negatives are also important to mention (link to globalisation) as increasingly linked economies increases economic vulnerabiltiy to market flucuations, as seen with eurozone!
Then perhaps a concluding two sentences summarising your thoughts so maybe how impacts of NICs on global economy are complex and change over time, but they are largely positive and have allowed consumers to benefit from vastly cheaper products and services.
Anyway, after name dropping a few case studies, I think this is what I would write.
I hope this helps!
- 1 vote
Thank you very much that has been very helpful :) x