NICs have been and continue to be the driving force of globalisation. Discuss. An NIC stands for a Newly Industrialised Country. It is a term used to describe a country that has moved away from an agriculture-based economy and into a more industrialised, urban economy. These countries have a high growth rate. Current NICs include China, India, Brazil, Malaysia, Mexico, South Africa, Philippines, Thailand and Turkey. The average growth rate between these countries is approximately 7.64% compared to the world average of 3.7% (2011). The average Gross Domestic Product (GDP) per capita for these NICs is US$10,769 compared to the world average GDP per capita of US$12,000. GDP is a useful indicator of development and a great measure for …show more content…
TNCs dominate industrial production including manufacturing and services, therefore further dividing the gap between the rich and the poor, and being the main leader of globalisation as a consequence. TNCs work to meet the demand for its good from HICs. For example, Toyota, like many other TNCs undertakes much of its manufacturing in LICs in order to meet the high and constant demand from HICs. Manufacturing in LICs is preferred as it provides these large companies with cheap labour. Toyota was recorded as the fifth largest TNC in 2010. It has 51 overseas manufacturing companies in 26 countries and regions, it has Design and Research and Development centres in the USA, Japan, Belgium, the UK, France, Thailand and Australia, and its headquarters are in Japan. Globalisation inevitably increases pressure to liberalise trade and to eliminate tariffs and non-trade barriers. Liberalisation of trade within OPEC clearly resulted in China (an NIC) for example, gaining a comparative advantage over the US (MIC) in the manufacture of machinery products. Globalisation has also been a resulting factor for the dramatic increase in technology. Bangalore, in the Silicon Valley of India is experiencing a remarkable IT boom, that is transforming the prospects of India’s economy. The internet is the fastest growing tool of communications. It took just 4 years for the internet to reach 50 million years, in contrast to the
‘Newly industrialised countries have been and continue to be, the driving force of globalisation.’ To what extent do you agree with this statement?
In the late 20th century, technology began advancing so quickly that entire world economies underwent extraordinary transformations in very little time. It used to be only a handful of powerful people and corporations interacting in global trade and commerce, but technology has made it so “countries like India are now able to compete for global knowledge,” giving leaders and companies the ability to work with more nations than ever before (Friedman 7). The internet has given men and women the power to connect, communicate and provide information to people across the planet in an instant. It has given people the opportunity to seek knowledge, educate themselves and single-handily play a role in the world economy. This is called
For example, BT, a company that has operations in around 170 countries, has shifted their customer call service from India to the UK. The exploitation of cheap labour has had both positive and negative impacts. 5,000 people that BT has employed in India have not only been supplied with a job but also with invaluable skills. The money that they earn would contribute to the family income, boosting the standard of living for both the employees and the employees’ family. The TNC is also puts money into the Indian economy, contributing to economic growth and boosting the countries GDP. Many countries (including India and Brazil) which were classified as developing countries, have become newly industrialised countries (NICs).
Today, India and Australia’s use of technology is particularly similar. Both countries have access to high speed internet connection, wireless broadband, the latest mobile phones, computers, tablets and televisions. However, access to these technologies is scarce and often unaffordable in rural areas in India, as well as rural areas in Australia. Today, India has 243 million internet users and is the world’s second largest Internet user after China, (Fontevecchia, 2014), while Australia is the world’s 31st largest internet user with 18 million internet users. India now has nearly 74 million Internet users, while in Australia there is 12 million internet
First of all, Globalisation helps to promote international division of labour. According to Heckscher-Ohlin theory (Gerber, 2014, pp.72-76), nations are endowed with different levels of each production factors which have determined their comparative advantage. When trade open, a country will specialise in producing its comparative advantage products and choose to import comparative disadvantage products from other countries. By specialising in the production of comparative advantage product, it can achieve economies of scale. Then the cost of production will decrease. One of the most intuitive senses will be the less expensive product because people can purchase imported comparative disadvantage product and indigenous comparative advantage product both at lower prices than in the past.
Account for the growth of TNCs and evaluate their impacts at the global and national scales (40 marks)
Toyota has a vast distribution network. They have more than 50 manufacturing plants and 27 countries and regions beside their mother country, Japan. In the Philippines alone, they have a manufacturing plant in Sta. Rosa Laguna.
Globalisation is the increase of economic integration between individual countries and the increased impact of international influences on all aspects of life and economic activity. This process has affected many domestic markets in terms of entering the global market, especially China, which is now amongst the fastest growing economies in the world. In response to this globalisation, China has employed many strategies to encourage economic growth and development.
Globalisation is the process by which the world is becoming increasingly interconnected as a result of a huge growth in trade and cultural exchange. Large companies are no longer located in one single country but are multinational corporations with businesses in many countries. Economic globalisation has had developments such as increased international trade and easer movement of capital and services, which have contributed to the improvements in welfare for most of the world. Statistics highlight how economic inequality among countries has declined sharply in the past 20 years, and that extra money generated by foreign investment is spent on improving education, health and infrastructure in developing countries. However, there are also concerns brought by globalisation such as the threat posed to local cultural products, which contributes to the loss of small local business.
The power globalisation brings politically is extreme to the point that "globalization is thought to result in the erosion of nation states and national sovereignty by new international actors." (Yeates, 2001). This can be seen looking into transnational corporations and the huge rise of these, to the point that some TNC 's have huge influence of a state due to their size and worth, even to the extent of having a larger GDP than the country they are looking at redeveloping. "TNCs can be caught between competing value standards of political non-interference in a country’s domestic affairs and the pursuit of either activist involvement in such politics or a penalizing withdrawal from the country aimed at forcing changes in the host government’s policies." (UNCTAD, 1999). To the point the state create policies to allow for TNC 's to establish themselves within a given country, which benefits them most due to they have no attachment to government and move freely across the globe. "Since TNCs owe no allegiance to any state, they (re)locate wherever market advantage exists." (Yeates, 2002). Making TNC 's a very attractive investment for states due to the pulling power they bring to a countries economy. If even it means cutting costs in the public sector for example, as the opportunity to have a TNC within the country more be extremely beneficial for the economy and society due to the revenue and employment opportunities it brings. Also see how economic policies are being
India’s infrastructure as a whole ranks high amongst many countries around the world. According to the India Infra Guru, India was ranked 50 among 127 countries for their “network readiness.” The IT growth rate is 35%, only second behind China. India also ranks very high in roads, power, and aviation (India Infra
The trade liberalization can boost productivity by inducing a better allocation of production factors or the adoption of more advanced technologies. The trade integration reallocates market shares towards exporters, the most productive firms, increasing aggregate productivity. The resulting increase in revenues can induce exporters to invest in new technologies. The major advantage of Chinese trade had been lower prices for consumers in the developed world (Bloom et al. (2011)).
Toyota Motor Corporation is a well-known Japanese automaker. The headquarters of Toyota is in Aichi, Japan. More than 3 million people are employed in Toyota on the global scale. By production, Toyota is one of the second biggest car manufacturers in the world in accordance with the statistics of the year 2010. By revenue, Toyota is counted as the biggest automakers in Pakistan. Recently, Toyota reported to manufacture 200 millionth vehicle. Other than being an automaker company, Toyota is known to be an organization which is very much involved in other activities that are related to research and development.
This is an analysis of the Political, Economic, Social and Technological environment surrounding the Indian Telecommunication Industry.
Our country is experiencing a new industrial and technological revolution which is bringing about a significant, fast and extensive transformation of society and industry. The result of this revolution is that there is now a rapid increase in the processes of production and the transmission of goods and services produced. The ICT revolution is also encouraging new goods and services, changing the nature and organisation of work, replacing materials, resources, energy and land with information and knowledge as the principal factors of production. HISTORY OF INFORMATION COMMUNICATION TECHNOLOGY (ICT)