Nics Have Been and Continue to Be the Driving Force of Globalisation. Discuss.
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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