'Nics Have Been and Continue to Be the Driving Force of Globalisation.' to What Extent Is This True?

Topics: Developed country, South Korea, Republic of China Pages: 4 (1543 words) Published: October 14, 2012
‘Newly industrialised countries have been and continue to be, the driving force of globalisation.’ To what extent do you agree with this statement? Globalisation is expressed in transcontinental flows and networks of activity, interaction and power between countries, irrespective of geographic distance. It establishes and maintains economic, political and socio-cultural relations. This interaction helps economies through growth in international trade, investment and capital flows. Some factors that have acted as the driving force of globalisation include technological innovation as it had made transport and communication around the world easier, capitalism and trade have also played an important role in encouraging globalisation. Trade between countries in the developed world and the developing world has specifically been the biggest driving force of globalisation. A Newly industrialised country is a country whose level of economic development is somewhere between the development of the developing and developed countries. This is because these countries have moved away from an agricultural based economy into a more industrialised, urban economy. There are several factors that make Newly Industrialised countries the driving force of globalisation. Firstly, most newly industrialised countries have a large population; this makes the countries more attractive for investment as these countries have an abundance of cheap labour. Therefore, these countries seem more attractive to investors as they can make more profits when the cost of labour is cheap. However, this also attracts TNC’s to the country. For instance, Nike contracts out production to South Korean and Taiwanese countries which operate in their home country as well as low wage countries like Philippines and Vietnam. Nike makes a chocking 100% profit by buying these shoes from contractors in South Korea and Vietnam for $18 and selling it to retailers for £72. Another factor that makes Newly Industrialised...
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