Discuss the Impact of Newly Industrialised Countries

Geography Past Paper doubtfulness June 10 * Discuss the impact of Newly Industrialised countries (NICs) on the spherical economy. The NICs originally attracted a lot of inward investment such as FDI from TNCs which originated from MEDCs. The reasons were that NICs had a large labour force which worked for crummy wages. They likewise had cheap land, friendly govt legislations, cheap avail equal to(p) raw materials and reduced import and merchandise tariffs. The manufacturing industry was first to move and so the NICs became more focused on the secondary sector while the source countries (MEDCs) became tertiary sector economies.This is a disadvantage for most of the MEDCs as they will face periods of structural unemployment where the ignorant workers who could only do manufacturing work will be unable to pass jobs. The NICs will have reduced unemployment since a lot of jobs will be made available requiring low levels of work based skills. On the other hand, due to the lower cos ts of production for the TNCs, they will be able to sell products for cheaper prices and so this will benefit the global economy.It will also benefit the NICs as they will face increased demand for their work and their population would face glowing job prospects. After a while, the NICs tilt to become countries where TNCs originate from. Examples of this could include TATA from India which operates in many sectors such as communications and information technology, engineering, energy, consumer products and chemicals. TATA argon now trying to move step up of India as it is becoming increasingly expensive to operate in the farming. They atomic number 18 moving to other developing countries such as Brazil and Mexico who argon now considered as NICs themselves.According to Rostows model, we mint see that most NICs will go through the stages of specialisation and industrialisation after which they will start to not rely on investment and imports from other countries. The Asian tige rs have already gone through the stages and now are able to provide for themselves earlier than relying on investment. China and India are currently receiving growing investment just a few TNCs from those countries have started to outsource from other countries who are in the transitional stages such as Brazil.China and India will soon become develop countries such as the Asian Tigers and the focus will then conjure to the other BRICS countries. To conclude, NICs have a largely positive impact on the global economy as they enable TNCs to provide goods and services for cheaper prices to external markets. On the other hand TNCs cause increased unemployment in the country they move production from. However, most of the affects are positive as NICs are allowed to become developed countries in the long term and new countries can then go through the same process such as India and Brazil respectively.