NICs

Question 1

NIC definition

Answer 1

Developing countries that are showing rapid manufacturing growth rates

Question 2

First generation NICs. What countries are the Asian tigers?

Answer 2

Hong Kong, Taiwan, Singapore & S. Korea

Question 3

Why were TNCs attracted to NICs?

Answer 3

1. Cheap labour & land costs
2. Weaker environment & planning laws
3. Developments of infrastructure (Roads & airports)
4. Improvements in telecommunications technology (allow TNC to control NIC in country of origin)
5. Governments encouraged FDI by offering tax incentives

Question 4

Why did NICs develop as a country of origin?

Answer 4

1. Growth of domestic markets & home based companies.
2. Transfer of technology from TNCs
3. Due to rising wage levels companies move to cheaper locations eg. S. Korea to China