Videos throughout the notes  South Korea  Hong kong (first 5 minutes)   Investor Inspiration Video 

Economic development in East Asia The Four Tigers

How do the locations of the 4 Tigers help their economic growth? Hong Kong

 Strategic location  Greatest drawback is a lack of natural resources  Managed due to ability to ship in raw goods and transform products with cheap labor.

What factor of economic growth is being measured in this graph?

GDP growth

Factors contributing to Tiger Growth  Japan was an example of the Asian Tigers after their capitalist rebuild starting in Toyota City Robots playing soccer

Factors contributing to Tiger Growth  Education reform (highly educated and skilled workforce)  Location (ports)  Confucius work ethic  Concept of Industrial harmony  Cheap labor  Land reform  Developing and improving infrastructure (roads, ports, healthcare, power grid)  Democratic governments

Characteristics of the Tiger Economies  The East Asian Tigers pursued an export-driven model of economic development; these nations focused on developing goods for export to highly-industrialized nations.  Domestic consumption was initially discouraged through government policies such as high tariffs.

1. Taipei, Taiwan [The Republic of China]  Taiwan is known for information technology and manufacturing

Taiwan’s market system   Taiwan specializes in: Electronics, communications and information technology products, petroleum refining, armaments, chemicals, textiles, iron and steel, machinery, cement, food processing, vehicles, consumer products, pharmaceuticals  Taiwan has a mixed free market system. It’s economic growth can be attributed to a privatization of many industries since the 1980s, even though the island is still owned by mainland China.

Taiwanese Stocks

2. Seoul, South Korea PISA EDUCATION RESULTS

South Korea

World Trade Center Seoul, South Korea  South Korea is known for information technology and high- tech manufacturing

Balance of Trade

3. Hong Kong, China  Hong Kong is known for banking and manufacturing

4. Singapore  Singapore is known for banking and manufacturing

What is Singapore’s economic system?  It has an economy characterized by a seemingly paradoxical adherence to free trade and free markets in combination with a dominant government role in macroeconomic management and government control of major factors of production such as land, labor, and capital.

Comparative Advantage In one year South Korea can provide 50 technological services or produce 100 electronics. In one year Hong Kong can provide 150 technological services or produce 75 electronics. Calculate who has the comparative advantage (lowest opportunity cost) in producing electronics.

Regional Free Trade Agreements  ASEAN  Reduced Tariffs  Specific Trade Commitments  Cooperative Investing  Mainland and Hong Kong Closer Economic and Partnership Agreement  Zero Tariff Agreement

Make an investment  You are an investment strategist at Goldman Sachs. You are going to chose a company in one of the Asian Tigers for a top American client to invest in. You may also use the Hong Kong Stock Exchange or the Taiwan Stock Exchange.  In paragraph form you are going to lay out a plan for your client including-  -what industries they should invest in  -where  -how much  -when  -why  -how you plan to help them get their investment back and turn a profit