14 September 2015 Economic Development 5 – NIC’s and the Four Tigers

14 September 2015 Lesson Objectives To look at how countries can help each other to develop. To look at the positives and negatives of rapid development.

NIC’S: Countries which have seen rapid industrialisation since the 1960s. Cheap labour. Government subsidies Good Transport routes Free Market Aid Their growth is known as the economic miracle. 14 September 2015

Success Criteria What is an NIC? Give three examples of NIC’s What factors have led to South Korea becoming an NIC? What companies are based in South Korea? How do you think the World Cup furthered the development of the South Korea economy? 14 September 2015

Asian 4 Tigers After the second world war Japan’s economy increased rapidly due to cheap manufacture and export. It used this model to help and support other countries in Asia to do the same (Hong Kong, Singapore, South Korea and Taiwan). There economies were built on simple ideas: 1. Economic development through the exportation of goods to MEDC’s. Domestic consumption was discouraged through government policies such as high tariffs (taxes). 2. Since the Four Asian Tigers were relatively poor during the 1960s, these nations had an abundance of cheap labour which attracted factories from oversees countries who also benefited from low export costs. 3. The Asian Tigers singled out education as a way of improving productivity; focusing on ensuring that all children attended primary and secondary education. Money was also spent on improving the college and university system. 14 September 2015

Success Criteria What is a TNC? Give three examples of a TNC What factors are required for a TNC to develop? Where do TNC’s base their manufacturing and their headquarters? Do you think TNC’s benefit countries where they base manufacturing? Explain your answer thoroughly. 14 September 2015

Large corporation operating in many countries, but ususally with its headquarters in an MEDC LEDCs where manufacturing industries have grown rapidly leading to economic development Manufacturing industry that processes raw materials and makes them into other products. 14 September 2015 Economic Development NICs, Secondary Industry, TNCs Plenary

14 September 2015 Economic Development How well have you done? Yes! I have understood fully and have made good progress. I have done ok but I am still unsure of some of it. Help! I don’t understand it.