‘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…show more content… South Korea’s openness to trade allowed firms to take advantage of economies of scale, which was encouraged by export activity and South Korea’s exports have made it the driving force of globalisation. South Korean economies have also flourished by encouraging appropriate manufacturing activities such as ship-building and then diversifying into higher-value-added activities such as Armaments, as labour becomes more skilled and capital more easily available.
Another factor which makes Newly Industrialised countries a driving force of globalisation is low taxes in trade. Hong Kong is another Newly-Industrialised country that has been a driving force of globalisation. The Hong Kong dollar is the eighth most traded currency in the world. Following the Second World War, Hong Kong industrialised rapidly as a manufacturing centre driven by exports and then underwent a rapid transition to a service based economy in the 1960s. It is now the world’s leading centre for I.T, business consultation and professional services. Hong Kong is also the world’s largest re-export centre, most of Hong Kong’s exports are re-exports mainly made in Mainland China. Hong Kong now serves as a point of entry for investment flowing into Mainland China. Hong Kong’s largest export markets are Mainland China, the U.S.A and Japan. Even though Hong Kong has few resources, it is attractive
