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Newly Industrialising Countries

Newly Industrialising Countries






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    Newly Industrialising Countries Newly Industrialising Countries Presentation Transcript

    • Newly Industrialising Countries (NIC’s)
      • In the 20th century many countries in east and south east Asia industrialised – including South Korea, Taiwan, Singapore, Japan, Philippines and Thailand.
      • The governments of these NICs kept close control over industrial development, and encouraged industries to export manufactured products to the more developed and richer countries abroad.
    • Newly Industrialising Countries (NIC’s)
      • The profits generated by exports were re-invested in the domestic economy. Domestic businesses grew, wages rose, and workers spent their new wealth on home-produced goods and services - thus stimulating further growth.
      • This is called the multiplier effect.
      • NICs (Newly industrialised countries) tend to have a large proportion of people working in secondary industries. The % of the population working in primary industry starts to decline.
    • Newly Industrialising Countries (NIC’s)
      • The success of NIC economies has contributed to the decline, over the last 30 years, of manufacturing industries in MEDCs such as the UK.
      • Industries struggled to compete with the cheaper competition from NICs, where production costs and wages were less.
    • NIC Case study; South Korea
      • South Korea is known as a NEWLY INDUSTRIALISING COUNTRY (NIC) or a tiger economy.
    • How did South Korea develop so quickly ?
      • This is because it has developed really quickly eg over last 30 years, South Korea has transformed from an agricultural country to an industrial one.
      • The economy has sustained an average growth of 7% a year over the last 30 years.
      50 28 Tertiary (%) 30 6 Secondary (%) 20 66 Primary (%) 1995 1950
    • How did South Korea develop so quickly ?
      • History
      • Korea was the scene of a bitter war during the 1950s which resulted in the creation of 2 countries : communist North Korea and capitalist South Korea .
    • How did South Korea develop so quickly ?
      • South Korea has been helped by
      • Aid from the US and Japan (bilateral)
      • Loans and grants from development banks (multilateral aid).
      • Investment by multinationals .
    • How did South Korea develop so quickly ?
      • The main reason why is the Korean Chaebol – large family run companies with political connections, e,g, Hyundai.
      • The Government developed a Five Year Plan which began in 1965 and has been continued ever since.
      • The first Five Year Plan encouraged the growth of heavy manufacturing and chemical industries initially.
    • How did South Korea develop so quickly ? (2)
      • The first industries developed in South Korea were Import Substitution Industries (ISIs). Iron, steel and chemicals were produced to reduce spending on imports.
      • South Korea had skilled, cheap labour and an excellent location.
      Reduce spending on imports Set up Factories and Make own Products.
    • How did South Korea develop so quickly ?
      • S Korea now has Export Orientated industries (EOIs) to try and make more export earnings.
      • The main success has been in the electronics industries eg Lucky Goldstar (LG).
      • Do you remember how many Korean companies moved to Wales ?
    • How did South Korea develop so quickly ?
      • This is an important case study to know. It shows how a country has developed using different types of aid / investment.
      • Remember the keywords and facts !!