Monday, February 25, 2019
The modernization of these economies involved allowing
The term Asian Tigers refer to the Asian countries of in the south Korea, Taiwan, Hong Kong and Singapore. These nations have experienced massive economical growth figures due to their policies on key economic areas. These policies involve allowing for acquit trade trade to allowing for investments by immaterial firms.However, the respective Governments have over time interfered with the trade among these nations and another(prenominal) trading partners so as to protect the interests of their nations (Seyoum 2000, p.61). This allows for a plausive balance of trade leading to an increase in the budget amounts that lead be used to provide basic necessities to the people.The modernization of these economies involved allowing for free trade to take place, imposing low import barriers and scouting for international direct investment so as to increase on their theme output and acquire the necessary infrastructure for the production of quality products for consequence .From an ec onomic perspective, supply creates its own demand thus letting the market forces to determine output and prices. South Korea re harshs the importation of products by imposing strict barriers like the issuing of permits to importers which hindered the basic economic principle from determining the nations trade.This was seen as a move to protect the local market from foreigners who would exploit the market. To supercharge the export sector, the government provided goodies to the exporting firms that included establishing export processing zones and reduction taxes paid by this firms ( Amsden 1999, p.49)Singapore, Hong Kong and Taiwan did not fully restrict imports and foreign investors as the governments saw it as a way of partnering strategically with other nations for economic development. Singapore allowed for imports from few countries like India that provided raw materials that were not operational for example cotton. It also allowed for free trade with the United States under a free trade agreement that was implemented in 2003 that involved the exporting of textiles (Sharma 2003, p. 123).For foreign investment, Singapore restricted investments for foreigners for the sake of protecting its local skillful labor. By allowing investments from abroad, the government viewed it as a way of increasing unemployment levels in the nation since most foreigners will come along with their skilled labourers and enroll just but a few semi-skilled employees locally.Therefore, Singapore considered having strategic partners for its economic growth.