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Questions and Answers
What is an NIC?
What is an NIC?
NICs are countries whose economies have not yet reached developed or 'First World' economic status but have outpaced other developing countries in terms of their economic growth.
Why may social upheaval occur in NICs?
Why may social upheaval occur in NICs?
Social upheaval may occur as primarily rural, agricultural populations migrate to cities in search of work due to factory growth.
Why will the GDP per capita for China and India remain low even if these economies surpass that of the US in overall GDP?
Why will the GDP per capita for China and India remain low even if these economies surpass that of the US in overall GDP?
Because China and India both have huge populations, each with over 1 billion people.
List the NICs currently in the world.
List the NICs currently in the world.
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What are the common factors of NICs?
What are the common factors of NICs?
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What are the special factors of South Africa that are helping the NIC to develop?
What are the special factors of South Africa that are helping the NIC to develop?
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Suggest 3 countries that could be NICs of the future and give a brief description of why you chose each country.
Suggest 3 countries that could be NICs of the future and give a brief description of why you chose each country.
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What are the problems of rapid growth?
What are the problems of rapid growth?
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What year did the Chinese 'economic reform' start?
What year did the Chinese 'economic reform' start?
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When was industry liberalized in China?
When was industry liberalized in China?
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What are the major state industries of China?
What are the major state industries of China?
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When did China become the world's largest exporter?
When did China become the world's largest exporter?
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What is the fastest growing industrial sector of China?
What is the fastest growing industrial sector of China?
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Study Notes
Definition of NIC
- Newly Industrialised Countries (NICs) are economies transitioning between developing and developed status, marked by significant export-oriented growth.
- Continuous industrialisation indicates a country is classified as an NIC.
Causes of Social Upheaval in NICs
- Migration from rural agricultural populations to urban centers contributes to social upheaval as factories proliferate in cities.
- Urban job opportunities attract many people, leading to rapid demographic changes.
GDP Per Capita in China and India
- Despite China and India potentially surpassing the US in total GDP, their GDP per capita remains low due to large populations exceeding 1 billion in each country.
List of Current NICs
- Major NICs include Taiwan, South Korea, Hong Kong, Singapore, Malaysia, Philippines, India, China, South Africa, Brazil, Thailand, and Turkey.
Common Characteristics of NICs
- Large populations provide extensive internal markets and attract foreign investment.
- Openness to globalisation encourages capital, labor, and trade movement.
- Transition from agricultural-based economies to industrial ones is prevalent.
- Presence of large national corporations operating across multiple continents.
- Strong political leadership and elements of state planning support development.
- Robust education systems produce a skilled workforce.
- NICs typically exhibit high economic growth rates.
Special Factors Helping South Africa's Development
- South Africa's richness in minerals, such as gold and diamonds, attracts investment, creating jobs and increasing local incomes.
Potential Future NICs
- Egypt: Large population, political stability, market liberalisation, and strategic geographic location.
- Pakistan: Large population, English proficiency, transition to service-based economy, and steady growth rate.
- Indonesia: Strong industrial and service sectors, abundant natural resources, and established trade links with major economies.
Problems Associated with Rapid Growth
- Economic inequality may arise, benefiting urban areas over rural regions and leaving the poorest in persistent poverty.
- Rapid urbanisation can strain city infrastructure, leading to inadequate housing and sanitation.
- Potential overvaluation of stocks can cause future financial crises.
- Environmental challenges like pollution may increase due to accelerated development.
Economic Reform in China
- Economic reforms began in 1978 under centralized communist control, initially impacting farmers by encouraging private competition.
Liberalisation of Industry in China
- Industry liberalisation started in the 1990s with encouragement for private enterprises and transnational corporations (TNCs).
- Some heavy and strategically important industries remain state-owned, while lighter manufacturing has shifted to private ownership.
Major State Industries in China
- Key state industries include iron, steel, coal, machine building, armaments, and textiles, which underwent limited management reforms during the 1979-89 decade.
China as the Largest Exporter
- China became the world's largest exporter in 2010.
Fastest Growing Industrial Sector in China
- The energy industry is the fastest growing but faces challenges, including inefficiency and pollution from undeveloped sources. Low energy prices often indicate inefficiencies.
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Description
This quiz examines Newly Industrialised Countries (NICs), highlighting their economic transitions, social dynamics resulting from urban migration, and GDP per capita considerations in countries like China and India. Learn about the major NICs and their common traits.
