New Asian Tigers

Definition

The New Asian Tigers refers to a group of rapidly developing economies in East Asia, including countries like Vietnam, Thailand, and Malaysia, that have shown remarkable economic growth and industrialization since the late 20th century. These nations have become increasingly integrated into the global economy, driven by export-oriented manufacturing and foreign direct investment.

5 Must Know Facts For Your Next Test

1. The New Asian Tigers have benefited from a combination of low labor costs, strategic location, and government policies that promote trade and investment.
2. Vietnam has emerged as a leading player among the New Asian Tigers, capitalizing on its young workforce and improving infrastructure.
3. These economies have shifted from primarily agriculture-based economies to more diversified economies with strong manufacturing and service sectors.
4. The rise of the New Asian Tigers is often attributed to globalization and the increasing interconnectedness of world markets.
5. Trade agreements and partnerships within Asia have facilitated economic cooperation and growth among the New Asian Tigers.

Review Questions

• Compare and contrast the economic strategies employed by the New Asian Tigers with those of the original Asian Tigers.
  • While both groups pursued export-oriented industrialization, the New Asian Tigers often focus more on diversifying their economies beyond manufacturing into services, technology, and tourism. The original Asian Tigers relied heavily on high-value manufacturing and had established stronger financial markets. Additionally, New Asian Tigers benefit from advancements in technology and a more favorable geopolitical climate that encourages foreign investment compared to their predecessors.
• Evaluate the impact of Foreign Direct Investment on the growth of the New Asian Tigers in relation to their development strategies.
  • Foreign Direct Investment has been a key driver of growth for the New Asian Tigers by providing capital, technology transfer, and access to international markets. These countries actively create favorable conditions for FDI through incentives such as tax breaks and infrastructure improvements. This investment not only boosts manufacturing but also stimulates job creation and enhances local skills, thereby accelerating their economic transformation.
• Analyze how globalization has influenced the economic trajectories of the New Asian Tigers and their integration into the global market.
  • Globalization has significantly shaped the economic development of the New Asian Tigers by providing them with opportunities for trade, investment, and technological exchange. Their ability to integrate into global supply chains has enabled these countries to attract foreign investment and rapidly increase their production capabilities. This integration has also fostered competition among these nations, driving innovation and efficiency as they strive to maintain growth in an increasingly interconnected world economy.

Related terms

Asian Tigers: A term used to describe the original four high-growth economies of Hong Kong, Singapore, South Korea, and Taiwan, known for their rapid industrialization and economic success in the latter half of the 20th century.

Export-Oriented Industrialization: An economic strategy that emphasizes producing goods for export rather than for local consumption, often associated with the rapid economic growth seen in many East Asian countries.

Foreign Direct Investment (FDI):

Investment made by a company or individual in one country in business interests in another country, crucial for the economic growth of many New Asian Tigers.