NICs and Global Trade
The purpose of this research is t
The purpose of this research is to examine the relative success and failure in the emergence of newly industrializing countries (NICs) as players in international trade vis-a-vis the expansion of commercial lending in such countries and the international debt crisis. The plan of the research will be to position the constituents of NIC growth on the global scene, and then to explore elements that appear to explain how it has developed as it has in the postwar period.
Haggard’s assessment of NIC growth, particularly in East Asia, is that when national economies sought export-oriented development, they also gradually created policies that would encourage rather than discourage direct foreign investment while at the same time assuring NIC growth along with foreign-investor growth. Haggard cites Korea’s negotiation for domestic inputs to foreign manufactures in the country. He also discounts nationalization as a general NIC response to foreign investment precisely because of the host countries’ need the institutional permanence and manufacturing/employment input that multinational locations can provide. The overriding point is that national strategies of hosting foreign investment have an impact on the long-term bargaining power of the host country and foreign investors, on the character that economic benefit to the host country assumes, and on the ability of countries to respond to crises.
Yoffie and Helleiner develop issues related to the difficulty of equitable foreign trade between superpowers and NICs. Helleiner decries superpower trade barriers as structural discrimination against smaller nations on one hand and as impediments to independent NIC development on the other. Taking the view that developed countries either prevent NICs from competing head to head with products in which the developed world leads or oblige export-minded NICs to concentrate on exporting products that foster NIC dependence on mainstream markets. Limited …