Everyone following the global economic trend almost remembers the robustness and extasy of the economic boom in Southeast Asia in 1990. For a short period of time, if we keep track of economic growth from the 1980s to the present, the countries Malaysia, Thailand, Singapore, Taiwan, South Korea and Indonesia see them as the main players in the global economy as these countries are foreign investors' magnets from all over the world, primarily in technology, engineering and electrical. They were called "Asian tigers."
Thanks to foreign investment, local governments are primarily committed to attracting investments, low labor costs and other local factors. They were then combined with technical euphoria, especially digital technology. The belief was that every company should leak from the technology to digitize information as demand and future are unlimited. This preceded all information, films, news and any other information that could be digitized. Thus, the creation of plants forming part of the production chain by world producers was considered profitable. As Asian countries have the lowest production cost, companies that are competitive will want to be competitive. This creates the basis of industrial relations in the host countries.
The presence of foreign producers coincides with the export-oriented policy supported by the host governments, as it was considered by foreigners to help locally sourcing and updating local actors. Thus many local companies have been established and involved in this production chain. To further increase competitiveness, government concessions were issued to local companies, but they cooperated with qualified foreign partners. Many of the concessions have been outsourced to foreign companies and local players who are less able to blame are simply secondary producers or purely low-cost sponsors for flagship companies. Thus, the new concern of "industrialization of technology", which has become very obvious and intensified in the recent global economic downturn. As the investor, Warren Buffett, said, "When the water flow retreats, the sluts are described."
Another concern with local manufacturers is now protecting foreign manufacturers. China Since 2003, the world has developed as a magnet with India as the two most attractive, low-cost destinations in the world economy. Setting up industrial real estate in Dalian, Shenzhen, Kuantong, Shanghai and others is crowded with foreign investors because of the mass market, cheap and most important relationships. However, the Yuan Vs USD exchange rate resulted in instability and trade surpluses; The US may restrict trade with China. Low-quality control of toys, pet food, etc. He recently recalled the race, disassociated foreigners or, in the best case, China's investment. For these reasons, many manufacturers continue to remain in other Asian countries or partially establish their products in China, but continue to maintain a technology and development or high-level chain in South East Asia. The latter reason is that inventors and flagship companies are the main concern of the lack of intellectual property rights in China, resulting in many safeguards.
So the issue now is the current trend in production growth to be sustainable? This is very concerned about the recent developments; the slowdown in the United States and the developed European countries, the emergence of other competitive countries such as Russia, Brazil, Vietnam and Cambodia. As these countries could offer low-cost production, high-quality workforce, agglomeration benefits (a large number of actors, such as Intel, Motorola and Samsung in these countries), the challenge of Asian tigers (or kittens) than robustness of growth is not wonderful than decades ago) is huge.
Source by sbobet