East Asian Countries

Name: Khor Boon Yi

Student ID: 5587177 (P14004608)

Week: 12

“Favorable external environment was the principal reason that led to East Asian success.” Write your arguments for and against to this argument.

First of all, we briefly go through the success of East Asian countries. The story of it will start with the four tigers of East Asia which consisted of Singapore, Taiwan, South Korea and also Hong Kong. They had the capable to hold the higher rates of GDP growth for the longer periods of time than any other countries economy. The another successful countries which was Japan among with the four tigers have improved and maintain their place around the world’s rank of capita income. When Japan became the second economy in the world, the rise of South Korea and Taiwan also have been rose rapidly from beginning at the position of last third in the rank of world economies by the size of GDP per capita to rise to the position on the top half of the same rank in the period of time which was seven years (Chowdhuri and Islam, 1993). In addition, South Korea and Taiwan also had rose their world’s GDP and also the values added of their manufacturing around the world. The value added which was also called as MVA be increased fourfold (Chowdhuri and Islam, 1993). In mid of eighteen, the Asian four tigers had occupied the majority of exports of manufacturers which was 60 per cent from most of the developing countries around the world. They also reached the highest value added (MVA) per capita among the developed countries. As the primarily time period of shortage about the domestic savings which was reimbursed from the authorize and public warranted oversea loans and foreign direct investment (FDI), majority of them had capable to improve their benefit concerned of savings ratios to support 30 per cent of their investment ratios and even over this figure for the following three era (Akyuz and Gore, 1996). They also had  capable to enhance their earnings allocation at the same time also hold the proportion of accumulation of resources and growth of economic. This imply that it is not just proportion, but also the structure of capital which deteriorate or increases earnings allocation (Hamilton 1983, Page 1994, Stiglitz 1996, World Bank 1993). So, comprehending the factor about the patterns of the accumulation of economic favored were wide growth and also enhancement in earnings allocation was same vital as it to comprehend how rapid the development of economic, how deep the industrial can contribute and changes of production and business occurred.

The East Asian economies had been grew rapidly and become so successful in recent years not because of the factors that had mentioned above and the impact of external environment also played the major role. It was also one of the main reason that led East Asian countries become so successful until today. The external environment can be refer to the major factors and forces from the outside of the organization that have the potential to significantly affect the performance of an organization. It can significantly influence the effectiveness of an organization to large extent. So, it significantly influence so much to the economies of East Asian countries to led them to become successful. This argument have the pros and cons. We will seen it after.