To what extent can the emergence and growth of one or more NICs be explained by its cheap labour? (20 marks)

Introduction and definitions NIC definition as newly industrialising countries who have profited from rapid industrialisation leading to significant secondary sector growth and an increase in GDP. NICs have improved their economic and social standards through capitalising on their ability to provide services to both TNCs (transnational companies such as Apple) and other more developed countries.Argument for importance of cheap labour – leading factor in emergence of Asian Tigers as in HICs labour more expensive due to higher minimum wages and labour laws whereas goods can be produced more cheaply in NICs leading to higher profits for the companies.Other factors than cheap labour – cheaper land costs, avoiding tax, lack of legislation, more efficient production, fewer environmental laws – all save profit for TNCs Example of an MIC unable to transform into an NIC despite having large pool of cheap labour (e.g Bangladesh) to show importance of other factors than just cheap labourConclusion linking all factors back to the question and stating that originally growth of NICs was due to provision of cheap labour but other factors (e.g political stability and quality of workforce) make some countries more attractive to TNCs than others. 

Answered by Abbie C. Geography tutor

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