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Critically evaluate the role of Government policy in South East Asia in the role of Globalisation with reference to specific examples.

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Introduction

Critically evaluate the role of Government policy in South East Asia in the role of Globalisation with reference to specific examples. Globalisation cannot be defined as one, single process. It is a complex of processes including aspects such as the growth of global trade routes and global markets. Globalisation is linked to the growth of supraterritorial relations between people. This is the idea that international borders are becoming permeable, and that the time space divide between people and business continues to become less significant. There have been countless attempts to define globalisation. One of the most respected is Ohmae's notion of a borderless world. Globalisation has resulted in a change in the international division of labour. Historically, the old international division of labour (OIDL) consisted of few global metropoles, with several satellite regions (peripheral areas). The model show below was developed by Frank. The metropoles shown are global cities. These include London, England and Paris, France. The arrows represent the flow of exploitation. Small settlements expropriate surplus from the surrounding regions, and this chain continues until the largest settlements are exploited by the metropolis. ...read more.

Middle

It is the government that plays a large role in providing incentives to large TNCs to attract them to their nation. The state of certain nations adopted a strategy to become export oriented as opposed to an import substitution approach. This means that instead of protecting the home-grown industries with high taxes and tariffs in order to promote a long term development in the overall industrial structure, the approach was modified to encourage foreign investment, manufacturing goods specifically to be exported to the developed market economies. Not all nations within South East Asia have radically changed. Hong Kong and Singapore operated open-door policies, with many incentives offered to TNCs. In contrast Taiwan and more specifically South Korea have been much more restrictive. The main incentive offered to the TNC has been the export-processing zone. EPZs are export enclaves specifically developed to meet the needs of the TNC. EPZ's are often exemplary from national legislations. These include legislation that protects the employee being scrapped. An example being in some EPZs, it is illegal for an employee to be a member of a union, or take any industrial action against the firm. ...read more.

Conclusion

The special economic zones have created areas of large wealth. These regions are the wealthiest in China. The result has been a huge migration pattern from rural to urban. A pattern not dissimilar to that seen in Brazil. However, like Brazil, the wealth within these regions is not shared equally. Many migrants fail to achieve a higher standard of living, due to the huge demand, and short supply of housing, water and electricity. The huge demand for jobs in TNCs means that large multi national firms are able to dictate the terms to their employees without any fear of consequence. Firms can be confident that production will never cease, as employees are not protected by unions, and little legislation is in force to protect their rights. This has led to critics branding special economic zones as 'commercial concentration camps'. China has become a land of inequality, a complete contrast to its communist status. The impact of globalisation in Eastern and South East Asia has been aided by the state, whose strive for industrial takeoff, and now maturity has allowed the TNC to take advantage in the hope that their nation will one day will rise above the Brandt line to join the developed market economies. ...read more.

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