Abstract
By utilizing the low labour costs and production base in Asia, the USA has successfully stabilized prices in its domestic market and advanced its industries since the Second World War. Caught completely off guard by the rapid development of Asia’s productivity and technological know-how, the USA struggled to implement measures to keep the region’s growth in check. Ironically, this move by the USA brought Asian countries closer together and further helped to strengthen their solidarity. Japan moved its production facilities to developing countries in order to avoid import regulations and realize lower production costs. If there were wage increases in one country, Japan would withdraw its production facilities from that country and move to another. As this process repeated itself throughout the region, developing countries in Asia, one after another, were able to increase their range of technology and realize their potential for development. As a result, new demands were created and intraregional trade dependency increased, securing Asia’s position in the international arena.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
Notes
Kennedy, Paul M., (1989) The Rise and Fall of the Great Powers: Economic Change and Military Conflict from 1500 to 2000. (Vintage)
Oxford University Press (1993) The East Asian Miracle.
Author information
Authors and Affiliations
Copyright information
© 2000 Myung-Gun Choo
About this chapter
Cite this chapter
Choo, MG. (2000). The Motive Power for World Economic Integration. In: The New Asia in Global Perspective. Palgrave Macmillan, London. https://doi.org/10.1057/9780230508934_2
Download citation
DOI: https://doi.org/10.1057/9780230508934_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-40780-4
Online ISBN: 978-0-230-50893-4
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)