Question

Which of the following describe strategies that East Asia used from the 1970s to the 1990s to achieve high rates of economic growth? Check all that apply. The use of export-promotion policies High rates of investment in human capital Establishment of oil cartels High trade barriers Which of the following describes the flying geese pattern of growth? India initiates protectionist trade barriers and bans foreign investment to restrict competition Taiwan and Malaysia take over leadership in apparel and textiles from Japan as Japan moves into the higher technology sectors. India transforms an agrarian and closed economy into a more open and progressive one. China institutes a Soviet model of central planning and import substitution

Answer 1

Question 1 East Asian countries, like Japan and Korea, used export-promotion policies, where they increased production and shifted from being the countries which used to import heavily from other nations to being the nations which export. This became one of the biggest reasons for the economic growth. Further, people were skilled up and instead of being the exporter of primary products, these nations started to become the exporter of skilled workers. Therefore, the correct answers are options A and B: The use of export-promotion policies and High rates of investment in human capital. Question 2 According to Flying Geese model, Japan is the leading economy which leads the other Asian nations. In this case, when Japan takes over a higher-technological sector, other nations take up the place previously taken by Japan. Therefore, the correct answer is option B: Taiwan and Malaysia take over leadership in apparel and textiles from Japan as Japan moves into the higher-technology sectors.