EMERGENCE OF ASIA AS THE NEW GLOBAL GIANT

Emergence of Asia as the new global giant

Emergence of Asia as the new global giant

Introduction

The Continent of Asia, is the world largest and most populous, having the second largest GDP in the world. Sheer hard work and dedication has been contributed by the most important players in the economy namely, China, Japan, India, South Korea and Indonesia. These countries have the largest economies and therefore, have contributed in economic growth of the Asian Continent and put its name on the frontiers of the world map (Byrd, 1990).

Moreover, the Asian economy has given a tough time to other economies such as the American and European. Since the Early 1800s the United States (US) has been the pioneer in the manufacturing and producing area. They took great pride in being the first economies to specialize in a significant area which would give the world a whole new change. But then the US was taken aback with the emergence of Asia as the global leader in many disciples. Therefore, countries especially like China and India took the lead in the I.T sector and the automotive sector. These particular sectors have been the main areas in which these two countries have extensively worked on (Byrd, 1990).

Therefore, American giants such as Ford, Chrysler and Star bucks opened their outlets in India. Even though Indians are a tea drinking state, the coffee outlets mushroomed and many turned their preference towards coffee. The acceptance level of diversity in India is higher than anywhere else as they use age old tactics. They claim the British ruled India for more than 3 decades which left a lasting impact on them, due to which adapting new American ways is not difficult for them.

However, the transitional phase for these countries was not easy. The governments played a huge role in helping these economies progress. For example to facilitate the growth emerging economies the governments of China and India have invested heavily in the transport infrastructure. India has invested in their infrastructure to a tune of $17 billion dollars over four years, which is 0.7 percent of US market, while the US is investing over $286 billion over a six year spending plan that equals to a five percent annual expenditure compared 23 percent for India. A realization of the fact that Asia is increasing their hold on logistics market is the recent exodus of one of the big motor companies deciding cut jobs in the US and Canada and move a small portion of their automotive part sourcing to India. Another development to aid India in transporting the parts from the county to US are some of the American airline companies have begun increasing commercial flights from the capitol of India to the US markets (Higham, 2004).

Since the Asian Continent is divided into two halves namely the east and south, China being in East Asia has progressed a lot especially due to its economy due to its high investment in quality ...