port, and hotels. Competition with Japanese and American firms is based mainly on price. Cost and price cutting is made possible via the choice of medium range
technology used in smaller scale operations.
V.
THE ROLE OF THE ANIES IN THE ECONOMIC DEVELOPMENT
OF
ASIA PACIFIC
The ANIES are in the process of rapid economic transformation towards highly
internationalized economies, characterised by a high quality labour force and modern
technology. In this process, the linkage effects resulting from their rapid economic
restructuring on the region are extremely widespread and pervasive. We expect that the
ANIES will play a major role in regional development.
Since the ANIES' locational advantages are continuously being upgraded and their
labour cost is rising, these economies will continue to function as important investing
and recipient countries of FDI. In addition, the ANIES will also serve as major
exporters of technology to other economies in the region. Technology will be exported
via various channels, and FDI is just one of them. Other channels include technology
licensing, exporting complete plants (mainly by Taiwan and South Korea) and exporting services (mainly by Hong Kong and Singapore). The future role of Hong Kong as an
exporter of technology is particularly important because of its proximity to and unique
relationship with China. Since Hong Kong has a long experience in industrial production
and is in close contact with the world technology market, Hong Kong firms have, for
quite some time, been selling consultancy services to their Chinese counter parts on the
selection and adaptation of technology, market analysis and labour management.
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