The New Asian Multinationals

Summary

FDI outflows have accompanied the emergence of the so-called Asian Tigers and are now also on the rise from China. For the two largest Tigers, Korea and Taiwan, there is evidence of a “flying geese” dynamics, with the more laborintensive stages of the production chain moving to the rest of Asia and, increasingly, China, while core corporate functions remain in the source countries. For Singapore and Hong Kong, the level of integration with China is even higher, although their MNCs have also invested in other developing countries to take advantage of preferential market access and Multi Fiber Agreement quotas.