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Business Economics- BUSS 1005-CW2-Spring -19-QP
In Semester Individual Assignment – Spring 2019
Case Study
Module: Business Economics (BUSS 1005)
Level: 5
Max. Marks: 100
Duration: 4 Weeks
(Weightage: 35%)

There are three questions to be attempted based on the case study and a proposal to be submitted.
The weightage of the answer is clearly indicated below each question.
The Asian Tigers and Economic Growth Lessons
The Asian Tigers or Asian Dragons is a term used in reference to the highly free and developed
economies of Hong Kong, Singapore, South Korea, and Taiwan. These nations and areas were notable
for maintaining exceptionally high growth rates (in excess of 7 percent a year) and rapid
industrialization between the early 1960s and 1990s. By the 21st century, all four had developed into
advanced and high-income economies, specializing in areas of competitive advantage. For example,
Hong Kong and Singapore have become world-leading international financial centers, whereas South
Korea and Taiwan are world leaders in manufacturing information technology. Their economic
success stories have served as role models for many developing countries, especially the Tiger Cub
Despite a World Bank report crediting neoliberal policies with the responsibility for the boom,
including maintenance of export-led regimes, low taxes, and minimal welfare states, institutional
analysis also states some state intervention was involved. The World Bank report acknowledged
benefits from policies of the repression of the financial sector, such as state-imposed below-market
interest rates for loans to specific exporting industries. However, it also pointed out free trade and
less government spending were the driving force. As a result, these economies enjoyed extremely
high growth rates sustained over decades. Other important aspects include major government
investments in education, non-democratic and relatively authoritarian political systems during the
early years of development, high levels of U.S. bond holdings, and high public and private savings
rates. However this is highly debated, and many have argued that industrial policy had a much
greater influence than the World Bank report suggested.
BUSS 1005-CW2- Spring -19-QP
Business Economics- BUSS 1005-CW2-Spring -19-QP
A period of liberalization did occur, and the first major setback experienced by the Tiger economies
was the 1997 Asian financial crisis. While Singapore and Taiwan were relatively unscathed, Hong
Kong came under intense speculative attacks against its stock market and currency necessitating
unprecedented market interventions by the state Hong Kong Monetary Authority, and South Korea
underwent a major stock market crash brought on by high levels of non-performing corporate loans.
As a result and in the years after the crisis, all four economies rebounded strongly. South Korea, the
worst-hit of the Tigers, has managed to triple its per capita GDP in dollar terms since 1997.
Prior to the 1997 Asian financial crisis, the growth of these four Asian tiger economies (commonly
referred to as, ‘The Asian Miracle’) has been attributed to export oriented policies and strong
development policies. Unique to these economies were the sustained rapid growth and high levels of
equal income distribution. A World Bank report suggests two development policies among others as
sources for the Asian miracle: factor accumulation and macroeconomic management.
By the 1960s,levels in physical and human capital amongst the four countries far exceeded other
countries at similar levels of development. This subsequently led to a rapid growth in per capita
income levels. While high investments were essential to the economic growth of these countries, the
role of human capital was also important. Education in particular is cited as playing a major role in
the Asian miracle. The levels of education enrollment in the four Asian tigers were higher than
predicted given their level of income. By 1965, all four nations had achieved universal primary
education. South Korea in particular had achieved a secondary education enrollment rate of 88% by
1987. There was also a notable decrease in the gap between male and female enrollments during the
Asian miracle. Overall these progresses in education allowed for high levels of literacy and cognitive
The creation of stable macroeconomic environments was the foundation upon which the Asian
miracle was built. Each of the four Asian tiger states managed, to various degrees of success, three
variables in: budget deficits, external debt and exchange rates. Each tiger nation’s budget deficits
were kept within the limits of their financial limits, as to not destabilize the macro-economy. South
Korea in particular had deficits lower than the OECD average in the 1980s. External debt was nonexistent for Hong Kong, Singapore and Taiwan, as they did not borrow from abroad. While South
Korea was the exception to this as their debt levels during 1980-1985 was quite high compared to
their GNP ratios, it was sustained by the country’s high levels of export. Exchange rates in the four
Asian tiger nations had been changed from long-term fixed rate regimes to fixed-but-adjustable rate
regimes with the occasional steep devaluation of managed floating rate regimes. This active
exchange rate management allowed the 4 tiger economies to avoid exchange rate appreciation and
maintain a stable real exchange rate.
BUSS 1005-CW2- Spring -19-QP
Business Economics- BUSS 1005-CW2-Spring -19-QP
Export policies have been the de facto reason for the rise of these four Asian tiger economies. The
approach taken has been different among the four nations. Hong Kong, and Singapore introduced
trade regimes that were neoliberal in nature and encouraged free trade, while South Korea and
Taiwan adopted mixed regimes that accommodated their own export industries. In Hong Kong and
Singapore, due to small domestic markets, domestic prices were linked to international prices. South
Korea and Taiwan introduced export incentives for the traded-goods sector. The governments of
Singapore, South Korea and Taiwan also worked to promote specific exporting industries, which were
termed as an export push strategy. All these policies helped these four nations to achieve a growth
averaging 7.5% each year for three decades and as such they achieved developed country status.
1997 Asian Crisis
The 1997 Asian financial crisis had an impact on all of the four Asian tiger economies. South Korea
was hit the hardest as its foreign debt burdens swelled resulting in its currency falling between 3550%. By the beginning of 1997, the stock market in Hong Kong, Singapore, and South Korea also saw
losses of at least 60% in dollar terms. However, four Asian tiger nations recovered from the 1997
crisis faster than other countries due to various economic advantages including their high savings
rate (except South Korea) and their openness to trade.
2008 Financial crisis
The export oriented economies of the four Asian tiger nations which benefited from American
consumption, were hit hard by the financial crisis of 2007-2008. By the fourth quarter of 2008, the
GDP of all four nations fell by an average annualized rate of around 15%.Exports also fell by a 50%
annualized rate. Weak domestic demand also affected the recovery of these economies. In 2008,
retail sales fell 3% in Hong Kong, 6% in Singapore and 11% in Taiwan.
As the world recovers from the financial crisis, the four Asian tiger economies have also rebounded
strongly. This is due in no small part to each country’s government fiscal stimulus measures. These
fiscal packages accounted for more than 4% of each country’s GDP in 2009. Another reason for the
strong bounce back is the modest corporate and household debt in these four nations.
A recent article published in Applied Economics Letters by Financial Economist Mete Feridun of
University of Greenwich Business School and his international colleagues investigates the causal
relationship between financial development and economic growth for Thailand, Indonesia, Malaysia,
the Philippines, China, India and Singapore for the period between 1979 and 2009, using Johansen
cointegration tests and vector error correction models. The results suggest that in the case of
Indonesia, Singapore, the Philippines, China and India financial development leads to economic
growth, whereas in the case of Thailand there exists a bidirectional causality between these
variables. The results further suggest that in the case of Malaysia financial development does not
seem to cause economic growth.
BUSS 1005-CW2- Spring -19-QP
Business Economics- BUSS 1005-CW2-Spring -19-QP
Cultural basis
The role of Confucianism has been used to explain the success of the Four Asian Tigers. This
conclusion is similar to the Protestant work ethic theory promoted by German sociologist Max Weber
in his book The Protestant Ethic and the Spirit of Capitalism. The culture of Confucianism is said to
have been compatible with industrialization because it valued stability, hard work, and loyalty and
respect towards authority figures. There is a significant influence of Confucianism on the corporate
and political institutions of the Asian Tigers. Confucianism was taught in Singaporean schools until
the 1990s. Confucian seminars were offered by South Korean companies like Hyundai for company
management. Prime Minister of Singapore Lee Kuan Yew advocated Asian values as an alternative to
the influence of Western culture in Asia. This theory was not without its critics. There was a lack of
mainland Chinese economic success during the same time frame as the Four Tigers, and yet China
was the birthplace of Confucianism. During the May Fourth Movement of 1919, Confucianism was
blamed for China’s inability to compete with Western powers.
Territory and region data
Country or
Area km² Population
Population density
Population of capital city
per km²
Hong Kong
South Korea 100,210 50,423,955
36,193 23,386,883
Country or
millions of millions of
millions of per capita capita millions of
millions of
USD (2011)
USD (2011)
USD (2011)
BUSS 1005-CW2- Spring -19-QP
Business Economics- BUSS 1005-CW2-Spring -19-QP
3. Quality of Life
Country or
Human Development Index Global Well Being Index
(2010), % thriving
Hong Kong
0.891 (15th)
0.901 (9th)
South Korea
0.891 (15th)
0.882 ( 22nd)
Answer The Following Questions :
Question 1
Discuss the differences and similarities between economic growth and economic development,
highlighting the aspects indicating Asian Tigers development with appropriate illustrations from
the case context.
(30 marks)
Question 2
Discuss the Free Market Economic Policy, highlighting the extent to which the Asian Tigers have
benefited from Economic freedom of their countries in a bid to attain a high export drive.
(30 marks)
Question 3
“For a nation to attain internationally competitive status, it is required to have suitable trade
policies in place. Industrial growth is a key to attaining macro-economic objectives and improving
the standard of living of a country.”
With appropriate examples, discuss the arguments in favour of Protectionism. (40marks)
BUSS 1005-CW2- Spring -19-QP
Business Economics- BUSS 1005-CW2-Spring -19-QP
Important Instructions
1. In-text Citations and Referencing
In answering these questions, students must draw on appropriate academic literature and
theoretical perspectives in order to fully support their response.
In-text citations and
corresponding references are mandatory for all the tasks.
2. Word Limit

Total words count should not exceed 2500 words (plus or minus 10 %).

5 % of the marks obtained will be deducted if the report exceeds the word limit.
3. Report Structure should contain;
 Cover page, which indicates title, names of students, name of instructor and date of
 Table of contents;
 Introduction, which briefly describes the objective of the report and structure of the report;
 Discussion, description of the main points with proper citations and references;
 Conclusions that reveal main findings regarding each point;
 References using Harvard Style
4. Report Format
The report should be done in Word, font size 12, font style Times New Roman, text color black,
colors can be used ONLY in appendices; main body of the report should be black and white.
5. Report Submission and penalty for late submission
Report should be submitted through Moodle on time, any delay in submission will lead to
deduction of 5% of the marks obtained for each day up to a maximum of one week.
6. Formative Feedback
Feedback will be provided only on the proposal submitted. Submitting the individual assignment
for the formative feedback will not be entertained. However, students are requested to contact the
instructors for any queries related to assignment any time during the assessment period.
BUSS 1005-CW2- Spring -19-QP
Business Economics- BUSS 1005-CW2-Spring -19-QP
7. Viva
Upon the discretion of the faculty, students may be called for the viva. Failing to appear for VIVA or
to respond to the questions asked during VIVA may lead to fail in the assessment.
8. Plagiarism Policy
As per MEC policy, any form of violation of academic integrity will invite severe penalty. Plagiarized
documents, in part or in whole, submitted by the students will be subject to this policy.
A. First offence of plagiarism a) A student will be allowed to re-submit the assignment once,
within a maximum period of one week. However, a penalty of deduction of 25% of the marks
obtained for the resubmitted work will be imposed.
b) Mark deduction: When the work is resubmitted, the marking will be undertaken according to
the marking criteria. In compliance with this policy, the 25% deduction is then made on the marks
obtained. For example, in an assessment that carries a maximum of 50 marks, suppose a student
were to obtain 30 marks for the resubmitted work, the final marks for that assessment will be 22.5
(after deducting 25% of the marks actually obtained for the resubmitted work).
c) Period of resubmission: The student will have to resubmit the work one week from the date he
or she is advised to resubmit. For example, if the formal advice to resubmit was communicated to
the student on a Sunday (latest by 5 pm), the student will have to resubmit the work latest by next
Sunday 5 pm.
d) If the re-submitted work is also detected to be plagiarized, then the work will be awarded a zero.
e) Resubmission of the work beyond the maximum period of one week will not be accepted and
the work will be awarded a zero.
B. Any further offence of plagiarism
a. If any student is again caught in an act of plagiarism during his/her course of study (either in the
same module, same semester or in any other semester), the student will directly be awarded zero
BUSS 1005-CW2- Spring -19-QP
Business Economics- BUSS 1005-CW2-Spring -19-QP
for the work in which plagiarism is detected. In such cases, the student will not be allowed to resubmit the work.
C. Guidelines
a) Type 1: In case plagiarism is detected in any component or part submission (submitted at
different times) of one assessment (assignment), the deduction in marks will be applicable for the
whole assessment (assignment), even if only the component or part submission alone needs to be
b) Type 2: In case plagiarism is detected in a group assessment, all students of the group will be
considered as having committed an act of plagiarism irrespective of whether plagiarism is on
account of the act of all or a few or only one member. The policy will then be applied to all
c) Type 3: Combination of Type 1 and Type 2: In case plagiarism is detected in any component or
part submission (submitted at different times) of a group assessment (assignment), the deduction
in marks will be applicable for the whole assessment (assignment), even if only the component or
part submission alone needs to be resubmitted. All students of the group would be considered as
having committed an act of plagiarism irrespective of whether plagiarism is on account of the act of
all or a few or only one member. The policy will then be applied to all the students of the group.
d) Type 4: Variation of Type 1 and Type 2: In cases where the assessment consists of components
or part submissions that could be a group assessment component (e.g. group assignment) and an
individual assessment component (e.g. individual reflection), the following will be applicable:
1. If plagiarism is detected in the group assessment component, all students of the group will be
considered as having committed an act of plagiarism, irrespective of whether plagiarism is on
account of the act of all or a few or only one member. The policy will then be applied to all students
of the group. In such cases the group assessment component will be resubmitted as per the policy.
2. If plagiarism is detected in the individual assessment component, the individual assessment
component will be resubmitted as per the policy. The policy will then be applied to that student
BUSS 1005-CW2- Spring -19-QP
Business Economics- BUSS 1005-CW2-Spring -19-QP
3. In both cases (a) and/or (b), the deduction in marks will be applicable for the whole assessment
D. Amount of similar material
a) The total amount of similar material in any form of student work from all sources put together
should not exceed 30% (including direct quotations).
b) The total amount of quoted material (direct quotations) in any form of student work from all
sources put together should not exceed 10%.
c) The total amount of similar material in any form of student work from a single source should not
exceed 7 percent. However, cases having a similarity of less than 7 percent in such cases may still
be investigated by the faculty depending on the seriousness of the case.
d) If faculty member find enough merit in the case of a student work with a similarity (with a single
source) of more than 7 percent as not a case of plagiarism, the faculty member should provide
detailed comments/remarks to justify the case.
BUSS 1005-CW2- Spring -19-QP
Business Economics- BUSS 1005-CW2-Spring -19-QP
Mark Allocation
Evaluation Criteria
Marks Allotted
Brief and clear description about the objectives of the
assignment and structure of the report
Question 1
Economic Growth
Question 2
Free market Policy
Question 3
Protectionism and roles to an economy
Reflecting on each findings of the study
Format of the Report
(Cover page, table of content, font size and style, alignment
of the report and Harvard style used in referencing)
Total Marks
***Please note that MARKS awarded are provisional until approved by the Exam Board
Note: 40 % of marks cannot be given for this task if the answer is not supported with at least one
appropriate citation and corresponding references from appropriate sources. There should be a
minimum of 7 and/ or more citations from relevant sources to get 70% of marks in this task. Based
on the depth and clarity of arguments and evidence of wide reading and research, 80 % or more
can be cons …
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