How did the NICs spark development? (2)

1. The NICs acted as markets for goods produced in the industrialized world. This enabled them to foster international trade and create wealth, as goods from the industrialized world could be sold in the NICs in exchange for goods from the NICs. This wealth then provided the capital for the development of the NICs own industries and infrastructure. 2. The NICs also acted as sources of cheap labor and raw materials for the industrialized world. This enabled them to benefit from the high productivity of the industrialized world, which then enabled them to rapidly increase their share of global output. This rapid growth in production, coupled with the availability of cheap goods from the industrialized world, allowed the NICs to rapidly increase living standards. This in turn further spurred development by providing the motivation and resources required to undertake additional capital investments.