| Abstract: | Exports of manufacturers from newly industrializing countries have increased dramatically in recent years. Yet, in the importing countries—largely the highly developed, “old” industrial countries—the NICs' exports constitute even now an almost insignificant proportion of total imports of manufacturers. Is there, then, some particular reason why the exports concerned seem to be strongly resented by the importing countries, and particularly likely to be faced with trade barriers? The paper examines this issue, and identifies four possible sources of demand for such protection: (1) the factor content of the NICs' exports—specifically, their relative intensity in unskilled and semiskilled labor; (2) the nature of the exported goods, which consist largely of final consumer goods rather than of machinery and equipment; (3) the NICs' lack of retaliatory power; and (4) the context of a relatively stagnant world economy, suffering from high unemployment, which the expansion of manufactured exports from the NICs has had to face. |
