Paper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 3: Rise of Asian Tigers from 1970s to 1990s [South Korea and Taiwan]
Humble beginnings: A SME run by family and friends
In 1972, a 36 year-old engineer King Liu founded Giant with a group of associates, including Tony Lo, in Taichung (臺中). Lo was a business graduate from the National Taiwan University. Interestingly, Liu cycled to work at first to understand his product better.
In 1977, Liu secured a contract to produce bicycles for an overseas American company Schwinn, which was known for its 10-speed steel machines. Giant then functioned as an Original Equipment Manufacturer (OEM). Liu, who was fluent in Japanese, visited Japan to study the bicycle production process, replicating suitable work practices at Giant.
An unexpected turn of events: Turning setbacks into opportunities for success
In 1981, Giant set up its own bicycle brand as an Original Brand Manufacturer (OBM). It was a bold and unusual move as products that were manufactured in Taiwan were still viewed as low-quality and cheap.
Five years later, Giant brought its bicycles to the global market, starting with the Netherlands. Lo had identified Netherlands as a suitable European headquarters due to its geographical location, comprehensive infrastructure and integrated transport network. From there, Giant exported to other European markets. By the mid-1980s, Giant exported nearly 10 million bicycles a year.
The own-branding strategy was intensified when Schwinn shifted its OEM orders to its joint China’s company (China Bicycle Company) in 1985. Under this adverse condition, Liu steered the company into a new direction, through rapidly expanding its overseas branches around the world, in order to fill up the excess capacity generated by Schwinn’s withdrawal. The overseas branches were all targeted on pursuing entrepreneurial profit by promoting its own-brand Giant bicycles. Its overseas branch was established in Netherlands in 1986, the Us in 1987, Japan in 1989, Canada and Australia in 1991, and mainland China in 1992.
An excerpt from “Entrepreneurship and Taiwan’s Economic Dynamics” by Fu-Lai Tony Yu.
In the 1985, the US-based Schwinn switched to a Chinese supplier to keep production costs low. As a result, nearly three-quarters of Giant’s revenue had been affected. Yet, Giant did not relent. Instead, the company capitalised on the low production base in China, setting up two production plants in China, namely in Shanghai (上海) and Jiangsu (江苏).
Close collaboration with the government
In 1986, Giant launched a joint project with the government-funding Industrial Technology Research Institute (ITRI). They explored use of advanced materials to create carbon fiber bicycle frames. Giant also worked on other technology diffusion projects for aluminum welding with Chun Shan Institute of Science and Technology (CSIST).
Giant’s R&D efforts had paid off as tts revenue rose to over NT$ one billion.
In 1987, Giant pioneered the mass production of carbon bicycles, particularly the model called Cadex 980C. Lo dubbed it ‘Project 88’. Giant had applied computer-aided design and volume production techniques to manufacture these carbon fiber road bicycles. By 1991, Giant manufactured 20 thousand units of carbon bicycles.
Now, Giant one of the top bicycle manufacturers in the world.
Giant thinks of itself as an innovator in the fields of production and design, as well as competitive strategy. Giant was one of the first to upgrade parts and begin exporting them when Taiwan’s market became too costly. Giant was also the first Taiwanese company to use chrome alloy steel in their frames and to produce single-piece graphite bicycle frames.
An excerpt from “Strategy, Structure, and Performance of MNCs in China” by Yadong Luo.
What can we learn from this article?
Consider the following question:
– How far do you agree that Giant’s successes in export promotion were the result of Confucian culture?
Join our JC History Tuition to learn more about the rise of Asian Tiger economies and the Global Economy. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.
We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.
What was the Singing Revolution in Estonia?
/in Cold War, History SBCS/by JustinTopic of Study [For H2 and H1 History Students]:
Paper 1: Understanding the Cold War (1945-1991)
Section A: Source-based Case Study
Theme I Chapter 3: End of Bipolarity
Historical context: Oppression
For centuries, the Baltic Republics like Latvia, Lithuania and Estonia were under Soviet occupation. Under the Molotov-Ribbentrop Pact signed by Hitler and Stalin in 1939, the Soviet Union conquered these Baltic republics. Although there was armed resistance (‘Forest Brothers‘) in the early post-WWII years, the Soviets have successfully put them down by 1953.
From 1950s to the 1970s, Estonia went through a policy a ‘Russification‘, which suppressed Estonian culture. By law, nationalist sentiments were suppressed, including attempts to fly the Estonian flag.
A decade of change: Rise to the occasion
When Soviet leader Mikhail Gorbachev rose to power in March 1985, his twin reforms in the form of perestroika and glasnost have created the impetus for Estonians to push for political reforms.
By the mid-1980s, the Estonians have organised themselves and took part in a non-violent movements, demanding for independence. Given that Estonia was known for its culturally rich tradition, the people gathered in large numbers, breaking into song. This was known as the ‘Singing Revolution‘.
In particular, the people sang national songs that were not allowed since the Soviet occupation. In May and June 1988, the singing was led by musicians, who inspired thousands of attendees that joined hands and reciprocated in unison.
In September 1988, nearly 300,000 people attended a large-scale song festival in the capital Tallinn. There were calls for the restoration of Estonian independence.
The tipping point: Declaration of sovereignty
By then, the ruling Communist Party of Estonia also called for greater political autonomy. On 16 November 1988, the government asserted Estonia’s sovereignty, putting an end to the longstanding Soviet occupation in Estonia. The final stage of the Cold War had finally arrived.
What can we learn from this article?
Consider the following question:
– Assess the view that popular movements were the main cause of the End of Bipolarity.
Join our JC History Tuition to learn more about the End of the Cold War. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.
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What is the Look East Policy of Malaysia?
/in Economic Development, History Essays/by JustinTopic of Study [For H2 History Students]:
Paper 2: Economic Development after Independence
Section B: Essay Writing
Theme II Chapter 1: Paths to Economic Development
Historical context: Learning from the best
Six months after Dr. Mahathir assumed the role as the Prime Minister of Malaysia, his administration launched the ‘Look East Policy‘ in February 1982, which called upon Malaysians to emulate the Japanese work ethic and business management techniques. By doing so, the government aims to acquire Japanese expertise and capital through bilateral trade and investment.
To Mahathir, the definition of ‘East’ consisted of Japan and South Korea. Interesting, Taiwan and Singapore were not being raised as case study references.
Two-pronged approach
The ‘Look East Policy’ had two parts. First, Malaysians studied at the Japanese universities. Second, trainees worked at Japanese industries. The program was mainly financed by the Malaysian government, while the Japanese counterpart deployed Japanese trainers and covered part of the expenditure.
Dr. Mahathir held a firm belief that the ‘Look East Policy’ was vital in realising his Vision 2020, an aim to transform Malaysia into fully developed nation by doubling the Gross Domestic Product (GDP) every decade between 1990 and 2020. Japan was identified as a integral role to fulfil this national aim.
A pipedream in the making?
However, government efforts to emulate the successful Japanese model were obstructed by several factors. One such problem was the cultural differences. For instance, the Japanese employees have adapted to long working hours, but there was resistance from the Malaysians.
Another issue was related to the differences in economic development. While Japan was a pro-Capitalist developed nation, Malaysia was still in the process of transforming from a developing nation to a newly-industrialised economy.
The application of the ‘Look East Policy’ can be traced to the establishment of the Heavy Industry Corporation of Malaysia (HICOM) in 1980, which was also key feature in Mahathir’s policymaking in the 1980s. With the help of a team of United Nations development experts, HICOM formed companies, such as the Proton Saga national car project (Perusahaan Otomobil Nasional) and the Perwaja Terengganu steel mill.
What can we learn from this article?
Consider the following question:
– How far do you agree that external actors were more important than domestic actors in promoting economic development of Southeast Asian states?
Join our JC History Tuition to learn more about the Paths to Economic Development. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.
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What is the Coalition Government of Democratic Kampuchea?
/in History Essays, History SBCS, Regional Conflicts and Cooperation/by JustinTopic of Study [For H2 History Students]:
Paper 2: Regional Conflicts and Co-operation
Source Based Case Study
Theme III Chapter 2: ASEAN (Growth and Development of ASEAN: Building regional peace and security – relations between ASEAN and external powers)
Topic of Study [For H1 History Students]:
Essay Questions
Theme II Chapter 2: The Cold War and Southeast Asia (1945-1991): ASEAN and the Cold War (ASEAN’s responses to Cold War bipolarity)
Historical context: Third Indochina War
In December 1978, Vietnamese forces entered Cambodian territory and toppled the Khmer Rouge regime. Subsequently, the pro-Vietnamese People’s Republic of Kampuchea (PRK) was formed, led by Cambodian politician Heng Samrin.
An ASEAN-backed solution: Enter the Coalition
In 1980, ASEAN and China urged the Khmer Rouge and the royalists to join forces and form a coalition group to prevent the legitimisation of the PRK government. Norodom Sihanouk had set some conditions before returning to politics, such as disarmament to prevent another round of atrocities committed by the Khmer Rouge as well as the deployment of peacekeepers after the Vietnamese withdrawal.
Notably, Sihanouk also requested that the country’s official name be changed from Democratic Kampuchea to Cambodia.
Leaders of the political factions Sihanouk, Son Sann and Khieu Samphan attended a summit hosted by Singapore in September 1981. Eventually, a ‘four-points’ agreement was made, which included the formation of a Coalition Government of Democratic Kampuchea (CGDK).
With the CGDK being formed, the factions can garner foreign military support for the other two factions besides the Khmer Rouge, particuarly the Khmer People’s National Liberation Front (KPNLF) and National United Front for an Independent, Neutral, Peaceful and Cooperative Cambodia (FUNCINPEC).
On 22 June 1982, the three leaders signed an agreement to officiate the establishment of the CGDK in Kuala Lumpur. The June agreement stated that the CGDK’s aim was to “mobilize all efforts in the common struggle to liberate Kampuchea from the Vietnamese aggressors”.
More importantly, the three political factions in the coalition group would share power equally and make decisions through consensus.
What can we learn from this article?
Consider the following question:
– How far do you agree that ASEAN played a crucial role in the resolution of the Cambodian Crisis?
Join our JC History Tuition to learn more about the Regional Conflicts and Cooperation. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.
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Why did the USA get involved in the Korean War?
/in Cold War, History SBCS/by JustinTopic of Study [For H2 and H1 History Students]:
Paper 1: Understanding the Cold War (1945-1991)
Section A: Source-based Case Study
Theme I Chapter 2: A World Divided by the Cold War – Manifestations of the global Cold War: The Korean War (1950)
Historical context: A Divided Korea
After the Japanese surrendered in 2 September 1945, the superpowers (USA and the USSR) agreed to divided the Korean peninsula at the 38th parallel. From 1945 to 1948, the superpowers oversaw the development of the two Koreas.
In 1948, the USA put forth the idea of a vote for all Koreans to decide their futures. After the North refused, the Democratic People’s Republic of Korea (DPRK) was formed, helmed by Kim II-Sung. In contrast, the South formed the Republic of Korea (ROK) under the leadership of President Syngman Rhee.
Preparation for War
In 1949 and 1950, Kim visited Stalin in Moscow, seeking the Soviet leader’s support to launch an invasion in Korea. With the help of the Soviets and the Chinese, the North Korean troops crossed the 38th parallel and invaded South Korea on 25 June 1950.
Before the Truman administration took the initiative to lead the United Nations Command (UNC) and repel the invasion, the American President received a document named the National Security Council Paper Number 68 (NSC-68). The document advised Truman to build up the defense industry to counter the danger of global communism.
On 27 June 1950, Truman gave a speech, ordering the deployment of American forces to South Korea to counter the North Korea’s attacks. Interestingly, the US intervention was not treated as formal declaration of war against North Korea, but rather a ‘police action’.
What can we learn from this article?
Consider the following question:
– To what extent do you agree that the Korean War was a civil conflict?
Join our JC History Tuition to learn more about the Korean War. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.
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When was the Sovietisation of Eastern Europe?
/in Cold War, History SBCS/by JustinTopic of Study [For H2 and H1 History Students]:
Paper 1: Understanding the Cold War (1945-1991)
Section A: Source-based Case Study
Theme I Chapter 1: Emergence of Bipolarity after the Second World War
Historical context: Dividing the spoils
As the curtains of the Second World War close, the Allied Powers led by the ‘Big Three’ (USA, Soviet Union and Great Britain) gathered in several meetings to discuss the future of post-war Europe, particularly the Yalta (February 1945) and Potsdam (August 1945). In October 1944, Soviet Premier Josef Stalin and British Prime Minister Winston Churchill met to sign a secret informal agreement, known as the ‘Percentages agreement’. This agreement gave Stalin control over the Eastern European nations.
Strategic considerations: Stalin’s ruminations
During the Second World War, Stalin believed that territorial occupation enables the government to establish its own ‘social system’. Furthermore, the Soviet Premier had anticipated a clash with the capitalist world in the near future, thus necessitating the creation of a pro-Soviet bloc in Eastern Europe.
Start of the Sovietisation: Poland
In late July 1944, the Polish National Liberation Committee (PKWN) accompanied Soviet troops into Poland. A pro-Communist Polish national government was formed in Lublin. At the same time, the Soviet forces obliterated resistance linked to the Polish government-in-exile based in London.
From the American and British perspectives, the Sovietisation of Eastern Europe was a worrying development. For the former, the Truman administration had derived a response to counter the expansionist policies, also known as the Truman Doctrine.
What can we learn from this article?
Consider the following question:
– How far do you agree that the Sovietisation of Eastern Europe was the main cause of the outbreak of the Cold War?
Join our JC History Tuition to learn more about the Emergence of Bipolarity. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.
We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.
What was the 1997 coup in Cambodia about?
/in History SBCS, Regional Conflicts and Cooperation/by JustinTopic of Study [For H2 History Students]:
Paper 2: Regional Conflicts and Co-operation
Source Based Case Study
Theme III Chapter 2: ASEAN (Growth and Development of ASEAN: Building regional peace and security)
Historical context: End of a 16-year long war
At the end of the Third Indochina War, the Paris Peace Accords of 1991 were signed. With the help of the United Nations Transitional Authority in Cambodia (UNTAC) led by Secretary-General Special Representative Yasushi Akashi and Lieutenant General John Sanderson, free elections were held in 1993.
The elections concluded with the formation of a Cambodian coalition government led by two political parties, Prince Norodom Ranariddh’s royalist FUNCINPEC (National United Front for an Independent, Neutral, Peaceful and Cooperative Cambodia) Party and the Cambodian People’s Party (CPP) led by Hun Sen. The CPP held dominant control of the Royal Cambodian Armed Forces.
It was agreed that Prince Ranariddh would assume the leadership position of Prime Minister first, then Hun Sen as the Second Prime Minister.
The coup and its impacts
On 5 July 1997, the CPP led the military in a coup against the Cambodian government, ousting Prince Ranariddh and his royalist faction.
More importantly, ASEAN had initially contemplated on extending an invitation to Cambodia to join as a member. In 1994, Cambodia was granted ‘observer’ status’, preparing it for the attainment of full membership. Following the coup, ASEAN announced its decision to postpone Cambodia’s membership admission.
Even so, ASEAN remained optimistic in offering a peaceful solution to the crisis in Cambodia. Three foreign ministers (Ali Alatas of Indonesia, Prachuab Chaiyasan of Thailand, and Domingo Siazon of the Philippines) formed an ‘ASEAN Troika‘ that offered to mediate the matter in Phnom Penh on 19 July 1997. However, the talks failed.
Hun Sen criticised ASEAN for not adhering to its non-interference principle. Sen claimed that the political turmoil in Cambodia was its own domestic matter, thus ASEAN had no jurisdiction. Fortunately, the talks finally bore fruit as Sen agreed to join ASEAN on 30 April 1999.
What can we learn from this article?
Consider the following question:
– How far do you agree that governments were responsible for the economic instability in independent Southeast Asia?
Join our JC History Tuition to learn more about ASEAN as well as Regional Conflicts and Cooperation. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.
We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.
How did the 1970s oil crises affect Southeast Asia?
/in Economic Development, History Essays/by JustinTopic of Study [For H2 History Students]:
Paper 2: Economic Development after Independence
Section B: Essay Writing
Theme II Chapter 1: Paths to Economic Development
Historical context: The 1970s oil shocks
In the early 1970s, petrostates in the Arab world agreed to boycott Western nations, such as the USA and UK, for their provision of support to Israel during the Yom Kippur War against Egypt. As a result, crude oil prices quadrupled from $3 per barrel to $12 per barrel by 1974.
The second oil shock took place between 1978-1979, in which the Iranian Revolution concluded with the fall of the Shah’s regime. At that time, Iran was the world’s second-largest oil exporter. With the temporary halt in oil production in Iran, the political turmoil had further devastated the world oil markets, causing oil prices to surge to nearly $30 per barrel by early 1980.
A windfall in Indonesia: Surge of petrodollars
In Southeast Asia, oil exporting nations like Indonesia benefited from this unprecedented development, given their membership in the Organisation of Petroleum Exporting Countries (OPEC). The oil price in Indonesia increased from $1.67 per barrel in 1970 to $35 in 1981.
With large inflows of revenues from oil exports, the Indonesian government used these surpluses to correct its balance of payment deficits. Furthermore, the New Order government used the oil revenues to expand the manufacturing sector, particularly through import purchases of raw materials and capital goods. More importantly, President Suharto embarked on ambitious large-scale development programs in different parts of Indonesia, including Java.
A temporary setback: For oil-importing nations in Southeast Asia
In contrast to Indonesia and Malaysia, oil-importing nations like Thailand, Malaysia, Singapore and the Philippines were adversely affected by the rise in oil prices. Higher oil prices meant a decline of the terms of trade as well as their balance of payment positions.
What can we learn from this article?
Consider the following question:
– How far do you agree that governments were responsible for the economic instability in independent Southeast Asia?
Join our JC History Tuition to learn more about the Paths to Economic Development. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.
We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.
What affected the economic development of Indonesia under Suharto?
/in Economic Development/by JustinTopic of Study [For H2 History Students]:
Paper 2: Economic Development after Independence
Section B: Essay Writing
Theme II Chapter 1: Paths to Economic Development
Challenges that surfaced during the ‘New Order
After Suharto took over Sukarno as the Indonesian President in the late 1960s, the new leader had begun efforts to recover the Indonesian economy. Agendas were set in the new Five-Year Plan, also known as Repelita I (Rencana Pembagunan Lima Tahun I).
A crisis in the agricultural sector: Rice
In the early 1970s, a serious drought had hit Indonesia. It adversely affected rice producers, leading to a fall in production. As a result, the price of rice surged, impacting the poor. If left unchecked, this economic problem may spill over to the political sphere.
In 1973, Suharto formed the Badan Urusan Logistik (BULOG), a national rice agency. It was established to build and maintain a buffer stock of rice, managing distribution of rice across Indonesia. Also, it helped to maintain rice price stability to protect the welfare of rice farmers.
In addition, the Indonesian government aimed to create a national buffer stock of rice to pre-empt shortages, should there be unforeseen circumstances like a serious drought. By 1979, an integrated network of modern warehouses was built. This network had the capacity to store one million tons of rice across the nation.
Public demonstrations: Malari
In the same decade as the ‘rice crisis’, Indonesia grappled with protests in Jakarta and other parts of Indonesia, known as the Malari riots in short (Malapetaka Lima belas Januari). The origins of the riots can be traced to a visit by the Japanese Prime Minister Kakuei Tanaka. There were fears of growing Japanese influence in the commercial sectors of Indonesia.
In response to the demonstrations led by students, the New Order government mobilised the military to quell the unrest and restore order. Furthermore, public discussion of the Malari and its impacts was prohibited.
From the economic standpoint, Suharto revised the policies on attracting foreign investment, especially from Japan, to minimise the resurgence of socio-political instability.
What can we learn from this article?
Consider the following question:
– How successful were governments in managing economic challenges in independent Southeast Asia?
Join our JC History Tuition to learn more about the Paths to Economic Development. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.
We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.
How did Giant become the biggest bicycle manufacturer in the world?
/in Four Asian Tigers, Global Economy, History Essays/by JustinPaper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 3: Rise of Asian Tigers from 1970s to 1990s [South Korea and Taiwan]
Humble beginnings: A SME run by family and friends
In 1972, a 36 year-old engineer King Liu founded Giant with a group of associates, including Tony Lo, in Taichung (臺中). Lo was a business graduate from the National Taiwan University. Interestingly, Liu cycled to work at first to understand his product better.
In 1977, Liu secured a contract to produce bicycles for an overseas American company Schwinn, which was known for its 10-speed steel machines. Giant then functioned as an Original Equipment Manufacturer (OEM). Liu, who was fluent in Japanese, visited Japan to study the bicycle production process, replicating suitable work practices at Giant.
An unexpected turn of events: Turning setbacks into opportunities for success
In 1981, Giant set up its own bicycle brand as an Original Brand Manufacturer (OBM). It was a bold and unusual move as products that were manufactured in Taiwan were still viewed as low-quality and cheap.
Five years later, Giant brought its bicycles to the global market, starting with the Netherlands. Lo had identified Netherlands as a suitable European headquarters due to its geographical location, comprehensive infrastructure and integrated transport network. From there, Giant exported to other European markets. By the mid-1980s, Giant exported nearly 10 million bicycles a year.
In the 1985, the US-based Schwinn switched to a Chinese supplier to keep production costs low. As a result, nearly three-quarters of Giant’s revenue had been affected. Yet, Giant did not relent. Instead, the company capitalised on the low production base in China, setting up two production plants in China, namely in Shanghai (上海) and Jiangsu (江苏).
Close collaboration with the government
In 1986, Giant launched a joint project with the government-funding Industrial Technology Research Institute (ITRI). They explored use of advanced materials to create carbon fiber bicycle frames. Giant also worked on other technology diffusion projects for aluminum welding with Chun Shan Institute of Science and Technology (CSIST).
Giant’s R&D efforts had paid off as tts revenue rose to over NT$ one billion.
In 1987, Giant pioneered the mass production of carbon bicycles, particularly the model called Cadex 980C. Lo dubbed it ‘Project 88’. Giant had applied computer-aided design and volume production techniques to manufacture these carbon fiber road bicycles. By 1991, Giant manufactured 20 thousand units of carbon bicycles.
Now, Giant one of the top bicycle manufacturers in the world.
What can we learn from this article?
Consider the following question:
– How far do you agree that Giant’s successes in export promotion were the result of Confucian culture?
Join our JC History Tuition to learn more about the rise of Asian Tiger economies and the Global Economy. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.
We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.
What does United Microelectronics do?
/in Four Asian Tigers, Global Economy, History Essays/by JustinPaper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 3: Rise of Asian Tigers from 1970s to 1990s [South Korea and Taiwan]
Historical context: Silicon Valley of the East
On 22 May 1980, the United Microelectronics Corporation (UMC) was formed as the first-ever private integrated circuit (IC) company in Taiwan. The UMC was a product of the state-backed technology R&D institution, known as the Industrial Technology Research Institute (ITRI).
Under the leadership of President Chiang Ching-kuo (蔣經國), the government embarked on an ambitious project to encourage knowledge and skills acquisition in the private sector to intensify Taiwan’s industrial development.
The UMC occupied the Hsinchu Science Park (HSIP, 新竹科學園區), which was modelled after the Silicon Valley.
Enter the age of semiconductors
Under the astute leadership of Robert Tsao (曹興誠), who became president of UMC in 1982, the UMC became the first IC manufacturer in Taiwan to provide wafer foundry services.
In the late 1980s, the UMC broadened its scope of production, venturing into Dynamic Random Access Memory (DRAMs) and telecommunications circuitry. Tsao believed that specialisation in foundry services was the ideal model for the UMC to thrive.
The UMC turned out to be a successful spin-off from HSIP, as seen by its entry to the Taiwan Stock Exchange in 1985. From then on, the UMC went further to build increasingly advanced chips, such as Static Random Access Memory (SRAMs).
A similar venture: The TSMC
In 1987, the Taiwan Semiconductor Manufacturing Company (TSMC) was set up. It was the second spin-off from the HSIP after the UMC. The company was a joint development with the Dutch company Philipps and the Taiwanese government.
Interestingly, the Chiang government had invited Morris Chang, who later became founder of the TSMC, to lead the ITRI in the early 1980s. Chang had put forward the idea of creating a foundry industry in Taiwan.
Evidently, the successes of the UMC and TSMC were partly attributed to the joint efforts of the Taiwanese and American governments (Electronics Research and Service Organization, ERSO, the Radio Corporation of America, RCA). By giving their founders and core team members the opportunities to acquire the technical know-how, the aim of creating a semiconductor industry in Taiwan could finally materialise.
What can we learn from this article?
Consider the following question:
– Assess the view the the United Microelectronics Corporation was a crucial piece of the puzzle in explaining the remarkable growth of Taiwan in the 1980s.
Join our JC History Tuition to learn more about the rise of Asian Tiger economies and the Global Economy. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.
We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.