ABSTRACT
Scholars subsequently pointed out different phenomena to modify and supplement this hypothesis. Developing countries can share the benefits of division of labour and technology development with the developed countries even in the early stage of development of an industry. Israel manages to work together with the United States (US) in military research. The recent hectic crisis in all the stock markets in late October 1987 is a warning signal. Japan is the indisputable economic giant among the Asia-Pacific countries. According to the post second World War development pattern, Japan rose to power under the US umbrella. Hong Kong is an even more brilliantly successful example of export-oriented policy. Hong Kong is now serving as an international trading and financial centre in the Asian region. The American economy is still the locomotive of the world economy. Both Japan and China will play significant roles in the emerging Pacific Century.
