Great companies are born

Asian Sources is inextricably linked with the export-led high growth of the Asian Tigers, and the steady expansion of the business has enabled the company to successfully bridge the gap between Asian sellers and Western buyers.

In 1970, when Asia Sources (later renamed Global Sources) was born, few people believed that Asia was on the verge of a revolution that was about to change the world economic landscape, but Merle Hinrichs saw the huge potential of Asia's economic and trade expansion. The first issue of Asian Sources magazine, published in 1971, and various professional journals published under the name of Asian Sources since then, both witnessed and promoted the early development of Asian trade.

As Geoffrey Moore, a marketing expert known as the "Godfather of Silicon Valley", said: To lead to a great company, you need a great strategic navigation map that correctly grasps the entire era and market environment. The birth of Asian resources caught the pulse of the times and complied with the rising trend of foreign trade.

Asian trade boomed after the war

In the late 1940s, the Asian region was in turmoil. Japan was recovering from the aftermath of defeat, China was devastated by civil war, and future economic powers such as South Korea, Taiwan, Hong Kong and Singapore had yet to emerge.

The first major trade transition occurred in postwar Japan, when American importers began to come to Japan to source their goods. Surprisingly, their arrival was not the result of a request from a proactive, trade-heavy U.S. government, but a suggestion from the U.S. military.

Japan's defeat and blows in World War II made it necessary to rely on foreign aid to rebuild its economy. Faced with tens of thousands of unemployed people, the American garrison in Tokyo decided to help Japan improve the production capacity of export goods and help Japan revitalize its economy.

The Americans brought in a large number of importers to help Japanese companies understand the needs of American consumers and develop corresponding products. Americans also sent engineers and technicians to oversee the start-up of new industries. While the industrious, creative Japanese created Japan's pre-World War II economic power, the country's pre-war export industries were also limited to textiles and gifts.

Global Sources founder Merle Hinrichs recalls this: "We grew up with the Japanese market economy after World War II. When I started the company in 1970, the 'Asian Tigers' were just beginning to emerge. In Asia , Japan is the biggest beneficiary of the U.S. market, thanks in large part to MacArthur, who pushed U.S. importers to Japan for goods with sales potential. In fact, the first U.S. importers were sitting Military aircraft came to Japan.

At that time, the purchases included all kinds of Japanese cultural products and handicrafts. From kimonos to chopsticks, all Asian-specific products became novelties in the US market. This is a lack of export experience. The only way the Japanese market could get off the ground. The U.S. and allies funded Japan's economic revival, much of which was spent on infrastructure rebuilding.

MacArthur's insistence on an irrevocable letter of credit from U.S. importers became a catalyst for trade with Japan at the time

So at the time, U.S. companies sourcing from Japan were limited to those with the financial strength to open an irrevocable letter of credit. This is very important. If the U.S. opened an irrevocable credit for a Japanese supplier Japanese suppliers can apply for loans from Japanese banks or U.S. banks in Japan for purchases, product development, or employment of employees. Without irrevocable letters of credit, it would be very difficult to obtain trade loans. From the late 1940s From the beginning, until the 1950s and 1960s, this practice was a basic requirement for trade with Japan, and was so ingrained in the Japanese minds that even European buyers were required to open irrevocable letters of credit.”

Implications from Japan's export model

This was the first time that Asia had introduced export-led development, and Japan was quick to seize the opportunity. While American importers came to Japan to source light industrial products such as silk and pearls, early Japanese trading companies were already busy looking for opportunities to expand their trade.

They entered the textile field in an all-round way, making Japan the world's largest exporter of cotton cloth, with exports reaching 1 billion square yards in 1951. During the Korean War, the U.S. government had Japanese companies make military uniforms, blankets, tents and spare parts for jeeps, injecting new impetus into Japan's already booming economy. Japanese industrialists also made their first forays into the electronics, consumer products and automotive industries. In the motor vehicle sector, the production of automobiles and motorcycles has first reached a level that can meet domestic demand, and then has been further refined to meet export demand.

By 1970, when international agencies such as the United Nations were still recommending import substitution as the best way to achieve economic growth in other developing Asian countries, Japan was proving to the world that a country with scarce natural resources could export Consumer products to achieve leapfrog development.

But this isn't the only economics lesson Japan has taught its neighbors. Japan reinvested the proceeds from its initial trade successes in upgrading its infrastructure, further boosting the level of trade and product development. Other countries recognized the success and growth potential of the Japanese model and began to follow suit. The foundation for Japan's economic miracle was thus laid. In 1991, Japan's export trade exceeded US$268 billion.

Merle Hinrichs commented: "The whole world is affected by global trade. Now the world is reincarnated, and the countries that received funding have become major foreign investment countries. When I arrived at the terminal in Lincoln, Nebraska, I took the automatic As the escalator slowly descended, a sign appeared in front of me with the slogan 'Home of the Land'. This is the direct effect of foreign investment on the motorcycle and auto industries in the Midlands of the United States, as well as the impact of global trade and investment on communities, countries, industries, and the world at large. An example of a far-reaching impact."

Facilitating the Growth of the Four Asian Tigers

In the late 1950s, when South Korea and Taiwan began to compete with Japan, economic development was again subject to political influence.

South Korea's economy was ravaged by war, but U.S. import licenses and economic aid planted the seeds for a surge in exports. Korean companies have introduced Japanese technology and methods for producing clothing and electronic products; Taiwan, in a completely different economic environment, has gradually developed a unique economic and trade system by focusing on supporting small enterprises and giving a relatively relaxed policy environment.

From the humble beginnings of asparagus and mushroom exports, Taiwan soon expanded its exports to textiles, carpets, and later electronics. As a result, a number of international enterprise groups such as Macro, Formosa Plastics and Uni-President Foods emerged.

Industry in Taiwan and Hong Kong developed after the Kuomintang pulled out of mainland China in 1949. Among the exodus from mainland China were Shanghai textile tycoons, whose entrepreneurial spirit took root in Hong Kong and Taiwan, setting up new textile factories. When the United States established a quota system to protect domestic industries, especially textiles and footwear, these Chinese entrepreneurs turned to other products that were not subject to quotas.

As its strength continues to grow, the Asian dragon has finally soared into the sky, entering a wide range of fields such as household products, wigs, fashion accessories, tools, sporting goods, toys and electronics.

From the 1950s to the 1960s, young Asian economic entities implemented an export-oriented economic development model. By the mid-1970s, Hong Kong and Taiwan had become one of the earliest "newly industrialized regions in Asia". Singapore also received the honor shortly thereafter. Hong Kong, Singapore, South Korea and Taiwan were later collectively referred to as the "Four Asian Tigers". From the 1970s to the 1980s, the Four Little Dragons experienced rapid economic growth and accelerated industrialization.

There is an inseparable link between Asian resources and the export-led rapid growth of the Asian Tigers. The steady expansion of the business has allowed the company to successfully bridge the gap between Asian sellers and Western buyers. The first issue of Asian Sources magazine, published in 1971, and various professional journals published under the name of Asian Sources since then, witnessed the early development of Asian trade.