Has Growth in Asia Reduced the Welfare of High Income Countries? Explain.?

Answer 1

Their growth has increased the demand for natural resources, especially oil, causing the price to increase. This has decreased the welfare of oil importing countries and increases the welfare of exporting ones. Norway is high income and doing very well because they have the north sea oil. It can not really be generalized, it is country and product dependent.

Answer 2

No, high income countries specialize in high-value, technology-intensive goods. As incomes of Asian countries increase, they buy more of these goods.