4.1 Flashcards
GDP definition
value of all the goods and services product in a country within a year
emerging economy definition
market with rapid growth but also with a lot of risk
how does growth affect individuals and businesses
increases wages
growth rate of uk economy compared to emerging economies
uk economy slower growth rate compared to emerging economies
growing economic power of countries
Asia, Africa
Growth results from higher average incomes and development of neew incomes and markets
Increase in income –> greater demand
effects of economic growth on trade opportunities
increased FDI
opportunities to export to developing opportunities
effects of economic growth on employement patterns
Unemployment rates fall
Skilled worker level increases
- international businesses can recruit
Issues with gdp
GDP does not take inflation into account , increase in GDP could just be inflation rather than economic growth
GDP can be hard to compare across currencies
GDP per capita does not take into account income distribution
Indicators of Growth other than gdp
Health: life expectancy, mortality rates
Literacy : gives the quality of education
HDI
What is HDI
Combines statistics, longevity, basic education and minimal income
Figure between 0 &1
Import and export definition
Import- selling goods that are made in another country
Exports- selling domestic goods to other countries
FDI and business growth
FDI allows a business to benefit from comparative and competitive advantage directly being able to use a countries resources/ workers
Globalisation definition
The increasing integration and cooperation between countries and the growth of international trade
Factors contributing to increased globalisation
- Reduction of trade barriers/trade liberalisation
- Political change - democracy - better communication
- Reduced cost of transport and communication.
- increased significance of transnational companies. Bring cultures together
- Increased FDI
- Migration.
- Global population increase (increase in labour force)
Protectionism definition
Protecting domestic businesses against foreign competition