4.1 Globalisation Flashcards
How is Economics Growth Defined?
An increase in a country’s productive capacity.
How is Emerging Economics Defined?
The economies of developing countries where there is rapid growth, but also significant risk.
How is Human Development index (HDI) defined?
A collection of statistics that measures each country’s social and economic development
How is Literacy rate defined?
The Percentage of adults (over 15) that can read and write
Why do Investors like Emerging Markets?
- they are likely to grow more quickly than more mature markets.
-Therefore a business should be able to increase profits and dividends.
What Does the Initialism BRICS stand for?
-Brazil
-Russia
-India
-China
- South Africa
What does the Initialism MINT stand for?
- Mexico
- Indonesia
- Nigeria
- Turkey
How is GDP defined?
A common measure of national income, output or employment.
How does Economic growth create trade opportunities and what is the implications for both individuals and businesses?
- growing economy = growing consumption
- disposable income rises therefore increase in demand for goods and services.
- These goods/ services can be produced domestically or imported from abroad, creating many opportunities for trade.
What are some indicators of growth?
-GDP per Capita
-Data from a countries GDP
- literacy
- Health
-Human Development Index
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How is literacy used as an indicator of a countries growth?
- the quality of employees. both as workers and potential consumers
- a company looking to invest wants the most productive employees they can find at the lowest costs.
-a company exporting to a country will want to consider the consumers they want to sell to, understanding their potential consumers they will know how to market its goods and services to them - this can be found out by the literacy rate provided by the UN which is the percentage of adults that can read and write.
How is Health an indicator of a countries growth?
- An assessment of the health of a population may include –> life expectancy at birth, infant and maternal mortality, pollution exposure and access to clean water.
- The World Health Organisation collects and evaluates statistics relating to a broad range of indicators that can be used to assess population health
How is HDI an useful to a business?
-A business may want to use the HDI to investigate a potential market or location for investment.
How is Comparative advantage defined?
The theory that a country should specialise in products and services that it can produce more efficiently than other countries.
How is competitive advantage defined?
The idea that a business should specialise in any area (products, services, management, research, etc) where it can perform better than its competitors.
How is Division of Labour defined?
Different workers specialising in different productive activities
How is Exports defined?
Goods or services that a firm produces in the homer market, but sells in a foreign market.
How is Foreign Direct Investment defined?
Investing by setting up operations or buying assets in businesses in another country.