4.1 Growing economies Flashcards
What have been the key drivers behind economic development?
1) Willingness to accept inward investment from MNCs
2) More enterprising behaviour from local businesses
3) Stable governance
4) easier access to export markets due to improvements in communication and transport via globalisation
What has been the UK’s economic growth for 200 years?
2.25% per year
What are some Asian and African countries that have experienced rapid growth?
Vietnam
Indonesia
Cambodia
BRICS
What are some implications of economic growth for businesses?
New export opportunities
Offshoring production
Increased domestic competition
Implications of economic growth for individuals?
- shift in employment structure
- rural to urban migration
- increased need for managers expanding the middle class
- increasing skill levels within the economy
What are the indicators of growth?
1) GDP per capita
2) Literacy rates
3) Health
4) Human Development Index (HDI)
What is GDP per capita?
A measure of the total output of a country’s economy. This is divided by the population.
How can economic growth be measured using literacy rates?
Once a country begins to develop, the number of illiterate people drop. Because of this, a more literate workforce will be able to be more productive accelerating further economic development.
How can economic growth be measured using health?
Levels of health should improve as an economy develop. As an economy develops, the population will become healthier which leads to better services extending life expectancy.
What is HDI?
The Human development index is a composite measure that combines economic progress with health and education.
What is the HDI of Norway and UK?
Norway is 1st and has a score of 0.944/1
UK is 14th and has a score of 0.892/1
