4.1.1 - GROWING ECONOMIES

Question 1

What is an ECONOMY?

Answer 1

the STATE of a COUNTRY in the TERMS of the PRODUCTION and CONSUMPTION of Goods and Services and the SUPPLY of MONEY
the large set of INTER-RELATED PRODUCTION and CONSUMPTION ACTIVITIES

Question 2

What is BRIC ECONMIES

Answer 2

BRAZIL , RUSSIA, INDONESIA, CHINA

SUPERPOWERS - Have ECONOMIC, CULTURAL, GEOPOLITICAL INFLUENCE

Question 3

What are MINT ECONOMIES?

Answer 3

MEXICO , INDONESIA , NIGERIA , TURKEY

EMERGING Economic Giants

Question 4

What are 2 IMPLICATIONS of ECONOMIC GROWTH for Individuals & Businesses

Answer 4

• EMPLOYMENT PATTERNS
• TRADE OPPORTUNITIES

Question 5

Explain the IMPLICATION of ECONOMIC GROWTH - TRADE OPPORTUNITIES

Answer 5

CONSUMPTION may be GROWING –> with Growth DISPOSABLE INCOME is Also RISING. Individuals may THEREFORE have MORE MONEY to SPEND –> INCREASING DEMAND for Goods & Services.
DEMAND is Likely to become INCOME ELASTIC, providing GREATER OPPORTUNITIES for INCREASE REVENUES & PROFITS.
These Goods can be PRODUCED DOMESTICALLY or IMPORTED from ABROAD -> CREATING many OPPORTUNITIES for Trade

Question 6

Explain the IMPLICATION of ECONOMIC GROWTH - EMPLOYMENT PATTERNS

Answer 6

• CHANGES in EMPLOYMENT PATTERNS -> working women, migration
• COUNTRIES that manage to PULL THEMSELVES OUT of POVERTY and GET RICHER are Able to DIVERSIFY AWAY From AGRICULTURE and MOVE Labour Into MODERN ECONOMIC ACTIVITIES -> overall PRODUCTIVITY RISES and INCOMES EXPAND

Question 7

What does the CHANGING in EMPLOYMENT PATTERNS mean for BUSINESS?

Answer 7

• INCREASING INCOMES of their CITIZENS
• Means OPPORTUNITIES to INCREASE REVENUE and PROFIT for MNC’s by MOVING into NEW MARKETS
• INCREASED INCOMES combined with LOW LABOUR COSTS and PROXIMITY to MARKET make these Growing Economies ATTRACTIVE

Question 8

What are the 4 INDICATORS of GROWTH

Answer 8

(1) GDP ( Gross Domestic Product )
(2) LITERACY
(3) HEALTH
(4) HDI ( Human Development Index )

Question 9

Explain Growth Indicator - GDP

Answer 9

• measure of ECONOMIC ACTIVITY
• sum TOTAL of EVERYTHING PRODUCED as a Nation
• USA Highest - 19 Trillion

Question 10

Explain Growth Indicator - LITERACY

Answer 10

• QUALITY of those EMPLOYEES , both as workers and as potential customers
• most PRODUCTIVE EMPLOYEES at the LOWEST COST
• LITERACY RATE - % those who can Read and Write

Question 11

Explain Growth Indicator - HEALTH

Answer 11

• Important for Investors to Consider
• KEY INDICATOR of the LEVEL of DEVELOPMENT of an ECONOMY
• WHO ( World Health Organisation ) - collects and evaluates statistics, e.g. LIFE EXPECTANCY

Question 12

Explain Growth Indicator - HDI

Answer 12

combines statistics on LIFE EXPECTANCY, EDUCATION, INCOME , used to Rank countries into 4 TIERS of HUMAN DEVELOPMENT

Business looking to Expand might want to USE HDI to INVESTIGATE a POTENTIAL MARKET or LOCATION for INVESTMENT