4.1.1- growing economies

Question 1

What is an economy?

Answer 1

The state of a country or region in terms of the production and consumption of goods and services

Question 2

What is an emerging market?

Answer 2

Used to describe a country in the process of rapid growth and industrialisation

Question 3

What are 3 features of an emerging market?

Answer 3

-economies making a transition
-rapid industrialisation (more secondary and tertiary sectors)
-businesses struggle to access global markets

Question 4

What are the main emerging markets?

Answer 4

BRICS= brazil, russia, india, china, south africa

MINT= mexico, indonesia, neigeria, Turkey

Question 5

What does purchasing power parity mean?

Answer 5

What is the currency able to purchase in county

Question 6

What does GDP mean?

Answer 6

measures total value of goods and services produced within countries borders

Question 7

What does GNI mean?

Answer 7

Total value of income for a countries residence

Question 8

What are four indicators of growth and what do they mena?

Answer 8

1) GDP
2) Literacy= % of adults who can read and write
3) Health= assessment of health includes life expectancy, infant mortality and pollution exposure
4) HDI= statistic which combines life expectancy, education and income

Question 9

What are the key risks and threats of emerging markets?

Answer 9

• political instability
• cultural differences
• variable approach to legal dealings
• low cost production makes developed economies uncompetitive in some markets

Question 10

What does this growth mean for a UK business?

Answer 10

• increase income= increased exports
• increased incomes + low labour costs= decreased costs
• cultural shift