4.1.1 - Growing Economies Flashcards
What is economic growth?
Increase in a country’s real GDP over time
What are emerging economies?
Economies that have increasing growth rates but relatively low income per head (high risk)
What is globalisation?
Economic integration of different countries through increasing freedoms in the cross-border movement of people, goods/services, technology & finance
What does the emerging economy acronym BRICS stand for?
Brazil
Russia
India
China
South Africa
What does the emerging economy acronym MINT stand for?
Mexico
Indonesia
Nigeria
Turkey
Impact of middle class in emerging economies and the impact of them on international firms?
- Growing middle class with increasing incomes which allows their citizens to spend more on domestic goods and imported goods from abroad
- This increases the profitability of international firms who sell their goods and services in these emerging economies
What is GDP?
A measure of the size of an economy - the total output of all goods and services produced in a country over a year.
Impact of economic growth on businesses
- Increased profits as entering new markets
- Reduced costs of production as lower labour costs and materials in emerging economies
- Increased trade opportunities
Impact of economic growth on individuals
- Reduced unemployment as more demand
- Increased average incomes
- Access to quality public services
What are 3 indicators of economic growth?
- Education/Literacy
- Health
- HDI ( Human Development Index)
Definition of literacy
Literacy refers to the percentage of adults within an economy who can read and write
What is HDI?
Combines the factors of life expectancy, education and income to determine the quality of development of citizens within a country
Difficulties with using HDI
- It does not account for inequalities within a country
- There is a lack of reliable data in some countries
