4.1.1 Growing Economies Flashcards
What is economic growth?
How is it usually measured? 
An increase in the country productive capacity 
Usually measured using GDP
What is GDP?
A measure of the countries economic activity include product and services produced in a year
what are emerging economies?
Economies that are in the process of rapid growth and industrialisation
What are the BRIC economies ? Why is it significant?
Brazil
Russia
India
China
South Africa
Because of scale and growth rate 📈
What is the largest BRIC economy?
China 🇨🇳
what has Brazil entered?
A prolonged recession
why did BRIC grow rapidly?
Very Large populations
Access to large amount of natural resources
large landmasses
what are the Mint economies ? 
Mexico 🇲🇽
Indonesia 🇮🇩
Nigeria 🇳🇬
Turkey 🇹🇷
What do MINT economies have 
Very Favourable demographics
Why would MINT economies grow rapidly
Expanding population
Young population to large working age population
Cheap labour force
Significant geopolitical positions
What are the implications of economic growth towards a business? (5)
What are customers more likely to have?
Potential to increase profits Business enters new markets- gain more customers
Customers are more likely to have income elastic demand in increasing sales
Reduce cost of production benefit from lower labour costs
Increased trade opportunities
increased FDI and investment
What are The impacts of individuals of economic growth?
Reduced Unemployment
Increase in average income
Access to quality public services
what are the four key indicators of growth?
GDP- total economical output of the country
Literacy - take in account the number of adults that can move right
health - looks like being such as infant mortality rate and access to healthcare
HDI - human development index - combines factor of life expectancy education and income to determine the quality of life
What are the three issues with the development indicators? (3)
doesn’t take into account social issues
Data Collection methods can vary from country to country
manipulation of data- countries may lie for Aid
What is PPP?
Measurement of price for specific goods in different countries used to compare the absolute purchasing power of countries currencies
Purchasing powers parity
What is the positives of specialisation?
Increase productivity increase output
increased sales production - EOS - can lead to increased GDP growth
resources are devoted to an industry
Competitive Advantage
What are the disadvantages of specialisation?
Over reliance on one industry
over reliance on one industry they become other countries may become too cheap
May become too big - diseconomies of scale
What is protectionism?
The Governments approach to protect domestic products
What is a Tariff ?
Tax put on the imported goods to make them more expensive
What are the pros and cons of tariffs?
Cons
Increase cost of imported materials - raw material more expensive for businesses
Reduced Competition - domestic firms - may become inefficient
Reduce choice for consumers more expensive consumers may be unable to afford goods
Pros
Protect smaller industries so that they can eventually become competitive globally
An increase in government tax revenue
Reduction in dumping of foreign businesses so they cannot sell below market price
What is the import quota?
Physical limit of imports that are allowed in the country
What Are positives and negatives of import quotas?
To meet extra demand they may need to employee new workers reduces unemployment and benefits wider economy
The higher price of the product may encourage new businesses to start up in the industry
Countries can can easily change quotas as conditions changed in the market
One countries can be quotas as less confrontational as tariffs
Negatives
Quoters limited supply of product the price product rises
cause tension between trading partners
Efficiency of domestic firms may decrease due to quotas reducing levels of competition
What is globalisation?
Describes Growing interdependence of the worlds economies, culture, economy, and population
What has globalisation led businesses to be?
to be more integrated and independent
Dynamic