4.1.1 Growing economies

Question 1

what is an emerging economy?

Answer 1

economies of developing countries, where there is rapid growth but low income per head and operating risk

Question 2

what is GDP?

Answer 2

a measure of the total goods and services produced in a country over a specific period of time?

Question 3

what are the common features of emerging economies?

Answer 3

-growing GDP (faster economic growth)
-rapid industrialisation
(development of secondary and tertiary sectors)
-potential to become a developed economy
many inhabitants still in poverty
-businesses struggle to access global markets (trade barriers)

Question 4

what are perceived business threats from emerging economies?

Answer 4

-increased pool of skilled but low cost labour
-undervalued currency make their exports cheaper
-inadequate protection of brand and other intellectual property
-state subsidy of industries to make them more competitively globally

Question 5

what are business opportunities in emerging economy?

Answer 5

-growing number of educated middle class consumers (more consumer spending)
-cultural shifts (public -> private healthcare)
-demand for infrastructure and other products/services from developed economies
-great potential for joint ventures/acquisitions
-source of high skilled but low cost labour (outsourcing/offshoring)

Question 6

what countries are in the BRICS?

Answer 6

-Brazil
-Russia
-India
-China
-South africa

Question 7

what are the countries in the MINT?

Answer 7

-Mexico
-Indonesia
-Nigeria
-Turkey

Question 8

what is globalisation?

Answer 8

increased integration and interdependence of national economies