4.2 Factors that cause variations in economic performance

Question 1

what is foreign ownership levels

Answer 1

Necessary for some countries to ensure there is sufficient investment and money to develop sectors of the economy.​

​

High levels of foreign ownership mean​

- profits earned are taken out of the country​

- if the company leaves, local people will​

  lose their jobs (e.g. in 2017 Ford, Holden​

  and Toyota)

Question 2

what are employment rates

Answer 2

Full employment means that almost all who are able or willing to work can be employed in a job.​

Full employment generally means people​

- have more disposable income to buy goods and services they need and want​

- can afford housing​

- don’t have to rely on government for social security

Question 3

what is goverment debt levels

Answer 3

When government spends more than it receives, it runs a budget deficit​

Governments will often run a deficit to stimulate the economy​

​

BUDGET DEFICIT increase DEBT increase INTEREST REPAYMENTS

Question 4

what is household level debt

Answer 4

Also an indicator of the living standards​

If a person has high levels of debt and becomes unable to work, this can have a negative impact on their living standards