Comparing Economies Flashcards
Economic growth
The amount of increase in an economy’s output, often measured by change in GDP
Quality of life
The ability of individuals to access quality goods/services which satisfy their needs /wants. Disposable income is a key driver
Unemployment
The proportion of the work force who is able, willing, and seeking work but can not find employment.
Distribution of income
The degree of financial / income inequality in an economy. Income is often distributed through wages, investment, profits and government welfare.
Gini co-efficient
A measure of income inequality from o to 1. O= good, 1 = bad. Use to compare different economies.
Environmental sustainability
The degree to which resources are used currently without compromising future generation’s access to resources/ quality of life.
Output
Quantity of total amount of goods/ services produced in an economy in a certain amount of time
Human development index
Measure of qualify of life which takes into account education levels, income per capita, life expectancy. Used to compare different economies quality of life.
Chinese economic reform
Originally agrarian economy, low income, 3rd world country changed to socialist market economic structure
“ socialism with Chinese characteristics”
Agriculture privatisation
1978 = quota system, excess goods can be sold privately =↑ incentive, ↑ productivity, ↑ output
Reform and open door policy
1979- 1980 ( special economic zones)
Take advantage of emerging globalisation, allowing foreign investment
Done through SEZ such as Shenzhen
Incentives = low tax, cheap labour, no environment regulations on waste disposal
↓ sustainable,↓ income inequality
World trade organisation membership
2001 =↑ economic integration, easy access to global markets for exports
↑ foreign direct investment, FDI increase from $ 40 billion to $ 121 billion from 2000 - 2010
Trade off
Environmental sustainability
Special economic zones
↑ living standard, HDI = 0.58to0.76 (2000 - 2010)
↑ higher income jobs
↑ income inequality
↓ environmental sustainability
Short term verse long term trade off for living standards
Recently growth going down while emission, still going up
China V Australia GDP
China = 14.90 billion to 17.79 trillion from 1978 to 2023, reached 1 bullion in 1988. Ranked 2nd
Australia: 17. 79 billion. Ranked 13th
Australia has over 5 times GDP per capit a than China
China V Australia growth
China = growth averaging 9% since 1978, 5.2% in 2023
Australia=0.8% growth in 2024
China V Australia quality of life
China = HDI 0.788, literacy among adults = 97%, mean schooling = 9 years, expecting = 78.59, infant mortally 0.7%
Australia = HDI 0.949, literally among adults = 99%, mean schooling = 12.9 years, expectancy = 83.9 yeas, infant mortality = 0.4%
China V Australia Unemployment
China= 4.67%
Australia = 3.67%
China V Australia distribution of income
China Gini- coefficient = 0.465 somewhat high)
Australia G ini -coefficient= 0.34
China V Australia environmental sustainability
China: 2020 - 2019, Carbon dioxide emissions increases by 650 million tonnes, over a quarter of emission in the wold
Australia = just over 1% of worlds emissions
China V Australia population
China = 1.5 billion
Australia = 26.7 million
China V Australia imports and exports
China = major exports are telecom, computes, air conditioners, technology, makes up 25% of exports to Australia
Australia = major exports are iron, natural gas, minerals, 32.5% of Australian exports go to china
China is number 1 for both imports and exports for Australia.
