Edexcel-Growing economies 4.1 Flashcards
Multinational
Two or more countries
Growth rate
Measured by annual change in GDP
Emerging economy
Economies that have increasing growth rates and income but haven’t reached full potential.
What does Uk growth tend to be?
Lower than emerging economies.
What sector is in decline in the Uk?
The manufacturing sector
Why is the Uk’s manufacturing sector declining in comparison to emerging economies?
Higher labour costs
Less access to raw materials
Who’s the world’s largest manufacturing economy?
China
Globalisation
Economic integration of different countries through border’s movement of people, goods, technology and finance.
What has happened because of globalisation?
Impacted national cultures
Spread ideas
Sped up industrialisation
Industrialisation
A rise in manufacturing
What countries are in BRICS?
Brazil
India
China
South Africa
What countries are in MINT?
Mexico
Indonesia
Nigeria
Turkey
Advantages of moving into a growing economy
Growing middle class who are more willing to spend more on domestic and imported goods.
Less competition
Less regulation
Impact of economic growth on businesses
Potential for increased profits
Reduced costs of production
Increased trade opportunity
Why is there Potential for increased profits ?
As a business enters a new market and gains more customers.
Why is there reduced costs of production?
As businesses can benefit from lower labour costs and cheaper raw materials.
Why is there increased trade opportunity?
Demand for goods and services increase.
Impact of economic growth on individuals
Reduced unemployment
Increased average income
Access to quality public services
Why is there reduced unemployment?
More demand which requires more labour.
Why is there an increasing average income?
Individuals have rising incomes due to employment.
Why is there an access to quality public services?
More government is generated.
Disadvantages of moving into an emerging economy
High costs of marketing
More difficult to plan
Fluctuating exchange rates means profits unstable.
Indicators of growth
GDP per capital
Health
Literacy
Human development Index
GDP per capita calculation
Total output/number of people in country
What does a high GDP indicate?
A high standard of living
Why is GDP per capita useful?
Useful to compare growth in two countries.
Why is Health important to know?
Impacts the quality of a workforce.
What aspects of health are considered?
Average life expectancy
Infant morality rate
Access to healthcare
Literacy
Refers to the percentage of adults within an economy who can read and write.
What does literacy determine?
Determines quality of workforce and customers that will be sold too.
Human development index
Determines the quality of the development of citizens within a country.
What factors does HDI combine?
Life expectancy
Mean years of schooling
Gross national income
What is HDI measured between?
0-1
What’s the problems with HDI?
Does not account for inequalities
Lack of reliable data in a country
Does not take into account qualitative factors.
What do developed economies often have?
Smaller GDP growth
Higher income levels
Much better infrastructure
