Growing Economies (4.1.1) Flashcards
What is the growth rate of a country measured by?
The growth of a country is measured by the annual change in its Gross Domestic Product (GDP)
What are emerging economies?
Economies that have increasing growth rates but relatively low income per head (capita)
What are some examples of emerging economies?
India, China, Brazil are considered to be emerging economies
Is UK growth higher or lower than the growth in emerging economies?
UK growth tends to be lower than emerging economies as emerging economies are growing at a faster rate
What sector has the UK seen a decline in? Why?
The manufacturing sector as businesses choose to manufacture in emerging economies due to labor costs and access to raw materials
Who is the world’s largest manufacturing economy and exporter of goods?
China
What is Globalization?
The economic Integration of different countries through increasing freedoms in the cross-border movement of people, goods/services, technology and finance
What do BRICS and MINT stand for? What do they mean?
BRICS=Brazil, Russia, India, China, South Africa
MINT= Mexico, Indonesia, Nigeria and Turkey
They are the emerging economic powers of countries within Asia, Africa and other parts of the world
What do emerging economies have that helps increase the profitability of international firms?
They have a growing middle class with increasing incomes which allows their citizens to spend more on domestic goods and imported goods from abroad
What does economic growth help to generate in a company?
Income
What are the impacts on businesses of economic growth?
- Potential for increased profits as businesses enter new market and gain more customers
-Reduced costs of production as businesses can benefit from lower labor costs and cheaper raw materials in emerging economies
-Increased trade opportunities as demand for goods and services increases
-Increase in investment because as the economy grows businesses want to expand so more likely to invest. Increase in FDI as businesses want to benefit from growing economies
What are the impacts on Individuals of economic growth?
-Reduced unemployment as there is more demand, which requires more labor to increase output
-Increased average incomes as have rising incomes due to employment and so standard of living is raised
-Access to quality public services as more tax revenue is generated and so quality and quantity of public services can improve
What are the four indicator used to assess the economic growth of emerging economies?
- GDP per capita
- Literacy
- Health
- HDI
How is GDP per capita used to assess the economic growth of emerging economies?
-GDP per capita is calculated by taking the GDP of a country and dividing it by the number of people in that country
-High GDP per capita is associated with high standard of lving
-It’s important to look at GDP per capita over a period of time to see if there’s been an improvement
-Can also be useful indicator to compare the growth in two countries
How is Health used to assess the economic growth of emerging economies?
-The health of a country’s citizens is important to businesses that want to invest in emerging economies, as this will have an impact on the quality of the workforce
-Key indicators to consider are average life expectancy, infant mortality rate, access to healthcare and access to clean water
