Growth in the twenty-first century

Question 1

What has the emergence of new markets done?

Answer 1

Boost to ‘older’ economies.
Represent 75% world’s population.
Include India, China, Saudi Arabia.

Question 2

How have many emerging economies moved from centralised political/economic systems to more open market models? 4

Answer 2

1. Relaxed foreign exchange controls.
2. Greater autonomy (self right) for financial institutions.
3. Trade barrier removal.
4. Political reforms - time for change.

Question 3

Why have emerging economies moved from centralised political/economic systems to more open market models? 3

Answer 3

1. Raised living standards.
2. Increased local population opportunities.
3. Attract foreign investment.

Question 4

How have some countries broken their dependency on foreign aid?

Answer 4

Most successful have raised their markets to international standards - more attractive to foreign investors.