The Emerging World and China Flashcards
what are some characteristics of an emerging market
- rapid GDP growth
- creation of new middle class
- large, low cost labour pools
- source of new opportunities and risks
what does is mean to be in trade deficit
import more than you export
what does it mean to be in trade surplus
export more than you import
what areas are big exporters of commodities
Africa
South America
in what centuries was the great divergence
1700s and 1800s
what countries soared ahead in the great divergence
Britain
Netherlands
followed by Japan
China and India did not have the same take off until the 20th century
does emerging economies just affect trade
no,
entering and growing presence in foreign exchange reserve
how are estimates in GDP growth susceptible to changes
poor years elongate forecasts
good years speed up forecasts
depending on the input data forecast outcomes will be different
what are frontier markets
markets that are less established than developing markets
what makes China’s growth rate stand out in comparison to other country’s who had a similar growth speed
China has a much larger population and area of land
brought down level of global poverty significantly
what are some examples of frontier markets
Vietnam, Mozambique
what is evidence that there is increased wealth and consumption in China
luxury markets established
what are the four pillars of rising prosperity
- population growth
- consumption growth (more affluent consumers)
- urbanisation (urban tends to consume more than rural)
- trade liberalisation (trade agreements)
which BRIC country is a commodity exporter in current deficit
brazil
which BRIC country is a commodity exporter in current surplus
Russia
which BRIC country is a manufactured goods exporter in current deficit
India
which BRIC country is a manufactured goods exporter in current surplus
china
what commodities does Brazil export
Iron ore
what commodities does Russia export
oil
despite the success of emerging economies - global institutions are still biased towards developed economies
give an example of one of these institutions
IMF
what is AIIB
Asian Infrastructure Investment Bank
emerging economies make their own institution where they get a greater say
established and spearheaded by China
how does spread of wealth compare in developed and emerging economies
G7 richest 1% hold 26% of wealth
BRICs richest 1% hold 43% of wealth
much more skewed and concentrated in the emerging world
what countries were orginally BRICS group members
Brazil
Russia
India
China
What countries were added to the BRICS group in 2023
Argentina
Egypt
Ethiopia
Iran
Saudi Arabia
UAE
