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
