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
what percentage of the global economy is made up by brics countries if all 6 new members join
45%
what commodities are in high supply in brics countries
crude oil
iron ore
who are the G7 group
advanced economies
Canada, EU, US, Japan
what could be an issue with the previous chinese policies being applied today
policies that drive initial growth doesn’t always apply when moving from middle level to high level income
what irish town inspired chinas special economic zones
Shannon
what are special economic zones
designated areas in a country that is subject to unique regulations that differ from other areas in the same country
where is the mega city Shenzhen that was developed strategically placed
north of hong kong
how did China attract foreign investment
government incentives
example of a very important taiwanese foreign direct investment into china
FoxConn (Apple’s manufacturing partner)
what big chinese company recently moved its HQ to ireland
Temu
why would PDD Holdings (Temu parent) move its HQ to Dublin?
tax advantages
brand awareness
brand isolation (less about China)
how has employment shifted in China (from what industry to what industry)
shift from agriculture to services+manufacturing
what percentage of inter bric flows does china account for
85%
what does ireland export to china
seafood
milk (baby formula after a Chinese milk scandal)
beef
microchips (china buys almost 70% of semiconductors exported from ireland)
what has damaged the establishment of irish beef in china
stop/go experience
takes time to build customers and reputation in a market
to which EU country is China most important
Germany
in what decade did china take over us exports
mid naughties
post joining WTO in 2001
`China is an import exporter for Australia and New Zealand
What do they export to China
Iron ore
Materials
Agricultural products
what does Germany export to China
factory machinery and equipment
what is meant by China used to be an assembly location
imported goods, assembled them and then exported them
they have been moving up the value chain and more and more of their exported goods are being fully produced in China
why do China and India not have a great trade relationship
tension
