Theme 4 Flashcards
What is an economy?
An economy is the state of a country or region in terms of the production and consumption of goods ad services and the supply of money.
What is BRICS?
BRICS is an acronym used to refer to the 5 largest emerging market economies:
Brazil, Russia, India, China, South Africa.
What are Emerging Economies?
Economies that have increasing growth rates but relatively low income per head.
What is ‘MINT’
The MINT countries identify as emerging economic giants:
Mexico, Indonesia, Nigeria, Turkey.
What is the Economic Growth Rate?
The Economic Growth Rate of a country is measured by the annul change in its gross domestic product (GDP). Measures the monetary value of goods / services brought by a country in a given time.
UK Growth compared to emerging economies
- Tends to be lower than emerging economies
- Seen a decline in manufacturing sector
- Lower labour costs and access to raw materials.
Impacts of Economic Growth on businesses
- Potential for increased profits
- Reduced costs of production
- Increase in investment
- Increase in FDI
Impact of Economic Growth on individuals
- Reduced employment
- Increased average incomes
- Access to better quality public services.
What are the Current Growth Rates for UK, Brazil, India, China and Latest for Russia?
UK: 0.3% (2024)
Brazil: 2.5% (2024)
Russia: -0.8% (2021)
India: 7.8% (2024)
China: 0.7% (2024)
Indicators of growth
- GDP per capita
- Health
- Literacy
- Human Development Index
What is Human Development Index?
Combines life expectancy, education and income to determine quality of development of citizens within a country.
What are imports?
Goods/services bought by people and businesses in one country from another country.
In 2022, UK’s highest imports was cars.
What are exports?
Goods/services sold by domestic businesses to people or businesses in other countries.
2022, China’s biggest export was smartphone manufacturing valued at approximately $21.4bln.
What is Specialisation?
When a country/business decides to focus on producing a particular good/service.
Benefits to Specialisation
- Increased productivity and output
- Increased economies of scale
- Gives the industry comparative advantage over other countries.
Drawbacks to Specialisation
- Over reliant on one industry, and this does not spread risk.
- Other countries may become cheaper in same industry, may be harder to compete
- If grows too big, may suffer from diseconomies of scale.
