Theme 4 - 4.1 Flashcards
What is growing economies?
A countries growth rate is measured by the annual change in gross domestic product (GDP).
What are emerging economies?
Emerging economies are economies that increase growth rate but have relatively low income per head (capita). Examples - India, China and Brazil
What are the implication of economic growth?
Increased trade opportunities
Reduced unemployment
Reduced cost of production
Potential for increased profit
Increase in investments
What are indicators of growth?
HDI (Human Development Index)
Literacy
Health
GDP ( Gross Domestic Product) (per capita)
Gross Domestic Products
GDP - is a measure of all goods and services produced in a country divided by the number of people in the country.
What are the issues with GDP?
GDP uses figures that are adjusted for inflation.
Reported figures for GDP for each individual.
Comparing currencies - it can be hard to compare with different nations as they have different currencies. One way to compare is to compare the buying power across countries for a standardised basket of goods.
Health
Health - health of a nation is a good indicators of the standard of living (income and how much people can buy) and potential demand and prosperity in a country.
How do you measure health?
Life expectancy
Infant death rate
Access to clean water
Doctors per 100000 people
Literacy
Literacy rates is a indication of the standard of living in terms of education and skills in workforce. Higher education rates leads to better quantity workforce.
Human Development Index
HDI is a combination of economic statistics for a country. The purposed of HDI is to focus on the countries people rather then the economic context.
How do you measure HDI?
Life expectancy
Mean years of schooling
Gross National Income - (measure of income based on US dollar value of a country’s income divided by its population)
What is importing and exporting?
Importing is buy or importing products, materials and components for the production of goods from a foreign country.
Exporting is selling products and services directly to foreign customers.
Why do business use importing and exporting?
Importing and exporting is the easiest way for business to trade internationally but it does have risk with fluctuations in exchange rates which will influence the demand and cost from foreign buyers.
