Topic 2 - Key Players In The World Economy

Question 1

Where is India and Chinas specialist area?

Answer 1

India - tertiary, service

China - secondary, manufacturing

Question 2

Facts about Indias economic growth

Answer 2

• lots of rich and poor, little middle class (developing area)
• increasing population
• lots of subsistence farmers
• money in the service sector- lots of jobs, increasing disposable income
• increasing GDP per capita

Question 3

Facts about Chinas economic growth

Answer 3

• rich richer, poor poorer, growth of the middle class
• huge population
• population is older on average due to one child policy
• getting more jobs in manufacture which means more disposable income which means increasing demand for western goods
• opps for joint ventures
• second largest economy after 2009
• increased purchasing powe

Question 4

Barriers to trade in China

Answer 4

• language - not many english speakers
• poor infrastructure
• MNC’s compete with local business’ who generally have lower costs and prices
• copy right laws make media sales tough
• cultural variety means research is difficult to gather and ensure its accurate
• fluctuating markets - gov changing economic policies

Question 5

Barriers to trade india

Answer 5

• 23 languages and lots of cultures
• high beauocracy - long time to set up due to corruption
• often changing laws
• poor infrastructure
• foreign investors barred from investing in agriculture and infrastructure (key sectors)
• need gov permission to sack staff if you have over 100 employees - difficult to get permission therefore difficult to close
• goods in India often smuggled - business’ have to import legally and pay more so unfair comp
• limited amounts of loans

Question 6

Name BRICS

Answer 6

Brazil Russia India China South Africa

Question 7

India trade opps

Answer 7

• lots of unemployed graduates who speak english - can recruit cheaply
• very educated - opps for western unis to make money from indian students
• international business’ allowed to own pharmaceutical companies in India so can take advantage of location and export to other nations aswell as taking advantage of human capital