Unit 4

Question 1

what is an emerging economy?

Answer 1

one that has increasing growth rates (GDP) but relatively low income per capita.

Question 2

what is HDI?

Answer 2

a measure of a country’s development which takes into account GNI, Average years of schooling and life expectancy

Question 3

what are the 4 key indicators of growth?

Answer 3

GDP per capita
literacy rates
Health indicators
HDI

Question 4

define specialisation

Answer 4

specialisation occurs when a country or business decodes to focus on the production of particular goods or services

Question 5

two benefits of specialisation

Answer 5

-lower unit costs due to economies of scale, which may allow businesses to lower prices and increase sales or achieve higher profit margins
-excess output can be sold abroad as exports

Question 6

define FDI

Answer 6

investment by foreign firms which results in more than 10% ownership of domestic firms

Question 7

1 benefit of FDI for a country’s economy

Answer 7

increased economic growth as there is an inflow of money into the country

Question 8

what is structural change in an economy?

Answer 8

when a country, industry, or market changes which sector of the industry they primarily operate in