4: Economics & Emerging Markets Flashcards
(23 cards)
How do collectivists and individualists view rewards?
Individualistic cultures provide incentives to those individuals who seek it.
Collectivist cultures avoid uncertainties. Thus, they provide welfare for their members.
What do centrally planned economies lack, that lead to their decline?
- Quality products
- Incentives
- Customer satisfaction
- Growth
What does Guanxi mean?
Personal relationships
What are the challenges of China?
- Political and social
- Unemployment and migration
- Reunification with Taiwan
Which parts of the economic sector do mixed economies control?
- National-security
- Long term stability
What are the goals of mixed economies?
- Low unemployment and poverty
- Steady economic growth
- Equitable distribution of wealth
What are the shortcomings of a mixed economy?
- Less competition
- High tax and prices
What are the benefits of privatization?
- Increased economic efficiency
- Productivity
- Raised living standards
What are the features of a market economy?
- Free choice
- Free enterprise
- Price flexibility
What are government roles in a market economy?
- Enforce antitrust laws
- Preserve property rights
- Provide fiscal and monetary stability
- Preserve political stability
Which government body seeks to ensure competition and efficient functioning of the nation’s market?
Federal Trade Commission
What are the features of a stable economy?
Low inflation and unemployment
What are the differences between fiscal and monetary policies?
Fiscal: tax and government spending
Monetary: Control money supply and interest rates
What are metrics of economic development?
- Outputs
- Infrastructure
- People’s well-being
What is productivity?
Ratio of outputs to inputs
How do GDP, GNP, and per capita differ?
GDP: production activities in a year
GNP: GDP plus international activities
“per capita”: GDP/GNP in relative to population
What are the drawbacks of GDP and GNP as indicators?
- Uncounted transactions
- Ignores growth rates
- Average disguises regions
- Ignores purchasing power parity
What measures the ability of the government to provide for people’s well-being?
Human development index
How are countries classified in terms of economies?
- Developed
- Emerging
- Newly industrialized
- Developing
Who are Asia’s Four Tigers?
- Hong Kong
- South Korea
- Singapore
- Taiwan
What is technological dualism?
Advanced technologies in some sectors, while outdated technologies in other sectors
What are emerging markets?
Newly industrialized countries plus potential newly industrialized countries
What are the differences in China and India’s path to development?
China: enticed investors with resources
India: Ambiguous, used brainpower like Infosys
