4.1.1 Growing Economies

Question 1

What is globalisation

Answer 1

The increase in how connected the world is.
- has resulted in businesses operating in lots of countries across the world

Question 2

What is GDP

Answer 2

Gross domestic product
- total market value of goods and services within a nation over a period of time (typically a year)
- it is expressed per capita meaning it is divided by the country’s population
- calculating the percentage difference form year gives an indication of how the economy is growing

Question 3

What are the other indicators of economic growth excluding GDP

Answer 3

1. Literacy rate, increasing = economic growth
2. Health, high life expectancy and low death rates = growing economy
3. HDI, human development index is a stat considering life expectancy, average number of years in schooling and average income, the higher the score the more developed

Question 4

Why is economic growth important

Answer 4

• creates an increasing demand for products and services
• more employment opportunities
• FDI in growing economies to reduce costs

Question 5

What is an emerging economy

Answer 5

• an economy that is fast-growing but not yet developed

Question 6

What are BRICs

Answer 6

These are emerging economies
Brazil
Russia
India
China

Question 7

What are MINT

Answer 7

These are emerging economies
Mexico
Indonesia
Nigeria
Turkey

Question 8

why would a business be interested in the literacy rates in an emerging economy

Answer 8

• this could be an indication of how skilled a workforce is
• this could be an important factor to consider if the business may want to use offshoring

Question 9

why would a business be interested in health in an emerging economy

Answer 9

• this could be an indication of how productive the workforce will be
• healthy and fit workers will likely be able to produce more output and also take less time off work

Question 10

why would a business be interested in the standard of living (or GDP per capita) of an emerging economy

Answer 10

• could be used to indicate the potential purchasing power in the country
• a higher standard of living would indicate higher incomes and therefore more potential customers
• therefore a business may consider expanding into that countries market as it would have high potential for growth