Economics 2.0

Question 1

India’s urbanisation %

China’s

Who’s % rate of urbanisation is greater?

Answer 1

India : 32.5%

China : 55.5% (from 2010)

China’s urbanisation rate = greater

Question 2

Agriculture as % of GDP

India :

China :

Answer 2

India : 18%

China : 10%

Question 3

Services as % of GDP :

INDIA :

CHINA :

why is this?

Answer 3

India : 54%

China : 48%

India leapfrogged over adopting mass industrial employment

Question 4

Gini Coefficients:

India :

China :

What does this show?

Answer 4

India : 33

China : 47

China has greater inequality than India

Question 5

GDP per capita;

India :

China :

USA:

Answer 5

India : $1,580

China : $7,590

US : $54,000

Question 6

What figure suggests that China will surpass the USA in GDP between 2030-50?

Answer 6

Figure 12

Question 7

What does Figure 12 represent the following dates as;

2030 :

2050 :

Answer 7

2030 : bipolar

2050 : unipolar

Question 8

What % of global GDP does the USA make up?

Answer 8

24%

Question 9

2016 GDP growth rates;

India :

China :

USA :

Answer 9

India : 7.3%

China : 6.9%

USA : 2.2%

Question 10

What is happening to the following growth rates?

India :

China :

Answer 10

India : on increasing trend for next couple of years

China : on declining trend
currently at 25yr low

Question 11

Fortune 500 companies;

China :

India :

USA :

What has been happening to each since 2004?

Answer 11

China : most rapidly growing rate
95

India : doubled
8

USA : declining
128

Question 12

What is notable about CHina’s GDP and GDP per capita in Asia?

Answer 12

largest GDP in Asia - unipolar

but definitely not in GDP per capita (Japan / S. Korea)

Question 13

What happened in 2016 in relation to GDP growth rates?

Answer 13

India overtook China’s GDP growth rate for first time since 1999

Question 14

Name of the trade bloc currently proposed between ASEAN and 6 New Countries?

Answer 14

Regional Comprehensive Economic Partnership

RCEP

Question 15

Who would the RCEP include?

Answer 15

ASEAN and 6 New Countries

Question 16

What view suggests that Chinese labour decreasing can be an opportunity for India?

Answer 16

Livemint (view 3)

Question 17

What will an increase in growth / incomes for China and India mean for TNCs?

Answer 17

drives increased consumption

new markets for TNCs

Question 18

What % of China’s exports are now telecommunications?

Answer 18

25%

All top 5 exports are

Question 19

Fraction of oil imported;

India :

China :

Answer 19

India : 2/3

China : 1/3

Question 20

What industry in India is the 4th largest in the world?

Why is this?

Answer 20

Pharmaceuticals

Clinical trials cost 10% of in the USA

Question 21

What is India lacking to compete effectively with China’s manufacture and production?

Answer 21

• reliable power supply
• infrastructure for ‘just in time’ markets
• attractiveness to FDI / TNCs

Question 22

Reasons for the USA remaining global economic hegemony?

Answer 22

• 80% of transactions still $
• largest stock market globally
• IMF / WB HQs
• currently highest GDP
• higher income per capita than China / India

Question 23

Factors converging to slow China’s growth;

Answer 23

• industrial overcapacity
• debt overhang
• decline in population
• competition from other BRICs
• inefficient allocation of foreign investment

Question 24

Define : INFRASTRUCTURE

Answer 24

the basic physical systems and services that a country or organisation require to work effectively

Question 25

How much does China spend of its budget on infrastructure?

Answer 25

Half of its budget Accounts for half of all infrastructure in the Asia-Pacific

Question 26

X3 examples of Chinese infrastructure

Answer 26

- Maglev HSR 430kmph - S-N Water diversion - 3Gorges

Question 27

Education spending as % of GDP and literacy rate China - India -

Answer 27

China - 16.3% GDP 95% literacy rate India - 11.3% GDP under 70% literacy rate

Question 28

Number of people in poverty; and % of population China - India -

Answer 28

China - 157million 11% of population India - 400million almost 1/3 of population

Question 29

How many lifted out of extreme poverty since 1980 in China?

Answer 29

80million

Question 30

% of India's budget spent on subsidies amount spent on subsidies Why are subsidies required?

Answer 30

15% of spending $60billion to help lower-income families to afford basic needs for survival

Question 31

Why isn't India's subsidy spending sustainable?

Answer 31

growing population BR highest in poor, rural areas energy and food prices will increase as scarcity increases

Question 32

Life expectancy at birth: % of GDP spent on healthcare China - India -

Answer 32

China - 76 12% India - 68 8%

Question 33

% of GDP spent on military; China - India - USA -

Answer 33

China - 2% India - 2.5% USA - 4%

Question 34

Actual spending on military; China - India - USA -

Answer 34

China - $190billion India - $50billion USA - $580billion

Question 35

What fraction of USA's spending does China spend?

Answer 35

only 1/3

Question 36

Trend on military spending; China - India - USA -

Answer 36

China - increasing India - plateau since 2009 USA - decreasing

Question 37

Global weapons exports as % of total global exports; China - India - USA -

Answer 37

China - 5% ranks 3rd India - lacks indigenous defence industry USA - 30% ranks 1st

Question 38

Reasons why each may have greater military dominance; China - USA -

Answer 38

China - largest military by man power USA - greater technological advancement bases in all countries powerful alliances

Question 39

# Define DEMOCRATIC DEFICIT e.g

Answer 39

when a country's development is greater than its level of democratic governance e.g China

Question 40

Why are countries with democratic deficits arguably fragile / volatile?

Answer 40

since increase in per capita growth has historically been a trigger for democratisation e.g S.Korea

Question 41

What does India's democracy index rank India? What does this suggest?

Answer 41

35th globally suggests it is a 'flawed democracy' since it is the biggest but tainted w/ corruption

Question 42

Democracy index score: / category India - China - USA -

Answer 42

India - 7.7 flawed demcoracy China - 3 authoritarian USA - "full democracy"

Question 43

% of parliamentary seats which are held by women; India - China -

Answer 43

India - 12% China - 25%

Question 44

Which figure shows comparison between democracy and economic development?

Answer 44

Figure 7

Question 45

What was the trend for Asian tiger economies and democracy?

Answer 45

industrialise rapidly and then move towards increased democracy

Question 46

When were the Umbrella Riots in Hong Kong? When was the Tiananmen Square protests? When have the Communist party been in power since in China?

Answer 46

2014 - umbrella riots 1989 - Tiananmen square Communist gov since 1949

Question 47

Who do you vote for in China? Who do you vote for in India?

Answer 47

China - only the Local People's Congress India - the LOK SABHA (lower house) who then chooses the PM

Question 48

What has Indian protectionism resulted in which makes it more difficult for consumers? How can this be tackled?

Answer 48

high inflation rates raise domestic prices allowing FDI into India more would allow for competition and lower inflation = less requirement for subsidies

Question 49

Why is value added output not as beneficial for a country when in an SEZ?

Answer 49

value added output is from foreign owned plants much of wealth isn't translated into domestic increase in QoL

Question 50

What does the World Trends Report 2030 suggest about the USA's position and China overtaking it economically?

Answer 50

USA will remain FIRST AMONGST EQUALS USA will remain predominant despite China overtaking via GDP since USA has preeminence across a range of POWER DIMENSIONS + LEGACIES OF LEADERSHIP

Question 51

Examples of Indian cultural influence

Answer 51

- Bollywood ticket sales X2 than of Hollywood | - Cuisine

Question 52

A factor in spreading Indian cultural influence around the world; and example

Answer 52

- Emigration | e. g UAE is one of India's top 5 export destinations - largely due to high Indian expat population