Growing Economies 4.1.1

Question 1

Emerging economies

Answer 1

A fast-growing economy and industrialisation, but is not yet fully developed. For example BRICS and MINT are the most significant emerging economies.

Question 2

How does the UK growth rate compare to emerging economies?

Answer 2

UK growth tends to be lower than emerging economies. This is due to the growth of the manufacturing sector, which the UK choose to do in emerging economies as labour costs are lower and they can access raw materials.

Question 3

What are features of emerging economies?

Answer 3

• fast growing rate of GDP
• large amounts of poverty that are reducing
• growth in secondary and tertiary sectors

Question 4

What are the opportunities for businesses in emerging economies?

Answer 4

• rising incomes = rising demand for goods/services
• lower labour cost
• joint ventures and takeovers
• rising demand for capital goods

Question 5

What are the implications of economic growth for businesses?

Answer 5

• potential for increased profits - enter new markets and gain more customers
• customers are likely to have income elastic demand leading to increased sales and revenue
• increased trade opportunities as demand is higher
• increased investment as business want to expand as economy grows

Question 6

What are the implications of economic growth for individuals?

Answer 6

• reduced unemployment as more demand requires more labour to increase output
• increased average incomes
• access to quality public services

Question 7

Growth rate

Answer 7

Measured by the annual change in its GDP

Question 8

GDP per Capita

Answer 8

• calculated by taking the total output (GDP) of a country and dividing it by the number of people in that country
• high GDP per capita is associated with a high standard of living

Question 9

Health

Answer 9

• the health of a countries’ citizens is important to businesses who want to invest in emerging economies as this will have an impact on the quality of the workforce
• key indicators to consider are average life expectancy, infant mortality rate , access to healthcare and access to clean water

Question 10

Literacy

Answer 10

• refers to the percentage of adults within an economy who can read and write
• information about literacy rates is important as this will determine the quality of the workforce and also the customers they will be selling to

Question 11

Human Development Index

Answer 11

• combines the factors of life expectancy, education and income to determine the quality of development of citizens within a country
• higher a country’s HDI l, the higher its development level