Growing economies Flashcards
What are BRIC economies?
Superpowers are countries, or groupings of countries, with global influence and power.
They have economic, cultural and geopolitical influence. Superpowers shift over time, as some powers decline and others emerge.
The BRICs are Brazil, Russia, India and China.
What are MINT economies?
The term was coined by economist Jim O’Neill, who has now identified the “Mint” countries - Mexico, Indonesia, Nigeria and Turkey - as emerging economic giants
Define the term economy.
An economy is the state of a country or region in terms of the production and consumption of goods and services and the supply of money
Economy is the large set of inter-related production and consumption activities that help in deciding how scarce resources are allocated.
Explain economic growth.
Growing economies start to see changes in employment patterns; working women, migration, the rise of the multi job, home working and the search for a better work-life balance.
The countries that manage to pull themselves out of poverty and get richer are those that are able to diversify away from agriculture and other traditional products.
As labour and other resources move from agriculture into modern economic activities, overall productivity rises and incomes expand.
What does economic growth mean for business?
All these new growing and emerging economies have increasing incomes of their citizens
This means opportunities to increase revenue and profit for MNCs by moving into new markets
Increased incomes combined with low labour costs and proximity to market make these growing economies very attractive
List four different indicators of growth?
Gross Domestic Product (GDP) per capita (person)
literacy
health
Human Development Index (HDI)
Explain GDP as an indicator of growth.
GDP stands for Gross Domestic Product
The GDP figure for a country shows the sum total of everything they produce as a nation
Explain literacy as an indicator of growth.
Literacy levels are a key indicator of the economic growth of the world’s countries
The average is 86.3% of a country’s citizens are literate, compare this against Afghanistan for example at 38.2% or Niger at 19.1%
Explain health as an indicator of growth.
World Health Organisation (WHO) keep a record of life expectancy at birth in years
The UK is 81.2
The world health league is published each year with data comparing countries
The healthiest citizens are in Norway
Explain HDI as an indicator of growth.
This is a statistic which combines; life expectancy, education and income which are used to rank countries into four tiers of human development
UK is 16th
