Edexcel A Level Business 4.1.1. Growing economies a) Growth rate of the UK economy compared to emerging economies b) Growing economic power of countries within Asia, Africa and other parts of the world c) Implications of economic growth for individuals and businesses: trade opportunities for businesses employment patterns d) Indicators of growth: Gross Domestic Product (GDP) per capita literacy health Human Development Index (HDI) Whole pack is available on the website to buy Written by Sarah Hilton for Revisionstation

1. Edexcel A2 Business
4.1.1 Growing economies
Revisionstation

2. You will need worksheet 4.1.1 for this lesson

3. From Edexcel
a) Growth rate of the UK economy compared to emerging economies
b) Growing economic power of countries within Asia, Africa and other
parts of the world
c) Implications of economic growth for individuals and businesses:
 trade opportunities for businesses
 employment patterns
d) Indicators of growth:
 Gross Domestic Product (GDP) per capita
 literacy
 health
 Human Development Index (HDI)

4. Starter
Which countries do you think these acronyms stand for? Take a guess,
or maybe you know? 10 points per correct answer
B M
R I
I N
C T
S

5. 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
• The S is South Africa

6. 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
Jim O’Neill
economist
invented the term
BRIC and MINT

7. MINT economies

8. Definition: 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.

9. Growth rate of the UK economy
compared to emerging economies

10. Let the bank of England explain Economic
Growth

11. Comparison of growth rates
• For this exam you will not be
expected to be able to state the
growth rate of any country but
should understand how the
growth rate of emerging
countries compares with the UK
• Over the next few slides fill in
your table to be able to make
comparisons
Current GDP
growth rate
UK
Brazil
Russia
India
China
South Africa

12. UK growth rates
The data here shows % growth rate - click the graphic to fully examine the
data and look at forecasts
Current UK growth rate = 6.6%

13. Brazil growth rates
Click the graphic to investigate the current growth rate for Brazil
How does it compare against the UK?

14. Russia growth rates
Click the graphic to investigate the current growth rate for Russia
How does it compare against the UK?

15. India growth rates
Click the graphic to investigate the current growth rate for India
How does it compare against the UK?

16. China growth rates
Click the graphic to investigate the current growth rate for China
How does it compare against the UK?

17. Implications of economic growth for
individuals and businesses

18. 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.

19. What does all this 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

20. Indicators of growth

21. Indicators of growth: introduction
There are lots of ways to measure the growth rate of a
country, the main ones that your exam board would
like you to know about are:
1. Gross Domestic Product (GDP) per capita
2. literacy
3. health
4. Human Development Index (HDI)

22. Comparison of all 4 indicators
Country GDP per capita Literacy Health HDI
UK
Brazil
Russia
India
South Africa
China
Mexico
Indonesia
Nigeria
Turkey
Carry out some research on the next few slides, add in the data and draw some conclusions

23. #1 GDP
• GDP stands for Gross Domestic
Product
• The GDP figure for a country
shows the sum total of
everything they produce as a
nation
• Look at the GDP figures and
compare them to the UK, it may
also be helpful to have a world
map so you can compare the
size of countries

24. What is GDP per capita?
• The GDP per capita is the
measure of the economic output
of a country that accounts for
the number of people living
there
• It divides the GDP by the
population figure
• Example GDP of USA in 2021
was $23.9 trillion, if the
population was 332 million what
was the GDP per capita?
What conclusions can you draw from looking at this map?
Click map to see a larger version

25. Research: GDP of nations
• Find out what the GDP per
capita is of the world nations
• How is this data linked to the
growth of the economy?
• Which nations have the fastest
growing GDP per capita figures?
• Do the BRICS and MINT
countries feature in the top 10?

26. #2 Literacy
• Literacy rates and poverty tend to
go hand-in-hand, with education
being less available in the poorest
countries
• Even when education is available in
developing nations, the income
that a working child can bring in is
a tempting alternative to school
• Currently *781 million adults
worldwide cannot read or write,
75% of these are women – why is
this?
Why is literacy important to business?

27. Research: Literacy rates
• 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%
• Have a look at the Wiki rates
here (no UK or USA data on this
table)

28. #3 Health
• High economic growth in a
country leads to an investment
in health advancements,
including building hospitals,
training doctors and investing in
medicines
• A healthy population will work
harder and for longer which in
turn leads to more productivity
and economic growth

29. Research: Health
• World Health Organisation (WHO)
keep a record of life expectancy at
birth in years
• Have a look at this data set from
the WHO and answer the following
questions:
• How old can you expect to live to in
the UK?
• How does this compare with the
MINT countries?
• What is the global average life
expectancy?

30. #4 HDI
• HDI stands for the Human Development Index
• This is a statistic that combines; life expectancy, education and
income (Gross National Income GNI) which are used to rank
countries into four tiers of human development
• Why is this the most accurate indicator?

31. Research: HDI
• Have a look at the HDI data set
(click the graphic on the right)
• Find the HDI of the UK
• Find the HDI of the BRICS and
MINT countries
• How do these compare?
• What conclusions can you draw
about the economic growth of
these countries?

32. Comparison of all 4 indicators
Country GDP per capita Literacy Health HDI
UK
Brazil
Russia
India
South Africa
China
Mexico
Indonesia
Nigeria
Turkey
What conclusions can you now draw from your data table?

33. Sample Edexcel A2 questions

34. Case study for sample question 1

35. Sample question 1
Knowledge
4
Application
4
Analysis
6
Evaluation
6

36. Answer sample question 1

37. Peer / self marking grid for 20 mark question
Mark
1-4 marks Limited knowledge and some recall of business theory, answer may not be in context
What went well: You used business terms correctly
Even better if: You had discussed the business context given in the case study
5-8 marks Comments are in context, and chains of reason are present but very basic. Unbalanced
argument, only discusses one side.
What went well: You were able to give chains of reason in context in your answer
Even better if: You had given both sides of the argument
9-14 marks Chains of reason are complete and argument shows both sides. Answer is in context, and
comparisons between the two options will have been attempted, which may lead to a
conclusion
What went well: Your analysis was shown in your chains of reason
Even better if: You had given a recommendation or proposed a solution
15-20 marks Accurate understanding and knowledge. Logical chains of reason, balanced and fully
developed arguments weighing up both sides of each options. All in context leading to a
supported judgement, and a conclusion that proposes a solution or recommendation
What went well: You had logical chains of reason showing cause and effect which led to a
supported judgement and recommendation
Even better if: You had used more comparative arguments to support your recommended
solution

38. Case study for sample question 2

39. Sample question 2
Knowledge
2
Application
2
Analysis
3
Evaluation
3

40. Answer
sample
question 1

41. Peer / self marking grid for 10 mark question
Mark
1-2 marks Limited knowledge and some recall of business theory, answer may not be in context
What went well: You used business terms correctly
Even better if: You had discussed the business context given in the case study
3-4 marks Comments are in context, and chains of reason are present but very basic. Unbalanced
argument, only discusses one side.
What went well: You were able to give chains of reason in context in your answer
Even better if: You had given both sides of the argument
5-6 marks Chains of reason are complete and argument shows both sides. Answer is in context, an
attempt at a assessment using numerical data given in the case study.
What went well: Your analysis was shown in your chains of reason
Even better if: You had reached a supported judgement
7-10 marks Accurate understanding and knowledge. Logical chains of reason, balanced argument, in
context leading to a supported judgement
What went well: You had logical chains of reason showing cause and effect which led to a
supported judgement
Even better if: You had used more numerical data from the case study to support your
arguments

42. Key terms
•BRIC; Brazil, Russia, India, and China
•BRICS; Includes South Africa
•MINT; Mexico, Indonesia, Nigeria, Turkey
•GDP; Gross Domestic Product
•HDI; Human Development Index