This presentation covers some aspects of topical issues in trade and economic development. Designed for A2 economics students - links to some Financial Times videos with special reference to the work of Hidalgo and Hausmann and their index of economic complexity
Pearson Edexcel International A Level Business (431) 1 Growing economies Powe...Revisionstation
This is part of the Edexcel International Business A Level teaching bundle available from Revisionstation.
a) Characteristics of developed, developing and 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) and GDP per capita
• human development index (HDI).
Vietnam is a fast-growing lower middle income country that has received considerable inward investment in recent years. This revision webinar for A-level Economics looks at the contextual evidence on Vietnam and compares and contrasts their current growth with China. It analyses some of the key growth drivers and evaluates barriers to growth including environmental challenges and vulnerability to external economic shocks.
This presentation covers some aspects of topical issues in trade and economic development. Designed for A2 economics students - links to some Financial Times videos with special reference to the work of Hidalgo and Hausmann and their index of economic complexity
Pearson Edexcel International A Level Business (431) 1 Growing economies Powe...Revisionstation
This is part of the Edexcel International Business A Level teaching bundle available from Revisionstation.
a) Characteristics of developed, developing and 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) and GDP per capita
• human development index (HDI).
Vietnam is a fast-growing lower middle income country that has received considerable inward investment in recent years. This revision webinar for A-level Economics looks at the contextual evidence on Vietnam and compares and contrasts their current growth with China. It analyses some of the key growth drivers and evaluates barriers to growth including environmental challenges and vulnerability to external economic shocks.
Barriers to Economic Growth and Developmenttutor2u
This is a revision presentation covering examples of barriers ti economic growth and development in emerging and developing countries. In their revision students should consider factors such as:
Poor infrastructure
Human capital inadequacies
Primary product dependency
Declining terms of trade
Savings gap; inadequate capital accumulation
Foreign currency gap and capital flight
Corruption, poor governance, impact of civil war
Population issues
This revision presentation covers aspects of Extract 5 for the OCR F585 Global Economy paper - the main focus is on the structural (supply-side) issues facing the Zambian economy. The presentation offers contextual background and an overview of the supply-side policies that might be effective in sustaining the growth of the Zambian economy and lifting their human development outcomes.
capital formation,sources of capital formation,voluntary savings, involuntary savings, government borrowings,uses of idle ,resources,external resources.
The presentations describes the 1991 Liberalization Privatization Globalization(LPG) model of Indian economy. Following are the topics discussed in the ppt:
Reasons for implementing LPG
Definitions
Advantages
Disadvantages
Disinvestment Commission
Successful privatizations in India
FDI
MNCs
Effects
Capital formation is the process of building up the capital stock of a country through investing in productive plants and equipment.
Capital formation, in other words, involves the increasing of capital assets by efficient utilization of the available and human resources of the country.
Barriers to Economic Growth and Developmenttutor2u
This is a revision presentation covering examples of barriers ti economic growth and development in emerging and developing countries. In their revision students should consider factors such as:
Poor infrastructure
Human capital inadequacies
Primary product dependency
Declining terms of trade
Savings gap; inadequate capital accumulation
Foreign currency gap and capital flight
Corruption, poor governance, impact of civil war
Population issues
This revision presentation covers aspects of Extract 5 for the OCR F585 Global Economy paper - the main focus is on the structural (supply-side) issues facing the Zambian economy. The presentation offers contextual background and an overview of the supply-side policies that might be effective in sustaining the growth of the Zambian economy and lifting their human development outcomes.
capital formation,sources of capital formation,voluntary savings, involuntary savings, government borrowings,uses of idle ,resources,external resources.
The presentations describes the 1991 Liberalization Privatization Globalization(LPG) model of Indian economy. Following are the topics discussed in the ppt:
Reasons for implementing LPG
Definitions
Advantages
Disadvantages
Disinvestment Commission
Successful privatizations in India
FDI
MNCs
Effects
Capital formation is the process of building up the capital stock of a country through investing in productive plants and equipment.
Capital formation, in other words, involves the increasing of capital assets by efficient utilization of the available and human resources of the country.
Economic Environment - International Business - Manu Melwin Joymanumelwin
Economic conditions, economic policies and the economic system are the important external factors that constitute the economic environment of a business. The economic conditions of a country-for example, the nature of the economy, the stage of development of the economy, economic resources, and the level of income, the distribution of income and assets, etc- are among the very important determinants of business strategies.
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Trade policies in developing countries have been central to the analysis of international development economists over the past decades. The desire for rapid economic growth in developing countries has raised many questions about the relationship between trade and growth. This PPT examines the fact that the policies adopted in many developing countries have often been very different from those emanating from rational allocation models and have provided researchers/ students with a wide scope for analyzing their effects.
2. HHooww ttoo ccllaassssiiffyy eeccoonnoommiieess
• The World Bank (an economic development
institution affiliated with the UN) estimates
gross national income (GNI)
– GNI measures the market value of all goods and
services produced by resources supplied by the
countries’ residents and firms, regardless of the
location of the resource.
– It measures both the value of output produced
and the income that output generates.
3. GGNNII ccoonnttiinnuuee
• It measures income per capita, then adjusts
figures across countries based on the purchasing
power of that income in each country.
• The World Bank then sorts into three major
groups:
– High-income economies
• About one-sixth of the world’s population produces three-fourths
of the world’s output
– Middle-income economies
• About 64% of the world’s population and account for about
25% of the world output
– Low-income economies
• About 20% of the world’s population and account for only
1% of the world output
5. DDeevveellooppiinngg aanndd IInndduussttrriiaall EEccoonnoommiieess
• Developing countries: the low- and middle-income
economies
– 50% of their labor force in agriculture
• Industrial Economies: the high-income
economies
– 84% of the world’s population in 2007 but
produce only 26% of the output
6. HHeeaalltthh aanndd NNuuttrriittiioonn
• Malnutrition
– In the poorest countries they consume only half
the calories of those in high-income countries.
– Contributes to more than half of the deaths of
children under the age of 5 in low-income
countries.
– Safe drinking water is often hard to find; thus,
causing many diseases
8. HHiigghh BBiirrtthh RRaatteess
• Developing countries also have high birth
rates
• This year, more than the 80 million of the 90
million births will be added to developing
countries.
– WHY??
9. WWoommeenn iinn DDeevveellooppiinngg CCoouunnttrriieess
• Poverty is greater among women than men,
this is true for the world as a whole (on the
average that is)
• Women in developing countries tend to be
less educated than men.
– WHY???
10. WWhhyy aarree ppoooorr ccoouunnttrriieess ppoooorr??
• The simple answer:
– They are poor because they produce few goods
and services.
11. LLooww LLaabboorr PPrroodduuccttiivviittyy
• Labor Productivity: output measured by
worker
• Labor Productivity tends to be low in
developing countries.
– WHY??
• Quality of the labor
• Capital
• Natural resources
12. WWhhaatt ttoo ddoo??
• Invest in Capital:
– How?
• Foreign Aid
• Private Investment in Capital
14. IInneeffffiicciieenntt UUssee ooff LLaabboorr
• Developing countries use labor less efficiently
than do industrial nation.
– Underemployment and Unemployment
– Low productivity= Low Income= Less Saving= Less
Investment in human and physical capital
• Creating a “cycle of poverty”
16. FFiinnaanncciiaall IInnssttiittuuttiioonnss
• An important source of funds for investment
is the savings of household and firms
• In some developing countries, the people
have little confidence in the country’s
currency
– Governments finance a large fraction of outlays by
printing money
• Hyperinflation
– Zimbabwe
18. EEnnttrreepprreenneeuurriiaall AAbbiilliittyy
• Entrepreneurs are needed to bring together
resources and take the risk of profit or loss in
order for development to get off the ground
• Sometimes government officials create what
they believe the free market can do
– Favors for friends and relatives of the government
20. SSoocciiaall CCaappiittaall
• Social capital consists of the shared values
and trust that promote cooperation in the
economy
– Lower economies typically have poorly defined
property rights, and less social capital
– Bribery is often commonplace
– Government corruption in everyday practice
21. Trade Problems for Developing
Countries
• What makes up exports for developing
countries?
– Agricultural goods and other raw materials (about
half compared to about 20% from high-income
countries)
– Problem with this?
• Fluctuates in prices= cut in imported capital items
22. MMiiggrraattiioonn aanndd tthhee BBrraaiinn DDrraaiinn
• Migrants send money home to invest in their
country
– $238 billion in 2008
– Problems?
• “Brain Drain” from their home country
23. Import Substitution Versus Export
Promotion
• An economy’s progress:
– Agriculture to manufacturing to services
• Import Substitution: a development strategy
that emphasizes domestic manufacturing of
products that had been imported
– Tariffs and quotas
24. Import Substitution Versus Export
Promotion
• Why do this?
– The “What to Produce” question is answered
– To protect “Infant Industries”
– Favored domestic industries
• Problems?
– Erases specialization and comparative advantage
– Replace low-cost foreign goods with high-cost
domestic goods
– Often domestic production failed to be successful
when shielded from foreign competition
25. Import Substitution Versus Export
Promotion
• Export promotion concentrates on producing
for the export market.
– The emphasis is on comparative advantage and
trade expansion rather than on trade restriction.
– The force is on producers becoming more efficient
in order to compete in world markets
26. FFoorreeiiggnn AAiidd
• Foreign aid is any international transfer made
on concessional terms for the purposes of
promoting economic development
– Grants
– Loans
• Concessional Loan- low interest rates, longer
repayment periods, or grace periods during which
repayments are reduced or even waived
• Bilateral: Country-to-Country aid
• World Bank: multilateral infrastructure
• IMF: multilateral balance of payments
27. Does Foreign Aid Promote Economic
Development?
http://www.youtube.com/watch?v=CNWzYy186W8
OR
http://www.youtube.com/watch?v=8Y-E6sQ9DvI
28. Does Foreign Aid Promote Economic
Development?
• It does provide additional purchasing power,
but it is unclear if it supplements domestic
saving, thus increase investment!
29. TTrraannssiittiioonnaall EEccoonnoommiieess
• Types of Economic Systems
• Enterprises and Soft Budget Constraints
– Soft budget constraint: the budget condition faced
by socialist enterprises that are subsidized if they
lose money
• Inefficient uses of resources, non-responsive to
demand and supply changes, changes in prices by
central planners and not the market forces
31. TThhee BBiigg BBaanngg VVeerrssuuss GGrraadduuaalliissmm
• Gradualism ( the bottom-up approach): an
approach to moving gradually from a centrally
planned to a market economy by establishing
markets at the most decentralized level first,
such as on a small farms or in light industry
– China
• Big Bang Theory: the argument that the
transition from a centrally planned to a
market economy should be broad and swift,
taking place in a matter of months