4.1.1 growing economies

economic growth

long term expansion of productive potential

GDP= standard measure

GDP

measure of total output for a country

value of all newly produced final goods and services produced in an economy within a given period of time

GDP per capita

total output divided by estimated total population

real GDP

measures value of economy’s output in a particular year adjusted for change in the price level from the base year

nominal GDP

measure of economy’s output produced in a year- expressed in the value of the prices charged for that year

doesn’t account price changes due to inflation

limitation of GDP

doesn’t take into account quality of goods

non market production

doesn’t take into account the underground economy

standard of living

level of wealth, comfort, material goods and necessities available to a certain socioeconomic class or geographic area

measure of how well off people are

measured by disposable income and real gross domestic product per capita

emerging economy

developing nation that is experiencing rapid economic growth and industrialisation.

not yet developed and heavily invested in its productive capacity

comparative advantage

economic concept stating that a country should specialise in producing the good and services for which they have the lowest opportunity cost compared to their trading partners

opportunities for uk firms in emerging economies

-potential new markets

-cheaper raw materials

cheaper labour for manufacturing

cheaper runner costs for a factory

barrier for uk firms in emerging economies

different culture of customers

different culture of workers

language barriers

impact of conflicts

communication challenges

indicators of growth

GDP per capita

literacy

health

HDI

HDI

combines range of economic statistics for a country- purpose of HDI is to focus on a country’speople rather than simply economic context