Growing Economies

Growing economic power of emerging economies

Growing economies show:

  • Trade opportunities for Western business

  • Production opportunities for Western business

  • Employment patterns

Emerging economy - large GDP growth

  • Less developed, more room to grow

  • Infrastructure poor

  • High poverty

Developed economy - slow GDP growth

  • Higher income levels

  • Better infrastructure

Indicators of growth:

  • GDP per capita = total GDP/population (judges market size/purchasing power)

    • Average economic output per person in a country

    • Higher GDP per capita = higher standard of living

      • Doesn’t account for pollution or inequality

  • Literacy rates - education levels, percentage that can read/write

    • Higher literacy = more skilled workforce

    • Offshore - business activity that takes place outside the entity’s home base

  • Health - life expectancy, infant mortality rates, doctors

    • Workforce productivity

    • Potential of the market

  • HDI - measure economic development within a country (get a score between 0 lowest and 1 highest)

    • Health

    • Education

    • Standard of living