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

Developing economies:

Brazil

Russia

India

China

Mexico

Indonesia

Nigeria

Turkey

Grouped together as they share common features and wish to increase economic influence. Have potential for rapid growth