Globalisation pt1
- Created by: chloesplyons
- Created on: 16-03-23 13:59
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- Growing economies
- Where, why and how, UK compared to emerging economies
- More enterprising behaviour from local businesses
- More stable government
- More willingness to accept investment
- Easier access to export - improvements to communication & transport
- Effects of economic growth for businesses
- Offshoring - Moving a business function to another country
- Goal is to exploit lower production costs which increases profit margins
- Export opportunities - New markets in growing countries/economies.
- The UK is good at: Fashion design, Engineering & architecture, Culture, financial services
- Increased domestic competition
- Offshoring - Moving a business function to another country
- Growth indicators
- GDP per capita
- Literacy
- Health
- Human development index (HDI)
- Where, why and how, UK compared to emerging economies
- China VS India
- India
- Poor infrastructure
- Narrow education system
- Balance of payments deficit
- High inflation rates
- Deficit of $9.7 billion
- Indian consumers buying more imports than domestic products
- Lots of English speakers in India
- Allows for call centres and easy communication with other countries
- Faster growing Young population
- China
- Lots of investment on construction and infrastructure
- Coming from government spending and FDI
- FDI from western countries building factories in China
- Coming from government spending and FDI
- Huge population
- HIgh levels of economic growth
- With economic growth comes wage rates risiing
- China is appealing to many countries because of the low wage costs
- High emissions, china has only just started taking global emissions seriously and they are a big cause
- New legislation will come into play which could slow their growth as manufacturers
- Lots of investment on construction and infrastructure
- India
- Fixed capital formation - Investment in long term assets e.g. roads and buildings
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