Varnika RAMJEE
4.1 Globalisation
4.1.1 Growing economies
BRICS economics
- Brazil, Russia, India, China and South Africa
- They have superpowers such as economic, cultural and geographical influence, they shift
over time and some powers decline and other emerge
MINT economies
- Mexico, Indonesia, Nigeria and Turkey
- Emerging economic giants
An economy is the state of a country or region in terms of the production and consumption of goods
and services and the supply of money. The large set of inter-related production and consumption
activities that help in deciding how scared resources are allocated
Growth rate of the UK economy compared to emerging economies
Country Growth rate (2020)
United Kingdom 1.7% (15% 2021)
Brazil 1%
Russia -0.57%
India 1.50%
China 1.70%
Economic growth
- Growing economies start to see changes in employment patterns; working women,
migration, the rise of the multi job, home working and the search for better work-life
balance
- The countries manage to pull themselves out of poverty and get richer are those that are
able to diversify away from agriculture and other traditional products
- As labour and other resources move from agriculture int modern economic activities, overall
productivity rises and incomes expand
What does growth mean for business?
- They have increasing incomes of their citizens which means opportunities to increase
revenue and profit for MNCs by moving into new markets, increased incomes and low labour
costs and proximity to market make these growing economies attractive
Indicators of growth
Gross domestic product (GDP)
- Shows the sum total of everything a country produces as a nation
Literacy
- How much of the population as a percentage can read and write
, Varnika RAMJEE
Health
- Life expectancy at birth in years, UK is 81.77 years, world health league
Human Development Index (HDI)
- Combines life expectancy, education and income
4.1.2 International trade and business growth
Imports
- Bringing in goods from other countries as come countries specialise in producing certain
goods and, with their low labour costs they can make products at more attractive prices than
we can in the UK
- We import machinery and transport equipment, chemicals and food and live animal the
most
- We import mostly from Germany, China and the USA
Exports
- Sending out products to other countries
- We export financial services, medical supplies and cars
- We trade mostly with the USA, Germany and France
Specialisation
- The process of concentrating on and becoming an expert in a particular subject or skill
- In terms of countries, means that a country will have industries in which is leads the world,
this may be due to proximity of raw materials, low labour costs, historical ability or other
factors e.g., Belgian chocolate
Competitive advantage
- India specialises in IT due to a high number of IT graduates from its universities
- Means they can set up call centres overseas staffed by English speaking staff who are on the
fraction of the wages required in the UK
Benefits of specialisation
- Increased productivity and output, means reduced costs and economies of scale
- As more resources are devoted to the industry rather than being spread out the scale of
production can be increased to gain the EOS
- Increased productivity leads to GDP growth and increasing sales
Downside of specialisation
- May become over reliant on one industry and this does not spread risk
- Other countries may become cheaper in the same industry and may be harder to compete
- If the business grows too big, can suffer from DEOS through lack of communication and co-
ordination
4.1 Globalisation
4.1.1 Growing economies
BRICS economics
- Brazil, Russia, India, China and South Africa
- They have superpowers such as economic, cultural and geographical influence, they shift
over time and some powers decline and other emerge
MINT economies
- Mexico, Indonesia, Nigeria and Turkey
- Emerging economic giants
An economy is the state of a country or region in terms of the production and consumption of goods
and services and the supply of money. The large set of inter-related production and consumption
activities that help in deciding how scared resources are allocated
Growth rate of the UK economy compared to emerging economies
Country Growth rate (2020)
United Kingdom 1.7% (15% 2021)
Brazil 1%
Russia -0.57%
India 1.50%
China 1.70%
Economic growth
- Growing economies start to see changes in employment patterns; working women,
migration, the rise of the multi job, home working and the search for better work-life
balance
- The countries manage to pull themselves out of poverty and get richer are those that are
able to diversify away from agriculture and other traditional products
- As labour and other resources move from agriculture int modern economic activities, overall
productivity rises and incomes expand
What does growth mean for business?
- They have increasing incomes of their citizens which means opportunities to increase
revenue and profit for MNCs by moving into new markets, increased incomes and low labour
costs and proximity to market make these growing economies attractive
Indicators of growth
Gross domestic product (GDP)
- Shows the sum total of everything a country produces as a nation
Literacy
- How much of the population as a percentage can read and write
, Varnika RAMJEE
Health
- Life expectancy at birth in years, UK is 81.77 years, world health league
Human Development Index (HDI)
- Combines life expectancy, education and income
4.1.2 International trade and business growth
Imports
- Bringing in goods from other countries as come countries specialise in producing certain
goods and, with their low labour costs they can make products at more attractive prices than
we can in the UK
- We import machinery and transport equipment, chemicals and food and live animal the
most
- We import mostly from Germany, China and the USA
Exports
- Sending out products to other countries
- We export financial services, medical supplies and cars
- We trade mostly with the USA, Germany and France
Specialisation
- The process of concentrating on and becoming an expert in a particular subject or skill
- In terms of countries, means that a country will have industries in which is leads the world,
this may be due to proximity of raw materials, low labour costs, historical ability or other
factors e.g., Belgian chocolate
Competitive advantage
- India specialises in IT due to a high number of IT graduates from its universities
- Means they can set up call centres overseas staffed by English speaking staff who are on the
fraction of the wages required in the UK
Benefits of specialisation
- Increased productivity and output, means reduced costs and economies of scale
- As more resources are devoted to the industry rather than being spread out the scale of
production can be increased to gain the EOS
- Increased productivity leads to GDP growth and increasing sales
Downside of specialisation
- May become over reliant on one industry and this does not spread risk
- Other countries may become cheaper in the same industry and may be harder to compete
- If the business grows too big, can suffer from DEOS through lack of communication and co-
ordination
