Globalisation pt1

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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
    • Growth indicators
      • GDP per capita
      • Literacy
      • Health
      • Human development index (HDI)
  • 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
      • 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
  • Fixed capital formation - Investment in long term assets e.g. roads and buildings


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