Podcast
Questions and Answers
True Indulgence is trying to decide which three countries to target for advertising. Based solely on the data in Table 1, which combination would likely be the least effective initial target?
True Indulgence is trying to decide which three countries to target for advertising. Based solely on the data in Table 1, which combination would likely be the least effective initial target?
- USA, Australia, Canada
- Luxembourg, Switzerland, Iceland
- Bangladesh, India, Brazil (correct)
- Australia, Spain, Argentina
Which of the following best describes a key difference between a developed economy and a developing economy?
Which of the following best describes a key difference between a developed economy and a developing economy?
- Developed economies generally have higher levels of healthcare, education, and disposable income compared to developing economies. (correct)
- Developing economies always have a larger population than developed economies.
- Developed economies experience faster population growth compared to developing economies.
- Developed economies focus solely on agricultural production, while developing economies prioritize manufacturing.
If a country's GDP per capita increases significantly but the majority of the population still struggles to afford basic necessities, what might be a potential explanation?
If a country's GDP per capita increases significantly but the majority of the population still struggles to afford basic necessities, what might be a potential explanation?
- The country's currency has significantly increased in value.
- The country is experiencing deflation.
- The increased GDP is concentrated among a small, wealthy segment of the population. (correct)
- The country's population is rapidly decreasing.
Which of the following indicators would be most useful in determining the overall well-being and quality of life in a country, beyond just economic output?
Which of the following indicators would be most useful in determining the overall well-being and quality of life in a country, beyond just economic output?
A business is considering expanding into India. Which of the following factors would represent the greatest potential challenge, based on the information provided?
A business is considering expanding into India. Which of the following factors would represent the greatest potential challenge, based on the information provided?
In an emerging economy with a rapidly growing middle class, which of the following business strategies would likely be the most successful?
In an emerging economy with a rapidly growing middle class, which of the following business strategies would likely be the most successful?
How might increased trade opportunities resulting from economic growth in developing nations affect employment patterns in developed nations?
How might increased trade opportunities resulting from economic growth in developing nations affect employment patterns in developed nations?
A country is experiencing rapid economic growth, but environmental regulations are weak. What is a likely negative implication of this scenario?
A country is experiencing rapid economic growth, but environmental regulations are weak. What is a likely negative implication of this scenario?
If a country's HDI ranking is significantly lower than its GDP per capita ranking, what does this suggest?
If a country's HDI ranking is significantly lower than its GDP per capita ranking, what does this suggest?
How might a holiday company such as True Indulgence benefit from targeting emerging economies, even if the GDP per capita is lower than in developed countries?
How might a holiday company such as True Indulgence benefit from targeting emerging economies, even if the GDP per capita is lower than in developed countries?
Flashcards
Developed Economies
Developed Economies
Advanced nations with high standards of living, healthcare, education, and infrastructure.
Developing Economies
Developing Economies
Nations in the process of improving their living standards, infrastructure, and industrial base.
Emerging Economies
Emerging Economies
Nations transitioning from developing to developed status, experiencing rapid economic growth and industrialization.
Gross Domestic Product (GDP)
Gross Domestic Product (GDP)
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GDP per capita
GDP per capita
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Human Development Index (HDI)
Human Development Index (HDI)
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Prosperity
Prosperity
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Basic Needs
Basic Needs
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Life Expectancy
Life Expectancy
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Affordability
Affordability
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Study Notes
- This chapter aims to explore the characteristics of developed, developing, and emerging economies.
- It assesses the growing economic power of countries in Asia, Africa, and other regions.
- It examines economic growth's implications for trade opportunities, businesses, and employment patterns.
- It considers indicators of growth, such as gross domestic product (GDP) per capita and the human development index (HDI).
True Indulgence Holiday Company
- True Indulgence, based in the Maldives, offers high-quality luxury accommodation.
- A two-week holiday costs up to $20,000 for two people.
- Scuba diving and fine dining are popular features.
- The company plans advertising campaigns in three countries, targeting based on GDP per capita and population size.
GDP and Population in Select Countries (2016)
- Argentina: GDP per capita is $12,440.30, and the population is 43,847,430.
- Australia: GDP per capita is $49,755.30, and the population is 24,210,810.
- Bangladesh: GDP per capita is $1,358.80, and the population is 162,951,560.
- Brazil: GDP per capita is $8,649.90, and the population is 207,652,860.
- Canada: GDP per capita is $42,348.90, and the population is 36,264,600.
- Costa Rica: GDP per capita is $11,824.60, and the population is 4,857,270.
- Iceland: GDP per capita is $60,529.90, and the population is 335,440.
- India: GDP per capita is $1,709.60, and the population is 1,324,171,350.
- Luxembourg: GDP per capita is $100,738.70, and the population is 582,010.
- Switzerland: GDP per capita is $79,887.50, and the population is 8,372,410.
- USA: GDP per capita is $57,638.20, and the population is 323,127,510.
- Spain: GDP per capita is $26,616.50, and the population is 46,484,530.
Economies at Different Stages of Development
- There is a vast difference in prosperity and welfare between people around the world.
- In a minority of countries, people have a comfortable existence with access to healthcare, education, housing, and quality food.
- They may have spare income for non-essential items such as holidays and leisure.
- However, many struggle to gain enough food, safe accommodation, and clean water.
- They may have little education and limited access to healthcare, resulting in low life expectancy.
- Economies are defined based on where different groups of people fall between these two extremes.
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Description
Explore developed, developing, and emerging economies, focusing on Asia and Africa's economic power. It analyzes growth's impact on trade, businesses, and jobs using metrics like GDP per capita and HDI. Case study: True Indulgence Holiday Company.
