Help with 2 questions! (1 Viewer)

[stellina91]

Hi guys,

Can you please help me with the following:

Analyse TWo reasons for variations in living standares between developing economies and high income economies.

Explain how the growth of major developing economies has influenced global trade.

Cheers.

 

[tutor2141]

Hi guys,

Can you please help me with the following:

Analyse TWo reasons for variations in living standares between developing economies and high income economies.

Explain how the growth of major developing economies has influenced global trade.

Cheers.

Note, these are just some points/ideas you may want to think about.

For the first question, you might want to think about the measures used to classify/distinguish low/high human development countries. The most obvious tool is probably GDP/capita.
Some reasons you may want to think of include

> factor endowments (eg China is endowed with cheap labour, Australia benefits from abundant mineral resources, etc);

> urbanisation rates (the proportion of the population inhabiting rural areas compared to cities, the rate at which people are flowing from rural areas to urban areas, etc);

> the levels of macroeconomic variables and quality of government (it has been found that people in developed countries get paid a lot more than those in developing nations for the same work, the ability of government to manipulate prices, mention inflation rates in lesser developed economies is a lot higher than those in developed countries); etc, etc ,etc.


For the second question make constant reference to the BRIC nations (brazil,russia,india,china). B&R for natural resources and I&C for cheap labour. Mention that some of the developing nations are not so accomodative when it comes to foreign investment (eg China --> tight capital controls, etc). Refer to the increase in aggregate demand, due to large populations. More people = more mouths to feed --> higher energy prices (energy companies do well).

Hope this helps,

Cheers

 

[FlyingHigh26]

Hi guys,

Can you please help me with the following:

Analyse TWo reasons for variations in living standares between developing economies and high income economies.

Explain how the growth of major developing economies has influenced global trade.

Cheers.

I agree with tutors comments above. These are mostly analytical questions requiring you to look into depth at a global level into inequality between nations, and the growth of international trade.

For your first question, look at international organisations as well, such as the World Bank, the World Trade Organisation (in particular the Doha Round and its attempts to liberate agricultural barriers to low income countries into the world market (nb: Most low income nations infrastructures and productions consist of agricultural goods mostly)), the International Monetary Fund etc. Mind you, be careful of what the question is specifically asking you. It is asking you to find two different things that contribute to the difference in LIVING STANDARDS! Not ECONOMIC GROWTH!!! There is a vast difference between economic growth and economic development, so things such as the HDI are useful tools as well.

Question two is quite a simple question. If you have begun or researched a particular case study so far, I would suggest you use it as resource to fully utilise and answer the question. It is asking for DEVELOPING nations, so nations in transition from underdeveloped to developed, namely China, Brazil, Balkian regions etc. Do not choose countries such as the US or Australia as they are DEVELOPED nations...

Just my two cents. Or three....