...Economics Essay – To what extent do national income statistics (GDP) provide a good basis for comparison between countries? In the world of Economics, GDP per capita is used to compare the way that countries are coping with different economic climates; such as recession, boom etc. This essay will be assessing whether GDP is the best statistic to use for comparing different countries’ economies. GDP is the most commonly used method by world famous economists to assess how successful an economy is. GDP stands for Gross Domestic Product and is the market value of the official goods that have been transferred in and out in a country over a certain period of time. GDP is a good method for comparing the national incomes of countries because it can be very accurate. This is especially the case when the GDP for a division is divided between the population of a country. This is a statistic called GDP per capita and is a lot more accurate at showing how wealthy a country is because it divides the value of the goods transferred in a country between the whole population. This is clearly a better way of measuring how wealthy a country is because it explains how rich each person is in a country. This is a better way of comparison between countries because it shows how rich the country is in terms of value per person instead of making assumptions. This makes a huge difference because in normal GDP, China is the richest country in the world because it is worth the most as a country; however...
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...The country comparison tool can be used to create interactive charts using over 150 indicators. The variables are drawn from major international organizations and prominent NGO's and are updated regularly. One can compare countries over time using the line charts or the rankings of various countries by selecting a specific year. The comparison charts as well as the source data can be downloaded for free after registering. Below are brief guidelines for country comparisons: Compare countries: income levels. One can use GDP per capita in dollar terms to compare incomes across countries. However, the comparison may be somewhat misleading because consumers face different prices in various countries. One thousand U.S. dollars can buy much more in Mexico compared to the U.S. since prices in Mexico are lower. To account for the differences in prices, one should look at the GDP per capita in Purchasing Power Parity terms. In that way, one compares countries in term of real income (what can be purchased) as opposed to the dollar income. Compare countries: level of development. The most basic comparison is between GDP per capita levels or the levels of GDP per capita in terms of Purchasing Power Parity. However, GDP can be a misleading measure as it may not capture other aspects of the quality of life such as crime, education, environmental quality, etc. The Human Development Index published by the UN is a composite measure that accounts for a broader set of development factors. Compare...
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...GLOBAL BUSINESS FINANCE ASSIGNMENT ECUADOR INTRODUCTION Ecuador officially the Republic of Ecuador which literally translates to the Republic of the Equator) is a representative democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the w It is one of only two countries in South America, along with Chile, that do not have a border with Brazil. The country also includes the Galápagos Islands in the Pacific, about 1,000 kilometers (620 mi) west of the mainland. Ecuador straddles the equator, from which it takes its name, and has an area of 283,561 km2, 109,415 sq ml. Its capital city is Quito, which was declared a World Heritage Site by UNESCO in the 1970s for having the best preserved and least altered historic center in Latin America. The country's largest city is Guayaquil. The historic center of Cuenca, the third largest city in the country, was also declared a World Heritage Site in 1999.. Ecuador is also home to a great variety of species, many of them endemic, like those of the Galápagos islands. This species diversity makes Ecuador one of the seventeen megadiverse countries in the world. Ecuador is a presidential republic and became independent in 1830, after having been part of the Spanish colonial empire and the republic of Gran Colombia. It is a medium-income country with an HDI score of 0.695 (2010), and...
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...China’s Economic Growth 1978-2025: What We Know Today about China’s Economic Growth Tomorrow Views of the future China vary widely. While some believe that the collapse of China is inevitable, others see the emergence of a new superpower that increasingly poses a threat to the U.S. This paper examines the economic growth prospects of China over the next two decades. Extrapolating past real GDP growth rates into the future, the size of the Chinese economy surpasses that of the U.S. in purchasing power terms between 2012 and 2015; by 2025, China is likely to be the world's largest economic power by almost any measure. The extrapolations are supported by two types of considerations. First, China’s growth patterns of the past 25 years since the beginning of economic reforms match well those identified by standard economic development and trade theories (structural change, catching up, and factor price equalization). Second, decomposing China’s GDP growth into growth of labor and other variables, the near-certain information available today about the quantity and quality of Chinese laborers through 2015, if not several years after, allows inferences about future GDP growth. Short of some cataclysmic event, demographics alone suggests China’s continued economic rise. If talent is randomly distributed in the world population and if agglomeration of talent is important, then the odds are strongly in China’s favor. Introduction The rapid economic growth of China since the...
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...22, 2011 Abstract As an employee of the World Bank, I have been asked to research an economic concern in a South American country and write a report on my findings. The country I selected is Brazil. I chose to research data sets for the economic concern, Gross Domestic Product (GDP). In this report I will discuss the relationship between GDP and Brazil’s economy and trends in data sets, which are supported with statistical evidence. The Federative Republic of Brazil, commonly known as Brazil, is the largest country in South America and the world's fifth largest country by geographical area and by population. With over 190 million people it is the largest Portuguese-speaking country in the world and the only one in the Americas. There are only two countries in South America that Brazils borders do not touch, Ecuador and Chile. “Its current Constitution defines Brazil as a Federal Republic,” (Wikipedia, 2011). According to the International Monetary Fund and the World Bank (2011), the Brazilian economy is the world's fastest growing ranking as the eighth largest economy at market exchange rates and the seventh largest by purchasing power parity (PPP). Its current GDP (PPP) per capita is $10,200, putting Brazil in the 64th position according to World Bank data. The gross domestic product (GDP) is one of the measures of national income and input for a given country's economy. GDP is defined as the total cost of all finished goods and services produced within the country...
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...Version 1 General Certificate of Education (A-level) January 2013 Economics ECON2 (Specification 2140) Unit 2: The National Economy Final Mark Scheme Mark schemes are prepared by the Principal Examiner and considered, together with the relevant questions, by a panel of subject teachers. This mark scheme includes any amendments made at the standardisation events which all examiners participate in and is the scheme which was used by them in this examination. The standardisation process ensures that the mark scheme covers the candidates’ responses to questions and that every examiner understands and applies it in the same correct way. As preparation for standardisation each examiner analyses a number of candidates’ scripts: alternative answers not already covered by the mark scheme are discussed and legislated for. If, after the standardisation process, examiners encounter unusual answers which have not been raised they are required to refer these to the Principal Examiner. It must be stressed that a mark scheme is a working document, in many cases further developed and expanded on the basis of candidates’ reactions to a particular paper. Assumptions about future mark schemes on the basis of one year’s document should be avoided; whilst the guiding principles of assessment remain constant, details will change, depending...
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...Article 1. ECONOMIC AND FINANCIAL MARKET OUTLOOK (June 2012) No replay of 2011 in the cards for Canadian and US economies Part 1. Summary of the Article First article that I chose is the outlook for advanced economic and financial market particularly US, European union, Canadian and Chinese market that are strongly influence to the world market. Source of the Information and analysis are IMF World Economic outlook and RBC Economic research for year 2012 and forecast for year 2013. This paper includes several economic issues such us economic recession and growth, risk, Labour market and Inflation additionally monetary policies for central banks. Researcher and forecasters compared those issues for different countries and they aim to differentiate and discuss for each of the countries and market situation. Overall, the world economy faces significant challenges in the recent years and is expected to grow by 3.5% this year. Authors stated some significant issues and problems and explained them in detail. For example, paper includes several subtitles about European risk and recession situation, Finding the right policy for Europe, China is in slow growth stage, Canada and US economic situation and factors that impacted in positive and negative ways on the economy, Labour market volatility, Housing market, Households income and debt status, Consumer spending shift, Businesses that are supporting market, Canada’s dollar appreciation, Fed and other central bank policy,...
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...annual data for the years 2006 to 2014 showing the rate of growth of real GDP, the inflation rate, and the unemployment rate for Australia, the United States and one Euro-zone economy of your choice. Using the graphing tool in Excel, present three time-series line graphs: one for each economy containing all three variables. Label each axis, give your chart a title and state source of data. Graph 1: The 2006-2014 data of the GDP annual growth rate, the inflation rate, and the unemployment rate of Australia Source: data. World bank.org. Graph 2: The 2006-2014 data of the GDP annual growth rate, the inflation rate, and the unemployment rate of the United States Source: data. World bank.org. Graph 3: The 2006-2014 data of the GDP annual growth rate, the inflation rate, and the unemployment rate of France Source: data. World bank.org. Question 2. Using the data collected for Question 1 – covering the years 2006 to 2014 -, present three comparative line graphs. The first graph will show the rate of growth of real GDP of Australia, the USA and your chosen Euro-zone economy. The second comparative line graph will show the inflation rate of the three economies and the third line graph will show the unemployment rate of the three economies. Graph 4: The Comparison of the 2006-2014 GDP annual growth rates of Australia, the United States and France Source: data. World bank.org. Graph 5: The Comparison of the 2006-2014 inflation rates of Australia, the United States and...
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...Version 1 V Genera Certificate of Education (A-lev G al o vel) June 20 J 012 Econo E omics s (Spec ( cificati 21 ion 140) Unit 2 The Natio U 2: onal E Econo omy ECON N2 F al Fina Mar S eme rk Sche e Mark schemes are prepared by the Principal Examiner and considered, together with the relevant questions, by a panel of subject teachers. This mark scheme includes any amendments made at the standardisation events which all examiners participate in and is the scheme which was used by them in this examination. The standardisation process ensures that the mark scheme covers the candidates’ responses to questions and that every examiner understands and applies it in the same correct way. As preparation for standardisation each examiner analyses a number of candidates’ scripts: alternative answers not already covered by the mark scheme are discussed and legislated for. If, after the standardisation process, examiners encounter unusual answers which have not been raised they are required to refer these to the Principal Examiner. It must be stressed that a mark scheme is a working document, in many cases further developed and expanded on the basis of candidates’ reactions to a particular paper. Assumptions about future mark schemes on the basis of one year’s document should be avoided; whilst the guiding principles of assessment remain constant, details will change, depending on the content of a particular examination paper. Further copies of this Mark Scheme are available...
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...Less is more and the seven generations: alternatives to economic growth More or less? We love comparing, measuring, rating, and quantifying things. It started in school, who does better at school, who’s better at sports, who has more toys? It followed into puberty, with who owns the better clothes, who has the most dates, who goes to the better college? And finally, straight into adulthood comparing jobs, income, house sizes and cars. Excuse me for my bluntness, but in a world with 7.4 billion people and an infinite number of categories in which to compare yourself, there will always be someone that has more, or is “better” than you are in some way. Nevertheless, is more always better? Or could the opposite be true, could less be more? More is more We have grown up surrounded by abundance, and we are always achieving for more and aspiring to get the next best thing. We work more hours to get paid more to buy more things in the hopes of being happier. This belief is somewhat true. Income and happiness are related to a certain extent. An increase in the level of income is positively related to an increase in the level of happiness, until achieving an annual income of approximately 13,000 USD. After this point, happiness remains stable even when the income increases.1 Since 1950, GDP per capita in countries like the UK and the US has more than tripled, but people there are not any happier than before. Why is that? World experts in the subject of happiness...
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...to achieve economic growth while at the same time controlling inflation and unemployment (Gans, King, Stonecash and Mankiw, 2009, p. 11). However, the aim of discussion is to analyses how “a country’s standard of living depends on its ability to produce goods and services”. Review Lessons (principles) 8 Gans, et al (2009, p. 11) stipulated that “a country’s standard of living may be measured by comparing personal incomes or by comparing the total market value of a nation’s production”. People living in high-income countries may have a better standard of living than people living in low-income countries because they can afford cars, houses, clothes, furniture, appliances, foods, education and more (Chari & Kehoe, 2006, p. 3). Hobijn and Steindel (2009, p. 2) suggested that the living standard can be determined by looking at the country GDP which stands for “gross domestic product”. Nevertheless, the focus of this discussion is on the real GDP because it measures the production of goods and services at constant prices as it is a pretty good indicator of individual material standard (Hobijn & Steindel, 2009, p. 2). Appendices A and B highlights countries with the highest and lowest GDP per capita in the world. GDP per capita gives the average amount of income that each member of the population potentially has access to. Hence, the more money each individual can access to, the higher the potential standard of living. For instance, Switzerland’s real GDP expanded by...
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...Running Head: NEW ZEALAND ECONOMIC ANALYSIS REPORT New Zealand Economic Analysis Report Heather McKellips Grand Canyon University ECN 600 November 26, 2010 Abstract New Zealand is a small group of islands that is located to the southeast of Australia. It has a total land area of about 103,733 square miles, making it about the same size as the state of Colorado, USA. Although it has a small size, New Zealand is a thriving country. Their main exports include wool, forestry products, meat, dairy, fruit and nuts and fish. They have a thriving tourism business with more than 1.5 million visitors in 1999. Despite its small size and having to compete with more productive and more powerful nations, where does New Zealand’s economic being lie? This report will detail the economic stability of this country. Resting just southeast of Australia, New Zealand has some major competition with the production and exportation of their goods. They are also very reliant on foreign imports. Because of the major country of Australia just to their north, they also lose many members of their population to immigration. But on a whole, how does their economy hold up in comparison to the rest of the world? New Zealand is a power parity and has a gross domestic product (GDP) of $63.8 billion. The Organization for Economic Co-Operation and Development (OECD) has shown a steady increase in the GDP of New Zealand since 2004. However they still fall below the OECD average. (New Zealand...
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...Economic Growth: Comparison of Australia, USA and India Subject: HI5003 Economics for Business Submitted by: Anju Kattel Panta OLI2392 Binu Pokhrel Neupane EMV2704 Harpreet Kaur PCC2409 Rachel Chomapoy BRI2029 Khadijah Iftaqar BSI2129 Shama Shrestha EMV2816 Wangyang Wei ANY2083 Date: 6 June, 2014 Introduction to Economic Growth In this report, the economic growth of Australia, USA and India is discussed. Economic growth is key factor to economic development. People of the nation are benefited when national income grows. The is no any scientific method of formula to measure the economic growth whereas the data, charts and other information can be helpful for strategy-makers to understand the countries’ economic positions and design a framework to guide for an effort toward development. Data are the artefacts covering measures of economic growth, such as gross domestic product (GDP) and gross national income (GNI). They also have pointers representing elements known to be appropriate to economic growth, such as capital stock, employment, investment, savings, consumption, government spending, imports, and exports (The World Bank, 2014). GDP is considered to be one of the basic indicators that assess a country’s economy growth. According to The statistics Portal (2014) GDP is defined as market value goods and services produced by using the resources and capital of the country in provided span of time irrespective of nationality. Normally, it is calculated...
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...fh G lC o eai a o C u c C u t e i C mp r o w t o n i o nr sn o ai n i l i s h O h r iE p r n C u t e te O l x ot g o nr s i i Mag P ees ra etr E R P A C MMISO U OEN O S IN Economic Papers are written by the Staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and to seek comments and suggestions for further analysis. The views expressed are the author’s alone and do not necessarily correspond to those of the European Commission. Comments and enquiries should be addressed to: European Commission Directorate-General for Economic and Financial Affairs Publications B-1049 Brussels Belgium E-mail: Ecfin-Info@ec.europa.eu This paper exists in English only and can be downloaded from the website ec.europa.eu/economy_finance/publications A great deal of additional information is available on the Internet. It can be accessed through the Europa server (ec.europa.eu) KC-AI-10-415-EN-N ISSN 1725-3187 ISBN 978-92-79-14901-6 doi 10.2765/42450 © European Union, 2010 Reproduction is authorised provided the source is acknowledged. The Changing Pattern in International Trade and Capital Flows of the Gulf Cooperation Council Countries in Comparison with Other Oil-Exporting Countries Marga Peeters1 Abstract During the past decade the GCC countries have achieved a remarkably high degree of trade and financial integration in...
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...8421786 How is public debt related to economic growth and unemployment? In this project different economic factors will be compared with each other to see if any correlations exist between them. These will perhaps explain certain trends and changes we see. The three factors focused on in this report are GDP growth, Government Debt and Budget surplus/deficit. In the data provided there is a very large standard deviation for GDP (see appendix). In both 2009 and 2010 the standard deviation was over four and a half times larger than the average of GDP itself. This will make it hard to create general assumptions for all countries to assess whether different factors correlate with each other. Even other factors such as GDP growth have relatively large standard deviations. This may cause difficulties in examining factors. An example of ambiguous data can be seen when comparing Canada and India. They both had fairly similar GDP and debt figures in 2010 but India’s GDP growth was around three times that of Canada’s. This shows that we cannot make hard-and-fast rules on links between different factors but we may be able to make general connections and assumptions. Distribution of GDP Growth and Government Debt within countries Figure 1: GDP Growth (2009-2010) 60 50 Number of Countries 40 30 20 10 0 Frequency GDP Growth 2009-2010 (% change) As we can see from Figure 1 distribution of GDP growth is relatively small, with 93.4% (171/183) countries having a growth between 0% and...
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