Please enable JavaScript.
Coggle requires JavaScript to display documents.
NEEDS AND WANTS, MATURE AND EMERGING MARKETS, SECTORS OF PRODUCTION, GOODS…
NEEDS AND WANTS
needs are the things we cannot live without and are
essential
for our existence
examples are:
food, water, shelter, clothes and warmth
wants are the things we don't really need and aren't essential, but they
make our life easier
examples are:
cars, telephones, TVs and games
even if they aren't essential,
some wants are becoming needs
because we need them in our daily life, for example: we need a car to go to our job, a computer to check emails or a phone to call other people
MATURE AND EMERGING MARKETS
a
MATURE MARKET
is a market that has reached a
state of equilibrium due to a lack of significant growth
, business in this market dont try to enter new ones because there's
a little incentive in an attempt to increase operations and profits
the
FOUR ASIAN TIGERS
are
South Korea, Singapore, Taiwan and Hong Kong
. They supported development
by producing manufactured goods
on a large scale such as clothing and electronics
by importing raw materials due to their lack of natural resources
.
Hong Kong and Singapore are two of the biggest financial centres worldwide
,
South Korea is an important hub of global manufacturing
in automobile and components, while
Taiwan is another important hub of information technology
an
EMERGING MARKET ECONOMY
describes a nation's economy
that's progressing in becoming more advanced because of rapid growth and industrialisation
, these countries experience an expanding role in the world's both in economic and plolitical frontier
the
BRICS countries
are
Brazil, Russia, India, China and South Africa
, the median age in these countries is younger than in mature markets
the
Next Eleven
are countries which have a high potential of becoming along with the BRICS,
the world's largest economies in the 21st century, according to Goldman Sachs' investiment bank
Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam
the main difference between MATURE and EMERGING markets is the age of the population
, which in mature markets is older and in emerging markets is younger
SECTORS OF PRODUCTION
PRIMARY
MINING
FISHING AND FARMING
FORESTRY
SECONDARY
MAKING FOOD
MANUFACTURING
BUILDING
TERTIARY
COMMERCIAL SERVICES
RETAILING, TRANSPORT, ADVERTISING
PERSONAL SERVICES
EDUCATION, HEALTH, JUSTICE
FINANCIAL
BANKING
NON-PROFIT ASSOCIATION
VOLUNTARY ORGANISATION, COOPERATIVES, CHARITIES
GOODS AND SERVICES
goods are
physical objects
that we can see and touch, basically we can feel them with our five senses
divided in two categories which are:
NON DURABLE
goods, so objects that can be used only once, for example: newspapers, tobacco and flowers
DURABLE
goods which can be reused multiple times and last longer, such as: cars and forniture
services are
non physical products
that we can't feel ourselves
like: tourism, education, transport, safety or banking
COMMERCE AND TRADE
commerce is a general term used for referring to the
distrubution and sale of goods
TRADE is the activity of buying and selling goods for money
it divides in:
HOMETRADE
which takes place inside a country
it deals with the activities of:
WHOLESALERS
who buy goods in
bulk
, at the cost price from the orignal producers and manufacturers
the traditional wholesaler is in decline, beause many retail shops are either part of a multiple chain or they buy goods directly from the original producers and manufacturers
RETAILERS
who buy goods in small quantities from wholesalers at their price
retailers sell goods at retail price to their customers, and they can be:
indipendent when they specialse in one product or service
supermarkets, department stores opr hypermarkets when they sell different products
INTERNATIONAL TRADE
that on the other hand takes place between different countries, across international boundaries or territories
it consist of
IMPORT
and
EXPORTS
:
IMPORTERS
are people who buy goods from other countries
EXPORTERS
are people who sell goods to other countries
international trade in most countries
represents
an
important share of the GDP which is gross domestic product
, in Italy it can be compared to our PIL
international trade takes place for three reasons:
some products can only be produced in particular places
ex: bananas, oil, coffe
some products are cheaper to produce in certain countries than others
ex: shoes produced in China are cheaper than the ones produced in the UK or Italy
foreign firms may produce higher quality products at more competitive prices
customers choose to buy them from abroad
it has:
ADVANTAGES
of international trade
3 more items...
DISADVANTAGES
of international trade
2 more items...
the SERVICES TO TRADE are services which make the exchange of goods possible
TRANSPORT
WAREHOUSING
BANKING
MARKETING
INSURANCE
COMMUNICATION
TECHNOLOGICAL SUPPORT
ECONOMIC SYSTEMS
in each one of the three economic systems answer the basic questions:
what
to produce,
how
to produce and
for whom
to produce
the
COMMAND OR PLANNED ECONOMY
is controlled by the government
the
FREE MARKET ECONOMY
is controlled by the customers
in the
MIXED ECONOMY
private companies own and control some industries and the government provides services such as public transport, education and health care.
Italy, France and the UK are examples of mixed economies