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National differences in Economic Development - Coggle Diagram
National differences in Economic Development
Economic Development
Attractiveness for bussiness
Trends that foster greater economic development
Differences among nations
Gross National Income (GNI)
Need to adjust GNI figures using purchasing power parity (PPP)
These are static, don´t consider economic growth rates.
Human Development Index (HDI): life expectancy, educational attainment, average incomes.
The engines: Innovation and entrepreneurs
Innovation includes new products, new processes, organizatios, managment practices, new strategies.
Entrepreneurs: to commercialize innovative products and processes, provides dynamism.
Market economy
Relationship between economic freedom and economic growth.
Political system
Democratic: more conductive to long-term economic growth
Totalitrian: limit freedom, suppress human development.
Democratic revolution, 1980s-early 90s, mixed economies fot more free market approach.
The new world order: characterized by democratic regimes and free market capitalism.
Favorable geography: more engage to trade, open to market.
Invest in education: higher growth rates
Economic advances have led to a prosperous middle class that has pushed for democratic reforms.
Global terrorism is a product of tensions between civilizations and a clash of value systems and ideology.
Deregulation and privatization
Deregulation removing price controls, abolishing laws regulating, relaxing restrictions on investment.
Privatization to work it must be paired with a gnenral deregulation and opening of the economy.
sustained rates of economic growth when:
Strong property rigths protection
Market based economic policies
Democratic regimes
The risks are based on
Legal risk
Economic risk
Political risk