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Global Economics

BUSINESS SCHOOL- LEVEL ONE STUDY

There are 6 very simple questions in this assignment and everyone should get HD (80%-90%) of the total 50 marks.

Question 1: Refer to the line chart below and discuss the possible economic reasons for those differences between the five countries. (120 words) 9 marks

Your answer should be here:

According to World Bank statistics by 2012 among the five countries listed above China topped the group with about 1.351 trillion people. Though they prove to have advantage of a pool of workforce among the other countries viz-a-viz the less physical capital in the country make them to second last in the graph.

Equally Indonesia seconds in the group in respect to population rating with 246.9M people as per to World Bank data by 2012 versus the less physical capital present in the country making them to slag behind among the five countries as per to GDP per capita comparison.

The third in population rating among the five countries according to 2012 World Bank statistics is Russia with a population of approximately 143.5M, though with a higher capability of human capital makes it to be ahead of China and Indonesia in GDP per capita comparison.

Australia proves much higher in the second of the five countries GDP per capita comparison because it enjoys a great level of physical capital in form of capital stock and at par level of human capital with great education and skills to propel economic growth consequently raising the Australian Gross Domestic product at the same time enjoying the privilege to have the most manageable population viz-a-viz its natural resources.

The UK stands out among the group to top the graph in comparison of the GDP per capita since it has the most effective and efficient technology among the five countries. Apart from this, it has invested so much of its resources in nurturing the human capital of its population through appropriate education and skills acquisition of greater man-power provision. Further the capital stock base of rates highest among the countries against a manageable population of about 62.23M.

Question 2: Refer to the line chart below and discuss the possible economic reasons for those differences between the five countries. (120 words) 9 marks

Your answer should be here:

China is achieving so much growth in the GDP growth as from the peak of its economic transformation from 2005 to be on the top of scale henceforth in comparison among the five countries. She has hugely expanded her physical capital base of the stock of their capital by marshalling resources in and without its borders. It has invested in its huge labour force by enhancing the educational levels of the population and better and appropriate skills acquisition to ensure effectiveness in its human capital. Technology-wise they have made a greater step in investing in modern machines, merchandise for effectiveness and efficiency in operations.

United Kingdom shows a relatively steady GDP growth with exhaustion of its skills and educational personnel to a point of less progressive economic growth. There is less innovation resulting to almost stagnant rate in economic growth in the period 2009-2012. The human capital is giving as sign of reaching its peak.

Indonesia portrays lack of development of new knowledge through carrying out of research and development (R&D). The low levels of technological advancement make them to slag extremely behind the five countries.

Russia and Australia almost tie in the same position due to less physical capital in the form of capital stock to enable conversion of such resources into economic productivity to add into the national gross value

Question 3: Refer to the line chart below and discuss the possible economic reasons for those differences between the five countries. (120 words) 9 marks

Your answer should be here:

The increasing technological prowess in China results to a steady positive GDP growth for nearly two decades. The deflections in the Chinese GDP growth have been manageable due to availability of human capital to propel economic progress.

The economic instability in Russia is as a result of political instability in the country as a result of waging civil wars causing extreme values in its GDP growth rate with negative figures and positive figures simultaneously.

The growth in technological progress and build of productive human capital to facilitate production processes and also the 1998 economic recession in Indonesia has been its major drawbacks to economic development.

Australia’s less of investment in huge human capital in the educational and skills acquisition to propel the economic undertakings.

Question 4: Refer to the line chart below and discuss the possible economic reasons for those differences between the five countries. (120 words) 9 marks

Your answer should be here:

The economic recession in Russia back caused the high inflationary gap experienced in the period 1994 and below.

The political stability relative across the other four nations has resulted to a more subjectively similar inflationary gap. The consumer Purchasing Power Parity (PPP) across the nations have shown a less deflection from year 2000 and beyond in its scope as the nations manage the balance of trade deficit to stabilize the local currency versus the foreign currency exchange rates.

Question 5: Refer to the line chart below and discuss the possible economic reasons for those differences between the five countries. (120 words) 9 marks

Your answer should be here:

The Chinese economic prowess in the technological advancement has resulted to efficiency in the production and timely operational levels. This modern technological improvement has resulted to high rate of raw material processing and thus absorption of experts and other line of labour force to the grid system of employment

Indonesia experiences fluctuating levels of stable employment so much due to lack of investment in the productiveness of production through reliable human capital empowerment.

The Russians economy shows high margin of unemployment with a wide deflecting stands due prioritizing in military stability rather than economic empowerment of its people. The less physical capital to put into production with other factors of production to enable economic development and thus facilitate eradication of unemployment in the nation is building up the gap between the citizens employed and the ones unemployed.

Question 6: Why you might want to use more than one chart to present variables in the above five questions? (100 words) 5marks

Clarity-different graphs presentation offers a vivid evaluation and clear analysis of the variables for effective deductions.

Verifiability-the different graphs representation enable emphasis and prioritization on what aspect of the economic development to tackle at what specific time.

Speed –the time taken to make sense of what a chart presents is of importance. The shorter the time the more effective a process is. This enables in completion of a task in record time scheduled.

Precision-the exactness in what scope and limit of the economy to scrutinize enables delegation of duties and tasks to the personalities with the specific expertise the particular area requires. This enables assigning personalities in the line they best fit for efficiency purposes in the general outcome of the whole task.

Bibliography:

Boyes, W. J., & Melvin, M., 2013. Economics. Australia, Cengage Learning South-Western.

Greenhalgh, C. A., Layard, R., & Oswald, A. J., 1983. The Causes of unemployment. Oxford,Clarendon Press.

International Monetary Fund. 1998. World economic outlook: a survey. Washington, D.C.,International Monetary Fund.

International Monetary Fund Staff. 1989. World Economic Outlook, October 1989 A Surveyby the Staff of the International Monetary Fund. Washington, International MonetaryFund. http://www.elibrary.imf.org/view/IMF081/A0248-9781451944433/A02489781451944433/A0248-9781451944433.xml.

Nafziger, E. W., & Nafziger, E. W., 2005. Economic development. New York, CambridgeUniversity Press.

World Bank. 2012. World Development Indicators 2012. Washington, D.C., The World Bank.http://site.ebrary.com/id/10555108.