国际商务PPT第三章.pptVIP

International Business 9e By Charles W.L. Hill Chapter 3 Political Economy and Economic Development What Determines A Country’s Level Of Economic Development? Gross national income (GNI) per person measures the total annual income received by residents of a nation Japan, Sweden, Switzerland, and the U.S. have high GNI China and India have low GNI GNI can be misleading because it does not consider differences in the cost of living need to adjust GNI figures using purchasing power parity (PPP) How Do Countries Compare On GNI? Economic Data for Select Countries What Determines A Country’s Level Of Economic Development? Official figures can also be misleading because they do not account for black economy transactions In addition, GNI and PPP data are static and do not consider economic growth rates So, while China and India are currently categorized as being poor they are growing more rapidly than many developed nations and are expected to become among the largest economies in the world How Do Countries Compare On Growth Rates? Economic Data for Select Countries What Determines A Country’s Level Of Economic Development? Nobel-prize winner Amartya Sen argues economic development should be seen as a process of expanding the real freedoms that people experience the removal of major impediments to freedom like poverty, tyranny, and neglect of public facilities the presence of basic health care and basic education Amartya Sen also claims that economic progress requires the democratization of political communities to give citizens a voice What Determines A Country’s Level Of Economic Development? The United Nations used Sen’s ideas to develop the Human Development Index (HDI) which is based on life expectancy at birth educational attainment whether average incomes are sufficient to meet the basic needs of life in a country How Do Countries Compare on Economic Development? Economic Data for Select Countries How Does Political Economy Influence