INTB 1209 Lecture Notes - Lecture 6: Gross National Income, Developed Country, Microeconomics
28 Jan 2016
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Document Summary
Explain what determines the level of economic development in countries. Describe how transition in economies are moving toward market-based system. Explain implication of management practice of national difference in political economy. A country"s level of economic development affects its attractiveness as a possible market for potential firms and organization. Gross national income, purchasing power are factors that decide the economic position of a company. One thing to be vary of is, not all transactions get captured in official records. India"s black or shadow economy may be around 50%, uk 10%, 24% greece, 32% Gross national income (gni) and purchasing power parity (ppp) data provide a static picture of development so consider growth rates too. The un created the human development index based on life expectancy, education attainment and whether average incomes are sufficient to meet basic needs of life in a country. It reflects amartya sen"s ideas to gauge a country"s economic development.
