国际商务PPT第三章

3-12
How Does Political Economy Influence Economic Progress?
Democratic regimes are probably more conducive to long-term economic growth than dictatorships, even the benevolent kind
landlocked countries grew more slowly than coastal economies being totally landlocked reduced a country’s growth rate by 0.7% per year tropical countries grew more slowly than countries in temperate zones
Innovation and entrepreneurship help increase economic activity by creating new markets and products that did not previously exist
innovation in production and business processes result in more productive labor and capital further boosting economic growth rates
3-10
How Does Political Economy Influence Economic Progress?
Innovation and entrepreneurship require a market economy
there is little incentive to develop new innovations in planned economies because the state owns all means production and therefore, the gains
without strong property rights, individuals and businesses risk having their innovations and potential profits stolen
Economist Hernando de Soto claims that inadequate property protection in many developing nations limits economic growth
innovation includes new products, new processes, new organizations, new management practices, and new strategies entrepreneurs commercialize innovative new products and processes
South Korea Taiwan
3-13
How Does Geography Influence Economic Development?
Countries with favorable geography are more likely to engage in trade, and so, be more open to market-based economic systems, and the economic growth they promote Jeffrey Sachs studied economic growth rates between 1965 and 1990 and found that
There is a strong relationship between economic freedom and economic growth
the six countries with the highest ratings of economic freedom from 1975 to 1995 were also among the highest for economic growth
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
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
Hong Kong, Switzerland, Singapore, the United States, Canada, and Germany
3-11
How Does Political Economy Influence Economic Progress?
Innovation and entrepreneurship require strong property rights
property rights are only secure in well-functioning, mature democracies
Subsequent economic growth leads to the establishment of democratic regimes
International Business
9e
By Charles W.L. Hill
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 3
Political Economy and Economic Development
the removal of major impediments to freedom like poverty, tyranny, and neglect of public facilities the presence of basic health care and basic education
Since the late 1980s, two trends have emerged 1. Democratic revolution (late 1980s and early 1990s)
democratically elected governments replaced totalitarian regimes more committed to free market capitalism
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
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
2. A move away from centrally planned and mixed economies
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
3-5
How Do Countries Compare On Growth Rates?
Economic Data for Select Countries
3-6
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
3-14
How Does Education Influence Economic Development?
Countries that invest in education have higher growth rates because the workforce is more productive
need to adjust GNI figures using purchasing power parity (PPP)
3-3
How Do Countries Compare On GNI?
Economic Data for Select Countries
3-4
What Determines A Country’s Level Of Economic Development?
3-8
How Do Countries Compare on Economic Development?
Economic Data for Select Countries
3-9
How Does Political Economy Influence Economic Progress?
Innovation and entrepreneurship are the engines of long-run economic growth
Amartya Sen also claims that economic progress requires the democratization of political communities to give citizens a voice

3-7
What Determines A Country’s Level Of Economic Development?
countries in Southeast Asia have offset their geographical disadvantages by investing in education
Indonesia, Malaysia, and Singapore
3-15
How Is The Political Economy Changing?