Chapter 3 - Political economy and economic development. After completing this unit, you should be able to: Explain what determines the level of economic development of a nation, identify the macro-political and economic changes occurring worldwide, describe how transition economies are moving toward market-based systems, explain the implications for management practice of national difference in political economy. | Global Business Today 8e © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. by Charles . Hill Chapter 3 Political Economy and Economic Development Introduction Question: What are the implications of a country’s political economy on its level of economic development and its environment for doing business? Answer: A country’s political economy influences its level of economic development Higher levels of economic development create a more favorable environment for international business Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 6- Differences in Economic Development A country’s level of economic development affects its attractiveness as a possible market or production location for firms One common measure is a country’s gross national income (GNI) per head of population A purchasing power parity (PPP) adjustment allows for a more direct comparison of living standards in different countries Differences in Economic Development Amartya Sen - development should be assessed less by material output and more by the capabilities and opportunities that people enjoy The United Nations created the Human Development Index based on life expectancy, education attainment, and whether average incomes are sufficient to meet the basic needs of life in a country Political Economy and Economic Progress Question: What factors influence a country’s rate of economic development? Innovation (new products, new processes, new organizations, new management practices, and new strategies) and entrepreneurship promote long-run economic growth Geography - influences economic policy, and thus economic development Education levels States in Transition Since the late 1980s: A wave of democratic revolutions has swept the world Many | Global Business Today 8e © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. by Charles . Hill Chapter 3 Political Economy and Economic Development Introduction Question: What are the implications of a country’s political economy on its level of economic development and its environment for doing business? Answer: A country’s political economy influences its level of economic development Higher levels of economic development create a more favorable environment for international business Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 6- Differences in Economic Development A country’s level of economic development affects its attractiveness as a possible market or production location for firms One common measure is a country’s
