Theme 4 key words
Economic Growth & Indicators
1. GDP (Gross Domestic Product) Per Capita – The total value of goods and services
produced in a country divided by its population.
Example: If the UK's GDP is £2.7 trillion and the population is 67 million, GDP per
capita = £40,300 per person.
2. GDP Growth – The percentage increase in a country's GDP over time, showing
economic progress.
Example: If the UK’s GDP grows from £2.7 trillion to £2.8 trillion, this means the
economy is expanding.
3. HDI (Human Development Index) – A measure of a country’s development based
on life expectancy, education, and income.
Example: Norway has a high HDI due to good healthcare, education, and high wages.
4. Indicators of Growth – Metrics like GDP, HDI, employment rate, and literacy rate
that show economic progress.
Example: If a country has more jobs and higher wages, it indicates growth.
5. Emerging Economies – Countries experiencing rapid economic growth and
industrialisation.
Example: India and Brazil are growing economies with increasing incomes and
infrastructure.
6. Implications of Economic Growth – The effects of a growing economy, such as
improved living standards but also inflation or environmental issues.
Example: China’s rapid growth has led to higher incomes but also pollution.
Global Trade & Business Expansion
7. Foreign Direct Investment (FDI) – When a company invests in another country by
setting up businesses or buying assets.
Example: Apple builds factories in China to produce iPhones.
8. Globalisation – The increasing connection between countries through trade,
investment, and communication.
Example: UK students buy clothes from Zara (Spain) and use TikTok (China).
9. Competitive Advantage – When a business offers something better than competitors,
such as lower costs or unique products.
Example: Nike has a competitive advantage in sports shoes due to strong branding.
10. Reasons for Moving to International Business – Businesses expand globally for
more customers, lower costs, or better resources.
Example: McDonald’s operates in over 100 countries to reach more customers.
11. Reduction of Trade Barriers (Trade Liberalisation) – Removing tariffs and quotas
to make international trade easier.
Example: The UK trades with the EU without tariffs on many goods.
12. Trading Blocs – Groups of countries that trade freely with each other, like the EU.
Example: The UK was in the EU before Brexit, meaning goods moved freely without
tariffs.
13. Tariffs – Taxes on imported goods, making them more expensive.
Example: The UK puts tariffs on steel from China to protect British steelmakers.
Economic Growth & Indicators
1. GDP (Gross Domestic Product) Per Capita – The total value of goods and services
produced in a country divided by its population.
Example: If the UK's GDP is £2.7 trillion and the population is 67 million, GDP per
capita = £40,300 per person.
2. GDP Growth – The percentage increase in a country's GDP over time, showing
economic progress.
Example: If the UK’s GDP grows from £2.7 trillion to £2.8 trillion, this means the
economy is expanding.
3. HDI (Human Development Index) – A measure of a country’s development based
on life expectancy, education, and income.
Example: Norway has a high HDI due to good healthcare, education, and high wages.
4. Indicators of Growth – Metrics like GDP, HDI, employment rate, and literacy rate
that show economic progress.
Example: If a country has more jobs and higher wages, it indicates growth.
5. Emerging Economies – Countries experiencing rapid economic growth and
industrialisation.
Example: India and Brazil are growing economies with increasing incomes and
infrastructure.
6. Implications of Economic Growth – The effects of a growing economy, such as
improved living standards but also inflation or environmental issues.
Example: China’s rapid growth has led to higher incomes but also pollution.
Global Trade & Business Expansion
7. Foreign Direct Investment (FDI) – When a company invests in another country by
setting up businesses or buying assets.
Example: Apple builds factories in China to produce iPhones.
8. Globalisation – The increasing connection between countries through trade,
investment, and communication.
Example: UK students buy clothes from Zara (Spain) and use TikTok (China).
9. Competitive Advantage – When a business offers something better than competitors,
such as lower costs or unique products.
Example: Nike has a competitive advantage in sports shoes due to strong branding.
10. Reasons for Moving to International Business – Businesses expand globally for
more customers, lower costs, or better resources.
Example: McDonald’s operates in over 100 countries to reach more customers.
11. Reduction of Trade Barriers (Trade Liberalisation) – Removing tariffs and quotas
to make international trade easier.
Example: The UK trades with the EU without tariffs on many goods.
12. Trading Blocs – Groups of countries that trade freely with each other, like the EU.
Example: The UK was in the EU before Brexit, meaning goods moved freely without
tariffs.
13. Tariffs – Taxes on imported goods, making them more expensive.
Example: The UK puts tariffs on steel from China to protect British steelmakers.
