development should be seen as a process of expanding the real freedoms that people. experience[r]
Trang 1International Business 9e
By Charles W.L Hill
McGrawHill/Irwin Copyright © 2013 by The McGrawHill Companies, Inc. All rights reserved.
Trang 2Political Economy and Economic Development
Trang 3What Determines A Country’s
Level Of Economic Development?
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
not consider differences in the cost of
living
need to adjust GNI figures using purchasing
power parity (PPP)
Trang 4Economic Data for Select Countries
Trang 5What Determines A Country’s
Level Of Economic Development?
Nobel-prize winner Amartya Sen - 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
Trang 6 The United Nations used Sen’s ideas to
life expectancy at birth
educational attainment
whether average incomes are sufficient to
meet the basic needs of life in a country
Trang 7How Does Political Economy
Influence Economic Progress?
Innovation and entrepreneurship are the engines
of long-run economic growth
new organizations, new management practices, and
new strategies
and processes
Innovation and entrepreneurship
help increase economic activity by creating new
markets and products that did not previously exist
require a market economy and strong property rights