Ch7 - Chapter 7: Production and Growth By the end of this...

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Chapter 7: Production and Growth By the end of this chapter, students should understand: how much economic growth differs around the world. why productivity is the key determinant of a country’s standard of living. the factors that determine a country’s productivity. how a country’s policies influence its productivity growth. Some Vocabulary terms in the Workbook Host Country : This refers to the country that invites or “hosts” the foreign investor. For example, when Coca Cola Corp. opens a manufacturing facility in China, China is the host country and Coca cola is the foreign investor. Export-led growth: One economic growth strategy that many developing countries pursue is to focus on production for the export market. For example, India, Mexico, Mauritius, Bangladesh export large volumes of garments and textiles to other parts of the world. Export-led growth is a viable strategy for labor-rich countries that, at present, do not have funds to invest in capital-intensive industries Technology Transfer: International technology transfer refers to the processes through which technological knowledge is moved between organizations in different countries. The acquisition of foreign technologies through technology transfer is crucial for the economic and social development of developing countries. For example. When Singapore first embarked on her economic development plan, she invited many foreign manufacturers such as National Semiconductor and Siemens Corp. to “set up shop” in Singapore. Part of the agreement was in exchange for preferential tax treatments, these foreign companies were required to hire and train local citizens and will ultimately hand over the management of these organizations to the local population. Applied Research: Original investigation undertaken to acquire new knowledge, but directed primarily towards a specific practical objective such as the development of a marketable product. Basic Research: Experimental or theoretical investigation undertaken primarily to acquire new knowledge of the foundations of phenomena and observable facts, without any particular application or use in view. In the United States, universities play a key role in conducting basic research.
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This note was uploaded on 05/10/2010 for the course ECON 220 taught by Professor Ramoo during the Spring '10 term at Diablo Valley College.

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Ch7 - Chapter 7: Production and Growth By the end of this...

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