4.3.2 Strategies to promote growth and development

• What does growth refer to in emerging and developing economies?

  Increase in GDP
• Development in emerging and developing economies includes increased living standards, reduced poverty, improved education and healthcare, and greater income equality
• Match the aspect with its focus in growth and development:

  Growth ↔️ Increase in GDP

  Development ↔️ Broader improvements in quality of life
• Growth focuses on the quantitative expansion of the economy.
• Key factors for development include capital investment and technological advancements.

  False
• Which country is an example of significant economic growth but ongoing development challenges?

  China
• Human Capital refers to the education, health, and skills of the workforce
• Investing in vocational training programs improves human capital.
• What is one external factor affecting growth and development in emerging economies?

  Foreign Direct Investment
• Trade Openness refers to policies that reduce barriers to international trade
• Order the types of trade policies from least to most restrictive:

  1️⃣ Free Trade

  2️⃣ Trade Agreements

  3️⃣ Protectionism
• Match the trade policy with its impact on economic growth:

  Free Trade ↔️ Increases exports, attracts foreign investment

  Protectionism ↔️ Protects domestic industries, reduces consumer welfare
• Singapore's free trade policies have fostered significant economic growth.
• What does FDI stand for in the context of external factors affecting growth?

  Foreign Direct Investment
• Trade openness policies reduce barriers to international trade, which promotes exports and attracts foreign investment
• Global economic stability in major trading partners affects demand for exports in emerging economies.
• Match the type of trade policy with its description:

  Free Trade ↔️ Eliminates tariffs and barriers

  Protectionism ↔️ Uses tariffs and quotas to protect domestic industries

  Trade Agreements ↔️ Formal agreements to reduce trade barriers
• Free trade policies increase exports, promote efficiency, and attract foreign investment
• What are trade policies used by governments to regulate and influence international trade?

  Measures
• Protectionist trade policies can increase consumer welfare by lowering prices.

  False
• Order the types of trade policies from least restrictive to most restrictive:

  1️⃣ Free Trade

  2️⃣ Trade Agreements

  3️⃣ Protectionism
• What are the three key benefits of FDI for emerging economies?

  Capital, technology, expertise
• One drawback of FDI is that it can lead to foreign control
• FDI can displace local businesses and lead to job exploitation.
• Which country is mentioned as an example of FDI boosting economic growth and creating jobs?

  Vietnam
• What internal factors complement FDI in promoting economic prosperity?

  Human capital, government policies
• Match the development strategy with its impact:

  Aid ↔️ Provides capital for essential services

  Debt Relief ↔️ Frees up government funds for investment
• Aid can create dependency and may be misused due to corruption.
• What are the two types of aid mentioned in the study material?

  Bilateral and multilateral
• What is the primary purpose of aid in developing countries?

  Support economic development
• Debt relief involves reducing or canceling a country's debt obligations
• Aid can create dependency in recipient countries.
• What is one benefit of debt relief for a country's government?

  Frees up investment funds
• Aid to Sub-Saharan Africa has improved healthcare access
• Order the factors that contribute to growth and development in emerging economies

  1️⃣ Internal government policies

  2️⃣ Human capital

  3️⃣ FDI

  4️⃣ Trade openness
• What is the main role of infrastructure in economic growth?

  Supports economic activities
• Improved transportation and communication networks enhance business efficiency
• Good infrastructure improves living standards by providing essential services like clean water.
• What is a significant challenge in infrastructure development?

  High costs
• Match the concept with its definition:

  Growth ↔️ Increase in GDP

  Development ↔️ Broader improvements in quality of life