How do we compare different countries?? Global Studies

Useful ways to compare countries Population GDP / GDP per capita Trade Balance Human Development Index Demographic Transition Model

Population What are some problems with having too many people??

How strong is an economy?? GDP (gross domestic product) - one of the primary indicators used to measure the health of a country's economy. Most used indicator of a country’s development. GDP represents the total monetary value of ALL goods and services produced over a specific time period. We use GDP (PPP) (Purchasing Price Parity) because it most accurately compares GDP between countries.

How strong is an economy?? Market Size by GDP GDP (gross domestic product) - one of the primary indicators used to measure the health of a country's economy. Most used indicator of a country’s development. GDP represents the total monetary value of ALL goods and services produced over a specific time period. We use GDP (PPP) (Purchasing Price Parity) because it most accurately compares GDP between countries.

Calculating GDP GDP = C + G + I + NX where: "C" - equal to all private consumption, or consumer spending, in a nation's economy "G" - the sum of government spending "I“ - the sum of all the country's businesses spending on capital "NX" - the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)

GDP per capita What is it? GDP per person – How much a single person consumes/produces. Take the GDP and divide it by total population It helps to define a person’s standard of living (or quality of life).

GDP A significant change in GDP, whether up or down, usually has a significant effect on the stock market. A bad economy usually = lower profits for companies = lower stock prices = less jobs = lower wages. GDP helps economists determine whether an economy is in a recession.

Human Development Index Some problems with measuring only with GDP per capita. United Nations Development Program (UNDP) computes a Human Development Index for each country each year.

Human Development Index The human development index (HDI), composed of three indicators: life expectancy education (adult literacy and combined secondary and tertiary school enrollment) GDP per capita.

Demographic Transition Model Four Stages Stages related to birth and death rates. Where are we??

Demographic Transition Model