Your Task: Determine the two major categories represented by the terms and sort them according to their similarities.

What economic factors influence economic growth in Nigeria and South Africa? SS7E3: The student will describe factors that influence economic growth and examine their presence or absence in Nigeria and South Africa. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP). Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP).

What is human capital? Human capital refers to the skills and knowledge that workers have in order to produce goods or services.

What is human capital? The more education that workers have the better they are at producing quality products and learning new jobs as the technology becomes available.

What is human capital? Companies that spend more money on training and educating their workers usually make more profits. Companies also should be sure that working conditions are safe. In addition, countries where training and education are more readily available often have higher GDPs and higher standards of living.

Human Capital: South Africa South Africa has invested in their human capital. South Africa has diversified their economy and has the highest Gross Domestic Product (GDP) on the continent.

Human Capital: South Africa South Africa’s electronic and mining businesses depend on highly skilled workers. South Africa has a high unemployment rate. Most of the unemployed are members of the black community which are still suffering due to the affect of the apartheid system.

Human Capital: Nigeria Nigeria should have a strong economy due to its large deposits of oil and its educated population. However, due to government corruption, military rule, and civil wars, 70% of the Nigerian people live on less than $1 a day. Nigeria must import food in order to keep its large population fed.

What are capital goods? Capital goods include machines, technology, factories and other tools that people use to produce goods or sell. Technology makes production more efficient and less expensive which leads to greater profits. Higher profits lead to a larger GDP.

Africa & Capital Goods South Africa has invested in capital goods. Nigeria South Africa has invested in capital goods. They have the necessary equipment to mine diamonds, gold, and platinum and to assemble cars and trucks. Nigeria has invested in capital goods to support their oil industry. However, the lack of diversification in the investment of capital goods in other industries has led to many Nigerians without proper food and housing.

In conclusion… What is capital? What is human capital? Explain how the two affect the economy of South African and Nigeria.