question help (1 Viewer)

[DannyT]

which nations account for the least world output, exports and FDI?

(A) Newly Industrialised Economices
(B) Developed economies
(C) Developing economies
(D) Transition economies

Obviously the answer is being juggled between C and D. I don't have any statistics but I'm guessing there are more developing economies than those classed as transition economies in the world (many of which are 'emerging economies' whose level of output can be up to twice as much as the world average). Also China can be categorised as both a developing and transition economy and obviously China accounts for a lot of world output, exports and FDI.

I'm thinking it's D? Help is greatly appreciated.

 

[DannyT]

Yeah that's true. No answers so I'm really lost haha

 

[Mu5hi]

either C or D, depending on the country in question. I would pick C.

 

[DannyT]

hmm seems like C is in favour..makes sense though but i find this question really ambiguous.

 

[williamc]

ambiguous without statistics, stupid question. best answer would be c as transition economies - typically communist turn market economies, are probably accounting for more output that developing economies.

 

[munchiecrunchie]

In my opinion, C is the best answer.

 

[DannyT]

Here are some statistics for 2004. They show the breakdown of the different economies in their contribution to GWP.
High Y economies 54.6%
Developing economies 38.3%
Economies in transition 7.2%
stats from 5 years ago though...would they be similar now?
Looks like it might be D but these stats add up to 100.1% =.=
Btw these stats are from an independent trial paper's solutions and the question was from a CSSA trial paper

 

[blaze.bluetane]

Hmmmm...
Good question.

Firstly, do we think that the question means which type of economy accounts for... or as an aggregate, which categorical group of economies accounts for...??

In the first scenario, I would go for D-Developing economies because transition economies typically experience increasing flows of FDI, exports and global integration, albeit their falling GDP during the transition process.

In the second case, however, I would probably go for C-Economies in transition because the aggregate of developing economies generally outweighs the aggregate of transitional economies, I would assume, in these three factors

any thoughts...?

 

[blaze.bluetane]

I think there are far more developing economies than transition economies. Furthermore, China and India would definitely skew the results.

China and India=Transitional economies perhaps?

 

[blaze.bluetane]

Yes definitely. By far.

What do you think about the typical contribution of a transitional economy against a developing economy though? I think that despite the fall in GDP experienced by a transitional economy, they would still have a higher GDP per economy?

 

[DannyT]

Yes definitely. By far.

What do you think about the typical contribution of a transitional economy against a developing economy though? I think that despite the fall in GDP experienced by a transitional economy, they would still have a higher GDP per economy?

it's hard to say, even amongst developing and transition economies many are undergoing different phases of development, have governments responding to globalisation differently, have differing extents of income inequality within the economy, different extents of corruption if any. It's too broad. Just like saying that Poland>Ethiopia (transition>developing) or India>Georgia (developing>transition) so I don't know what you mean by saying if the question is asking for which type of economy or as an aggregate, the question asks 'which nations". It is safe to say though that collectively, developing>transition. Also, India was never a communist state? Why would it be classed as a transition economy?