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development should be seen as a process of expanding the real freedoms that people. experience[r]
(1)International Business 9e
By Charles W.L Hill
(2)Chapter 3
(3)33
What Determines A Country’s Level Of Economic Development?
Gross national income (GNI) per person
measures the total annual income received by residents of a nation
Japan, Sweden, Switzerland, and the U.S
have high GNI
China and India have low GNI
GNI can be misleading because it does
not consider differences in the cost of living
need to adjust GNI figures using purchasing
(4)(5)35
What Determines A Country’s Level Of Economic Development?
Nobel-prize winner Amartya Sen - economic
development should be seen as a process of expanding the real freedoms that people
experience
the removal of major impediments to freedom like
poverty, tyranny, and neglect of public facilities
the presence of basic health care and basic
education
Amartya Sen also claims that economic
progress requires the democratization of
(6) The United Nations used Sen’s ideas to
develop the Human Development Index
(HDI) which is based on
life expectancy at birth educational attainment
whether average incomes are sufficient to
(7)37
How Does Political Economy Influence Economic Progress?
Innovation and entrepreneurship are the engines
of long-run economic growth
innovation includes new products, new processes,
new organizations, new management practices, and new strategies
entrepreneurs commercialize innovative new products
and processes
Innovation and entrepreneurship
help increase economic activity by creating new
markets and products that did not previously exist