Asiaphoria and Volkswagen: Short Answer Questions

Running head: SHORT ANSWER QUESTIONS
Answering questions on Asiaphoria and Volkswagen
Name of the student:
Name of the university:
Author note:

1
SHORT ANSWER QUESTIONS
Table of contents
Central argument of Asiaphoria by Pritchet and Summers........................................................2
Agreement with the statements of Pritchet and Summers and assessing its compatibility with
BRICs thesis...............................................................................................................................3
Implications of Asiaphoria argument for Volkswagen AG.......................................................4
References and bibliography......................................................................................................6

2
SHORT ANSWER QUESTIONS
Central argument of Asiaphoria by Pritchet and Summers
In the arguments of Pritchet and Summers, four dimensions of Asia’s growth are
highlighted. These four dimensions project the acceleration of growth in the domains of
China and India since the 1980s. Since then, both the countries have achieved profitable
growths. This was reflected in the era of 1990 (Summers and Pritchett 2014). In the mid
2000, India witnessed an escalating economy. The major drive behind this was the high
compound interest for a considerably long time. Along with this, large population added to
the economy. Pritchet and Summers feel proud to point that that China and India have been
declared as one of the largest economic power in 2011. This is in terms of investing in
Purchasing Power Parity (PPP) (Summers and Pritchett 2014).
The arguments of Pricket and Summers centers around “regression to the mean”, the
keystone towards the achievement of sustainable growth in the threshold of India and China.
At the initial stage, they draw the attention of the readers towards the regression of 1990,
which escalated the gross domestic product per capita (Summers and Pritchett 2014).
Drawing the statements of Bill Easterly and Micheal Kremer compels Pricket and Summers
to predict a low growth for China and India in the near future. The reason behind this is the
regression of mean in the growth process. One of the other reasons for this might be the
difference in the economies of India and China in terms of growth.
Pricket and Summers point out the importance of knowing the current growth rate for
making estimates about the growth India and China would achieve in the coming years.
Making tables and charts for the current growth rates is a wise step in this direction. As a
matter of specification, the typical components of this estimation are extrapolation and
exclusion (Summers and Pritchett 2014). Forecasts about the future growth process of China
and India aligns with the fourth dimension of this growth story. This is where Pritchet and