International Trade and Economic Growth
Added on 2019-09-25
7 Pages1175 Words179 Views
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INTERNATIONAL TRADE AND ECONOMIC GROWTH
Table of Contents1.......................................................................................................................................................2a.Calculate growth rate............................................................................................................2b.Calculate years to double the Gross domestic product.........................................................22.......................................................................................................................................................2Sources of human capital.............................................................................................................21.Health................................................................................................................................32.Education..........................................................................................................................33.Training.............................................................................................................................34.Migration...........................................................................................................................35.Information........................................................................................................................3Sources of labor productivity.......................................................................................................31.Investment in labor............................................................................................................32.Accountability...................................................................................................................43.Investment in assets..........................................................................................................43.......................................................................................................................................................4Law of diminishing returns..........................................................................................................44.......................................................................................................................................................5Issues raised by government expansion.......................................................................................5References........................................................................................................................................6
1.a.Calculate growth rateThe growth rate is calculated by taking the difference between real GDP in 2013 and 2014 whichis, (0.2/13.1)*100 = 1.52%Thus the growth rate is 1.52%. b.Calculate years to double the Gross domestic product26.2 = 13.1ert= 2 = e0.015t= log2 = 0.015t= 0.30/0.015 = t= 2 =tThus, it will take two years to convert GDP. 2.Sources of human capitalThe human capital is defined as the human resource that is working towards the benefits of the economy or the organisation. The productivity of human resource increases with the good skills, training and education. The productivity of human resources can be improved by investing in human resource through providing training and education which directly impacts on the revenue
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