Global Business Report - Gross Domestic Product

Gross domestic product (GDP) is the market value of all goods and services produced by labour and property located in the country (Mankiw & Taylor, 2006). The GDP of country A is $ US 1,161 billion higher than Country B $ US 320 billion.

Inflation means a considerable and persistent rise in the general level of prices over a long period of time (Siegi, 2009). Inflation is a significant economic statistic because it affects the value of money as well as demonstrates the overall stability of a country’s economy. High inflation percentage in the Country B (4.8%) means that Country B goods increase in price quicker than Country A (2.8%) goods. Therefore Country B goods become less competitive.

A population can be defined as a discrete group of people or animals that can identified by at least one common characteristic for the purposes of data collection and analysis (Newman, 1994). The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capital indicators (Human Development Report, 2002, p.34). A country adult literacy rate is the proportion of its population adult who can read and write with understanding a short (Fitzpatrick, Kwon, Manning, Midgley & Pascall 2013). A country has a higher rate in HDI when the average lifespan of the nations are higher and the education is higher. The table shows the population of Country A is 120 million with the HDI (75) and the adult literacy rate (94%), from the comparison with the population of Country B is about 80 million with HDI (72) and adult literacy rate (90%). Its means there more human resource and high human labour power in country A where firm can increase the growth of productive forces and economy of itself.

Although Country B scores lower than Country in HDI and literacy rate,

Income inequality refers to the extent to which income is distributed in poorest and wealthiest (Adams & Jane, 1995). The tables illustrates that

Gini Co-efficient is a measure of statistical dispersion intended to represent income (or wealth) distribution of a nation’s population (Arnold, 2007).

Adults who have completed secondary school.

GDP definition

Inflation

Population

Gini Co-efficient

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