CXC Principles of Business Exam guide: Section 9: Social Accounting and Global Trade

CXC CSEC Principles of Business Exam Guide

Profile 3: The Business Environment

Section 9: Social Accounting and Global Trade

SPECIFIC OBJECTIVES

The students should be able to:

Indicators of a country's standard of living (factors indicating a country's wealth):

(a) level of consumption of goods and services;

(b) average disposable income of the population;

(c) level of national ownership of capital equipment;

(d) access to modern technology;

(e) level of investment in research and technology.

Indicators of a country's quality of life (factors indicating the extent to which a population enjoys the benefits of its wealth):

(a) extent of security enjoyed (level of crime);

(b) availability of health, educational and recreational facilties;

(c) diet and nutrition;

(d) life expectancy;

(e) rate of infant mortality;

(f) access to public utilities, such as electricity and potable water.

Approaches to measure:

(a) Gross Domestic Product (GDP);

(b) Gross National Product (GNP);

(c) National Income (NI);

(d) Per Capita Iincome;

(e) Advantages and disadvantages of different approaches used to measure national income.

Concepts of economic growth, negative growth, growth witout development, the quatitative nature of growth and the qualitative nature of development.

The role of human resource development in economic growth and development.

Reasons for internatonal trade.

Concepts of balance of trade and balance of payments.

Measures to address balance of payment problems:

(a) tariffs;

(b) licenses;

(c) quotas;

(d) exchange control;

(e) devaluation

(f) borrowing from another country;

(g) accepting gidts from other countries;

(h) importing on credit;

(i) drawing on the resources of theInternational Monetary Fund or other international financial institutions.