GS101 Chapter Notes - Chapter 6: Saudi Aramco, Sweatshop, Complex Interdependence
Document Summary
Gs101 (orend) chapter 6: international trade and business. Two pillars of hard power: military strength, financial wealth. Economics: how goods and services are produced, distributed, and used. Many factors driving growth of national economy (e. g. natural resource endowments) Human resource endowments: size and quality of labour power affects what one can do with territory and natural resource endowments at one"s disposal. Quality of labour: extent to which one"s workforce is hard-working and well educated. Help maximize productivity (economic output per worker) Technological development and innovation also affect productivity and potential for economic growth: machines save time for critical human-only" tasks (strategy and invention) and make repetitive tasks (calculations, assembly-line manufacture) easier and higher quality. Need for the right incentive to encourage the right kind of behaviour. Freedom, well-functioning legal system, decent and widely available education, health status, and general social peace are important to economy too. C + i + g + (x m) = gdp.
