Question

1.Use a developing country as an example to explain some economic have expanded faster than others in the history.

2.What are the conditions or factors that impact growth and how do we measure growth?

Answer 1

1. It is well known that Vietnam has got an early lead in the race to attract global supply chains that are moving away from China. They have been the principal beneficiaries of trade diversion. This column had pointed out in October 2018, using data from the United Nations Conference on Trade and Development, that greenfield foreign direct investment had a big role in the relocation of global supply chains.

The economy of the Southeast Asian nation has been boosted by almost 8 per cent because of the shift in production resulting from the US-China trade war, according to analysis by Japanese investment bank Nomura.The bank studied trade data for the world’s 50 biggest economies. Its report spanned from the first quarter of 2018, shortly before the US released its first list of Chinese imports on which it planned to increase tariffs, to the first three months of 2019. The goal was to gauge the extent of the trade diversions – the redirection of goods to avoid paying duties

2. The majority of Vietnam’s gains came from additional imports of goods covered by US tariffs on China, mainly electronic apparatus for telephones, furniture and automatic data process machines, likely because multinationals could swiftly relocate to factories outside China, the analysis said. A small portion came from China’s additional import of boards, panels, uncombed single cotton yarn, cotton and other electrical appliances from Vietnam instead of the US.

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