Ib economic coursework

#4

Coursework#4 Date:2011.6.6 My name: Ishmeal Title of article: African countries urged to benefit more from china link Date of article:2011.1.5 Source of articlechina daily Author of articleHarare Relevant section of syllabus microeconomic
Tianjin experimental high school 2011/6/6

Ib economic coursework #4

2011

African countries urged to benefit more from China link

(Xinhua)

Africa stands to benefit from its deepening ties with China but the continent has to enhance their capacities to match the Chinese economic growth, said a study on the impact of China on sub-Saharan Africa (SSA), released on Tuesday. The study by researchers from the universities of Nairobi, Cape Town and Sussex said that African economies have a real chance of benefiting from their economic links with China as long as they boost their own capacities to match Chinese demands. SSA exports to China as a proportion of trade with industrialized countries have grown from 0.43 percent in 1990 to 8. 96 percent in 2004, and these are set to expand as Chinese- driven commodity price boom takes the world by storm. The most significant opportunity opened-up to SSA by China's rapid growth is the enhanced incentives which rising demand and prices provide to commodity producing countries, the researchers said. Many African economies, including most members of the Southern African Development Community (SADC), have rich primary product resources, but one of the challenges facing Africa will be to develop the supply in-elasticities required to take advantage of raised global demand and prices, they said. This may require a combination of inputs, including enhanced infrastructure, targeted wooing of selected global resource- producing firms and the development of training and research and technology organizations in the respective national systems of innovation, noted the researchers. African countries will have to come up with clear strategies on how to manage the exploitation of their natural resources to ensure that the fruits can be drawn down over time, rather than at a single point in time.

Brief the article

The article talk about the elasticity, elasticity is playing significant roles in our life, and Africa is not very rich, they often urged to benefit more from china, the most
significant opportunity opened-up to SSA by China's rapid growth is the enhanced

Ib economic coursework #4

2011

incentives which rising demand and prices provide to commodity producing countries, the researchers said. And in Africa country, including some South African, have rich primary product resources, but one of the challenges facing Africa will be to develop the supply in-elasticities required to take advantage of raised global demand and prices, and it is very significant reasons are china rapid economic growth which rising demand and prices provide to commodity producing countries, as a result, the market have elasticity, so it is very important in economics

Technologies:
Economic growth: Economic growth is the increase of per capita gross domestic

product (GDP) or other measures of aggregate income, typically reported as the annual rate of change in real GDP. Economic growth is primarily driven by improvements in productivity, which involves producing more goods and services with the same inputs of labor, capital, energy and materials. Supply: Supply (economics), the amount of a product which is available to customers Supply, as in confidence and supply, the provision of funds for government expenditure Elasticity economics, elasticity is the ratio of the percent change in one variable to In the percent change in another variable. It is a tool for measuring the responsiveness of a function to changes in parameters in a unit less way. Frequently used elasticity include price elasticity of demand, price elasticity of supply, income elasticity of demand, elasticity of substitution between factors of production and elasticity of intertemporal substitution.

Analyze of elasticity:
Price elasticity of demand measures the percentage change in quantity demanded caused by a percent change in price. As such, it measures the extent of movement along the demand curve. This elasticity is almost always negative and is usually expressed in terms of absolute value (i.e. as positive numbers) since the negative can be assumed. In these terms, then, if the elasticity is greater than 1 demand is said to be elastic; between zero and one demand is inelastic and if it equals one, demand is unit-elastic.

Ib economic coursework #4

2011

This graph shows about elasticity:

Elasticity, as it is used in economics, refers to the response of a "dependent" variable to changes in the "independent" variable. A good way to remember this is that the "dependent" variable depends upon the "independent" variable. One can construct elasticity for any two variables that are related. For instance: a price elasticity tells us how changes in price affect the quantity demanded; an income elasticity tells us how changes in income affect the quantity demanded; and a cross-price elasticity tells us how the quantity demanded for good X is affected by changes in the price of good Y. The cross price elasticity can be used to determine whether a related good - in this case good Y - is a "substitute good" or a "compliment good. Analyze of Africa and china elasticity I think china and the Africa elasticity; African countries will have to come up with clear
strategies on how to manage the exploitation of their natural resources to ensure that the fruits can be drawn down over time, rather than at a single point in time

Ib economic coursework #4

2011

I think that the graph shows about china and Africa elasticity, Price elasticity of demand measures the percentage change in quantity demanded caused by a percent change in price. As such, it measures the extent of movement along the demand curve. This elasticity is almost always negative and is usually expressed in terms of absolute value (i.e. as positive numbers) since the negative can be assumed. In these terms, then, if the elasticity is greater than 1 demand is said to be elastic; between zero and one demand is inelastic and if it equals one, demand is unit-elastic. Cross price elasticity of demand measures the percentage change in demand for a particular good caused by a percent change in the price of another good. Goods can be complements, substitutes or unrelated. A change in the price of a related good causes the demand curve to shift reflecting a change in demand for the original good. Cross price elasticity is a measurement of how far, and in which direction, the curve shifts horizontally along the x-axis. Positive cross-price elasticity means that the goods are substitute goods.

Conclusion and evaluation:

To be conclusive, this argument is quite biased which is country elasticizes, about china and Africa elasticity, it is very important in economics Rationally speaking, consider the world economy as a whole after this devastating financial crisis, we may not urge any single one country have this problem, Africa and china which is problem is very important, In the Africa, ill have to come up with clear strategies on how to manage the
exploitation of their natural resources to ensure that the fruits can be drawn down over time, rather than at a single point in time.

Ib economic coursework #4

2011

In china rapid growth is the enhanced incentives which rising demand and prices provide to commodity producing countries

Bibliography
Economics books-Philip economics books for analyze Graph:
http://www.sogou.com/sogou?pid=sogou-site-02f039058bd48307&query=google website http://www.google.com.hk/#hl=zh-CN&newwindow=1&safe=strict&q=elasticities&oq=elasticities &aq=f&aqi=&aql=&gs_sm=e&gs_upl=49390l55393l1l12l11l0l0l0l0l0l0l&fp=6c473c954ac53c94&b iw=1366&bih=549