GLOBAL ECONOMIC Assignment Example | Topics and Well Written Essays - 500 words - 1

GLOBAL ECONOMIC - Assignment Example The other reason for the difference s in GDP per capita is differences in productivity among countries with the level of productivity in a country being depicted by high GDP per capita symbolized by Australia and UK in the chart above. China, Indonesia, and Russia have the same level of labour productivity explaining the similarity in GDP per capita. The other reason that could be the cause for the differences in the GDP per capita is the working hours of the workers in the given countries with the country that has the highest GDP per capita having high working hours compared to the other countries. Australian and UK could have high working hours compared to the working hours in China, Russia, and Indonesia depicting the difference in GDP per capita in the graph. Four reasons can explain the differences between the GDP of the five countries including amount of physical resources, quality and quantity of human resource, the size of the workforce, and the technology level (WORLD BANK, 2013). China could have been increasing the amount of physical capital, promoting highly skilled and trained human resource, increasing workforce size, and advancing technology from 1994 to 2012 as depicted by the rise in GDP over the years. The size of workforce, advancement in technology, training and equipping the human resource, and amount of physical resources seems to have been almost constant in Indonesia, Australia, and Russia due to the slight changes in GDP growth from 1994 to 2012. There are, however slight positive changes in skills, technology, workforce, and physical resources in UK showed by the increase from 1994 to 2007, but these factors may have slightly fallen to result in the down ward trend in the GDP in UK from 2001 to 2012. The possible economic effects for the differences in the GDP growth are three including the quality of governance, which are the mechanisms and institutions that aid in decision-making and authority dispensation in a