Rank & Country  GDP (USD) 	        2025 Projected Real  	GDP Per Capita 
                                          GDP (% Change)     (Current Prices) (USD)
#1 United States    $30.34 trillion             2.2%            $89.68 thousand
#2 China            $19.53 trillion             4.5%            $13.87 thousand
#3 Germany          $4.92 trillion              0.8%            $57.91 thousand
#4 Japan            $4.39 trillion              1.1%            $35.61 thousand
#5 India            $4.27 trillion              6.5%             $2.94 thousand
#6 United Kingdom   $3.73 trillion              1.5%            $54.28 thousand
#7 France           $3.28 trillion              1.1%            $49.53 thousand
#8 Italy            $2.46 trillion                0.8%          $41.71 thousand
#9 Canada           $2.33 trillion              1.3%            $55.89 thousand
#10 Brazil          $2.31 trillion              2.4%            $10.82 thousand
]]>






 
What factors contribute to a country's economic growth and size? 
The availability of natural resources, infrastructure, political stability, and human capital drive economic growth. Nations with strong institutions, efficient labour forces, and advanced technology often see larger economies. 

For instance, the United States benefits from a wealth of resources, technological innovation, and a robust workforce, contributing to its economic dominance. 
 


 

How does political stability affect economic attractiveness? 
Political stability fosters investor confidence, reduces risks, and attracts foreign investments. A stable government ensures predictable economic policies, infrastructure development, and rule of law. 

For example, Switzerland's political neutrality and stability have attracted global businesses and financial institutions.



 
 
What role does education and innovation play in economic growth? 
A highly educated workforce fosters innovation, enhancing productivity and competitiveness. Countries that prioritize research, development, and education often develop high-value industries. 

South Korea's focus on education and innovation has propelled its economy, especially in technology. 



 
 
How does international trade influence the size of an economy? 
Countries with open trade policies expand their market reach, access resources, and increase exports, contributing to economic size. 

For example, China’s rise as an economic powerhouse is largely driven by its role as the "world's factory" in global trade.
 


 
 
Why do some economies have higher standards of living than others? 
Standard of living is influenced by factors such as income levels, healthcare, education, and social security systems. Countries with strong economies provide better services and opportunities. 

Norway's wealth from oil and its well-developed welfare system result in a high standard of living.
 






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What makes a market more attractive for businesses?


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What is most conducive to growth and profitability: market size, regulations, tariffs?








How does market size affect a business’s potential for growth?

A larger market size offers a broader customer base, increasing demand for products or services. It allows businesses to achieve economies of scale, reduce costs per unit, and grow faster. Larger markets also provide opportunities for diversification in terms of target audiences or product lines.

Example: The smartphone market's size has led companies like Apple and Samsung to scale operations and innovate continuously.





How do regulations impact business profitability?

Regulations set the framework for how businesses can operate. In markets with light regulations, businesses often benefit from lower compliance costs and faster growth. In highly regulated markets, however, businesses face higher operational costs but might also gain a competitive advantage by ensuring higher standards.

Example: In the U.S., deregulation in energy markets has helped renewable energy companies grow rapidly





What role do tariffs play in determining market profitability?

Tariffs directly affect the cost of importing or exporting goods. High tariffs increase costs and reduce profit margins, while low tariffs facilitate smoother international trade. Businesses focused on global supply chains or exports may suffer in markets with high tariffs.

Example: The U.S.-China trade war resulted in higher tariffs on electronics, raising costs for companies like Huawei and Apple.





How do competitive dynamics in a large market influence profitability?

While a large market offers potential, it also invites intense competition. Businesses must innovate, differentiate, and improve efficiency to capture market share. Increased competition can erode profit margins if businesses focus too heavily on price.

Example: The fast-food industry is large but competitive, with brands like McDonald's constantly innovating to maintain market leadership.





What impact do government incentives have on profitability in certain markets?

Government incentives, such as tax breaks, grants, and subsidies, can significantly reduce operating costs and improve profitability. A market that provides these incentives becomes more attractive to businesses, particularly startups or those in industries like technology, green energy, or manufacturing.

Example: Tesla benefited from government incentives for electric vehicles, helping it scale and dominate the EV market.








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conducive = making it easy, possible or likely for sth to happen
pitfall = danger or difficulty, especially one that is hidden or not obvious at first
sustainable = involving the use of natural products and energy in a way that does not harm the environment; that can continue or be continued for a long time
sales funnel | purchase funnel = visual representation of the customer journey, depicting the sales process from awareness to action
retention = company's ability to turn customers into repeat buyers and prevent them from switching to a competitor. Businesses work hard to attract customers through marketing, social media, and sales strategies—it only makes sense to invest in customer retention as well
supranational = involving more than one country




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Competitiveness of economic unions
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Can smaller economies compete with larger ones thanks to economic unions? In what ways can economic unions help smaller economies?
 






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Supranational effectiveness of economic unions


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How successful are economic unions in their supranational activities?



✓ integrate monetary and fiscal policies
✓ coordinate policies, taxation, and government spending related to the agreement
✓ provide a common currency that comes with fixed exchange rates

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What is the EAEU? How successful is it in providing supranational regulations?

EAEU - Eurasian Economic Union 
= Republic of Armenia, Republic of Belarus, Republic of Kazakhstan, Kyrgyz Republic, Russian Federation
✓ also called the Eurasian Union, EAEU or EEU, the Eurasian Economic Union
✓ political and economic union of states in central and northern Eurasia
✓ treaty that established the union was signed in 2014 by the leaders of Russia, Belarus, and Kazakhstan
✓ accession treaty of Armenia and Kyrgyzstan came into force in the following year
✓ seek to foster economic development, free movement of goods, services, capital and labour
✓ contribute to modernisation of the member-states' economies
→ now only viable, though costly, alternative financial landscape to swift transactions





Have you ever heard of the CARICOM, the Single Market and Economy (CSME)?
✓ aims to create an economic space for competitive goods and services to establish a foundation for growth and development of the Caribbean community
✓ enlarged market that provides better opportunities to sell products and services, increased competitiveness, and improvement of the lives of people





Is there any economic union in central America for such countries as Costa Rica or Guatemala?
✓ Central American Common Market
✓ formed by six countries in Central America
✓ Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama





Can the European Union (EU) be considered the world's largest trading bloc?

✓ is the world’s largest trade bloc
Importing goods and services from more than 100 countries, it is the biggest import market, as well as the biggest exporter in the world.

The EU’s common currency is the euro, which is used by its 28 member states: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.

The EU countries coordinate their economic policies, laws, and regulations to address economic and financial issues. One of the union’s founding principles is free trade among its members. It is also committed to the liberalization of world trade outside of its borders.

src:
https://corporatefinanceinstitute.com/resources/economics/economic-union/

As the largest trading bloc globally, the EU is the primary trading partner for more than 80 countries and is among the most open economies worldwide
https://researchfdi.com/what-you-need-to-know-about-the-eu-single-market/]]>




What challenges does the EU face?
〆diverse economic conditions across member states
〆slower decision-making than in the USA for instance, due to its complex structure
〆ongoing debates over fiscal policy coordination





Can the EU compete with the USA?
✓ the EU and the USA have roughly comparable GDPs
(...)







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to foster = to encourage sth to develop




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Pros and cons of the EAEU


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Is the EAEU an attractive market for businesses?








Why isn't Russia among the top 10 largest economies in the world?

✓ exported natural resources
✓ oligarchs placed dividends in banks in London
(...)





Why haven't Western companies relocated their production to Russia although the GDP per capita is equivalent to the Chinese one?
✓ collectivism & work culture in China more disposed to being outsourced for low-skilled manufacturing and division of labour
→ reminiscent of vassals' behaviour
〆Soviet Union legacy resulted in widespread lack of ownership & accountability
→ little interest in taking their future in their own hands or being held responsible
= unpredictable, unreliable, careless approach to finishing goods
✓ more cultural & economic ties with India





To what extent does market size matter when starting up?





What spheres are regulated at national or supranational levels? How confusing can this be when growing your business?








feudalism /'fyu:də,lizəm/ = term that emerged in the 17th century that has been used to describe economic, legal, political, social, and economic relationships in the European Middle Ages. Used most narrowly to describe relations between lords and vassals that involve the exchange of land for military service. Feudalism in this sense is thought to have emerged in a time of political disorder in the 11th century as a means to restore order, and it was later a key element in the establishment of strong monarchies 
vassal /ˈvæsəl/ = holder of land by feudal tenure on conditions of homage and allegiance. Vassals were protected by lords who they had to serve in war

















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Prerequisites to growing a business
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a:2:{s:10:\"popupwidth\";i:500;s:11:\"popupheight\";i:150;}

conducive = making it easy, possible or likely for sth to happen
pitfall = danger or difficulty, especially one that is hidden or not obvious at first
sustainable = involving the use of natural products and energy in a way that does not harm the environment; that can continue or be continued for a long time
sales funnel | purchase funnel = visual representation of the customer journey, depicting the sales process from awareness to action
retention = company's ability to turn customers into repeat buyers and prevent them from switching to a competitor. Businesses work hard to attract customers through marketing, social media, and sales strategies—it only makes sense to invest in customer retention as well
supranational = involving more than one country
to foster = to encourage sth to develop






of energy
If China imports exports to Russia, the goods are...
I reached the goal to speak of speaking a little bit today
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Economic unions vs large economies
By the end of this session you will have studied 
 Zoom meeting details
Meeting ID: 736 3734 5149
Passcode: VhP32d  
https://us04web.zoom.us/j/73637345149?pwd=9XbxDC1Zm8liOLa6Q1HQRtaqnUaYQS.1
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What are the risks of sanctions on the banking sector?






breach = failure to do sth that must be done by law; action that breaks an agreement to behave in a particular way; break in a relationship between people or countries
to underscore = line drawn under a word or phrase for emphasis; to underline
fait accompli /ˌfeɪt əˈkɒmpli,ˌfɛt əˈkɒmpli/ = thing that has already happened or been decided before those affected hear about it, leaving them with no option but to accept it