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Where GNI increases faster than the population

A. there probably is an expanding market.
B. the market is probably contracting.
C. the country where this occurs may be subject to political unrest.
D. the market is becoming less attractive for business.
E. there is probably a surplus of technical and university graduates.

1 Answer

7 votes

Final answer:

When GNI increases faster than the population, there is likely an expanding market in a country. This is common in economically developed stages where investments and technological advancements fuel economic growth, and where a decrease in birth rate may occur as the economy matures.

Step-by-step explanation:

Where GNI increases faster than the population A. there probably is an expanding market. This situation is indicative of a nation experiencing economic growth that outpaces its demographic growth, suggesting that the per capita income is rising. This trend is often seen in developed countries or those transitioning to higher stages of development, typically characterized by a more controlled population growth and increased levels of investment in human and physical capital. Countries in stage 4 or 5 of the index of economic development, such as France, Germany, Italy, Japan, China, and India, present attractive economic opportunities, which could attract immigrant populations. These immigrants often fill entry-level jobs, integrating into the workforce and contributing to the market expansion. However, this dynamic can vary based on numerous factors, including market forces, government policies, technological gains, and demographic changes. Conversely, an increase in a nation's income, as evidenced in places like Hong Kong, is associated with a decrease in the birth rate and rate of population growth. Therefore, if the GNI growth is outpacing population growth, it can also indicate a maturation of the economy and potential changes in demographic trends.

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