Examine the factors which explain the differences between economic Essa

Examine the factors which formulate the differences between frugal growth rates in countries.Economic growth is the long term increase in productive capacity asshown by an outward shift on a PPF curve. The PPF shows the maximum likely output of the saving. Productive capacity is an economiesability to produce goods and services, so if an sparing grows, it canproduce more goods and services for the population of the providence touse.Differences in Economic growth in countries result due to manyfactors, such(prenominal) as land and its resources. The amount of land a countrypossesses, and totally the natural resources it finds on the land canaffect the amount of output. For example, Saudi-Arabian Arabia hasexperienced precise high growth rates due to the richly endowed landswhich contain much oil. In this developing economy, the oil development was vital for its growth. round 3rd world countries beso poor, and pretermit such growth as Saudi Arabia, because they directinsuf ficient land, or insufficient resources to produce goods and havea higher output, and on that pointfore have a higher economic growth.Another supply side factor determining the growth rate of countries islabour, i.e. the number of workers in an economy. More workers entertainmore output, so should lead to economic growth. Growth rates indifferent countries may differ due to population differences, as aneconomy with a higher population, will have a larger workforce. Somecountries have immigration laws which can help increase economicgrowth. For example, an economy can employ migrant labour, byallowing migrants into the country only if they are educated, and in aposition to work. This includes only letting younkerer heap into thecountry, so that there are... ..., and experiences high growth rates. China, one of thefastest maturement countries, also concentrates strongly on educatingpeople at a young age. Another factor influencing growth is the significance of internationaltrad e. In countries that presumet participate in international trade,such as , there is very slow or no economic growth. This isbecause it is very labored for one economy to produce all goods whichpeople require. It is better to separate in a few goods, use them,sell the surplus, and use the notes to buy other goods from othereconomies, rather than the economy to produce everything itself, whichis very inefficient. In this country, there is a much slower rate ofeconomic growth compared to other countries. So altogether, there are many factors influencing economic growth,and this leads to different growth rates in different countries.