{"id":6531,"date":"2016-08-19T19:46:35","date_gmt":"2016-08-19T19:46:35","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/masterybusiness2xngcxmasterspring2016\/?post_type=chapter&#038;p=6531"},"modified":"2024-05-02T19:39:22","modified_gmt":"2024-05-02T19:39:22","slug":"political-and-economic-differences","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/chapter\/political-and-economic-differences\/","title":{"raw":"Political and Economic Differences","rendered":"Political and Economic Differences"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Describe the impact of political and economic forces on global trade<\/li>\r\n<\/ul>\r\n<\/div>\r\n<img class=\"alignright wp-image-10744\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/03\/13232732\/33029897210_190bf42834_k-300x200.jpg\" alt=\"Long row of Chinese workers wearing their work uniform\" width=\"350\" height=\"233\" \/>\r\n\r\nThe<span class=\"apple-converted-space\">\u00a0<\/span><strong><span style=\"font-family: Helvetica;\">political economy<\/span><span class=\"apple-converted-space\">\u00a0<\/span><\/strong>of a country refers to its political and economic systems, together. The political system includes the set of formal and informal legal institutions and structures that comprise the government or state and its sovereignty over a territory or people.\r\n\r\nAs you know, political systems can differ in the way they view the role of government and the rights of citizens (compare, for example, the market economy of Canada with the command economy of North Korea). The economic system refers to the way in which a country organizes its economy: most are command, market, or mixed economies.\r\n\r\nThe nature of a country\u2019s political economy plays a big role in whether it is attractive to foreign business and entrepreneurship. Historically, there has been a direct relationship between the degree of economic freedom in a country and its economic growth\u2014the more freedom, the more growth, and vice versa. For decades, the Chinese government maintained an ironclad grip on all business enterprise, which effectively prevented foreign businesses from fully engaging with the Chinese market. That climate has tempered, however, and now the political economy of China is much more open to foreign investment, though it is still not as open as Europe or the U.S.\r\n\r\nBusinesses seeking global opportunities must consider other economic factors beyond a country\u2019s political economy. For one thing, they will want to target the markets and countries where people have the highest incomes and the most disposable income. The world map below shows just how much variation there is in the gross national income (GNI) per person among the nations of the world.\r\n\r\n<img class=\"aligncenter wp-image-12770 size-large\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/3807\/2016\/08\/13221226\/Countries_by_GNI_nominal_Atlas_method_per_capita_in_2016-1024x554.png\" alt=\"World map showing gross national income per capita among the nations of the world for the year 2016. The values range from less than 1,000 U.S. dollars GNI per capita to over 50,000 U.S. dollars GNI per capita. Countries with over 50,000 GNI per capita include The United States of America, Australia, Iceland, Norway and Sweden. Countries with 30,000 to 50,000 GNI per capita include Canada, Finland, France and Germany. Countries with under 5,000 GNI per capita include Angola, Uganda, India, Vietnam, Bolivia, and Ukraine.\" width=\"1024\" height=\"554\" \/>\r\n\r\nIf you want more information about GNI per country, you can download the\u00a0<a href=\"https:\/\/oerfiles.s3-us-west-2.amazonaws.com\/WMBusiness\/GNIAtlasMethodPerCapita2016.xlsx\" target=\"_blank\" rel=\"noopener\">World bank dataset of 2016 GNI (atlas method) by country<\/a>\u00a0or you can\u00a0<a href=\"https:\/\/databank.worldbank.org\/home.aspx\" target=\"_blank\" rel=\"noopener\">visit the World Bank website to browse datasets including GNI<\/a>.\r\n\r\nHowever, often those markets are not where\u00a0<em>new<\/em>\u00a0opportunities exist, so businesses have to pursue what economists refer to as \u201cemerging markets.\u201d The four largest emerging and developing economies are the BRIC countries (Brazil, Russia, India, and China). One means of measuring a country\u2019s level of economic development is by its purchasing power parity (PPP), which enables economists to compare countries with very different standards of living. The PPP for a given country is determined by adjusting up or down\u00a0as compared to the cost of living in the United States.\r\n\r\n[caption id=\"attachment_6549\" align=\"alignright\" width=\"300\"]<img class=\"wp-image-6549\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2016\/08\/23145815\/Bangalore.jpg\" alt=\"Roof top mobile phone tower in Bangalore, India\" width=\"300\" height=\"450\" \/> India has the world's second-largest mobile-phone user base: 996.66 million users as of September 2015. Shown here is a rooftop mobile phone tower in Bangalore.[\/caption]\r\n\r\nHowever, there is often more to a country's economic story than its PPP or GNI. Consider India: as an emerging market, India is attracting significant attention from businesses all around the globe. It has the second-fastest-growing automotive industry in the world. According to a 2011 report, India\u2019s GDP at purchasing power parity could overtake that of the United States by 2045.\u00a0During the next four decades, Indian GDP is expected to grow at an annualized average of 8 percent, making it potentially the world's fastest-growing major economy until 2050.\u00a0The report highlights key growth factors: a young and rapidly growing working-age population; growth in the manufacturing sector because of rising education and engineering skill levels; and sustained growth of the consumer market driven by a rapidly growing middle class.\r\n\r\nAt the same time, surveys continue to emphasize the chasm between two contrasting pictures of India\u2014on one side,<span class=\"apple-converted-space\">\u00a0<\/span>an urban India, which\u00a0boasts large-scale space and nuclear programs, billionaires, and information technology expertise; and a rural India on the other, in which 92 million households (51 percent) earn their living by manual labor. In 2014, a report by the Indian Government Planning Commission estimated that 363 million Indians, or 29.5 percent of the total population, were living below the poverty line.\r\n\r\nAnother aspect of a country's political economy is the stability of its current government. Business activity tends to grow and thrive when a country\u00a0is politically stable. When a country\u00a0is politically unstable, multinational firms can still conduct business profitably, but there are higher risks and often\u00a0higher costs associated with business operations.\u00a0Political instability makes a country less attractive from a business investment perspective, so foreign and domestic companies doing business there must often pay higher insurance rates, higher interest rates\u00a0on business loans, and higher costs to protect the\u00a0security of their employees and operations. Alternatively, in countries with stable political environments, the market and consumer behavior are more predictable, and organizations can rely on governments to enforce\u00a0the rule of law.\r\n\r\nAs you can see, the desirability of a country as a potential market or investment site depends on a host of complex, interrelated factors.\r\n<h2>Exchange Rates<\/h2>\r\nTo further complicate matters, conducting business globally involves the uncertainty of exchange rates. An <strong>exchange rate<\/strong> is the value of one country\u2019s currency relative to the value of another country\u2019s currency. For example, the exchange rate for the U.S. dollar relative to the Japanese yen has ranged from 1:105 to 1:115 in a previous year. At an exchange rate of $1 to \u00a0\u00a5111.81, the United States dollar (US$) could be exchanged for 111.81 Japanese yen (JPY, \u00a5) and, vice versa, \u00a5111.81 could be exchanged for US$1.\r\n\r\nCurrency exchange rates have been based on a variety of mechanisms over time, including fixed, floating, and managed floating systems. For example, the United States used to fix the value of the dollar relative to gold, a practice known as the \u201cgold standard.\u201d The International Monetary Fund classifies exchange rate mechanisms based on the role of a country\u2019s Central Bank and\/or government in managing exchange rates. The two extremes are a market-based or floating system, in which exchange rates are \u201clargely set by market forces\u201d and a fixed system, in which the official rate is set by a country's authorities. A third category includes all other mechanisms that are used to maintain a stable currency value relative to another currency or a composite of currencies.[footnote]\"Conversion Rates - Exchange Rates - OECD Data.\" OECD. Accessed June 24, 2019. <a href=\"https:\/\/data.oecd.org\/conversion\/exchange-rates.htm\" target=\"_blank\" rel=\"noopener\">https:\/\/data.oecd.org\/conversion\/exchange-rates.htm<\/a>.[\/footnote]\r\n\r\nMost industrialized nations now use a floating currency exchange system managed by a Central Bank. In the United States, the Federal Reserve System is the Central Bank. The Fed, as it\u2019s known, is charged with regulating money policy, including the money supply and interest rates, and, by extension, the value of the country\u2019s currency.\u00a0Thus, the relative value of a currency is largely determined by supply and demand, including Central Bank or government action, investment, and trade. For example, higher interest rates will increase demand and, therefore, the value of a given country\u2019s currency. Similarly, if investment opportunities are perceived to be relatively better in a country, the desire to invest will increase demand for the currency and the currency\u2019s relative value.\r\n\r\nThe video below will provide a complete picture of exchange rates and how they impact trade:\r\n\r\nhttps:\/\/youtu.be\/geoe-6NBy10\r\n\r\nYou can <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Intro+to+Business\/Transcriptions\/ImportsExportsandExchangeRatesCrashCourse_transcript.txt\" target=\"_blank\" rel=\"noopener\">view the transcript for \"Imports, Exports, and Exchange Rates: Crash Course Economics #15\" (opens in new window).<\/a>\r\n\r\nAs the video noted: \u201cTrade between countries depends on the demand for a country\u2019s goods and services, political stability and interest rates. But one of the most important factors is exchange rates.\u201d Exchange rates are a key risk factor for multi-national and global businesses, and, as The Trump Administration\u2019s \u201cAmerica First\u201d trade policy has illustrated, for national businesses with global supply chains. If the U.S. dollar appreciates or increases in value relative to other currencies, national consumers may benefit (at least initially) because imports and international travel is relatively cheaper. However, a stronger dollar makes exports more expensive, reducing export revenue, and, potentially, resulting in a loss of jobs in related businesses or industries.\r\n\r\nClearly, exchange rate fluctuations can change the underlying fundamentals of a business investment or trade agreement. An unfavorable change in the exchange rate can increase the cost of resources, including labor, raw materials, and intermediate goods, and the relative value of a finished product or completed service. Relatively stable exchange rates provide an economic environment that decreases the risk inherent in working across borders and political economic systems and gives businesses the confidence to make investment and expansion decisions, and, therefore, to contribute to economic growth and prosperity.\r\n<div class=\"textbox tryit\">\r\n<h3>PRactice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/3af087a9-3f72-4cf3-81ce-16df66c959ff\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Describe the impact of political and economic forces on global trade<\/li>\n<\/ul>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-10744\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2017\/03\/13232732\/33029897210_190bf42834_k-300x200.jpg\" alt=\"Long row of Chinese workers wearing their work uniform\" width=\"350\" height=\"233\" \/><\/p>\n<p>The<span class=\"apple-converted-space\">\u00a0<\/span><strong><span style=\"font-family: Helvetica;\">political economy<\/span><span class=\"apple-converted-space\">\u00a0<\/span><\/strong>of a country refers to its political and economic systems, together. The political system includes the set of formal and informal legal institutions and structures that comprise the government or state and its sovereignty over a territory or people.<\/p>\n<p>As you know, political systems can differ in the way they view the role of government and the rights of citizens (compare, for example, the market economy of Canada with the command economy of North Korea). The economic system refers to the way in which a country organizes its economy: most are command, market, or mixed economies.<\/p>\n<p>The nature of a country\u2019s political economy plays a big role in whether it is attractive to foreign business and entrepreneurship. Historically, there has been a direct relationship between the degree of economic freedom in a country and its economic growth\u2014the more freedom, the more growth, and vice versa. For decades, the Chinese government maintained an ironclad grip on all business enterprise, which effectively prevented foreign businesses from fully engaging with the Chinese market. That climate has tempered, however, and now the political economy of China is much more open to foreign investment, though it is still not as open as Europe or the U.S.<\/p>\n<p>Businesses seeking global opportunities must consider other economic factors beyond a country\u2019s political economy. For one thing, they will want to target the markets and countries where people have the highest incomes and the most disposable income. The world map below shows just how much variation there is in the gross national income (GNI) per person among the nations of the world.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-12770 size-large\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/3807\/2016\/08\/13221226\/Countries_by_GNI_nominal_Atlas_method_per_capita_in_2016-1024x554.png\" alt=\"World map showing gross national income per capita among the nations of the world for the year 2016. The values range from less than 1,000 U.S. dollars GNI per capita to over 50,000 U.S. dollars GNI per capita. Countries with over 50,000 GNI per capita include The United States of America, Australia, Iceland, Norway and Sweden. Countries with 30,000 to 50,000 GNI per capita include Canada, Finland, France and Germany. Countries with under 5,000 GNI per capita include Angola, Uganda, India, Vietnam, Bolivia, and Ukraine.\" width=\"1024\" height=\"554\" \/><\/p>\n<p>If you want more information about GNI per country, you can download the\u00a0<a href=\"https:\/\/oerfiles.s3-us-west-2.amazonaws.com\/WMBusiness\/GNIAtlasMethodPerCapita2016.xlsx\" target=\"_blank\" rel=\"noopener\">World bank dataset of 2016 GNI (atlas method) by country<\/a>\u00a0or you can\u00a0<a href=\"https:\/\/databank.worldbank.org\/home.aspx\" target=\"_blank\" rel=\"noopener\">visit the World Bank website to browse datasets including GNI<\/a>.<\/p>\n<p>However, often those markets are not where\u00a0<em>new<\/em>\u00a0opportunities exist, so businesses have to pursue what economists refer to as \u201cemerging markets.\u201d The four largest emerging and developing economies are the BRIC countries (Brazil, Russia, India, and China). One means of measuring a country\u2019s level of economic development is by its purchasing power parity (PPP), which enables economists to compare countries with very different standards of living. The PPP for a given country is determined by adjusting up or down\u00a0as compared to the cost of living in the United States.<\/p>\n<div id=\"attachment_6549\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-6549\" class=\"wp-image-6549\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2016\/08\/23145815\/Bangalore.jpg\" alt=\"Roof top mobile phone tower in Bangalore, India\" width=\"300\" height=\"450\" \/><\/p>\n<p id=\"caption-attachment-6549\" class=\"wp-caption-text\">India has the world&#8217;s second-largest mobile-phone user base: 996.66 million users as of September 2015. Shown here is a rooftop mobile phone tower in Bangalore.<\/p>\n<\/div>\n<p>However, there is often more to a country&#8217;s economic story than its PPP or GNI. Consider India: as an emerging market, India is attracting significant attention from businesses all around the globe. It has the second-fastest-growing automotive industry in the world. According to a 2011 report, India\u2019s GDP at purchasing power parity could overtake that of the United States by 2045.\u00a0During the next four decades, Indian GDP is expected to grow at an annualized average of 8 percent, making it potentially the world&#8217;s fastest-growing major economy until 2050.\u00a0The report highlights key growth factors: a young and rapidly growing working-age population; growth in the manufacturing sector because of rising education and engineering skill levels; and sustained growth of the consumer market driven by a rapidly growing middle class.<\/p>\n<p>At the same time, surveys continue to emphasize the chasm between two contrasting pictures of India\u2014on one side,<span class=\"apple-converted-space\">\u00a0<\/span>an urban India, which\u00a0boasts large-scale space and nuclear programs, billionaires, and information technology expertise; and a rural India on the other, in which 92 million households (51 percent) earn their living by manual labor. In 2014, a report by the Indian Government Planning Commission estimated that 363 million Indians, or 29.5 percent of the total population, were living below the poverty line.<\/p>\n<p>Another aspect of a country&#8217;s political economy is the stability of its current government. Business activity tends to grow and thrive when a country\u00a0is politically stable. When a country\u00a0is politically unstable, multinational firms can still conduct business profitably, but there are higher risks and often\u00a0higher costs associated with business operations.\u00a0Political instability makes a country less attractive from a business investment perspective, so foreign and domestic companies doing business there must often pay higher insurance rates, higher interest rates\u00a0on business loans, and higher costs to protect the\u00a0security of their employees and operations. Alternatively, in countries with stable political environments, the market and consumer behavior are more predictable, and organizations can rely on governments to enforce\u00a0the rule of law.<\/p>\n<p>As you can see, the desirability of a country as a potential market or investment site depends on a host of complex, interrelated factors.<\/p>\n<h2>Exchange Rates<\/h2>\n<p>To further complicate matters, conducting business globally involves the uncertainty of exchange rates. An <strong>exchange rate<\/strong> is the value of one country\u2019s currency relative to the value of another country\u2019s currency. For example, the exchange rate for the U.S. dollar relative to the Japanese yen has ranged from 1:105 to 1:115 in a previous year. At an exchange rate of $1 to \u00a0\u00a5111.81, the United States dollar (US$) could be exchanged for 111.81 Japanese yen (JPY, \u00a5) and, vice versa, \u00a5111.81 could be exchanged for US$1.<\/p>\n<p>Currency exchange rates have been based on a variety of mechanisms over time, including fixed, floating, and managed floating systems. For example, the United States used to fix the value of the dollar relative to gold, a practice known as the \u201cgold standard.\u201d The International Monetary Fund classifies exchange rate mechanisms based on the role of a country\u2019s Central Bank and\/or government in managing exchange rates. The two extremes are a market-based or floating system, in which exchange rates are \u201clargely set by market forces\u201d and a fixed system, in which the official rate is set by a country&#8217;s authorities. A third category includes all other mechanisms that are used to maintain a stable currency value relative to another currency or a composite of currencies.<a class=\"footnote\" title=\"&quot;Conversion Rates - Exchange Rates - OECD Data.&quot; OECD. Accessed June 24, 2019. https:\/\/data.oecd.org\/conversion\/exchange-rates.htm.\" id=\"return-footnote-6531-1\" href=\"#footnote-6531-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/p>\n<p>Most industrialized nations now use a floating currency exchange system managed by a Central Bank. In the United States, the Federal Reserve System is the Central Bank. The Fed, as it\u2019s known, is charged with regulating money policy, including the money supply and interest rates, and, by extension, the value of the country\u2019s currency.\u00a0Thus, the relative value of a currency is largely determined by supply and demand, including Central Bank or government action, investment, and trade. For example, higher interest rates will increase demand and, therefore, the value of a given country\u2019s currency. Similarly, if investment opportunities are perceived to be relatively better in a country, the desire to invest will increase demand for the currency and the currency\u2019s relative value.<\/p>\n<p>The video below will provide a complete picture of exchange rates and how they impact trade:<\/p>\n<p><iframe loading=\"lazy\" id=\"oembed-1\" title=\"Imports, Exports, and Exchange Rates: Crash Course Economics #15\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/geoe-6NBy10?feature=oembed&#38;rel=0\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>You can <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Intro+to+Business\/Transcriptions\/ImportsExportsandExchangeRatesCrashCourse_transcript.txt\" target=\"_blank\" rel=\"noopener\">view the transcript for &#8220;Imports, Exports, and Exchange Rates: Crash Course Economics #15&#8221; (opens in new window).<\/a><\/p>\n<p>As the video noted: \u201cTrade between countries depends on the demand for a country\u2019s goods and services, political stability and interest rates. But one of the most important factors is exchange rates.\u201d Exchange rates are a key risk factor for multi-national and global businesses, and, as The Trump Administration\u2019s \u201cAmerica First\u201d trade policy has illustrated, for national businesses with global supply chains. If the U.S. dollar appreciates or increases in value relative to other currencies, national consumers may benefit (at least initially) because imports and international travel is relatively cheaper. However, a stronger dollar makes exports more expensive, reducing export revenue, and, potentially, resulting in a loss of jobs in related businesses or industries.<\/p>\n<p>Clearly, exchange rate fluctuations can change the underlying fundamentals of a business investment or trade agreement. An unfavorable change in the exchange rate can increase the cost of resources, including labor, raw materials, and intermediate goods, and the relative value of a finished product or completed service. Relatively stable exchange rates provide an economic environment that decreases the risk inherent in working across borders and political economic systems and gives businesses the confidence to make investment and expansion decisions, and, therefore, to contribute to economic growth and prosperity.<\/p>\n<div class=\"textbox tryit\">\n<h3>PRactice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_3af087a9-3f72-4cf3-81ce-16df66c959ff\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/3af087a9-3f72-4cf3-81ce-16df66c959ff?iframe_resize_id=assessment_practice_id_3af087a9-3f72-4cf3-81ce-16df66c959ff\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-6531\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Political and Economic Differences. <strong>Authored by<\/strong>: Linda Williams and Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Exchange Rates. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Practice Questions. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Countries by GNI per capita in 2016. <strong>Authored by<\/strong>: JackintheBox. <strong>Provided by<\/strong>: Wikimedia Commons. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/commons.wikimedia.org\/wiki\/File:Countries_by_GNI_(nominal,_Atlas_method)_per_capita_in_2016.png\">https:\/\/commons.wikimedia.org\/wiki\/File:Countries_by_GNI_(nominal,_Atlas_method)_per_capita_in_2016.png<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Chinese Workers. <strong>Authored by<\/strong>: Office of the President, Republic of China. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/presidentialoffice\/33029897210\/\">https:\/\/www.flickr.com\/photos\/presidentialoffice\/33029897210\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Bangalore cellphone tower November 2011 -30. <strong>Authored by<\/strong>: Victorgrigas. <strong>Provided by<\/strong>: Wikimedia Commons. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/commons.wikimedia.org\/wiki\/File:Bangalore_cellphone_tower_November_2011_-30.jpg\">https:\/\/commons.wikimedia.org\/wiki\/File:Bangalore_cellphone_tower_November_2011_-30.jpg<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>World Bank GNI Dataset. <strong>Provided by<\/strong>: World Bank. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/datacatalog.worldbank.org\/public-licenses\">https:\/\/datacatalog.worldbank.org\/public-licenses<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">All rights reserved content<\/div><ul class=\"citation-list\"><li>Imports, Exports, and Exchange Rates: Crash Course Economics #15. <strong>Provided by<\/strong>: Crash Course. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/youtu.be\/geoe-6NBy10\">https:\/\/youtu.be\/geoe-6NBy10<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Standard YouTube License<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-6531-1\">\"Conversion Rates - Exchange Rates - OECD Data.\" OECD. Accessed June 24, 2019. <a href=\"https:\/\/data.oecd.org\/conversion\/exchange-rates.htm\" target=\"_blank\" rel=\"noopener\">https:\/\/data.oecd.org\/conversion\/exchange-rates.htm<\/a>. <a href=\"#return-footnote-6531-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":114,"menu_order":13,"template":"","meta":{"_candela_citation":"[{\"type\":\"copyrighted_video\",\"description\":\"Imports, Exports, and Exchange Rates: Crash Course Economics #15\",\"author\":\"\",\"organization\":\"Crash Course\",\"url\":\"https:\/\/youtu.be\/geoe-6NBy10\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube License\"},{\"type\":\"original\",\"description\":\"Political and Economic Differences\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Countries by GNI per capita in 2016\",\"author\":\"JackintheBox\",\"organization\":\"Wikimedia Commons\",\"url\":\"https:\/\/commons.wikimedia.org\/wiki\/File:Countries_by_GNI_(nominal,_Atlas_method)_per_capita_in_2016.png\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Chinese Workers\",\"author\":\"Office of the President, Republic of China\",\"organization\":\"\",\"url\":\"https:\/\/www.flickr.com\/photos\/presidentialoffice\/33029897210\/\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Exchange Rates\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Practice Questions\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Bangalore cellphone tower November 2011 -30\",\"author\":\"Victorgrigas\",\"organization\":\"Wikimedia Commons\",\"url\":\"https:\/\/commons.wikimedia.org\/wiki\/File:Bangalore_cellphone_tower_November_2011_-30.jpg\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"World Bank GNI Dataset\",\"author\":\"\",\"organization\":\"World Bank\",\"url\":\"https:\/\/datacatalog.worldbank.org\/public-licenses\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"23f204cb-9b06-4e66-911b-ded0d33c460a, c8f22b8c-a8cd-47ac-b4ec-3cd5c21eb5e3","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-6531","chapter","type-chapter","status-publish","hentry"],"part":82,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/6531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/users\/114"}],"version-history":[{"count":45,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/6531\/revisions"}],"predecessor-version":[{"id":15286,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/6531\/revisions\/15286"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/82"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/6531\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/media?parent=6531"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=6531"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=6531"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/license?post=6531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}