The Differences Between Emerging and Developing Markets...

In this article I’m going to try to explain the differences between emerging and developing markets according to OECD and IMF definitions,the I’m going to talk about relationships between unemployment,GDP and industrial production.Then I’m going to look at the effects on emerging and developing markets and try to find an answer the effects is significant or not. There are significant 2 market types in the world that over the years debates about differences,advantages,disadvantages are held on.Before we look at the differences between emerging markets and developing markets,let’s look up what is emerging market what is developing market? Emerging market concept was originally found by the World Bank economist Antoine van Agtmael by†¦show more content†¦Over the years unemployment is one of the biggest problem in the world that effects a lot of different things like GDP,and industrial.Now we are going to explain relationship between unemployment and GDP. Unemployment is a macroeconomic phenomenon that directly affects people. When a member of a family is unemployed, the family feels it in lost income and a reduced standard of living. There is little in the realm of macroeconomics more feared by the average consumer than unemployment. Understanding what unemployment really is and how it works is important both for the economis t and for the consumer, as it is often discussed.According to the Okun’s Law, change in real GDP = 3% - 2 x (change in unemployment rate). This equation basically says that real GDP grows at about 3% per year when unemployment is normal. For every point above normal that unemployment moves, GDP growth falls by 2%. Similarly, for every point below normal that unemployment moves, GDP growth rises by 2%. This equation, while not exact, provides a good estimate of the effects of unemployment upon output. There are several reasons why GDP may increase or decrease more rapidly than unemployment decreases or increases. As unemployment increases, ââ€" ª a reduction in the multiplier effect created by the circulation of money from employees ââ€" ª unemployed persons may drop out of the labor force (stop seeking work), after which they are no longer counted inShow MoreRelatedIndia Is Developing Country Essay5119 Words   |  21 PagesWhat is the difference between a developed and developing country? Best Answer - Chosen by Asker A developing country is a nice way of saying a third world country; or a country that is still trying to create an advanced civilization. A developed country has an advanced civilization. Signs of an advanced country are the Gross National Product, the amount of poor, the infra structure of the country and so on. 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