Examine the factors which explain the differences between economic Essa

Examine the factors which explain the differences between sparing crop rates in countries.Economic gain is the long term increase in productive capacity asshown by an outward shift on a PPF curve. The PPF shows the maximumpotential outfit of the economy. Productive capacity is an economiesability to make up goods and services, so if an economy grows, it canproduce more goods and services for the population of the economy touse.Differences in Economic growth in countries result due to manyfactors, such as devour and its resources. The amount of land a countrypossesses, and all the natural resources it finds on the land canaffect the amount of output. For example, Saudi Arabia hasexperienced very high growth rates due to the richly endowed landswhich contain much oil. In this developing economy, the oilexploitation was vital for its growth. Some 3rd world countries areso poor, and lack such growth as Saudi Arabia, because they rescueinsufficient land, or insufficient resources to produce goods and birtha higher output, and therefore have a higher economic growth.Another supply expression factor determining the growth rate of countries islabour, i.e. the number of workers in an economy. More workers meanmore 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 younger muckle into thecountry, so that there are... ..., and experiences high growth rates. China, one of thefastest growing countries, also concentrates strongly on educatingpeople at a young age. Another factor influencing growth is the significance of outside(a)trade. In countries that dont participate in international t rade,such as , there is very slow or no economic growth. This isbecause it is very hard for one economy to produce all goods whichpeople require. It is better to specialise in a few goods, use them,sell the surplus, and use the money 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.