Read the case study below and answer the questions that follow. Demographic changes and international trade Demography i
Posted: Mon May 30, 2022 4:19 pm
Read the case study below and answer the questions that follow.
Demographic changes and international trade Demography is the study
of the structure of human populations – their size, age
composition, gender mix, growth and so on. Changes in the
population, age and gender mix of the world’s major economies
suggests that major changes are predicted for the world economy.
Owing to better health care, education and hygiene, major world
economies now face the challenge of an ageing population (increase
in the number of people aged 60 years and above). The population of
major economic powers like USA, Germany, South Korea and Japan are
predicted to get smaller and older over the next few years.
According to the organization for Economic Cooperation and
Development (OECD), the old-age dependency ration will rise
dramatically over the next few years. The old-age dependency ratio
is the ratio of the number of people aged 65 and above to the
number of people between the ages of 20 and 64. The implications of
these demographic changes for countries and companies are serious.
For many companies, when retirees leave, a lifetime of experience
and knowledge can be lost when they leave. Japan is one of the
first major economy to face an ageing and shrinking population and
Japanese companies are at the forefront of responding to these
changes. For example, Toyota has adapted its workstations to make
it more comfortable for the older workforce. The reality is that
countries operating in countries with shrinking population are
likely to face higher wage and salary costs as the supply of labour
shrinks. In countries with ageing population, companies are likely
to face higher taxes as governments struggle to find revenues to
support and care for older citizens. Moreover, an increasing
portion of the population will be employed to care for the
retirees, shrinking the availability of labour for other sectors of
the economy. Consumption patterns will also change as older people
need different things compared to younger people. For example,
older people will need more healthcare products, medical services,
different insurance packages, more leisure activities while younger
people will be buying more consumer products like electrical
equipment, educational services, household goods. Japanese
companies appear to be at the forefront of adapting new
technologies to meet these demographic challenges. A Nagoya based
supplier of cable television and local area network technology has
developed a system to allow the elderly to self-administer basic
medical measurements which can be transmitted to their doctors via
the internet. Other manufacturers are developing service robots to
help the elderly in daily living. (Source: adapted from RW Griffin
and MW Pustay, International Business (2015), 8thth edition,
Pearson, pg 44))
Question 1 Analyse the effect of the demographic changes on the
competitiveness of countries engaged in international
business.
(50 mark)
PLEASE ELABORATE IS 50 MARK QUESTION
THANK YOU <3
Demographic changes and international trade Demography is the study
of the structure of human populations – their size, age
composition, gender mix, growth and so on. Changes in the
population, age and gender mix of the world’s major economies
suggests that major changes are predicted for the world economy.
Owing to better health care, education and hygiene, major world
economies now face the challenge of an ageing population (increase
in the number of people aged 60 years and above). The population of
major economic powers like USA, Germany, South Korea and Japan are
predicted to get smaller and older over the next few years.
According to the organization for Economic Cooperation and
Development (OECD), the old-age dependency ration will rise
dramatically over the next few years. The old-age dependency ratio
is the ratio of the number of people aged 65 and above to the
number of people between the ages of 20 and 64. The implications of
these demographic changes for countries and companies are serious.
For many companies, when retirees leave, a lifetime of experience
and knowledge can be lost when they leave. Japan is one of the
first major economy to face an ageing and shrinking population and
Japanese companies are at the forefront of responding to these
changes. For example, Toyota has adapted its workstations to make
it more comfortable for the older workforce. The reality is that
countries operating in countries with shrinking population are
likely to face higher wage and salary costs as the supply of labour
shrinks. In countries with ageing population, companies are likely
to face higher taxes as governments struggle to find revenues to
support and care for older citizens. Moreover, an increasing
portion of the population will be employed to care for the
retirees, shrinking the availability of labour for other sectors of
the economy. Consumption patterns will also change as older people
need different things compared to younger people. For example,
older people will need more healthcare products, medical services,
different insurance packages, more leisure activities while younger
people will be buying more consumer products like electrical
equipment, educational services, household goods. Japanese
companies appear to be at the forefront of adapting new
technologies to meet these demographic challenges. A Nagoya based
supplier of cable television and local area network technology has
developed a system to allow the elderly to self-administer basic
medical measurements which can be transmitted to their doctors via
the internet. Other manufacturers are developing service robots to
help the elderly in daily living. (Source: adapted from RW Griffin
and MW Pustay, International Business (2015), 8thth edition,
Pearson, pg 44))
Question 1 Analyse the effect of the demographic changes on the
competitiveness of countries engaged in international
business.
(50 mark)
PLEASE ELABORATE IS 50 MARK QUESTION
THANK YOU <3