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Defining Comparative Advantage

A country has a comparative advantage over another when it can produce a good or service at a lower opportunity cost.

Learning Objectives

Analyze the relationship between opportunity cost and comparative advantage

Key Takeaways

Key Points

Even if one country has an absolute advantage in the production of all goods, it can still benefit from trade.

Countries should import goods if the opportunity cost of importing is lower than the cost of producing them locally.

Specialization according to comparative advantage results in a more efficient allocation of world resources. A larger quantity of outputs becomes available to the trading nations.

Competitive advantage is distinct from comparative advantage because it has to do with distinguishing attributes which are not necessarily related to a lower opportunity cost.

Key Terms

Opportunity cost: The cost of an opportunity forgone (and the loss of the benefits that could be received from that opportunity); the most valuable forgone alternative.

comparative advantage: The ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another.

competitive advantage: Something that places a company or a person above the competition

Comparative Advantage

In economics, comparative advantage refers to the ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another. Even if one country is more efficient in the production of all goods (has an absolute advantage in all goods) than another, both countries will still gain by trading with each other. More specifically, countries should import goods if the opportunity cost of importing is lower than the cost of producing them locally.

Specialization according to comparative advantage results in a more efficient allocation of world resources. Larger outputs of both products become available to both nations. The outcome of international specialization and trade is equivalent to a nation having more and/or better resources or discovering improved production techniques.

Determining Comparative Advantage

Imagine that there are two nations, Chiplandia and Entertainia, that currently produce their own computer chips and CD players. Chiplandia uses less time to produce both products, while Entertainia uses more time to produce both products. Chiplandia enjoys and absolute advantage, an ability to produce an item with fewer resources. However, the accompanying table shows that Chiplandia has a comparative advantage in computer chip production, while Entertainia has a comparative advantage in the production of CD players. The nations can benefit from specialization and trade, which would make the allocation of resources more efficient across both countries.

For another example, if the opportunity cost of producing one more unit of coffee in Brazil is 2/3 units of wheat, while the opportunity cost of producing one more unit of coffee in the United States is 1/3 wheat, then the U.S. should produce coffee, while Brazil should produce wheat (assuming Brazil has the lower opportunity cost of producing wheat).

Comparative vs Competitive Advantage

It is important to distinguish between comparative advantage and competitive advantage. Though they sound similar, they are different concepts. Unlike comparative advantage, competitive advantage refers to a distinguishing attribute of a company or a product. It may or may not have anything to do with opportunity cost or efficiency. For example, having good brand recognition or relationships with suppliers is a competitive advantage, but not a comparative advantage. In the context of international trade, we more often discuss comparative advantage.

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A country has a comparative advantage over another when it can produce a good or service at a lower opportunity cost. Analyze the relationship between opportunity cost and comparative advantage Key Points Even if one country has an absolute advantage in the production of all goods, it can still benefit from trade.

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How Chinas garment sector is coping with rising costs

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How Chinas garment sector is coping with rising costs

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How is China’s garment industry dealing with rising labor costs?-20150131

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China is no longer one of the cheapest places to produce garments. The minimum monthly wage in the country far exceeds that of countries like Bangladesh, India and Cambodia, places that are attracting more and more factories. How is Shantou's underwear industry dealing with rising labor costs?

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Reshoring: Bringing jobs back to UK from abroad

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Companies relocating from the UK for cheap labour and materials at the expense of British jobs were said to be off-shoring. But some firms are heading back home and bringing employment with them, a process known as 'reshoring'. Alex Forsyth reports in a Daily Politics film.

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China: The largest migration in history | The Economist

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ILO:

a) Growth rate of the UK economy compared to emerging economies

b) Growing economic power of countries within Asia, Africa and other parts of the world

c) Implications of economic growth for indivuals and businesses:
-trade opportunities for business
​- employment patterns  | ​d) Indicators of growth:
o Gross Domestic Product (GDP) per capita
o literacy
o health
o Human Development Index (HDI)

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What model attached to risk do we need to be aware of?

Research companies that have failed in markets like China and India. Why?

Why are employment patterns important?
How is the UK trend related to our own growth?
Where has our manufacturing moved to?

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Employment structures can also change over time within the same country.

In the UK in 1,800 most people would have been employed in the primary sector. Many people worked on the land, and made their living from agriculture and related products.

During the industrial revolution, more people were needed to build ships, work in steel making and with textiles. All of these jobs are found in the secondary sector. By 1900 over half of the workers in the UK were employed in secondary industries.

Since 1900 mechanisation meant that less people were required to work on the land and in industry, as machines could carry out most of the work that people previously did.

Foreign industries also became more competitive and imports such as coal became more affordable. As the availability of coal declined in the UK, and also became more expensive to extract more coal was imported. This led to a further decline in primary sector employment in the UK.

The demand for work increased in schools, hospitals and retail industries. Many people left the rural areas in the search for jobs in the towns and cities. By the year 2000 over half of the UK workforce were employed in tertiary industries and only a small number were employed in primary industries. This has changed the work that people do, and also where they work. Quaternary industries are a relatively new concept, and it is only recently that they have been added to these figures. However it is becoming an important and growing sector in the UK as many firms want to carry out research and development for their products.

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Changing employment structures over time

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Employment structures can also change over time within the same country. In the UK in 1,800 most people would have been employed in the primary sector. Many people worked on the land, and made their living from agriculture and related products. During the industrial revolution, more people were needed to build ships, work in steel making and with textiles.

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Oreos in China (Example of Product Adaptation Strategy in Global Marketing)

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Emerging markets carry a much higher risk because their can be quite volatile. Anything from inflationary pressures to rising interest rates to signs of a global economic cool-down could send them tumbling. Emerging markets carries other unique risks, such as political upheaval, regulatory changes, and fluctuations.

While emerging markets (and thus emerging markets ) carry higher risk than the average investment , the potential for rapid economic growth in emerging countries means a higher return potential. Mature economies like England and the Unites States are often expected to grow around +3% annually, while emerging economies with ample room to grow have the potential to expand much faster. Going forward, this growth should translate into superior corporate profitability and impressive for investors.

Emerging markets are looking to sustain their growth. As a result, they tend to more gains opportunities than opportunities. The majority of companies in emerging markets are choosing to invest extra back into the company rather than making substantial payouts to their shareholders.

If you're interested in investing in emerging markets, click here to read about 10 Must-Know Emerging Markets .

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Emerging markets carry a much higher risk because their can be quite volatile. Anything from inflationary pressures to rising interest rates to signs of a global economic cool-down could send them tumbling. Emerging markets carries other unique risks, such as political upheaval, regulatory changes, and fluctuations.

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Difference between developing an emerging - Read

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Difference between developing an emerging - Read

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This report is powered by InstantAtlas™ Data Visualization & Presentation Software

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Countries and literacy rates

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From Wikipedia, the free encyclopedia

World map of countries shaded according to the literacy rate for all people aged 15 and over

This is a list of countries by literacy rate.

The global literacy rate for all people aged 15 and above is 86.3%. The global literacy rate for all males is 90.0%, and the rate for all females is 82.7%. The rate varies throughout the world, with developed nations having a rate of 99.2% (2013), South and West Asia having 70.2% (2015), and sub-Saharan Africa at 64.0% (2015). Over 75% of the world's 781 million illiterate adults are found in South Asia, West Asia, and sub-Saharan Africa, and women represent almost two-thirds of all illiterate adults globally.

Data published by UNESCO using the following definitions:

Youth: Percentage of people aged 15 to 24 years who can both read and write with understanding a short simple statement on their everyday life. Generally, "literacy" also encompasses "numeracy", the ability to make simple arithmetic calculations.

Adult: Percentage of the population aged 25 years and over who can both read and write, with understanding a short simple statement on his/her everyday life. Generally, "literacy" also encompasses "numeracy", the ability to make simple arithmetic calculations.

Elderly: Percentage of the population aged 65 years and over who can both read and write, with understanding a short simple statement on their everyday life. Generally, "literacy" also encompasses "numeracy", the ability to make simple arithmetic calculations.

Gender Parity Index (GPI): The gender parity index (GPI) of the youth literacy rate is the ratio of the female to male literacy rates of the population aged 15 to 24 years. A GPI value between 0.97 and 1.03 is usually interpreted to indicate gender parity.

indicates "Literacy in COUNTRY or TERRITORY" or "Education in COUNTRY or TERRITORY" links.

indicates "Literacy in COUNTRY or TERRITORY" or "Education in COUNTRY or TERRITORY" links.

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List of countries by literacy rate - Wikipedia

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From Wikipedia, the free encyclopedia This is a list of countries by literacy rate. The global literacy rate for all people aged 15 and above is 86.3%. The global literacy rate for all males is 90.0%, and the rate for all females is 82.7%.

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What is GDP

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GDP, or Gross Domestic Product, is arguably the most important of all economic statistics as it attempts to capture the state of the economy in one number.

Quite simply, if the GDP measure is up on the previous three months, the economy is growing. If it is negative it is contracting.

And two consecutive three-month periods of contraction mean an economy is in recession.

What is GDP?

GDP can be measured in three ways:

Output measure: This is the value of the goods and services produced by all sectors of the economy; agriculture, manufacturing, energy, construction, the service sector and government

Expenditure measure: This is the value of the goods and services purchased by households and by government, investment in machinery and buildings. It also includes the value of exports minus imports

Income measure: The value of the income generated mostly in terms of profits and wages.

In theory all three approaches should produce the same number.

In the UK the Office for National Statistics (ONS) publishes one single measure of GDP which, apart from the first estimate, is calculated using all three ways of measuring.

Usually the main interest in the UK figures is in the quarterly change in GDP in real terms, that is after taking into account changes in prices (inflation).

How is GDP calculated?

Calculating a GDP estimate for all three measures is a huge undertaking every three months.

The output measure alone - which is considered the most accurate in the short term - involves surveying tens of thousands of UK firms.

The main sources used for this are ONS surveys of manufacturing and service industries.

Information on sales is collected from 6,000 companies in manufacturing, 25,000 service sector firms, 5,000 retailers and 10,000 companies in the construction sector.

Data is also collected from government departments covering activities such as agriculture, energy, health and education.

New GDP figures are released every three months, but they get revised in the interim. Why?

The UK produces the earliest estimate of GDP of the major economies, around 25 days after the quarter in question.

This provides policymakers with an early, or "flash", estimate of the real growth in economic activity. It is quick, but only based on the output measure.

At that stage only about 40% of the data is available, so this figure is revised as more information comes in.

They are two subsequent revisions at monthly intervals. But this isn't the end.

Revisions can be made as much as 18 months to two years after the first "flash" estimate. The ONS publishes more information on how this is done on its website.

What is GDP used for?

GDP is the principal means of determining the health of the UK economy and is used by the Bank of England and its Monetary Policy Committee (MPC) as one of the key indicators in setting interest rates.

So, for example, if prices are rising too fast, the Bank would be expected to increase interest rates to try to control them. But it may hold off if GDP growth is sluggish, as higher rates could damage the recovery. That is the situation at the moment.

The Treasury also uses GDP when planning economic policy. When an economy is contracting, tax receipts tend to fall, and the government adjusts its tax and spending plans accordingly.
The information in this article was provided by the Office for National Statistics.
UK GDP is used internationally by the various financial bodies such as OECD, IMF, and the World Bank to compare the performance of different economies.

The European Union also uses GDP estimates as a basis for determining different countries' contributions to the EU budget.

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GDP, or Gross Domestic Product, is arguably the most important of all economic statistics as it attempts to capture the state of the economy in one number. Quite simply, if the GDP measure is up on the previous three months, the economy is growing. If it is negative it is contracting.

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China backs Brics nations despite global uncertainty

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China backs Brics nations despite global uncertainty

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China's president has said the long-term prospects of the Brics countries - Brazil, Russia, India, China and South Africa - are still positive despite a precarious global economy.

President Xi Jinping said the Brics countries were among those currently enduring slower economic growth.

But he stressed that the potential and strength of the group was "unchanged".

It comes as leaders of the Brics countries agreed in India to forge closer business and trade ties.

The grouping contains about half of the world's population and nearly 25% of world economic output.

Speaking at the Brics summit in the Indian resort state of Goa, Mr Xi referred to the recent slowdown in economic growth amongst the group.

But he added the position of the Brics "is still positive long-term" due to their resources and workforces.

Earlier this month, the International Monetary Fund cut its forecast for world economic growth in 2016, with Brazil, South Africa and Russia receiving some of the sharpest downgrades.

The Brics economies have been hit by falling global demand and lower commodity prices, while some have faced corruption scandals.

Brazil and Russia are both in recession, and Brazil on some counts is suffering its worst downturn since the 1930s.

South Africa narrowly avoided a recession last month, while China is going through its slowest economic growth in 25 years.

Still, Lord Jim O'Neill, the economist who coined the term "Brics", told the BBC he remained confident of the grouping's success.

Ahead of the talks, he said it is "bigger today [than] even in the most optimistic scenario I thought 15 years ago, and it's primarily because of China".

'Asian century'

At the summit, the Brics leaders agreed to set up a new credit rating agency and expand the role of emerging economies, and recognised the threat from terrorism.

In separate agreements, Mr Xi vowed to pursue closer ties with India and Russia as part of a wider Chinese push to foster global trade partnerships.

Indian Prime Minister Narendra Modi said India and China had a responsibility to join hands and turn the 21st Century into an Asian century.

Meanwhile, Mr Modi and Russian President Vladimir Putin signed multi-billion dollar energy and defence pacts on Saturday on the sidelines of the summit.

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China's president has said the long-term prospects of the Brics countries - Brazil, Russia, India, China and South Africa - are still positive despite a precarious global economy. President Xi Jinping said the Brics countries were among those currently enduring slower economic growth. But he stressed that the potential and strength of the group was "unchanged".

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As the world's second largest economy and a vital trading partner for many countries, China is an obvious choice for anyone looking to expand their business overseas.

One of the BRIC countries, also comprised of Brazil, Russia, and India, China represents a growing economic market, full of potential.

China is already one of the world's largest manufacturers; it is worth trillions of dollars. Manufacturing directly employs around 130 million people, and makes up almost half of the Chinese economy.

Which industries are thriving?

China is growing consistently across many different fields, including automotive, electronics, plastics, machinery and medical equipment.

Online shopping and mobile

It is no secret that getting in early can be the difference between success and blending into the market. Hundreds of millions of people in China are moving into larger cities. The population is becoming increasingly urbanised, this can lead to many benefits such as previously untapped markets, and a larger customer base.

Online retail is growing at a higher rate than that of the US, however it is not close to reaching its saturation level.

An increasing amount of purchases are being made on mobile devices, and this will only rise in the future, as younger generations become more reliant on this technology.

As the wealth of a nation increases, so does the desire to travel more. It is expected that China will need more than 5000 passenger aircrafts, worth over 800 billion dollars. This is 17% of the world total demand, a figure that would be foolish to ignore.

Automotive success

China is also the largest car market in the world, with an expected 30 million domestic cars to be sold by 2020. Although the majority of cars sold are produced in China, the largest British exporter to China is Jaguar Land Rover. The dominance of this luxury brand reflects the growing middle class in China, and their increasing desire to buy more high-end products.

Chinese business etiquette

China is a vastly different country, not only in terms of the language but also the culture. Therefore, when considering doing business in China, it is vital to respect the local culture.

As opposed to the typical handshake, bowing and nodding are more common greetings. It is possible that a handshake may be offered, however you should wait for your host to initiate.

Arrive early to a meeting and at the start of any business dealings, be ready to exchange business cards.

More importance is placed on hierarchy in China, with clear distinctions between different levels of management.

One key concept that needs to be understood in China is the concept of 'Face'. The thought of gaining or losing Face is China is one that permeates all aspects of life, especially business, but can be interpreted differently among people. Creating Face can be an important way of gaining respect in the business environment. This understanding of Face is vital to prove the respect that you have for their culture and their country.

With all of this in mind, doing business in China could be an incredibly worthwhile move for any business.

With its wide range of industries, growing market, and increasing spending power, China is a wise choice for anyone seeking expansion in business.

It is vital to correctly translate and localise any material that is required, into the correct form of Chinese required.

Doing business in China infographic

For more tips on doing business in China, view the infographic below.

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Why you should be doing business in China - Capita Translation and interpreting

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As the world's second largest economy and a vital trading partner for many countries, China is an obvious choice for anyone looking to expand their business overseas. One of the BRIC countries, also comprised of Brazil, Russia, and India, China represents a growing economic market, full of potential.

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Brazil is attracting attention from the rest of the world thanks to its solid economic growth over the past decade and very promising forecasts for the future.

What better time to have a closer look at this rising giant, and explore why you should be doing business in Brazil.

Leading the Latin American market

Both physically and economically, Brazil dominates Latin America, and is the 5th largest country in the world, both in terms of population and geographical area. Similarly colossal is Brazil's economy - already the 7 th largest in the world and the largest by far of its Latin American neighbours, it is also one of the world's most rapidly developing.

One of the four countries which make up the much fêted BRIC (Brazil, Russia, India and China), Brazil is currently outshining both India and China in terms of GDP per head.

A rapidly expanding consumer market

Domestically, Brazil possesses a huge (and growing) consumer market: over the past 10 years, more than 35 million Brazilians have been lifted out of poverty into the emerging middle class, which today represents well over half of the population.

Well-known global brands are already operating in Brazil, and it is the UK's largest trading partner in Latin America with a bilateral trade in goods which is worth £5.1 billion, having grown substantially in the last 5 years.

A key area of growth in Brazil is e-commerce, presenting endless opportunities for foreign businesses to grab a piece of the action.

The automotive industry also represents a strong business opportunity in Brazil. In 2015, the US shipped $1 billion worth of automotive parts to Brazil.

Communicate with the local market

In this field, the importance of proper translation and localisation cannot be stressed enough.

The official language of Brazil is Brazilian Portuguese, making it both the largest Portuguese-speaking country in the world, as well as the only Portuguese-speaking country in the Americas.

In an international survey, two thirds of Brazilians stated their unyielding stance of having information presented to them in their native language, and value this over paying a lower price while shopping online.

This is a fact worth noting for those hoping to expand their business into Brazil, especially considering that by the end of 2016 retail e-commerce sales are expected to reach $17.3 billion, with Brazil accounting for 62% of all online sales in Latin America.

Why not take a look at:
Why you should be doing business in Japan
Why you should be doing business in Germany

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Doing business in Brazil | Capita Translation and Interpreting

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Brazil is attracting attention from the rest of the world thanks to its solid economic growth over the past decade and very promising forecasts for the future. What better time to have a closer look at this rising giant, and explore why you should be doing business in Brazil.

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On the expenditure side, household expenditure went up 1 percent, easing from a 1.4 percent increase in Q2 2017; and gross fixed capital formation went up 2.4 percent , slower than 3.3 percent, as business investment growth eased to 1.7 percent (2.5 percent in Q2). Also, government spending grew by 0.3 percent, after a 0.6 percent gain in the previous period.

Exports jumped 8.3 percent, following a 5.5 percent gain in Q2; while imports rose at a slower 1.3 percent, after increasing by 3.8 percent the previous period. As a result, the trade deficit narrowed to £7.8 billion from £16.8 billion in Q3 2016.

On the production side, the service industries expanded 1.4 percent (1.8 percent in Q2) as output rose for: Distribution, hotels and restaurants (2 percent from 2.7 percent Q2); transport storage and communications (1.8 percent from 4.6 percent); business services and finance (1.6 percent from 1.5 percent); and government and other services (0.4 percent, the same as in Q2). Industrial production grew 2.4 percent (0.6 percent in Q2), as output rose for: manufacturing (3.3 percent from 1.4 percent); electricity, gas, steam and air conditioning supply (0.6 percent from -5 percent); and water supply, sewerage, waste management and remediation activities (2 percent from 2.8 percent). Meanwhile, mining and quarrying output contracted (-2.1 percent from 0.2 percent). Construction expansion slowed to 4.8 percent from 6.6 percent in Q2.

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United Kingdom GDP Annual Growth Rate | 1956-2018 | Data | Chart | Calendar

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The British economy grew 1.7 percent year-on-year in the third quarter of 2017, above the preliminary estimate of 1.5 percent and following an upwardly revised 1.9 percent expansion in the previous period. It was the weakest annual growth rate since the first quarter of 2013, as household consumption and fixed investment rose at a softer pace.

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The Mint countries: Next economic giants?

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In 2001 the world began talking about the Bric countries - Brazil, Russia, India and China - as potential powerhouses of the world economy. The term was coined by economist Jim O'Neill, who has now identified the "Mint" countries - Mexico, Indonesia, Nigeria and Turkey - as emerging economic giants. Here he explains why.

So what is it about the so-called Mint countries that makes them so special? Why these four countries?

A friend who has followed the Bric story noted sardonically that they are probably "fresher" than the Brics. What they really share beyond having a lot of people, is that at least for the next 20 years, they have really good "inner" demographics - they are all going to see a rise in the number of people eligible to work relative to those not working.

This is the envy of many developed countries but also two of the Bric countries, China and Russia. So, if Mexico, Indonesia, Nigeria and Turkey get their act together, some of them could match Chinese-style double-digit rates between 2003 and 2008.

Something else three of them share, which Mexican Foreign Minister Jose Antonio Meade Kuribrena pointed out to me, is that they all have geographical positions that should be an advantage as patterns of world trade change.

Find out more

Listen to the first episode of MINT: The Next Economic Giants on BBC Radio 4 on Monday 6 January from 09:00 GMT
MINT: The next economic giants
For example, Mexico is next door to the US, but also Latin America. Indonesia is in the heart of South-east Asia but also has deep connections with China.

And as we all know, Turkey is in both the West and East. Nigeria is not really similar in this regard for now, partly because of Africa's lack of development, but it could be in the future if African countries stop fighting and trade with each other.

This might in fact be the basis for the Mint countries developing their own economic-political club just as the Bric countries did - one of the biggest surprises of the whole Bric thing for me. I can smell the possibility of a Mint club already.

What I also realised after talking to Meade Kuribrena, is that the creation of the Mint acronym could spur pressure for Nigeria to become a member of the G20, as the other Mints already are.

This was something the charismatic Nigerian finance minister, Ngozi Okonjo-Iweala was keen to talk about: "We know our time will come," she said. "We think they are missing something by not having us."

Meade Kuribrena went so far as to suggest that, as a group of four countries, the Mints have more in common than the Brics. I am not sure about that, but it is an interesting idea.

Economically three of them - Mexico, Indonesia and Nigeria - are commodity producers and only Turkey isn't. This contrasts with the Bric countries where two - Brazil and Russia - are commodity producers and the other two - China and India - aren't.

In terms of wealth, Mexico and Turkey are at about the same level, earning annually about $10,000 (£6,100) per head. This compares with $3,500 (£2,100) per head in Indonesia and $1,500 (£900) per head in Nigeria, which is on a par with India. They are a bit behind Russia - $14,000 (£8,500) per head - and Brazil on $11,300 (£6,800), but still a bit ahead of China - $6,000 (£3,600).

A big question that guided my thinking on visits to these countries for the BBC was - "How do these countries actually feel on the ground, compared to my own expectations and the general consensus of opinion?"

When expectations are low - as one might generally say about Nigeria for example (although not in recent years among specialist investors in Africa) - it is easier to be positively surprised.

But the opposite is also true - and this could be a problem for Mexico, which financial investors are really quite excited about.

I returned from my travels thinking it won't be so difficult for Nigeria and Turkey to positively surprise people, as many put far too much weight on the negative issues that are well-known - crime and corruption in Nigeria, for example, or heavy-handed government in Turkey.

Indonesia, I am less sure about. The country's challenges are as big as I thought and I didn't hear too many things that made me go "Wow" in terms of trying to deal with them. The country needs more of a sense of commercial purpose beyond commodities, and has to improve its infrastructure.

In Turkey, visits to white goods manufacturer Beko and Turkish Airlines, the world's fastest growing airline, definitely made me go "Wow", and in Nigeria, I was saying it all the time.

The creativity in that place is so easy to get enthused about, at least it was for me, and I returned full of excitement about different personal investments I might follow up on.

In Mexico I was all set to be disappointed, as expectations are so high, but the young president and his equally young colleagues are full of determination to change the place.

If you thought Maggie Thatcher stood for serious reforms, these guys make her seem like a kitten. They are reforming everything from education, energy and fiscal policy to the institution of government itself.

What about all the challenges and things that usually scare people? Well corruption is obviously one topic that all four would seem to share, and I had many interesting discussions about it in each country.

In Nigeria, Central Bank Governor Lamido Sanusi argued that corruption rarely prevents economic development - and that the growth of the economy, accompanied by improvements in education, will lead to better governance and greater transparency.

Such views are important to listen to, as an alternative to our often simplistic Western way of thinking. For many credible people in the Mint countries, corruption is a consequence of their weak past, not a cause of a weak future, and certainly not the number one challenge. It falls way down a list compared with the costs of energy and the breadth of its availability and, of course, infrastructure.

Sorting out energy policy was seen in both Mexico and Nigeria as a top priority and each country has launched a major initiatives this year, which if implemented, will accelerate growth rates significantly.

Here is an amazing statistic. About 170 million people in Nigeria share about the same amount of power that is used by about 1.5 million people in the UK. Almost every business has to generate its own power. The costs are enormous.

"Can you imagine, can you believe, that this country has been growing at 7% with no power, with zero power? It's a joke." says Africa's richest man, Aliko Dangote.

He's right. I reckon Nigeria could grow at 10-12% by sorting out this problem alone. That would double the size of its economy in six or seven years.

In Indonesia, the fourth largest country in the world, I would say leadership and infrastructure are the major challenges, though there are many more too. But challenges and opportunities sit side by side.

In one of Jakarta's slum areas, Pluit, the land is sinking by 20cm per year because of over-extraction of water, but property prices elsewhere in the city are rocketing.

I talked to a man building the country's first Ikea store, who reckons a third of greater Jakarta's population of 28 million (the third biggest conurbation in the world) would have sufficient disposable income to shop at his store. As he said: "We just know it's going to work."

In Turkey of course, its politics and the combination of a Muslim faith with some kind of desire to do things the Western way is a unique sort of challenge. Some might argue the same challenge exists for Indonesia but I returned thinking this was not the case. In Jakarta at least, the Western way of doing things seems to be generally accepted - in striking contrast with Turkey.

So can the Mints join the top 10 largest economies in the world, after the US, China, the rest of the Brics and maybe Japan?

I think so, though it may take 30 years.

I look forward to going back to each of them more regularly now I am helping to put them on the map, just as happened with the Bric countries 12 years ago.
Listen to the first episode of MINT: The Next Economic Giants on BBC Radio 4 on Monday 6 January from 09:00 GMT, or Follow On a tablet? Read 10 of the best Magazine stories from 2013 here @BBCNewsMagazine on Twitter and on Facebook afterwards on iPlayer.

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A four-part series on Radio Four focuses on the Mint countries - Mexico, Indonesia, Nigeria and Turkey - tipped as the next to assume their places at the high table of economic success. Jim O'Neill explains what they have in common.