Development Index (Human)
(HDI).
Formula
HDI = f(Life Expectancy Index, Education Index, GNI Index)
Real World
Norway consistently tops the HDI rankings (score ~0.96) due to high life expectancy, near-universal education, and strong per-capita income, making it an attractive but expensive market to enter.
Exam Focus
Distinguish HDI from GDP alone — HDI captures social development; examiners penalise treating them as interchangeable.
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