3.1 - Development Flashcards
Name 4 development indicators:
-GNP per capita
-literacy rate (% of population over 15 who are literate)
-life expectancy
-composite indices
What does GDP and GNP per capita mean?
-GDP, gross domestic product, is the total economic value of all the goods/services produced and sold in a country
-GNP, gross national product, is GDP plus foreign assets (like factories in other countries)
-per capita means per person, eg GNP per capita would be GNP ÷ total population
What are composite indices? Give an example and describe it:
-a combination of several indices composed into one
-HDI, human development index, is composed of economic, social, and health indicators (GDP, expected/mean years of education, rate, and life expectancy respectively)
Explain why HDI is a good way of comparing countries’ development:
-it is a composite indicator, so it takes into account multiple factors
-easy to carry out statistical comparisons between countries and how they changed over time
Not always a good indication of a country’s development, as it doesn’t usually account for things like poverty, inequality, and gender disparity
What are the different production sectors? Describe them:
primary - extract/farm raw materials
secondary - manufacturing with materials from primary sector
tertiary - providing a service
quaternary - research
Explain why the quaternary industry has become important in countries where economic development is rapid:
-manages lower sectors to maximise their utility
-can provide information technology services to support other businesses to make profit
-highly skilled workforce, so lots of people are skilled enough to go into the sector
-enables further innovation to take place
Describe the differences in certain indicators and production sectors between LEDCs and MEDCs:
LEDCs
-mainly primary
-lower skills/literacy
-low life expectancy + HDI
MEDCs
-mainly tertiary
-higher skills/literacy
-higher life expectancy + HDI
Explain why the importance of primary/secondary/tertiary activities varies between countries:
-structure depends on whether it is LEDC or MEDC
-primary is less in MEDCs due increase of mechanisation
-secondary increases as development occurs due to investment in TNCs with more automated processes
-tertiary increases as development occurs due to education/skills increase, and a higher demand for services
What is globalisation?
the increasing connections between the people and businesses across different countries with fewer restrictions, meaning countries become interdependent on one another (allows for free trade)
Think of it like interdependence in ecosystems in biology
What factors have increased the rate of globalisation?
-modern transport/communications
-more transnational corporations (TNCs)
-growth of regional economics and trading blocs
A trading bloc is a group of countries that agree to reduce/remove trading barriers between them, like the EU
What are some benefits of TNCs?
-financial incentives (eg lower taxes on businesses)
-skills development in the LEDC
-encourages economic development (^employment/wages)
-infrastructure development (water/electricity/transport networks)
-lower production costs (eg labour/land/transport) in other countries, so people can buy the products for lower costs
What are some drawbacks of TNCs for the LEDC that they operate in?
-depletion of local resources + pollution
-increased traffic congestion
-they operate in the interest of the richer countries, as most of the profit does not go to the country of origin
-fewer restrictions in other countries, meaning the business can exploit the workers with poor conditions/lower wages
Why might countries with a higher GDP have more internet users?
-people can afford internet/electronics
-better infrastructure available for access to wifi
-internet is more likely to be needed for work
-people have more IT skills (better education)
Why is there inequality in wealth between countries?
-amount of natural resources or energy/water available
-climate for farming (eg more droughts in some areas, worse for farming)
-soil fertility and efficiency of agriculture
-historical importance
-amount of trade/exports
-level of education/skills/literacy
