CHANGING ECONOMIC WORLD Flashcards
What is the multiplier effect?
Increased investment, creates new jobs and services, leading to further increase in investment.
What is development?
The progress of a country in terms of economic growth, use of technology and improving welfare.
What is a development gap?
The difference in development between countries.
What are development indicators?
Life Expectancy, Birth Rate, Death Rate, Infant Mortality Rate etc.
What does HDI stand for?
Human Development Index.
What is the Human Development Index (HDI)?
A summary measure of human development.
What is a Demographic Transition Model?
A model showing how populations change over time in terms of their birth rates, death rates and total population size.
What is a strength and weakness with evaluating the DTM?
STRENGTH - Other developed countries like Japan and France have followed similar patterns.
WEAKNESS - Technology means death rate falls much more rapidly than was observed in Europe.
What is a population pyramid?
It is a type of bar chart used to show the age and gender structure of a country’s population.
What are the 3 causes of uneven development?
Physical, Historical and Economic.
Why is history a cause of uneven development?
Colonisation and Conflict.
Colonisation?
The colonisers removed raw materials sold and took the profits creating further inequality.
Conflict?
People are killed and damage is done to infrastructure and property.
Physical causes of uneven development?
EXAMPLES - Nepal vs Christchurch/Typhoon Haiyan
- a poor climate
- poor farming land
- lots of natural disasters
- few raw materials
A poor climate?
Hot, cold or dry climates prevent access to food causing malnutrition e.g. in Chad and Ethiopia.
Poor farming land?
If the land in a country is stee or has poor soil then it is difficult to grow crops or graze animals to produce food.
Few raw materials?
Countries without raw materials like coal, oil and metal ores have fewer products to export to other countries, sell and make money.
Economic causes for uneven development?
- Poor trade links
- Lots of debt
- Trade of primary products
Poor trade links?
Fails to make money from trade, Less money to spend on development.
Lots of debt?
Poor countries borrow money e.g. after natural disasters, this money must be paid back plus interest.
Trade of primary products?
Primary products are often sold for less than manufactured goods e.g. the price of cocoa dropped below the cost of production in Ghana.
What are the 3 consequences of uneven development?
Wealth, Health and International Migration.
Disparities in wealth?
People in HIC’s often have a higher income than those in LIC’s, An individuals wealth impacts their standard of living.
What does Gini Coefficient mean?
A measure of internal disparities within a country.
What is it called when people or companies invest in infrastructure?
Foreign-direct investment.
What does a Fairtrade compare guarantee its workers?
Fair living wages, Pay producers a fair price.
What’s an examples of intermediate technology?
LED lightbulbs used in Nepal instead of fires.
What are small loans given to people in LICs called?
Microfinance loans.
What is the downside of a microfinance loan?
Encourage a country to get further into debt.
What is debt relief?
Where a countries debt is cancelled.
What’s an example of debt relief?
Zambia - 4 billion of debt cancelled in 2005. In 2006 they had enough money to start a free healthcare scheme.
What is a quaternary sector?
Industries providing information services such as ICT, Research and Development and the media.
What is deindustrialisation?
The reduction of industrial activity or capacity in a region or economy.
What does Footloose mean?
Industries that don’t need raw materials and make use of information technologies to locate anywhere.
