Changing economic world Flashcards
1
Q
Gross domestic product (GDP)
A
the total amount of goods and services produced by a country in one year per capita (= divided by its total population)
2
Q
Migration
A
The movement of people from one permanent home to another, with the intentions of staying at least a year
may be within a country or between countries
3
Q
Transnational corporation (TNC)
A
initial investment and jobs lead to a knock on effect
this knock on effect creates more jobs and money which are then reinvested
4
Q
Industrial structures
A
The relative proportion of the workforce employed in different sectors of the economy
(primary, secondary, tertiary, quaternary)
5
Q
Development
A
The progress of a country in terms of economic growth, the use of technology and human welfare
6
Q
Development gap
A
The difference in standards of living and well being between the world’s richest and poorest countries (HIC v LIC)
7
Q
Gross National Income (GNI)
A
Measurement of economic activity that is calculated by dividing the gross national income by the size of the population
8
Q
Human Development Index
A
A method of measuring development in which GDP per capita, life expectancy are combined to give an overview using social an economic indicators
9
Q
Quality of life
A
refers to the wide range of human needs that should be met alongside income growth
10
Q
Low income countries (LICs)
A
includes 10 of the world’s poorest countries, most people have poor quality of life with inadequate services and few opportunities
mostly in Africa and Asia
11
Q
Newly Emerging Economies (NEEs)
A
experiencing rapid economic growth and development based on industrial development incomes are rising and most people enjoy a reasonable standard of living
12
Q
High Income Countries (HICs)
A
includes 80 countries where people are enjoying a good standard of living based on relatively high levels of income
13
Q
Which fast developing countries form:
B
R
I
C
A
Brazil
Russia
India
China
14
Q
Which fast developing countries form:
M
I
N
T
A
Mexico
Indonesia
Nigeria
Turkey
15
Q
What are the limitations of GNI per capita?
A
only takes into account one factor - income
average calculation so a few wealthy people could distort the whole figures
people working in the informal sector may not be taken into account
16
Q
Birth Rates
A
the number of live births per 1000 population
17
Q
What are the limitations of using birth rates as a measure?
A
some countries may have low birth rates but are actually quite poor - Cuba at 10 per 1000
birth control policies can distort this as a measure of overall development - China, 12 per 1000
18
Q
Death Rates
A
number of deaths per 1000 population
19
Q
What are the limitations of using death rates as a measure?
A
death rate is less reliable than birth rate
death rates can be high in LICs due to poverty but also high in HICs where many people are dying of old age
20
Q
Infant mortality rate
A
number of deaths of children less than one year of age per 1000
21
Q
What are the limitations of using infant mortality rates as a measure?
A
in poorest counties not all deaths of children are reported, especially in remote areas meaning true rates are even higher
22
Q
Life expectancy
A
the average number of years a person in a country cab be expected to live
23
Q
What is the average life expectancy in HICs?
A
over 80 years
24
Q
What is the average life expectancy in LICs?
A
50 years
25
What is the average life expectancy in NEEs?
65-75 years
26
What are the limitations of using life expectancy as a measure?
data is not always reliable - especially in LICs
It can be slightly misleading in countries with very high rates of infant mortality as people surviving infancy may live longer than expected thereafter
27
Literacy rate
percentage of people with basic reading and writing skills
28
What are the limitations of using literacy rates as a measure?
can be hard to measure in LICs due to lack of monitoring
war zones and squatter settlements are difficult to measure literacy rates
29
Percentage of access to safe water
percentage of people with access to safe mains of water
30
What are the limitations of using percentage of access to safe water as a measure?
data collections in LICs may not be accurate so official figures may underestimate the problem
people may technically have access but high costs may force them to use water that is not safe
31
What are the limitations of using the human development index as a measure?
narrow measure and only take into account 3 indicators
general measure based on average calculations, so does not take into account massive disparities (differences)
weighting is subjective, unreliable
statistics provided by some countries may be unreliable
32
How would you expect birth rate to change as a country gets more developed?
decrease
- woman put education and careers first and get married later
- infant mortality will decrease --> not as many children will have to be born
33
How would you expect death rate to change as a country gets more developed?
decrease
- access to healthcare improve e.g. vaccines
- access to safe water, good quality food and education
34
How would you expect total population size to change as a country gets more developed?
increase initially and then begin to decrease
- death rate decreases quickly
- birth rate takes longer to decline due to values and attitudes
35
How would you expect life expectancy to change as a country gets more developed?
increases
- due to better healthcare, education, access to clean water and food
36
how many stages are in the demographic transition model?
5
37
What does the demographic transition model graph?
birth rate
death rate
natural increase
total population
38
Which stages do LICs fall into?
1 and 2
39
Which stage does NEEs fall into?
3
40
Which stages do HICs fall into?
4 and 5
41
What factors have caused uneven development?
climate change
natural disasters
diseases
access to education
conflict
colonisation
access to healthcare
42
Historical causes of uneven development?
many LICs were colonised by powerful trading nations - UK, France, Spain and Portugal
much of Africa, South America and Asia were exploited for their raw materials
over 10 million people were exported from Africa to North America to work as slaves
43
Causes of colonialism
Europe wanted to build global influence
Europe wanted to compete against other rival states to access other raw materials and labour
discovery of new sea route meant different countries could be colonised
44
Effect of colonialism on South America, Africa and Asia
cultures were affected and became apart of the transatlantic slave trade
45
Effect of colonialism on education
introduced into a lot of countries and taught global languages like English and institutions like a proper government emerged
46
Effect of colonialism on technology
Europeans brought a lot of new technology to African countries to help them with farming and build better infrastructure
47
Effect of colonialism on power
power struggles took place in newly independent countries - especially if resources like diamonds were at stake
48
Effect of colonialism on borders
modern borders of Middle Eastern countries and central African countries effect ethnic groups across the regions, creating conflict
49
Effect of colonialism on DR Congo
when they gained independence from Belgium thy had only 14 university graduates
50
Physical causes of uneven development: landlocked
countries are cut off from seaborne trade, important to economic growth
Africa has some of the most landlocked countries
51
Physical causes of uneven development: climate related diseases and pests
diseases affect the ability of the population to stay healthy enough to work
locust swarms can decimate crops
52
Physical causes of uneven development: extreme weather
droughts and floods and tropical storms can slow development and can incur costly repairs to infrastructure
53
Physical causes of uneven development: limited access to clean water
lack of safe water can stifle development by making people sick and unable to work
54
When and what was the size of the earthquake in Haiti?
2010
7.0 earthquake
55
Impacts of Haiti earthquake: 300,000 deaths
short term: children orphaned
long term: families lost a wage earner --> no school --> bad job
56
Impacts of Haiti earthquake: 300,000 injured
short term: not able to work - hospital overcrowding
long term: loss of income —> no multiplier effect —> damages economy
57
Impacts of Haiti earthquake: 300,000 homes damaged
short term: crime or riots
long term: lack of sleep and discomfort
58
Impacts of Haiti earthquake: 25% schools destroyed
short term: lack of education
long term: leads to crime/cannot get good jobs —> literacy rates fall
59
economic causes of uneven development: poverty
lack of money in a country shows slow development
prevents improvements to living standards, education, sanitation and infrastructure
60
economic causes of uneven development: trade
wealthier regions such as Asia and Europe and North America dominate trade because they export secondary goods which earn more income
more wealth —> more power
able to dictate terms of trade to their advantage
61
Economic causes of uneven development: LICs trade primary products
good have low value and earn them little money
limited funds to invest in infrastructure and services that would enable them to develop
62
Economic causes of uneven development: LICs rely heavily on single exports
subject to fluctuations in market price
drop in market value risks they losing a high proportion of their income that would enable them to develop
63
Consequences of uneven development on health
in LICs 40% of deaths are in children under 15 compared to 1% in HICs
64
Consequences of uneven development on wealth
35% of total wealth is held by North America by just 5% of the worlds population
65
Consequences of uneven development on global migration
international migration is one of the main consequences of uneven development
people move to improve the quality of their life
migrants may be economic migrants or refugees
66
Sustainable economic growth
economic development that attempts to grow economies and satisfy the needs of humans but in a manner that sustains natural resources and the environment for future generations
67
What is a TNC?
a multinational cooperation that owns or controls production of goods or services in at least one country other than its home country
68
What is investment by TNCs?
TNCs invest in LICs & NEEs in sectors that they think are going to expand rapidly
helps sector grow even more quickly
after growth
69
What are TNC investors able to do once sector has grown?
investors are able to collect a return on their investments and earn even more money than they put in
70
Example of investment by TNC
Royal Dutch Shell employs more than 4500 people in Nigeria - 95% of whom are Nigerian
71
Positives of investment by TNCs
helps with building infrastructure
allows people to move away from primary, low paid jobs
72
Negatives of investment of TNCs
big corporations earn more than the people doing the physical work
TNCs can mean more poor working conditions
Economic leakages --> profits go back to origin country
73
What is industrial development?
enables LICs and NEEs to invest in their primary industries and increase manufacturing
improves GNI
74
Example of industrial development
Mozambique 6 years of industrial growth (2002-2008) reduced the proportion of people living in poverty by 15%
75
Positives of industrial development
increase wages and quality of life
positive multiplier effect
76
Negatives of industrial development
struggle to find fund for investment
77
What is aid?
a gift of money , good or services to a developing country
does not have to be repaid
78
What is an example of aid?
UK government spends 0.7% of its national income on overseas developing projects
including those in Sierra Leone and Syria
79
Positives of aid
improve standard of living
improvements in education and healthcare
help economies recover from war or natural disasters
80
Negatives of aid
become dependent on aid
aid may be wasted, especially if the government are corrupt
81
What is intermediate technology?
speeds up the process
simple and practical tools, basic machines and engineering systems, straightforward for local people to use
82
What is an example of intermediate technology?
solar box cookers in rural parts of India and Kenya produce clean and sustainable energy for domestic cooking
83
Positives of intermediate technology
sustainable and cheap
quickly harvest crop and manual labour is reduced
skills needed to use can be easily taught
improvements at grassroot level
84
Negatives of intermediate technology
can mean less jobs as machinery does some of the work
85
What is fairtrade?
when farmers or factories involved receive a fair percentage of the final retail price in supermarkets, a product is labelled as Fair Trade
86
Example of fairtrade
Fairtrade in Columbia has increased household income for banana farmers by an average of 34%
87
Positives of fairtrade
money used to increase crop yield, farming practices, healthcare and education
better access to workers rights
environment sustainability is considered
88
Negatives of fairtrade
higher prices means shoppers in HICs don't buy them
which limits the number of people who can be involved in the scheme
89
What is debt relief?
between 1960-1980 some HICs loaned many LICs huge amounts of money
debt crisis began when countries couldn't repay loans or interest
90
Example of debt relief
conservation swap - Indonesia agreed to protect Sumatran forests in exchange for writing off $30 million borrowed from the US
91
Positives of debt relief
eases pressure and allows LICs to spend money on education and health
helps ease development gap
92
Negatives of debt relief
not all debt is written off
93
What is microfinance?
small loan designed to give people a chance to escape the cycle of poverty
94
Example of microfinance
buying fertiliser to increase crop production
over time profits will increase and the loan will be paid off
95
Positives of microfinance
interest is low so people can lift themselves out of poverty
help farmers produce enough for their own needs
96
Negatives of microfinance
not always easy to create surplus to sell at market
if project fails they can't pay it back
97
Reasons for tourism growth in Tunisia: climate
Northerly coast has a Mediterranean climate - hot summers and mild winters
40 degrees C in summer
98
Reasons for tourism growth in Tunisia: links with Europe
easily accessible to low-cost airlines to mainland Europe
ex-colony of France so many inhabitants speak French, appealing to tourists
99
Reasons for tourism growth in Tunisia: history and culture
UNESCO World Heritage Sites - ancient remains of Carthage and the Roman EI-Jem amphitheatre
Films like Star Wars have filmed on location here, attracting fans
100
Reasons for tourism growth in Tunisia: rise of cheap package holidays
government worked in conjunction with tourist operators like TUI to develop the country into a tourist destination with hotels, transport infrastructure and recreational activities like water sports
101
Reasons for tourism growth in Tunisia: physical landscape
varied and diverse - beaches, Dorsal Mountains and the Sahara desert providing a range of activities for different types of tourist
102
How has tourism benefited life expectancy?
longer life expectancy due to improved diets and health
103
How much did literacy rates increase by in Tunisia as a result of tourism?
13%
104
What % of Tunisia's GDP is invested in the healthcare system?
4%
105
What major development goal has also made progress as a result of tourism in Tunisia?
SDG: gender equality
106
What is a environmental sustainability issue create by tourism in Tunisia?
pollution of the environment - beaches polluted with the untreated sewage
107
What do leakage profits refer to in relation to tourism in Tunisia?
profits made by TNCs ends up in the TNC source and does not stay in the local economy
108
What happened in 2015 in relation to tourism in Tunisia?
terrorist attack aimed at tourist - Museum Bardo in Tunis and beach in Sousse
109
How did the tourist attack affect tourism in Tunisia?
foreign governments say it is no longer safe destination which leads to less tourist - backwards multiplier effect
