Changing Economic World - 2 Flashcards
1
Q
What is Development?
A
- Progress in economic growth
- Use of technology
- Improving welfare
- Country gets better when developed - their quality of living, health, safety, wealth
2
Q
What are Measures of Development?
A
- Gross national income (GNI)
- GNI per head
- Gross domestic product (GDP)
- Birth rate
- Death rate
- Infant mortality rate
- People per doctor
- Literacy rate
- Access to safe water
- Life expectancy
- Human development index (HDI)
3
Q
What is Gross National Income?
A
Total value of goods and services produced by country in year, including overseas
4
Q
What is Gross Domestic Product?
A
Total value of goods and services a country produces in s uear
5
Q
What is Birth rate?
A
Number of live babies born per thousand of population per year
6
Q
What is Death rate?
A
Number of deaths per thousand of population per year
7
Q
What is Infant Mortality Rate?
A
Number of babies who die under 1 year old, per thousand babies born
8
Q
What is Literacy Rate?
A
Percentage of adults who can read and write
9
Q
What is Human Development Index?
A
Number calculated using life expectancy, education level, income per head
10
Q
What are More Economically Developed Countries (MEDCs) and Where are they found?
A
- Richer countries
- Found in north
- USA, Australia, New Zealand, European countries
11
Q
What are Less Economically Developed Countries (LEDCs) and Where are they found?
A
- Poorer countries
- Found in south
- India, China, Mexico, Brazil, all African countries
12
Q
What are Higher Income Countries (HICs) and give examples?
A
- Wealthiest countries
- GNI per head is high
- Citizens have a high quality life
- UK, USA, Canada, France
13
Q
What are Lower Income Countries (LICs) and give examples?
A
- Poorest countries
- GNI per head is low
- Citizens have a low quality life
- Nepal, Uganda, Somalia, Afghanistan
14
Q
What are Newly Emerging Economies (NEEs) and give an example?
A
- Rapidly getting richer
- Primary industry(agriculture) to secondary industry (manufacturing)
- Quality of life improving
- China, Brazil, Russia, India
15
Q
What is the Demographic Transition Model (DTM)?
A
Shows changing birth rates and death rates affect population growth
16
Q
What’s a Natural Increase?
A
When birth rate higher than death rate so population grows
17
Q
What is a Natural Decrease?
A
Death rate is higher than birth rate so population decreases
18
Q
What Physical Factors affect how Developed a Country is?
A
- Poor climate
- Poor farming land
- Few raw materials
- Lots of natural hazards
19
Q
What is Stage 1 of the Demographic Transition Model (DTM)?
A
- Least developed
- High birth rate
- High death rate
20
Q
What is Stage 2 of the Demographic Transition Model (DTM)?
A
- Not very developed
- High birth rate
- Rapidly falling death rate
21
Q
What is Stage 3 of the Demographic Transition Model (DTM)?
A
- More developed
- Rapidly falling birth rate
- Slowly falling death rate
22
Q
What is Stage 4/5 of the Demographic Transition Model (DTM)?
A
- Most developed
- Low birth rate
- Low death rate
23
Q
How does the Physical Factors of a Poor Climate mean a Country is Less Developed?
A
- Too hot/cold/dry = no growth
- Reduces food produced = malnutrition = low quality of life
- Fewer crops to sell = less money
- Government gets less money from taxes, less money to spend on developing the country
24
Q
How does the Physical Factors of Poor Farming Land mean a Country is Less Developed?
A
- Land is steep/poor soul = not a lot of food produced
- Starvation
- Less money
25
How does the Physical Factors of Few Raw Materials mean a Country is Less Developed?
* Without coal, oil, metal ores = less money made
| * Less money to spend on development
26
How does the Physical Factors of Lots of Natural Hazards mean a Country is Less Developed?
* Causes death, injury, destroy property, disruption to humans
* Spend a lot of money on rebuilding after disaster occurs
* Reduce quality of life
* Reduce amount of money government spends on development projects
27
What Historical Reasons cause Uneven Development?
* Colonisation
| * Conflict
28
How does the Historical Reason of Colonisation mean a Country has Uneven Development?
* Lower level of development when gain independence from being colonised
* Lead to famine & malnutrition and dependant on another country
29
How does the Historical Reason of Conflict mean a Country has Uneven Development?
* War reduce levels of development, healthcare worse
* Money spent on arms & fighting instead of development
* People killed & damage to infrastructure & property
30
What Economic Factors cause Uneven Development?
* Poor trade links
* Lots of debt
* An economy based on primary products
31
How does Economic Factors of Poor Trade Links cause Uneven Development in a country?
* World trade patterns affect country economy & their level of development
* Poor trade links = less money made = less to spend on development
32
How does Economic Factors of Lots of debt cause Uneven Development in a country?
* Very poor countries borrow money from other countries
* This money has to be paid back
* Money country makes used to pay back dept, not used to develop
33
How does Economic Factors of an Economy Based on Primary Products cause Uneven Development in a country?
* Countries that export primary products (wood, metal, stone) are less developed
* Don’t make much profit, their prices fluctuate - price below cost of production
* Less money made - government spend less on development
* Countries that export manufactured goods are more developed - make good profit
34
What are the Consequences of Uneven Development?
* Large flows of international migration
| * Great differences in wealth and health
35
How does Uneven Development lead to Differences in Wealth?
* More developed countries = higher income
* Less developed countries = lower income
* GNI per head in UK is over 40 times higher than in Chad
36
How does Uneven Development lead to Differences in Health?
* More developed countries = better healthcare
* People in HICs live longer - in UK is 81 but in Chad it’s 51
* Less developed countries = infant mortality higher - 85 per 1000 births in Chad
37
How does Uneven Development lead to Large flows of International Migration?
* If nearby countries have higher level of development, people enter to improve quality of life
* Mexico (NEE) borders USA (HIC) - every year 130,000 Mexicans move to USA legally to get better paid jobs and higher quality of life
38
What Strategies reduce the Development Gap?
* Aid
* Debt Relief
* Fair Trade
* Investment
* Industrial Development
* Tourism
* Using Intermediate Technology
* Microfinance Loans
39
What is Aid?
Given by one country to another as money or resources
40
What is Debt Relief?
Some or all of country’s debt is cancelled or interest rates are lowered so have more money to develop
41
What is Foreign Direct Investment?
People/companies in one country buy property or infrastructure in another
42
What is Microfinance?
Small loans are given to people in LICs who can’t get loans from banks so they can start their own business and become financially independent
43
What is Intermediate Technology?
* Tools, machines, systems that improve quality of life
* Simple to use
* Affordable to buy/build
* Cheap to maintain
44
What is Fair Trade Movement?
Farmers getting a fair price for goods produced in LICs (coffee, bananas) to provide for their families
45
How can Aid Reduce the Development Gap and what is the Problem?
* Spent on development projects - constructing schools to improve literacy rates, building dams to improve clean water, etc
* Sometimes wasted by government, or when money runs out the projects stop working
46
How can Fair Trade Reduce the Development Gap and what is the Problem?
* Companies who want to sell ‘fair trade’ products have to pay producers a fair price
* Buyers pay extra to help develop the area where goods came from to build school, etc
* But, only tiny proportion of extra money goes to original producers
47
Give an example of Debt Relief that reduces the a Development Gap?
* Zambia had $4 billion of debt cancelled in 2005
| * 2006 - start free healthcare scheme for millions of people living in rural areas which improved quality of life
48
How can Investment Reduce the Development Gap?
* Better access to finance, technology, expertise
* Improved infrastructure and industry
* Increase in services
49
How can Industrial Development Reduce the Development Gap?
* Countries with very low level of development - agriculture makes up large proportion of economy
* Developing industry increases GNI & improves levels of development as productivity, levels of skills and infrastructure improved
50
How can Tourism Reduce the Development Gap and give an Example?
* Provide increased income as more kinetic entering country
| * Kenya Using Tourism to increase their level of development
51
How can Using Intermediate Technology Reduce the Development Gap and give an example?
* E.g. solar powered LED lightbulbs used in Nepal where other options are polluting and dangerous kerosene lamps
* Allows people to work at home, in businesses, children study after dark
* Skills, incomes, industrial output increase which reduces development gap
52
What are the Advantages of Trans National Corporations (TNCs)?
* Create jobs
* Employees in poorer countries get more reliable income
* Spend money to improve local infrastructure (roads, airports)
* New technology (computers) and skills brought to poor countries
53
What are the Disadvantages of Trans National Corporations (TNCs)?
* Employees in poorer countries paid lower wages than richer
* Employees in poorer countries work long hours in poor conditions
* TNCs come from richer countries so profit goes back there
* Jobs created in poorer countries aren’t secure
54
What are Trans National Corporations (TNCs)?
Companies located in or produce and sell products in more than one country
55
Where are Trans National Corporations (TNCs) Located?
* Poorer countries because labour is cheaper
| * Fewer environmental and labour regulations - make more profits
56
How can TNCs reduce the Development Gap?
Improve development of countries by transferring jobs, skills, money to less developed countries
57
Where are TNC offices and headquarters located?
Richer countries because more people with administrative skills because education is better
58
What are the Causes of Economic Change in the UK?
* De-industrialisation and decline of UK’s industrial base
* Globalisation
* Government Policies
59
How is De-Industrialisation and the Decline of UK’s Industrial Base a cause of the Change of Economy in the UK?
* Fewer jobs available in manufacturing and heavy industries (coal mining)
* These were once primary source of employment and income for UK
60
How is Globalisation a cause of the Change of Economy in the UK?
* A lot of manufacturing moved overseas, where labour costs are lower
* Headquarters of manufacturing remained in UK
* Trading with other countries is increasingly important part of UK GDP
61
How is Government Policies a cause of the Change of Economy in the UK?
* Growth of economy affected by government decisions on investment in new infrastructure + technology + support for business
* Membership in Government groups (World Trade Organisation) make it easier for countries in UK to operate around world
62
What do Important Industries include in UK and give details and facts?
* Services - retail is UK largest sector-employing 4.4 million ppl
* Information Technology - 60,000 people employed in IT sector
* Finance - home to many global financial institutions - HSBC
* Research/Development- 2013 £30 billion spent on R+D in UK
63
Where are Science/Business Parks Located?
* Outskirts of cities near good transport links
* Close to housing
* Near universities to have access to their research
64
Why have the number of Science/Business Parks Grown?
* Growing demand for high-tech products
* High number of strong research universities to form links with
* Clusters is related businesses in one place can boost each other
65
What are the differences of Wages, Health and Education in North and South in UK and use evidence?
* Wages lower in North - In 2014 the weekly wage was 40% lower in Huddersfield than London
* Health worse in North - In 2012 life expectancy for males was 72.6 years in Glasgow and in Dorset it was 82.9 years
* Education better in South - GCSE results were better
66
How is the UK government trying to Reduce the North-South Divide?
* Devolving more powers
* Creating enterprise zones
* Northern Powerhouse
67
How does Devolving More Power Reduce the North-South Divide?
* Scotland, Wales, Northern Island have their own devolved Governments
* Allows them to use money on schemes they feel will benefit the local community - better public transport or regeneration projects to attract businesses
68
How does Creating Enterprise Zones Reduce the North-South Divide?
•55 enterprise zones created across England, Scotland, Wales
•These offer companies benefits for locating enterprise zones:
-Reduced taxes
-Simpler planning rules = certain developments are allowed in enterprise zone
-Financial benefits = reduce future tax bills
-Improved infrastructure
•These are used to encourage companies to locate in areas of high unemployment, bringing jobs and income helping north-south divide
69
How does the Northern Powerhouse?
* Governments plan to reduce inequality between north and south
* Attracting investment into north
* Improving transport links between northern cities
70
How is the UK improving its Transport Networks?
* Roads - upgrading to ‘smart motorways’ w/ an extra lane
* Railways - crossrail will increase London’s rail capacity by 10%
* Airports - new runway in south east
* Ports - new port, London Gateway, operating at mouth of River Thames - hub for local trade because can handle largest container ships
71
How has the UK formed strong links with other countries?
* Trade
* Culture
* Transport
* Electronic communications
* European Union
* The commonwealth
72
How has Trade helped the UK form strong links with other countries?
* Links with USA, Europe, Asia
| * Overseas exports worth over £250 billion per year
73
How has Culture helped the UK form strong links with other countries and give an example?
* Creative industries mean UK culture is exported worldwide
| * E.g. Shaun the Sheep TV series shown in 170 countries
74
How has Transport helped the UK form strong links with other countries?
* Channel tunnel links UK to France by rail
| * Large airports (Heathrow) act as hub and provide links to hundreds of countries
75
How has Electronic Communications helped the UK form strong links with other countries?
* Offices to many global IT firms
| * Trans-Atlantic cables linking Europe to USA routed via UK
76
How has the European Union helped the UK form strong links with other countries?
* EU is Economic & political partnership of 28 countries
* Membership gives access to large market without trade/political barriers
* Over £130 billion of UK’s exports were to the EU in 2015
77
How has the Commonwealth helped the UK form strong links with other countries?
* Association is 53 independent states, including UK
| * Exists to improve well being of everyone in commonwealth countries
78
How can Industry have Negative Effects on the Environment?
* Releasing pollutants
* Greenhouse gases
* Damaging environment through raw material extraction
79
How can the effect of industry on physical environment be reduced?
* Modern industrial developments are more environmentally sustainable
* More strict environmental regulations
* Better environmental awareness
* Increasing energy and waste disposal costs
80
What are the Benefits of Tourism in Kenya?
* Over 12% of Kenya’s GDP - can be spent on development + improving quality of life
* 600,000 people directly/indirectly employed by tourism industry - 10% of employment
* 24 national parks charge entry fees to tourists - money used to maintain parks
* HDI increased from 0.45 to 0.55 since 2000
81
What are the Negatives of Tourism in Kenya?
* Small proportion of money earned goes to locals - most to big companies in HIC - doesn’t help close development gap
* Maasai tribespeople forced off their land to create national parks for tourists
* Tourist vehicles damages environment - safari vehicles destroy vegetation + disturb animals
82
How is Tourism is helping Kenya to Increase it’s Development?
* Kenya = LIC
* Attracts tourists with tribal culture, safari wildlife, was climate, beautiful scenery
* 2009 - visa fees for adults cut by 50% so cheaper to visit, scrapped for children under 16 so more families visit
* Landing fees at airports on Kenyan coast dropped for charter airlines
* Tourism increased from 0.9million visitors per year in 1985 to 1.8 million in 2011
83
Describe India:
* Rapidly developing NEE
* 2nd largest population in world (1.3 billion)
* Large inequalities of wealth - most poor
* Over 20% population live in poverty
* Adult literacy rate = less than 70%
84
What are the Advantages of TNCs in India?
* Provide employment - Unilever employs 16,000 people in India
* More companies = greater income - Hindustan Unilever have annual sales of $4.5 billion
* TNCs run programs to help development in India - Unilever’s Project Shakti helps poor woman in rural villages become entrepreneurs (45,000 ppl in this scheme)
* Unilever works with charities helping run hygiene education programs + provide sanitation to 115 million people in India
85
What are Disadvantages of TNCs in India?
* Profits can leave India - Unilever is Dutch/British company
* Cause environmental problems - mercury contaminated glass from Unilever company ended up in waste dump - mercury is poisonous chemical
* Move around India to take advantage of local government incentives- Unilever accused of closing factories in Mumbai once local tax breaks ended
86
What is Short-term aid and how was it used in India?
* Help recipient countries cope with emergencies
* Come from foreign governments or non-governmental organisations
* Helps with immediate distasteful relief
* UK sent £10m, recuse team, 1200 tents after earthquake in 2001
* Oxfam provide supplies + temporary buildings
87
What is Top-down aid and what does it do?
* Organisation/government receives aid + decides where it should be spend
* Often large infrastructure projects (dams, hydroelectric power or irrigation schemes)
* Improves country’s economy, but not quality of life of poorest people
88
What is Long-term aid and how was it used in India?
* Help recipient countries funded to become more developed
* Until 2015 - India recurved over £200m each year from UK to help poverty
* Impact can vary - India has corruption problems - aid not always reach poorest people
89
What is Bottom-up Aid and how is it used in India?
* Money given directly to locals
* WaterAid trains locals to main village handpumps in rural India
* Large Impact - Improve health, skills, income
