Changing Economic world Flashcards
Development gap
The difference in standards of living between the world’s richest and poorest.
Advantages of DTM
- many countries in Europe and North America wen through similar stages
- helps to explain what has happened and why it has happened in that particular sequence
Disadvantages of DTM
- based on the experience of industrialized countries, so it is not relevant to non-industrialized countries
- many countries in Africa have high death rates from HIV/AIDS. The model does not reflect their population changes
Aid
Given to one country by another country as money or resources.
Industrial development
Using tools, machines and systems that improve quality of life.
Micro finance
Giving small loans to people in LICs, with the aim of helping them become financially independent.
Fair trade
Giving a fair price to framers for producing coca or coffee beans.
Debt relief
When some of a county’s debt is cancelled, or interest rates are lower.
Economic investment
Encouraging TNCs to invest in the country, to create job opportunities.
Top-down
Schemes are usually very expensive and a country often has to borrow money from large organisation. The decisions related to scheme will usually be made by the government and external groups involved.
Bottom-up
Schemes are projects that are planned and controlled by local communities to help their local area. It cost less than top-down projects.
Advantages of TNCs
- provide employment for local people
- modern technology is funded by company
- local companies may benefit by supporting TNCs
- government benefit from taxes paid by TNCs
Disadvantages of TNCs
- environmental damage may be caused
- provide low wage jobs
- LICs can become dependent on TNCs
- local companies may find it hard to compete with TNCs
Multilateral aid
From international organisations which receive money from several countries.
Bilateral Aid
From one country to another.
