Changing Spaces Making Places: Economic Change Flashcards
What is an AC?
Advanced Country
What is an EDC?
Economically developing country
What is an LIDC?
Less industrially developed country
What is global shift?
A relocation of manufacturing and production on a global scale.
What is the current global division of labour?
TNCs from Europe, NA and Japan created labour-intensive factories in LIDCs and EDCs.
What economic restructuring occurs in ACs?
The labour force shifts to the tertiary and quaternary sectors, and primary and secondary sector work is outsourced to LIDCs and EDCs.
What is deindustrialisation?
When an country becomes more advanced, the comparative advantage of industrial work declines, and so this work is outsourced to other less advanced countries to increase profits.
What is the primary sector?
Jobs based around the extraction of natural resources (e.g. farming, mining, fishing, etc).
What is the secondary sector?
Jobs based around manufacturing (e.g. factory work, restaurants, etc).
What is the tertiary sector?
Service jobs (e.g. finance, education, health, etc).
What is the quaternary sector?
Jobs that provide services to other services (e.g. research, advertising, etc).
What is the multiplier effect?
A developing economy in an area helps increase business productivity, which then in turn develops the economy further, essentially a positive feedback loop of economic development.
What are the positives of structural economic change in ACs?
Labour-intensive products become cheaper, workers have improved QoL and environmental quality increases as factories and mines shut down.
What are the negatives of structural economic change in ACs?
Workers who lack qualifications will lose jobs and struggle to get new ones and certain regions will struggle more with job losses, mostly regions dependent or built upon industrial work.
What are the positives of structural economic change in EDCs and LIDCs?
Income from exports increases, which could cause a multiplier effect, workers get improved skills and technology, and unemployment rates decrease, improving QoL.
