Chapter 9 Flashcards

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1
Q

What is the Human Development Index?

A

To measure the level of development for every country, created by the UN

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2
Q

What are 3 factors when considering the Human Development Index?

A

Decent standard of living, a long and healthy life, and access to knowledge

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3
Q

Define GNI (gross national income) per Capita

A

measures the average wealth of a country that account for value of output of goods and services per person Relates to development
While regular GNI accounts for the total country and relattes to economy

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4
Q

Define Purchasing Power Party:

A

adjustment made to the GNI to account for differences among countries in the cost of goods

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5
Q

Define Primary Sector:

A

activities that extract materials from Earth through Agricultural means, a large percentage found in Developing Countries

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6
Q

Define Secondary Sector:

A
  • Manufactures process, transform, and assemble raw materials into products,
  • decreased sharply in Developed countries and grows in developing countries
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7
Q

Define Tertiary Sector:

A

provisions of goods and services in exchange for payment, a large percentage found in developed countries

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8
Q

Define Productivity:

A

amount that can produced by the average worker in a given amount of time

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9
Q

Define Value Added:

A

gross value of a product minus the cost of raw materials and energy

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10
Q

Why are workers in MDC more productive than LDC?

A

Workers in MDC have access to more machines, tools, and equipment

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11
Q

What does a low level of IHDI mean?

A

Reflects a low level of economic quality and conversely a high level of inequality

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12
Q

Identify the regions with the highest and lowest numbers of people per item:

A

Motor Vehicle- high in N.America low in S.Asia

Cell Phones- high in Europe low in Sub-Saharan Africa

Internet- high in N.America low in S.Asia

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13
Q

Define Infrastructure:

A

underlying system essential to the functioning of society, or to certain activities

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14
Q

Define Life Expectancy:

A

an average number of years an individual is expected to live

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15
Q

What demographic phenomenon has occurred in developed countries as result of longer life expectancy?
How is this a problem?

A

Developed countries have a higher percentage of older people, and a low % of children under 15. leaves a few amount of people in the working force and high amount of dependents

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16
Q

How do infant mortality rates compare to those in MDC VS LCD?

A

More in are likely to live in MDC, in LDC infants have a high chance of death due to malnutrition and lack of medicine

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17
Q

How does life expectancy compare in MDC VS LCD?

A

In developed countries life expectancy is higher than LDC because of healthcare and resources

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18
Q

What is the expected gap between students in MDC VS LDC?

A

In MDC students are expected to attend college while in LDC students are expected not to finish high school

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19
Q

Where is development concentrated in N.Africa and SW.Asia?

A

states that border the Persian (Arabian) Gulf

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20
Q

Where is development highest and lowest in Brazil?

A

high in along Atlantic coast

low in the interior of Amazon tropical rainforest

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21
Q

Where is development highest and lowest in China?

A

high along east coast

low in remote and inhospitable Mts./ deserts

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22
Q

Where is development highest and lowest in Mexico?

A

high in the region bordering its wealthy neighbors

low in urban areas

23
Q

From what region were 3 of the 5 MDC in 2015?

What are the last two countries?

A

Eastern Europe and Denmark and Netherlands

24
Q
Least Developed Regions (Periphery)
Developing Regions (Semi-Periphery)
Developed Regions (Core)
A

Sub-Saharan, S.Asia, SW. Asia, N.Africa, and SE.Asia

Russia, Latin America, E.Asia, and Central Asia

South Pacific, N.America, Japan and Europe

25
Q

Define GDP (gross department product):

A

Gross Domestic Product:

goods in a home country; accounts for products that enter and leave

26
Q

What factors make-up the gender inequality index?

A

Empowerment, labor, and reproductive-health

27
Q

What are the highest and lowest Gender inequality index scores found?

A

Highest found in Developing countries (Sub-Africa, S. Asia, Central Asia)
Lowest found in developed countries (Western Europe)

28
Q

What is empowerment?

What 2 factors are measured to determine the level?

A

Refers to the ability of women to obtain economic and political power

  • The % of seats of seats held by women in the national legislature
  • The %of women who completed highschool
29
Q

Identify 3 examples of how gender inequality is greater in the US than other MDCs

A
  • Reproductive rights are lower
  • % of women in national legislature is much lower
  • women wages are lower
30
Q

Which 3 resources take up most of the worlds energy?

A

Coal, Petroleum, and Natural Gas

31
Q

Which 2 countries use the largest energy?

A

China and USA

32
Q

Which region has the largest per capita energy?

A

North America

33
Q

Where are the largest concentrations of coal, petroleum?

A

In coal larger by mid latitude areas

In petroleum around Persian Gulf, North Sea, and largest producers are Saudi Arabia, US, Russia

34
Q

What is OPEC and when was it created

A

Created in 1960
(Organization Petroleum Exporting Countries)
Formed to enable oil-rich developing countries more control over their resources, make more profits from oil

35
Q

What was the effect of OPEC oil prices in 1970s and how did US react?

A
  • oil prices increased sharply
  • the US reduced its dependency on imported oil, the share of imports from OPEC countries decline
  • led to an energy crisis in the US and a long lines for rationing of gas
36
Q

Identify the elements of Nuclear Energy:

A

Benefit: large amount of energy released from a small amount of material
Drawbacks: radioactive waste, potential for catastrophic events
Availability: limited and high cost,
US, Russia, Japan, and France produce large amounts

37
Q

Identify the elements of Hydroelectric energy:

A

Benefit: been around for a long time
Availability: getting electricity from water

38
Q

Identify the elements of Biomass:

A

Benefit: derived from plant and animal decay
Drawback: made from corn in the US, sugar in Brazil, inefficient because energy that is made is is the same as the burning amount
Ethanol is considered dirty

39
Q

Identify the elements of Geothermal:

A

Benefit: the most feasible and very clean
Drawbacks: limited to volcanic areas or areas with tremendous heat

40
Q

Identify the elements of Nuclear Fusion:

A

Benefit: releases a spectacular amount of energy, no radioactive waste
Drawbacks: cam only occur at high temp.
Availability: not yet commercial

41
Q

Identify the elements of Solar Energy:

A

Benefit: LDCs have the ability to obtain electricity and generate energy
Availability: limitless and humans cannot destroy it
Drawbacks:equipment is expensive and bulky,

42
Q

Identify the elements of a Self-Sufficient model:

A

• Barriers limit the import of goods from other places
- Setting high taxes on imported goods
- Fixing quotas to limit quantity
- Requiring licenses in order to restrict number of goods
• Isolation from competition to encourage a business to achieve independence
• Investment is spread equally across all sectors of economy and regions
• Income in the country side keeps pace with those in the city
• Tariffs, quotas, license requirements
(Protectism, Import, Substitution)

43
Q

Identify the elements of Rostows model

(International Trade):

A
  1. Traditional Society
    - High % of people engaged in agriculture not yet developed
  2. Preconditions of Takeoff
    - Elite group initiates innovative economic activities; invest in infrastructure and comparative adv.
  3. Takeoff
    - Rapid growth is generated in a limited number of economic activities (textiles or food products) Where other sectors of the economy remain dominated by traditions
  4. Drive to Maturity
    - Modern technology that was confined is now diffused to a wide variety of industries
  5. Age of Mass Consumption
    - Economy shifts from heavy industry (steel and energy ) to consumer goods and tertiary activities

-Countries should invest in Comparative Advantages and infrastructure

44
Q

What are problems and criticism in the Self-Sufficient model:

A
  • Companies protected from international competition were not pressured to change
  • Little incentive to improve quality, lower production cost, reduce prices, or increase production
  • Potential entrepreneurs found struggling to produce goods or offer services was less rewarding
  • Government abuses / large bureaucracies
45
Q

What are problems and criticism in Rostows model

(International Trade):

A
  • Uneven distribution of resources
  • Increased dependence on developed countries
  • Market decline; stagnant demand may decrease global prices (oil glut )
  • Does not protect new industries that may need it
46
Q

What is the case study of India:

A

India

  • To import goods in India, most foreign companies had to secure a license
  • The gov. imposed heavy taxes on imported goods which doubled or tripled prices to consumers
  • Indian business were discouraged from producing goods to export
  • Indian money could not be converted
  • A business needed gov. permission to sell a new product, modernize a factory, expand production, set prices, hire/fire workers
  • If private companies could not make a profit inside India the gov. provided subsidies
  • used this method until late 20th century
47
Q

What is the case study for the Persian Gulf and 4 Dragons:

A

Persian Gulf States

  • Used petroleum revenues to finance large-scale projects, such as housing and airports
  • Landscape has been changed by the diffusion of consumer goods such as motor vehicles and electronics (vehicles, motorcycles, etc)
  • Supermarkets are stocked with food imported from Europe and North America
  • Since 1970s used “petrodollars” to build infrastructure

Four Asian Dragons (Tiger)
- First places to adopt the international trade:
(South Korea, Singapore, Taiwan, and Hong Kong)
- Large cities surrounded by very small amounts of rural land
- Lack many natural resources
- Promoted development by concentrating on producing a handful of manufactured goods
- Comparative adv:
Low labor cost enabled countries to sell products inexpensively

48
Q

What are the two principal ways in which LDCs obtain money to finance development?

A

a. –Direct investment by Transnational Corporation
(Multinational) corporations open factories or other operations
b. – Loans from World banks and International Organization
(World Bank: long term dev. Loans) (IMF: Bailout/ rescue funds with conditions)

49
Q

Identify the two main sources, both controlled by MDCs, of loans for LDCs.

A

a. World Bank

b. international monetary fund

50
Q

In PRACTICE, what has usually happened when loans have been used for these infrastructure projects?

A

THEY FAIL

  • Projects don’t function because of faulty engineering
  • New infrastructure dies not attract other investment
  • Recipitent nations squander or spend aid on armaments.
51
Q

What are structural adjustment programs (austerity)?

A

Reduce govt spending, privatization, charging for services

52
Q

Define: Foreign Direct Investment

A

When multinational corp. make an investment to a foreign company in the economy of another country

53
Q

Compare and contrast the approaches to dealing with economic recession (Stimulus vs Austerity)

A

Stimulus: gov. should spend when everyone else is afraid to /keep $ circulating
Austerity: lower gov. spending by cutting services / lower taxes to get more money circulating

54
Q

Summarize Europe’s sovereign debt crisis in 3 bullets

A

Most adopted in Europe 1999
Prevented weaker economies from manipulating currency to make their goods cheaper for int. trade
Gov. in peripheral countries (Greece) experienced severe ec-problems and began to default on sovereignty (gov.) debt after housing bubble burst in the US