Development

Question 1

What is GNP?

Answer 1

Gross National Product - the total value of goods and services produced by a country in a year plus income earned by the country’s residents from foreign investments minus income earned within the domestic economy by overseas residents.

Question 2

What are some indicators of development?

Answer 2

• Income
• Education levels
• Life expectancy
• Infant mortality rate
• HDI

Question 3

What is the HDI?

Answer 3

Human Development Index
- a measure of disparity between countries
- a composite index

Question 4

What does the HDI measure?

Answer 4

• life expectancy
• average years of schooling for adults aged 25 years old
• expected years of schooling for children of school-entering age
• GNI per capita

Question 5

What are the four stages of development in countries?

Answer 5

• Least developed countries
• Developing countries
• Newly industrialised countries
• Developed countries

Question 6

What does a Gini Coefficient of 0 mean?

Answer 6

Everyone in the country has the same income.

Question 7

What does a Gini Coefficient of 1 mean?

Answer 7

One person in the country has all the income.

Question 8

What are government regional development policies?

Answer 8

Government investment to improve conditions in peripheral regions, such as improvements in infrastructure, to help attract business investment.

Question 9

What is stage 1 in the theory of regional disparities?

Answer 9

Pre-industrial stage.
Regional differences are minimal.

Question 10

What is stage 2 in the theory of regional disparities?

Answer 10

A period of rapid economic growth characterised by increasing regional economic divergence.

Question 11

What is stage 3 in the theory of regional disparities?

Answer 11

A stage of regional economic convergence when the significant wealth generated in the most affluent region(s) spreads to other parts of the country.

Question 12

How does residence affect inequalities within countries?

Answer 12

• gap between core and periphery
• urban/rural disparities
• intra-urban contrasts
• urbanisation of poverty

Question 13

How does ethnicity and employment affect inequalities within countries?

Answer 13

• discrimination can limit the economic, social, and political opportunities available to disadvantaged groups.
• minorities can be concentrated in a region of a country.

Question 14

What is the formal sector?

Answer 14

• jobs known to the government department
• generally provide better pay and security
• may have fringe benefits
• include health, education, government, and retail employees

Question 15

What is the informal sector?

Answer 15

• operates outside official recognition
• generally low-paid and temporary
• poor job security
• ~75% of services

Question 16

How does education affect inequalities within regions?

Answer 16

higher education = better paid employment
least education = largest families
large family = more debt

Question 17

What are the four main employment sectors?

Answer 17

Primary (raw materials)
Secondary (industry)
Tertiary (services)
Quaternary (high tech, research, and development)

Question 18

What is globalisation?

Answer 18

the increasing interconnectedness and interdependence of the world, economically, culturally, politically.

Question 19

Why are brands important to TNCs?

Answer 19

it identifies them and loows them to be recognised throughout the world.