Development Flashcards
what is development
the process of a country where it improves its quality of life for its people, making its place more independent.
what are the stages of development
Least developed countries → developing countries → newly developed countries → Developed countries.
what is quality of life
the person’s well-being in terms of environment, security, health and happiness.
8 indicators of development
- Gross National Product (GNP) per capita
- Gross Domestic Product (GDP) per capita
- Birth Rate
- Death Rate
- Literacy rate
- Life expectancy
- Infant Mortality
- Composite indices like the Human Development Index (HDI)
what is Gross National Product (GNP) per capita?
wealth of a country averaged per person.
what is Gross Domestic Product (GDP) per capita?
the total value of goods and services produced
what is economic activity
Economic activity involves making, providing, purchasing, or selling goods or services.
what are the 4 economic secotrs
- Primary.
- Secondary.
- Tertiary.
- Quaternary.
what happens in the primary sector
extraction of raw materials e.g. mining, farming
what happens in the secondary sector
production of goods using resources from primary sector e.g. shoe factory
what happens in the tertiary sector
providing services using products from secondary sector e.g. restaurant, hair salon
what happens in the quaternary sector
providing information & ICT e.g. software development
how may the sectors be divided in an LEDC
- The majority are in the primary sector.
- Few in the secondary sector.
- Tertiary may be larger than secondary.
how may the sectors be divided in an NIC
- Majority tertiary.
- Few in the secondary sector primary.
- Primary is larger than secondary.
how may the sectors be divided in an MEDC
- Low proportion in the primary sector.
- Numbers are falling in the secondary sector.
- The tertiary sector is the primary growth area.
what is globalisation
Process in which the world is becoming increasingly interconnected through economic, cultural, political and tourism processes.
4 causes of globalisation
- Improvements in transportation
- Freedom of trade
- Improvements of communications
- Labour availability and skills
7 positive impacts of globalisation
- Economic growth
- Job Creation and Employment
- Access to Goods and Services
- Cultural Exchange and Diversity
- Technological Advancements
- Access to Information and Communication
- Environmental Awareness and Sustainability
7 drawbacks of globalisation
- Economic Inequal
- Job Displacement and Labor Exploitation
- Environmental Degradation
- Cultural Homogenization
- Exploitation of Developing Countries
- Social Disruption and Inequality
- Public Health Risks
what are transnational companies (TNC’s)
Companies that operate in more than 1 country, usually in foreign countries or overseas.
5 advantages of TNC’s
- job opportunities
- Improvement in skills and communication
- Good education, healthcare and good quality of life.
- Cheaper products
- Access to vast levels of skills and resources.
5 disadvantages of TNC’s
- Damage to the environment - factories create air pollution.
- Cultural dilution or loss of cultural identity.
- Profits going overseas.
- Natural resources are being over-exploited.
- Daily living costs increased.
TNC case study: Nike general facts
- working factories in China for 30 years
- in 2013, had 765 factories in 43 countries with over 1 million employees
Nike 5 global links
- China has 206 factories and Vietnam has 66
- Nike factories have poor working conditions and long hours with low wages
- Nike has relocated many factories to countries with lower wages
- supplies out of China due to its abundant labour supply and cheap labour costs
- most factories are in south-east asia because:
- labour is cheap
- government offered incentives
- has shops in more than 300 cities
- countries are close together - reduced transport costs
