Development Flashcards
Environmental reasons for economic development
Countries more prone to natural disasters, diseases, illnesses and other hold backs are more likely to develop
Countries which are land locked make trade more difficult so less goods can come in
Natural disasters destroy buildings and major cities
Political reasons for uneven development
Poor governance and corruption means that wealth isn’t distributed evenly throughout the country and money is spent on affluent lifestyles of rich
War destroys education, healthcare, agriculture and reduces population. It curbs development as companies aren’t prepared to set up in countries where there is the fear of war
Colonialism hindered independent development of countries
Social reasons for uneven development
Culture has hidden effects in business, trade and development
Nationalism, suspicion or radical philosophy has some countries closed down
Discrimination means that sometimes a country cannot reach its full potential
Poverty in LEDCs
What is the Gini coefficient?
A technique used to show the extent of income inequality
It is define as a ratio of values between 0 (equal) and 10 (unequal)
What is involved in the primary sector?
Exploiting raw materials from land, sea and air. It includes farming and mining.
What is involved in the secondary sector?
Taking raw materials produced by the primary sector and processing them into manufactured goods and products.
This includes heavy manufacturing, light manufacturing, food processing, oil refining and energy production.
What is involved in the tertiary sector?
The service sector which involves selling services and skills.
It includes selling goods and products from other sectors, health service, transportation, education and entertainment.
Economic reasons for uneven development
Raw materials (mineral deposits and energy resources) were the first to develop industrially LEDCs have raw materials but the profits on manufacturing (MEDCs) is much higher LEDCs borrow money to develop but they cannot afford to pay it back now due to interest rates and so are in debt
What is involved in the quaternary sector?
Those industries providing information services, such as computing, ICT, consultancy and research
What is the pre-industrial stage?
When regional differences are minimal
Mainly primary sector
What follows the pre-industrial stage?
A period of rapid economic growth characterised by increasing economic divergence
Mainly secondary with primary and tertiary
What is the final stage of economic development?
A stage of regional economic convergence when a significant wealth generated in the most affluent region spreads to the other parts of the country
Mainly tertiary with reduced primary and quaternary rising
Define ‘globalisation’
The increased interconnectedness and interdependence of the world, economically, culturally and politically.
Reasons for globalisation
Improved telecommunications making instant contact easier
Quick, cheaper transport and the rise of containerism
Relaxed import and export charges
Positives of globalisation
Creation of new jobs and more companies created and international jobs available
Economic growth
Education and new skills more available
Shared knowledge base
Negative impacts of globalisation
Threat to the world’s cultural diversity which may drown out local economies, traditions and languages
Profits often sent out of countries (economic leakages)
Mainly operates in benefit of richer countries so LEDCs lose out
How has the development of ICT led to globalisation?
Improvements in technology include; email, the internet, mobile phones and faster phone lines that carry more information.
These improvements have made it quicker and more convenient for businesses all over the globe to communicate with each other
This means a company can have its headquarters in one country and have branches in other countries.
Increased investments and trade
What is a TNC (Transnational Corporation)?
A company that produces and sells in different locations
Where are the offices and headquarters of TNCs usually located?
MEDCs as people often have better educations and skills there
Where are TNC factories usually located?
LEDCs as the labour is usually cheaper there so the costs are reduced and profits increase
Advantages of TNCs
Create jobs in countries they are located in
Employees in LEDCs get a more reliable income working in factories than working on fields
TNCs spend money to improve local infrastructure of an area
New technology and wisdom is brought to LEDCs
Disadvantages of TNCs
Employees in LEDCs may be paid much less than employees in MEDCs for doing more high intensity jobs
Employees in LEDCs work for long hours in poor conditions
Profits from production go straight to headquarters in MEDCs and aren’t reinvested in LEDCs
The jobs in LEDCs aren’t secure and can be lost if the company decides to relocate
