Development

Question 1

Environmental reasons for economic development

Answer 1

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

Question 2

Political reasons for uneven development

Answer 2

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

Question 3

Social reasons for uneven development

Answer 3

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

Question 4

What is the Gini coefficient?

Answer 4

A technique used to show the extent of income inequality

It is define as a ratio of values between 0 (equal) and 10 (unequal)

Question 5

What is involved in the primary sector?

Answer 5

Exploiting raw materials from land, sea and air. It includes farming and mining.

Question 6

What is involved in the secondary sector?

Answer 6

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.

Question 7

What is involved in the tertiary sector?

Answer 7

The service sector which involves selling services and skills.
It includes selling goods and products from other sectors, health service, transportation, education and entertainment.

Question 8

Economic reasons for uneven development

Answer 8

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

Question 9

What is involved in the quaternary sector?

Answer 9

Those industries providing information services, such as computing, ICT, consultancy and research

Question 10

What is the pre-industrial stage?

Answer 10

When regional differences are minimal

Mainly primary sector

Question 11

What follows the pre-industrial stage?

Answer 11

A period of rapid economic growth characterised by increasing economic divergence
Mainly secondary with primary and tertiary

Question 12

What is the final stage of economic development?

Answer 12

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

Question 13

Define ‘globalisation’

Answer 13

The increased interconnectedness and interdependence of the world, economically, culturally and politically.

Question 14

Reasons for globalisation

Answer 14

Improved telecommunications making instant contact easier
Quick, cheaper transport and the rise of containerism
Relaxed import and export charges

Question 15

Positives of globalisation

Answer 15

Creation of new jobs and more companies created and international jobs available
Economic growth
Education and new skills more available
Shared knowledge base

Question 16

Negative impacts of globalisation

Answer 16

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

Question 17

How has the development of ICT led to globalisation?

Answer 17

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

Question 18

What is a TNC (Transnational Corporation)?

Answer 18

A company that produces and sells in different locations

Question 19

Where are the offices and headquarters of TNCs usually located?

Answer 19

MEDCs as people often have better educations and skills there

Question 20

Where are TNC factories usually located?

Answer 20

LEDCs as the labour is usually cheaper there so the costs are reduced and profits increase

Question 21

Advantages of TNCs

Answer 21

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

Question 22

Disadvantages of TNCs

Answer 22

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