Development Flashcards

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1
Q

Name a global grouping and info about it

A

European Union
1st grouped together to help recover after WWII and maintain peace
6 members - 1957 increased 27 members 2007
Closely integrated political and economic group - goods, services and people can move freely between most countries - 17/27 adopted single currency - common laws and policies

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2
Q

Name 5 positive impacts of the EU

A
  1. Trade increased between European countries - 1970 12% UK’s GDP came from trade with EU countries - after joining in 1973 rose to 23% (2002)
  2. Euro made trade easy - no need to exchange currency - prices more consistent
  3. EU supports some industries - Common Agriculture Policy (CAP) includes subsidies for EU farmers and adds import tariffs and quotas on agri imports from outside EU - gives farmers reasonable standard of living
  4. Increased security from external threats - EU counter terrorism policy protects all members from threat of terrorism by measures such as introducing biometric passports
  5. Most EU members have freedom to move around the EU - to live and work
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3
Q

Name 5 negative impacts of the EU

A
  1. Can be expensive to join - must meet certain criteria - high standards of environmental protection - requires investment
  2. Members have to share some resources with other member states - countries in EU come under Common Fisheries Policy - fishing grounds become open to other member states
  3. Policies like CAP can have negative economic impacts on countries outside EU - made trade with countries inside EU because it is cheaper
  4. Increased immigration in EU has resulted in a lack of skilled workers in some Eastern EU countries - so many have moved to Western EU for higher salaries
  5. Joining EU can reduce independence - agree to obey EU policies even if it conflicts with their national policies
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4
Q

Name an example where sustainable tourism occurs

A

The Great Barrier Reef - N.E. coast Australia

  • supports many vulnerable and endangered species
  • 1980s-90s improved access led to rapid rise in tourism (increased by 30% every year)
  • tourism today is largest commercial activity around the reef - 90% reef’s economic output - major source of income for local and national economy >£5bn a year
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5
Q

Name 5 ways in which tourism has been made sustainable at the Great Barrier Reef

A
  1. Great Barrier Reef Marine Park Authority (GBRMPA) managed a large area of the reef - works with Queensland Parks and Wildlife service, gov. agencies and tourist industry to ensure sustainability
  2. 2003 GBRMPA established zoning system - describes where certain tourist activities can take place, protect most sensitive areas, keeps tourism to a sustainable level
  3. Some activities (fishing) strictly regulated - tourist operators have to obtain permits from GBRMPA - the no. permits is capped - restrictions on boats sizes and group numbers in certain areas
  4. Most tourist operators pay an Environmental Management Charge (EMC) of around $3.50 per visitor to GBRMPA - money funds research, education and management of marine park
  5. Tourist operators and tourists encouraged to contribute to research and monitoring of reef - reporting extent of coral bleaching, encourages tourists to take interest in protection of reef
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6
Q

Name 5 negative impacts tourism has had on the Great Barrier Reef

A
  1. Coral reefs easily damaged by pollution - affects species dependent on them - tourist industry creates pollution - waste disposal and boats
  2. Coral can be damaged by boat anchors and poor diving practices - stepping on coral
  3. Tourists can disturb wildlife - nesting seabirds nest on ground - when disturbed parents leave nest - exposing young/eggs to predators
  4. Reef is culturally and economically important to local indigenous islanders - tourism limits where these people can fish or carry out ceremonial activities
  5. Developments for tourism along coast damage coastal ecosystems (mangrove forest and estuaries) - important for maintaining reef (estuaries feed nutrients to reef from land)
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7
Q

Name and example of a place where rapid economic growth has occurred at an environmental cost

A

Sarawak, Malaysia

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8
Q

Name a country (and some details about it) that has had development issues

A

Sudan
- one of poorest countries in Africa
– long periods of civil war
- economy growing rapidly in recent years - GDP grew by 5% in 2010 - although changes haven’t lead to improved living standards for everyone
- widespread poverty - 50% pop. Live on $1 a day

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9
Q

Outline 5 ways in which Aid has helped the development of Sudan

A
  1. 2007 received $2bn in aid (= 5% GNI) - 70% was humanitarian - cope with severe food shortages
  2. Aid comes from different sources - individual Gov. (UK, US)
    - international organisations (UN) and NGOs
  3. Receives a lot of food aid - 2008 World Food Programme provided food aid to 6million people in Sudan - helps people survive in short term - not helpful long term
  4. Some aid is used to promote development - attempting to prevent conflict, invest in education and healthcare, US agency for international development funded construction of 140 primary schools and 5 secondary schools
  5. Lots of problems getting aid to where it is needed - corruption
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10
Q

Outline 7 ways in which trade has influenced the development of Sudan

A
  1. Growth of oil industry - boosted trade
  2. 1990s - most exports agri - trade deficit - production and trade decreased due to conflict and droughts
  3. 1999 - started exporting oil - trade surplus $1.4bn in 2011
  4. Growth of oil helped development - economic growth and improved international relations (trade agreements with US, EU, Eygpt and Lybia)
  5. Concerns development is not helping everyone - corruption
  6. Agriculture still important to economy - 40% GDP and 80% employment - low profit and unreliable
  7. Difficult for Sudan to make a lot of money on exports due to trade barriers - 2012 av. import tariff = 20%
    - in process of joining World Trade Organisation (WTO) - make international trade easier - access to wider market
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11
Q

Name a TNC and some info about it

A

Wal-Mart

  • largest retail TNC in world
  • includes ASDA, Seiyu (Japan), Bompreço (Brazil)
  • HQ in Arkansas
  • Manufactures in China and India
  • starting to open stores in NICs
  • accelerates globalisation - links countries through flow of people and goods, brings western culture to other parts of world
  • global brand
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12
Q

Name 4 social impacts Wal-Mart has had on the USA

A
  1. Provides customers with a wide range of goods
  2. Many are open 24hrs - people can shop when it suits them
  3. Many jobs poorly paid with few benefits (healthcare) - employees have to rely on state benefits - California (2004) state paid $85m to Wal-Mart employees
  4. Accused of having poor working conditions - 2005 Wal-Mart had to pay $170m compensation as workers had been denied meal breaks
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13
Q

Name 5 economic impacts Wal-Mart has on USA

A
  1. Employment - each new store creates jobs - Vineland opened 2009 - 700 new jobs
  2. Low prices
  3. Decline in manufacturing industry - buys a lot of products from suppliers outside of US - electronics from China and Malaysia - loss of manufacturing jobs in US
  4. Loss of local businesses - small shops close down as they cannot compete with low prices
  5. Cause loss of local jobs - for every 100 jobs created - 50 jobs a year lost from local businesses
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14
Q

Name 2 environmental impacts Wal-Mart has had on the US

A
  1. Produces huge amounts of greenhouse gases - opened ‘green stores’ - run on renewable energy
  2. Domestic stores often large and out of town - takes up large areas of land - people driving causes congestion and pollution
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15
Q

Name 4 social impacts Wal-Mart has on host countries

A
  1. Offers skilled jobs in LDCs - stores in China are managed by local people
  2. In poorest countries - working in wal-mart offers more reliable income than other jobs (farming)
  3. Working conditions may be poor - some suppliers have long working hours, Baximco (Bangladesh) supplies clothing to Wal-Mart - despite max. 60hr working week - many work 80hrs
  4. Wal-Mart donates millions dollars to improve things such as health in host countries - 2008 donated $77,000 to local projects in Argentina focusing on reducing hunger - supported 30 soup kitchens feeding 12,000 people
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16
Q

Name 2 examples of NICs what industry they are affluent in

A
  1. China - manufacturing

2. India - services

17
Q

Since the 1970s what has happened in China

A

Rapid economic growth

  • GNI rose from $180 (1978) to $2900 (2010)
  • growth rate of 10%
  • economic reform in 1978 (previously state controlled all of China’s production)
18
Q

Name 6 ways in which the Chinese economy was reformed stimulating growth

A
  1. Imports and exports encouraged - reduced taxes and tariffs - exports rose by 20% a year 1981-1994
  2. Encouraged growth of private business - agriculture partly privatised - farmers sell their produce instead of state
  3. Foreign investment encouraged - special economic zones - companies given tax breaks if they invested in manufacturing (by building factories)
  4. Greater investment in education - workforce more attractive to TNCs
  5. Investment in infrastructure - easier for manufacturers to operate
  6. 2001 China joined WTO - opened Chinese markets to foreign investors - Chinese businesses could export easily
19
Q

Outline 3 ways in which China has benefited from industrial growth

A
  1. Cumulative causation - Chinese businesses supply TNCs
  2. Manufacturing industry boomed - rapid and continuing economics growth
  3. Led to increased wealth and improved living standards
20
Q

Name 3 negative impacts industrial growth has had on China

A
  1. Wider gap between rich and poor - much of development in big cities along coast - interior agri area still poor
  2. Environmental problems - air pollution and acid rain
  3. Working conditions poor in some areas - 2010, 130 workers injured by toxic chemical at factory in Suzhou (nr. Shanghai) making products for Apple Inc.
21
Q

Outline how and why there has been rapid economic growth in India

A
  • economy grown by 7% per year since 1997

- 1990s - economic reforms reduced trade barriers and encouraged FDI

22
Q

Why did growth in the services industry succeed in India? (4 reasons)

A
  1. Plenty of highly skilled and highly educated workers - 3m graduate from Indian unis each year (500,000 engineering graduates)
  2. English is widely spoken and understood - important for TNCs from English-speaking countries (call centres)
  3. Low labour costs
  4. Extensive communications network
23
Q

Name 2 main ways in which the service industry has grown in India

A
  1. Local companies in the service industry grew as they supplied foreign TNCs
  2. TNCs relocated service areas of their business to India (call centres)
24
Q

Outline how local companies in the service industry grew as they supplied foreign TNCs (3 things)

A
  1. 1980s-90s young Indian IT professionals migrated to US or UK for work in Western countries - when returned brought back skills - set up businesses to supply needs of MDC
  2. Least cost location - cheap labour costs means these companies can provide same services for cheaper price
  3. As services industry grew - more TNCs attracted
25
Q

Outline 3 reasons why TNCs relocated back-office jobs to India and has caused the service industry to grow

A
  1. Availability of skilled, English speaking workforce - call centres
  2. By moving services to India - TNCs can save a lot of money - av. salary in Indian call centre = £1200 a yr (2003) - £12500 in UK
  3. Other examples of services moved to India include IT technical assistance, financial admin - KPMG is a financial consultancy TNC - employs people in 10 cities in India
26
Q

Outline 2 positive and 2 negative impacts the growth in the service sector has had on India

A

Positive

  1. Become an important part of Indian economy - 2011 accounted for 56% GDP
  2. Has increased wealth and employment - raised living standards

Negative

  1. A large proportion of the growth is from foreign investment from TNCs - profits leave country
  2. Benefits and employment opportunities mostly only available to educated middle class - increased poverty gap