Development Flashcards
Define GNP
The total value of goods and services produced both in the country and out of the country
Define Literacy rate
The percentage of people that can read and write
Define Life expectancy
The average age a person can expect to live
Explain why is human development index is good
- it takes into account variety of factor
- life expectancy/education (number of school) are used to give a better index of development than income alone
- easy to carry out statistical comparison between countries/change over time
Explain why there are differences in levels of development
- levels of education/skills of workforce
- trade policy/free trade
- wars/civil unrest
- investment/aid from other countries
- government policies
- development of a economic activities such as tourism, mining on manufacturing
Variation in soil fertility
Water supplies
Corruption
Physical factors
Climate
-many poorer countries are in the tropics, where it is hot, the land is less fertile, water is scare and disease flourish
—>poor climate reduces the amount of food being produced, selling less
Natural resources
- some raw materials are valuable and can help a country develop if they have the resources to collect and process them, eg oil, diamond, forest and gold
—> lack of raw materials mean they have to spend less to sell and spend more on development
Location
-being near trade routes and having access to the sea eg ports have been good for trades
—> landlocked countries can’t trade using coast
Natural hazards
-some places are vulnerable to natural disaster eg Haiti is located in an area prone to earthquakes and hurricanes
—> natural hazards can ruin current infrastructure, wasting government money
Political factors
Trade-goods are traded on a global scale but it is difficult for poor countries to compete
Corruption-unstable government won’t invest into improving quality of life
—> corrupt government means money is divided
—> countries in war loses money that could be spend, destroying infrastructure and life
War- wars uses resources and make it difficult to produce goods and trade
Economic factors
- Poor trade links mean it can’t import or export reducing chance for development
- lots of debt means high interest rates can’t be used elsewhere
Reliance on primary products doesn’t produce money making little profits
Open economies means welcome foreign investment, reducing potential corruption
Social factors
Discrimination-some groups may have less opportunities and this can hold them back overall development e.g women aren’t educated to the same standards as men
—> women may be not be equal and less likely to be educated as men
Population-over population occurs where population growth outstrip resources
—> high population means high demand holding back economies development
Unsafe drinking water means lots of illness reducing the workforce
Education factor
Uneducated means can’t get jobs
Deterrent to investors since they are less demand
More educated may have smaller families so are able to invest
Those in the informal sector are low paid and are often part time
Define globalisation
The process by which the world becoming interconnected as a result of trade and cultural exchange
Causes of globalisation､
Improvements in transport
-aircraft and shipping (containerisation) has allowed people and goods to move cheaply and quickly
Free trade
-free barriers have fallen internationally in order to improve economies leading to increase in trade internationally
Improvement in communication devices
-makes it easier to communicate and share information around the world
Growth of global media
- brands have international influence
- western culture has diffused into other areas fuelling international interest to emulate
International migration
-people are willing to move to different countries in order to search for work
The role of TNCs in globalisation
- they are firms that owns or controls productive operation in more than one country
- their use of searching for cheaper labour has led to development of other countries, investing offices and factories there
- they use the profits for product innovation to dominate the market
- the spread of global consumerism culture has been important to the success of TNCs due to their marketing strategies
Impacts of MNCs nationally positive
- brings work in the country and uses local labour
- improvement to infrastructure and services
- companies provide machinery and modern technology
- brings welcome investment and foreign currency to the country through taxation of the TNCs
- increase GNP leader to increase demand for consumer goods and industrial growth
- TNCs bring wealth and foreign currency to local economies when they buy local resources, product and services. The extra money created by this investment can be spent on education,health and infrastructure
Impacts MNCs nationally negative
- very few local skilled are employed
- most profits go oversea and so isn’t being invested in the local area widening the gap
- local labour force is poorly paid
- insufficient attention is paid to health and safety within a local area and the protection of the environment isn’t a priority
- decision made outside of the country and can pull out of the host anytime creating massive job loss
