Development and Globalisation Flashcards
Define development
An imporovement in a number of characteristics of a population. It can be economic, demographic, social, political, cultural
Ways development can be measured
GDP - gross domestic product
GNP - gross national Product
Define GDP
The total value of goods and services a country produces in a year
Define gross national product
The total value of all finished goods and services produced by a country in a year plus all net income earned by that country and its population and its population from overseas sources
What is the development continuum
Describes the difference between developed and undeveloped countries. Places greater emphasis on recognising the increasing gap between rich and poor countries.
Define the development gap
The difference in wealth and associated development indicators eg life expectancy between developed and developing countries
Better measures of development
HDI - human development index - figure below 0.5 is low level of development highest is 1
What does HDI take into account
Life expectancy at birth
Adult literacy and education at primary and secondary and tertiary levels
Real GDP per capita
Define foreign direct investment (FDI)
Investment by a TNC in countries other than its parent. Helps developing countries to develop.
Define globalisation
The increasing interconnection of the worlds economic, political and cultural systems
Define newly industrialised countries (NICs
Countries in the developing world that have undergone rapid industrialisation since 1960s
Define the north south divide
Imagined line that separates the richer countries of north from poorer ones in south
Define sustainable development
Development that meets the needs of the present without compromising the ability of future generations to meet their needs
Define least developed countries ( LDCs)
Countries with very low living standards, low life expectancy. High infant mortality, low levels of education, . Imcludes sub Saharan countries.
Who are the 2 main players in the global economy
Transnational companies ( TNCs) Nation states as recognised by the un
Forms of globalisation
Economic Cultural Political Urban Demographic Linguistic Environmental
Some believe globalisation began when
-late 19th century
- Transport and communication networks expanded around the world
- World trade growth - increase interdependence between rich and poor nations
- Capital flows expanded as European companies started operations in other parts of the world
What two events shaped the processes of globalisation in the late 20th century
- Emergency of free market ideas
- Deregulation of world financial markets so no longer within their own national boundaries
Types of trade blocs
Free trade areas
Customs unions
Common markets
Economic unions
Key financial players
IMF - International Monetary Fund
The world bank
Globalisation brought about a new international division of labour
- two major groups
- The highly skilled,highly paid decision making ,research and managerial occupations - in developed countries
- The unskilled, poorly paid assembly occupations in developing countries with lower labour costs
What is global marketing
Marketing on a world wide scale taking advantage of global operational differences, similarities and opportunities to meet global objectives
Case study for global marketing
Coca Cola
Coca Cola case study
Company with a single product only minor elements are tweaked for different markets uses same formulas for all markets
Positive impacts of globalisation
- Increases economic prosperity as well as opportunity especially among developing nations
- Enhances civil liberties
- Leads to a more efficient allocation of resources
- All countries benefit in the end
Negative impacts of globalisation
- Opportunities in richer countries take talent away from poorer countries
- Impact on culture; more dominant nations eg USA dominate over other countries culture
- NICs taking advantage of countrys lower wage rate to employ a low cost Workforce commonly in sweatshops due to outsourcing of service work
