Development Gap & Patterns, Exports and Imports, Globalisation, Multinational Companies Flashcards

1
Q

What is development?

A

The process of change for the better this can be economic, social or political

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2
Q

What does the term ‘development gap’ mean?

A

The widening difference of development between rich and poor.

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3
Q

What is the world bank?

A

An international financial institution that provides loans to developing countries for capital programmes.

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4
Q

What is the development continuum?

A

A linear scale from high developed countries to those with a low level of development.

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5
Q

What 4 categories of wealth does the world bank place countries in?

A

High income countries (HIC’s)
Upper-middle-income countries
Lower-middle-income countries
Low income countries (LIC’s)

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6
Q

Gross domestic product (GDP) is one way to measure economic development. What is it?

A

The total value of all goods and services produced within a country in a year (Total value of the economy)

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7
Q

The average wage of a countries population is known as…

A

Gross national income (GNI)

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8
Q

Give 2 other ways we can measure economic development.

A

Poverty: The percentage of the population that earn less than $1.90 per day according to the world bank.
Employment structure: The type of work people do (Primary-Like farming, Secondary-Factory work or tertiary -Services)

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9
Q

What is Purchasing Power Parity (PPP)

A

A way of comparing the average wealth of a country by taking the cost of living in those countries into account it converts the GNI into a figure that describes what that money will buy in local prices.

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10
Q

What are the limitations of using economic measures of development?

A

They measure only wealth and do not include social factors, They do not recognise the inequality within a country, Without PPP it does not consider the cost of living and what people can afford within that country.

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11
Q

What does NIC stand for? Can you give a named example of one?

A

Newly industrialised country - India, China, Mexico, Brazil.

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12
Q

Malawi is an example of an LIC country which is landlocked what does this mean?

A

It has no coastline and therefore has no sea ports

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13
Q

What key issue does being landlocked create for Malawi?

A

Difficulty trading with other countries.

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14
Q

What types of products does Malawi export?

A

Tobacco, Tea, Cotton, Sugar - Low value goods

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15
Q

What types of products does Malawi import?

A

Oil and Farm machinery - High value products

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16
Q

What to HIC’s export?

A

Manufactured goods

17
Q

What do LIC’s export?

A

Primary goods

18
Q

What is globalisation?

A

The process by which the world’s economies, societies and cultures have become integrated through communication, transportation and trade.

19
Q

What 4 factors drive globalisation

A

MNC’s (Multinational companies), Communication technologies, Trade, Culture

20
Q

Give 5 ways that NIC’s such as India and China benefited from globalisation?

A

-Rapid economic growth
-Cheap labour so manufacturing industry boome
-Changes in technology so they can invest and encourage
MNC’s to locate to them
-Flows of people- Migration
-Flows of idea and culture - Bollywood

21
Q

Give 5 reasons MNC’s such as Nike locate to NIC’s & LIC’s

A
-Weaker legislation on staff safety, welfare and 
  environment
-Lower labour costs
-Reduced costs of buildings and land
-Government incentives
-Closer to markets where goods are sold.
22
Q

What are the positives of MNC’s such as Nike locating to NIC’s & LIC’s?

A

Investment provides jobs and skills for local people, Multiplier effect

23
Q

What are the negatives of MNC’s such as Nike locating to NIC’s & LIC’s

A

-Profits sent back to HIC where the MNC is based
MNC’s can drive out local businesses.
-If the MNC decides to close its factory to relocate people
can be made redundant.
-Lack of laws mean that they operate in a way that they
wouldn’t be able to in a HIC e.g polluting rivers
-Sweatshop conditions for workers etc.

24
Q

What country did you study for where Nike produces sportswear?

A

Vietnam.

25
Q

What other MNC have you studied?

A

Tata Steel

26
Q

What is Foreign Direct Investment?

A

investment from overseas into NICs from MNCs.

27
Q

What are trade blocs? Can you give an example of one?

A

Trading partnerships between different countries e.g European Union, NAFTA (North American Free Trade Agreement)