Development Gap & Patterns, Exports and Imports, Globalisation, Multinational Companies Flashcards
What is development?
The process of change for the better this can be economic, social or political
What does the term ‘development gap’ mean?
The widening difference of development between rich and poor.
What is the world bank?
An international financial institution that provides loans to developing countries for capital programmes.
What is the development continuum?
A linear scale from high developed countries to those with a low level of development.
What 4 categories of wealth does the world bank place countries in?
High income countries (HIC’s)
Upper-middle-income countries
Lower-middle-income countries
Low income countries (LIC’s)
Gross domestic product (GDP) is one way to measure economic development. What is it?
The total value of all goods and services produced within a country in a year (Total value of the economy)
The average wage of a countries population is known as…
Gross national income (GNI)
Give 2 other ways we can measure economic development.
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)
What is Purchasing Power Parity (PPP)
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.
What are the limitations of using economic measures of development?
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.
What does NIC stand for? Can you give a named example of one?
Newly industrialised country - India, China, Mexico, Brazil.
Malawi is an example of an LIC country which is landlocked what does this mean?
It has no coastline and therefore has no sea ports
What key issue does being landlocked create for Malawi?
Difficulty trading with other countries.
What types of products does Malawi export?
Tobacco, Tea, Cotton, Sugar - Low value goods
What types of products does Malawi import?
Oil and Farm machinery - High value products