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.
- 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?
Low value goods:
- Tobacco.
- Tea.
- Cotton.
- Sugar.
- What types of products does Malawi import?
High value products:
- Oil.
- Farm machinery.
- What to HIC’s export?
Manufactured goods.
- What do LIC’s export?
Primary goods.
- What is globalisation?
The process by which the world’s economies, societies and cultures have become integrated through communication, transportation and trade.
- What 4 factors drive globalisation?
- MNC’s (Multinational companies.)
- Communication technologies.
- Trade.
- Culture.
- Give 5 ways that NIC’s such as India and China benefited from globalisation?
- Rapid economic growth.
- Cheap labour so manufacturing industry boomed.
- Changes in technology so they can invest and encourage MNC’s to locate to them.
- Flows of people (e.g. Migration).
- Flows of idea and culture (e.g. Bollywood).
- Give 5 reasons MNC’s such as Nike locate to NIC’s & LIC’s.
- 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.
- What are the positives of MNC’s such as Nike locating to NIC’s & LIC’s?
- Investment provides jobs and skills for local people.
- Multiplier effect.
- What are the negatives of MNC’s such as Nike locating to NIC’s & LIC’s?
- 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.)
- What country did you study for where Nike produces sportswear?
Vietnam.
- What other MNC have you studied?
Tata Steel.
- What is Foreign Direct Investment?
Investment from overseas into NICs from MNCs.
- What are trade blocs? Can you give an example of one?
Trading partnerships between different countries (e.g European Union, NAFTA (North American Free Trade Agreement))
