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

Question 1

What is development?

Answer 1

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

Question 2

What does the term ‘development gap’ mean?

Answer 2

The widening difference of development between rich and poor.

Question 3

What is the world bank?

Answer 3

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

Question 4

What is the development continuum?

Answer 4

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

Question 5

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

Answer 5

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

Question 6

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

Answer 6

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

Question 7

The average wage of a countries population is known as…

Answer 7

Gross national income (GNI)

Question 8

Give 2 other ways we can measure economic development.

Answer 8

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

Question 9

What is Purchasing Power Parity (PPP)

Answer 9

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.

Question 10

What are the limitations of using economic measures of development?

Answer 10

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.

Question 11

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

Answer 11

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

Question 12

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

Answer 12

It has no coastline and therefore has no sea ports

Question 13

What key issue does being landlocked create for Malawi?

Answer 13

Difficulty trading with other countries.

Question 14

What types of products does Malawi export?

Answer 14

Tobacco, Tea, Cotton, Sugar - Low value goods

Question 15

What types of products does Malawi import?

Answer 15

Oil and Farm machinery - High value products

Question 16

What to HIC’s export?

Answer 16

Manufactured goods

Question 17

What do LIC’s export?

Answer 17

Primary goods

Question 18

What is globalisation?

Answer 18

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

Question 19

What 4 factors drive globalisation

Answer 19

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

Question 20

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

Answer 20

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- Migration, Flows of idea and culture - Bollywood

Question 21

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

Answer 21

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.

Question 22

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

Answer 22

Investment provides jobs and skills for local people, Multiplier effect

Question 23

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

Answer 23

1) Profits sent back to HIC where the MNC is based
2) MNC’s can drive out local businesses.
3) If the MNC decides to close its factory to relocate people can be made redundant.
4) Lack of laws mean that they operate in a way that they wouldn’t be able to in a HIC e.g polluting rivers, 5)Sweatshop conditions for workers etc.

Question 24

What country did you study for where Nike produces sportswear?

Answer 24

Vietnam

Question 25

What other MNC have you studied?

Answer 25

Tata Steel

Question 26

What is Foreign Direct Investment?

Answer 26

investment from overseas into NICs from MNCs.

Question 27

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

Answer 27

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