Development & Globalisation

Question 1

Define: Development Continuum

Answer 1

The contemporary way of viewing development; perceiving it as a continual process and recognising that it can occur in a number of different ways, not necessarily following the UK model.

Question 2

Define: Foreign Direct Investment (FDI)

Answer 2

An investment by a TNC in countries other than its parent.

Essential for LEDCs to develop.

Question 3

Define: Globalisation

Answer 3

The increasing interconnection of the world’s economic, political and cultural systems.

Question 4

Define: Newly Industrialised Countries (NICs)

Answer 4

Countries in the developing world that have undergone rapid industrialisation since the 1960s.

Question 5

Define: North-South Divide

Answer 5

The imagined line that separates the richer countries of the north from the smaller countries of the south.

First proposed by the Brandt Report in 1980

North consists of countries such as N.America, Europe, Russia, Japan, Australia

Question 6

Define: Sustainable Development

Answer 6

Development that meets the needs of the present without compromising the ability of future generations to meet their needs.

Question 7

Define: Transnational Corporations (TNCs)

Answer 7

A company that has the power to coordinate and control economic operations in more than one country.

The company doesn’t have to own the operations outside its country.

Question 8

Define: Developed Countries

Answer 8

The most highly developed countries with high living standards.

Question 9

Define: Developing Countries

Answer 9

Countries at a lower stage of development.

Question 10

Define: Least Developed Countries

Answer 10

Countries with very low living standards: low life expectancy, high infant mortality, low levels of education.

Question 11

Define: Recently Industrialising Countries

Answer 11

Countries that have begun to develop through industrialisation in the last 40 years- e.g Singapore.

Question 12

Define: Centrally Planned Economies

Answer 12

An economic system in which the economic decisions are made by the state or government rather than by the interaction between consumers and businesses.

Question 13

Define: Oil-Rich Countries

Answer 13

Countries that have plenty of natural oil under the ground from which it is able to make a lot of money. They tend to have a high GDP per capita, although the wealth is concentrated in the hands of the few.

Question 14

What is the Brandt Line?

Answer 14

The Brandt line is a line proposed by the German Chancellor in a 1980 report to show the Development Gap and the North-South divide that separates the richer northern counties from the poorer southern.

The report demanded that poorer southern countries be integrated into the global economic system to improve the conditions in their countries.

Question 15

What has happened to third world debt in recent years?

Answer 15

It has grown until the interest on the debts exceeds the amount that the country produces so it can never be repaid.

Question 16

Define: Development Gap

Answer 16

The difference in affluence between the richer and the poorer countries of the developing world.

Question 17

What are the 5 types of development?

Answer 17

Economic
Demographic
Social
Political
Cultural

Question 18

What is economic development?

Answer 18

An increase in a country’s level of wealth.

It could be accompanied by a decrease in the no. employed in agriculture and an increase in the no. employed in manufacturing (at first) and services. There may be a greater access to and use of natural resources with an increase in energy use per capita.

Question 19

What is demographic development?

Answer 19

An increase in life expectancy and an overall fall in death rate (inc. IMR) and falling birth rates.

Question 20

What is social development?

Answer 20

A range of changes affecting the quality of life for the population.

E.g. Improved literacy+education levels, access to medical care, improved sanitation and better housing.

Question 21

What is political development?

Answer 21

Increased freedom, allowing formation of a democratic government.

Question 22

What is cultural development?

Answer 22

A range of changes such as: greater equality of women and better race relations in multicultural societies.

Question 23

What is Gross Domestic Product (GDP)?

Answer 23

The total value of all finished goods and services provided by a country in a year.

(Usually expressed per capita)

Question 24

What is Gross National Product (GNP)?

Answer 24

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 it’s population from overseas.

(Usually expressed per capita)

Question 25

What are the problems of using GDP or GNP to measure development?

Answer 25

May be a difference in wealth between regions of a country or between various groups (wealth may be concentrated with a few).

May fail to take into account the cost of living and thus the purchasing power of people’s incomes.

Question 26

What is a better alternative to GDP or GNP to measure development?

Answer 26

PPP- the Real GDP per capita based on the Purchasing Power Parity of people’s incomes.

Question 27

What does the Human Development Index (HDI) measure?

Answer 27

Life expectancy at birth

Adult literacy and enrolment in education at primary, secondary and tertiary levels

Real GDP per capita (PPP)

Question 28

What is the highest figure on the HDI that a country can achieve?

Answer 28

1

A figure below 0.5 is considered to represent low levels of development.

Question 29

Why is the HDI criticised?

Answer 29

Because some LEDCs have the same HDI as MEDCs as the countries can promote human development even if their income is low.