Development & Industry Flashcards

1
Q

Def. Development

A

The progress a country makes over time

And it includes both economic and social dimensions.

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2
Q

Def. Quality of Life

A

Quality of life is the general well-being of people and societies. It is the standard of happiness, comfort, and health that a person or group of people experience.

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3
Q

Def. Standard of Living

A

Standard of living is the degree of wealth and material comfort available to a person or community.

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4
Q

What is a LIC?

A

Low Income Country

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5
Q

What is an NEE?

A

Newly Emerging Economy

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6
Q

What is a HIC?

A

High Income Country

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7
Q

What are the characteristics of LICs?

A
  • Low average incomes
  • Agriculture and other primary industries as main sources of income
  • Especially vulnerable to natural hazards
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8
Q

What are the characteristics of NEEs?

A
  • High rates of economic growth
  • Transnational corporations invest in these
  • Reliant on secondary industries i.e. factories
  • Agriculture still part of the economy
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9
Q

What are the characteristics of HICs?

A
  • Office work has overtaken fatory employment
  • Reliant on tertiary industry
  • Very high average incomes
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10
Q

What is the Brandt Line and what are its limitations?

A

A line that separates the world into ‘the rich north’ and ‘the poor south’.

  • Due to globalisation, billionaires can be found in every country
  • The GNP per capita of some countries in Europe is lower than in Brazil or Malaysia
  • Countries such as Singapore have very high incomes but are below the line
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11
Q

What is HDI?

A

Human Development Index

A combination of
- Life expectancy
- GNP per capita
- Access to education

It is a number from 0 to 1

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12
Q

What are useful Development Indicators?

A
  • Life expectancy
  • Birth and death rate
  • Acess to safe water
  • People per doctor
  • Literacy rate
  • GNP (gross National Product) per capita
  • Quality of life
  • HDI (Human Development Index)
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13
Q

Why is HDI a good development indicator?

A
  • Includes three different indicators in one
  • The indicators are a mix of social and economic e.g. education & GNP per capita
  • Gives a numerical value that allows for easy statistical comparisons
  • Shows the development of a country each year, so progress can be tracked
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14
Q

Why are some countries MEDCs while others are LEDCs?

A
  • Natural resources e.g. oil, coal, raw materials, water
  • Landlocked causes dificulty to trade/having ports
  • Trade Blocs
  • Climate/Natural hazard (disasters)
  • Colonialism
  • Civil war
  • Political system/Level of corruption
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15
Q

Why are there differences in levels of development within a country?

A
  • Availability of energy supplies
  • Proximity to ports/trade hubs
  • Climate extremes e.g. desert
  • Variation in terrain, High relief e.g. mountainous land
  • Accesibility be roads/railways
  • Availability to water supplies
  • Civil wars
  • Variation in government investment
  • Variation in soil quality
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16
Q

What are the Sectors of Industry?

A
  • Primary
  • Secondary
  • Tertiary
  • Quaternary
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17
Q

Def. Primary Sector

A

Industries that extract raw materials directly from the earth or sea

e.g. Mining or farming

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18
Q

Def. Secondary Sector

A

Industries that process and manufacture products from raw materials

E.g. Factory worker or machinist

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19
Q

Def. Tertiary Sector

A

Industries that provide a service

e.g. Teacher or dentist

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20
Q

Def. Quaternary Sector

A

Industries that are knowledge-based and focus on research/innovation and hire highly qualified people

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21
Q

Describe the pre-industrial phase of the Clark Fisher Model

A

The primary sector leads the economy and may employ more than two-thirds of the working population. Agriculture is the most important activity.

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22
Q

Describe the industrial phase of the Clark Fisher Model

A

The secondary and tertiary sectors increase in importance. The primary sector declines.

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23
Q

Describe the post-indusrial phase of the Clark Fisher Model

A

As the tertiary sector becomes the most important sector, the secondary sector declines and the primary sector employs a small percentage of the active population. The Quaternary sector emerges but is still the one with the least employees

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24
Q

Def. Globalisation

A

Globalisation is the way the world is becoming more interconnected by trade and culture exchange.

25
Q

Def. TNC

A

A.k.a Transnational Corporation

A large busines where its operations are spread throughout the world e.g. Apple, Nike, McDonalds.

A.k.a MNCs (multinational corporations)

26
Q

Def. Foreign Investment

A

A process undertaken by companies to extend their business interests overseas. It might involve creating a new source of raw materials (for example a mine), setting up a branch factory, opening new retail outlets or buying shares in a foreign company.

27
Q

Def. Interdependence

A

The drawing together of the countries of the world by the processes of globalisation.

28
Q

Def. Global Shift in Manufacturing

A

Where operations are re-locating to developing countries from developed countries because there is more labour and it is cheaper

29
Q

Def. Outsourcing

A

The contracting out of a business process to another party

30
Q

Def. Offshoring

A

The relocation of a business process from one country to another—typically an operational process, such as manufacturing.

31
Q

What are the key factors that led to globalisation?

A
  • Improvements in transportation
  • Freedom of trade
  • Improvements of communications
  • Labour availability and skills
32
Q

Explain how improvements in transportation leads to globalisation

A

Larger cargo ships mean that the cost of transporting goods between countries has decreased. Economies of scale mean the cost per item can reduce when operating on a larger scale. Transport improvements also mean that goods and people can travel more quickly.

33
Q

Explain how freedom of trade leads to globalisation

A

Organisations like the World Trade Organisation (WTO) promote free trade between countries, which help to remove barriers between countries and these countries can benefit from pproducts that they were not able to produce.

34
Q

Explain how the improvement of communications leads to globalisation

A

The internet and mobile technology have allowed greater communication between people in different countries, meaning culture and information spreads more, at a faster rate.

35
Q

Explain how the increase in labour activity and skills leads to globalisation

A

Countries such as India have lower labour costs (about a third of that of the UK) and also high skill levels. Labour intensive industries such as clothing can take advantage of cheaper labour costs and reduced legal restrictions in LEDCs.

36
Q

What are the positive impacts of Globalisation?

A
  • Inward investment by TNCs helps countries by providing new jobs and skills for local people.
  • TNCs bring wealth to local economies when they buy local resources, products and services. The extra money can be spent on education, health and infrastructure.
  • The sharing of ideas, experiences and lifestyles of people and cultures. People can experience foods and other products not previously available in their countries.
  • Globalisation may help to make people more aware of global issues such as deforestation and global warming and alert them to the need for sustainable development.
37
Q

What are the negative impacts of Globalisation?

A
  • Globalisation operates mostly in the interests of the richest countries, which continue to dominate world trade. The role of LEDCs in the world market is mostly to provide the North and West with cheap labour and raw materials.
  • Often, profits are sent back to the MEDC where the TNC is based, meaning they don’t benefit the local community. This is known as economic leakage.
  • An absence of strictly enforced international laws means that TNCs may operate in LEDCs in a way that would not be allowed in an MEDC. They may pollute the environment, run risks with safety or impose poor working conditions and low wages on local workers.
  • Globalisation is seen by many as a threat to the world’s cultural diversity. It is feared it might drown out local economies, traditions and languages and simply re-cast the whole world in the mould of the capitalist North and West. An example of this is that a Hollywood film is far more likely to be successful worldwide than one made in India or China, which also have thriving film industries.
  • Industry may begin to thrive in LEDCs at the expense of jobs in manufacturing in the UK and other MEDCs, especially in textiles.
38
Q

Describe the spatial organisation of Apple

A
  • Apple’s research and development of the iPhone takes place in Cupertino (aka Silicon Valley), California, USA
  • Raw materials are mined in LEDCs such as Coltan from Congo
  • Component parts for the iPhone are sourced from countries in Asia e.g. memory cards by Samsung and screens by LG in South Korea
  • Component parts are shipped to an assembly plant in China, by Foxconn
  • The final product, the iPhones, are shipped to the rest of the world (mainly HICs and MICs), e.g. in Europe where products are bought in apple stores or online
39
Q

Give a brief introduction and the history of Apple

A
  • Started in California by Steve Jobs and Steve Wozniak (1976) to develop personal computers.
  • iPhone first released 2007
  • World’s first smartphone.
  • By 2017 2 million apps were available for use on iPhones.
  • Apple update the iPhone (their main product) each year.
40
Q

Describe the impact of Apple sourcing it’s coltan from coltan mining in Congo

A
  • Mining is unregulated leading to environmental damage e.g. land eroded by mining pollutes lakes and rivers.
  • Many of the mines are also located in gorilla habitats which is threatening this already critically endangered species.
  • Many of the mines are owned by rebel groups who use profits to purchase weapons.
  • Because of some of these issues Apple has altered its sourcing relationships and now only uses ‘conflict- free tantalum’.
  • Children are forced into labour in these mines
41
Q

Who are Apple’s main suppliers?

And how many do they have?

A
  • One of Apple’s largest component suppliers is Samsung (one of its largest competitors) who supply silicon chips.
  • Other suppliers include Sony (cameras) and Sharp and LG (touchscreen displays).
  • Apple has around 200 vendor suppliers around the world.
42
Q

Describe the assembly phase in Apple’s supply chain

Use facts and data

A
  • Manufactured components are sent to China for final assembly.
  • Apple does not manufacture its own mobile phones but outsources the assembly of parts to other companies in - China where skilled workers can be employed for wages that are relatively cheap by world standards.
  • A large proportion of Apple iPhones are assembled at Foxconn, a Taiwanese TNC electronics company.
  • Foxconn has 12 factories in mainland China, with the largest being in Shenzhen.
  • The Shenzhen factory is often referred to as Foxconn city, it has also been nicknamed iPhone city.
  • Foxconn city employs more than 350,000 people.
  • It is estimated that about 40% of all electronic products are assembled in Foxconn factories.
43
Q

Describe the distribution of Apple products

A

When phones have been assembled and packaged, they are air-freighted to distribution centres in several parts of the world, including Australia, China, Singapore, The UK and the USA.

44
Q

What are Apple’s positive impacts at a local scale (Foxconn City in Shenzhen)

A
  • Foxconn has no shortage of applicants for jobs in their factories; with wages being higher than most other Chinese factory jobs.
  • More people and money in the area leads people to setting up their own businesses, for example, many have opened restaurants to serve the workers. This is known as a positive multiplier effect.
  • Foxconn provides housing for workers. In the area that surrounds Foxconn city, services have sprung up to serve the workers e.g., movie theatres, restaurants, sports and leisure facilities, night clubs etc.
  • Many young people have migrated to Shenzhen from rural areas. The quality of life in Shenzhen is better than in the countryside and they are able to send money home to help lift their families out of poverty.
45
Q

What are Apple’s negative impacts at a local scale (Foxconn City in Shenzhen)

A
  • In 2010 there were a series of employee suicides at Foxconn. The company was criticised for poor labour practices e.g., allowing people to work past legal overtime limits and harsh penalties for those who make mistakes.
  • Employees living in Foxconn city share cramped dormitories with 10-12 people.
  • In the run up to the launch of the iPhone X, it was found that trade schools were forcing students as young as 16 to work at the factory to gain work experience to graduate. Many students were found to be working overtime which is illegal in China.
46
Q

What are Apple’s positive impacts at a national scale (China)

A
  • With 1.3 million employees in mainland China, Foxconn is by far the country’s largest employer.
  • It is not just factory jobs that bring benefits from Apple to China. There are over 380 component suppliers, covering almost every section of Apple’s smartphone industry, that are benefitting.
47
Q

What are Apple’s negative impacts at a national scale (China)

A
  • Major Apple supplier, Foxconn, moved some of the production of the iPad and MacBook from China to Vietnam. Apple requested the move as a way of making it less reliant on China, following the trade war between the nation and President Donald Trump’s administration.
48
Q

Which Physical factors affect industrial location?

A
  • Flat Land: It is a lot easier to build on flat land than hilly land so most industries look for flat sites.
  • Available Land: If industries are successful they will want to expand, so most industries will look for sites that have the potential to expand factories/offices.
  • Unpolluted Land (Greenfield Site): Most industries would prefer to build on greenfield sites. This is because there are no clean up costs before building.
  • Natural Transport Links: In an increasingly globalized world, products are now sold worldwide. Therefore it is important to be close to natural transport routes e.g. rivers and the coast.
  • Available Raw Materials: For any industries that use raw materials, it is very important to be close to them.
  • Renewable Energy Sources: It is becoming increasingly important for companies to demonstrate their sustainability. Therefore it will become increasingly important to have access to renewable energy sources (wind and sun).
  • Nice Environment: For tertiary and quaternary industries who are trying to attract skilled workers it is useful to be near a nice environment to make working their more attractive.
  • Water Supply: For many industries, especially manufacturing, it is very important to be near a reliable water supply (river or reservoir).
  • Climate: For some industries a good climate can be very important. For example you would not locate a solar panel research and development company in a place where the sun never shines.
49
Q

Which Human factors affect industrial location?

A
  • Skilled Labour: In some industries especially quaternary it is important that there is an availability of skilled labour.
  • Cheap Labour: In other industries like clothes production an availability of cheap labour is very important. This why many clothes factories locate in LEDCs.
  • Available Capital: For industries to build factories or offices, research and develop new products or enter new markets, they need access to money.
  • Market: For any industry to survive, they need customers. Therefore it is very important to locate near their potential market.
  • Supply Network: Most industries have a large supply network. To ensure the smooth production of products it helps being close to suppliers.
  • Good Housing: To attract any workers it is important to have suitable housing nearby. For quaternary industries this might be good quality housing for secondary industries this might be high density cheaper housing.
  • Good Schools and Hospitals: Again to attract workers and especially their families, it is important to have good nearby schools and hospitals.
  • Nearby Universities: For quaternary industries that carry out a lot research and development they need to be located near universities that have skilled workers and available laboratories.
  • Transport Links: It is important to be close to good roads and rail links so that industries can receive supplies and distribute products.
  • Good Communications: It is now very important for industries to have good communications so that they can contact suppliers and customers.
  • Reliable Electricity and Water Supply: For all industries a constant electricity supply is essential because industries can’t afford breaks in production.
50
Q

Def. Footloose Industry

A

An industry not tied to a particular location, such as hi-tech industries, and are lnormally locaten near motorway junctions, on the edges of towns or cities in business parks.

Where the access to raw materials/heavy transport is not important

51
Q

What physical and Human factrs make Silicon Valley attractive to Hi-Tech Companies?

A
  • The coastal range, which provides beautiful scenic views that the highly paid workers would enjoy to live close to
  • Climate of the area - it has 300 sunny days a year which would be a very pleasant environment for workers to live in.
  • Proximity of universities that provides highly skilled labour for the industry .g Stanford University
  • Excellent road and rail links which allows workers to reach their jobs and goods to be transported in and out.
52
Q

What is Foxconn City, Shenzen?

A

This is a Taiwanese factory in China, Shenzen, Longhua Town, employed by Apple, which employs people to make apples products. It produces half of the world’s Apple products and is nicknamed ‘the factory of the world’.
Hundreds of thousands of workers are employed at the Longhua Science & Technology Park, a walled campus sometimes referred to as “Foxconn City”.

53
Q

Explain the reasons why Foxconn City is Located in Longhua Town, Shenzen, China

A
  • Flat Land
  • Government Incentives (Special Economic Zone (SEZ))
  • Many transport links
  • Close to supply
  • Low cost and availabe labour
54
Q

Explain why Foxxcon City, Shenzen, is on flat land in the outskirts of Shenzen

A

Foxconn City is on the outskirts of Shenzhen on flat land. This is because it is a large factory complex and so there needed to be enough space for the factory buildings. Having ample space also allows room for the company to expand and to provide space for dormitory accommodation for factory workers.

55
Q

Explain why Foxconn City, Shenzen, is based on a zone with government Incentives

A

To encourage new markets “special economic zones” (SEZ) were established in China in 1979, these areas were designed to attract foreign business. Within these zones firms are; taxed lower, allowed to import duty-free raw materials, and pay no export taxes. Shenzhen was the first SEZ to be created in China.

56
Q

Explain why Foxconn City, Shenzen, is based on a zone with a steady and reliable supply network

A

To ensure the smooth production of products it helps being close to suppliers.
Many of the components needed to make an iPhone can be sourced from within a 50-mile radius of Foxconn City.

57
Q

Explain why Foxconn City, Shenzen, is based on a zone with plentiful transport links

A

Foxconn City is well connected via roads and railway links which is important for moving components into the factory and finished goods out.
Shenzhen is a coastal city located in southern China. It is the third busiest container port in the world, allowing goods manufactured there to be shipped overseas.

58
Q

Explain why Foxconn City, Shenzen, is based on a zone with low cost labour

A

Low-cost labour is available in Shenzhen as there is a large supply of young migrants moving from poor rural areas, looking for work in the city.
This has allowed more than 450,000 people to be employed at Foxconn city in Shenzhen. Many working on assembly lines assembling electronic items such as iPhones.