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GCSE Geography > Economic Development > Flashcards

Economic Development Flashcards

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1
Q

Development def.

A

The use of resources to improve the quality of life in a country

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2
Q

Gross national product def.

A

The total value of goods and services produced by the country in a year, plus income earned by the country’s residents from foreign investments, minus income earned within the domestic economy by overseas residents.

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3
Q

Gross national product per capita def.

A

The total GNP of a country divided by the total population

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4
Q

Purchasing power parity (PPP) def.

A

Income data that has been adjusted to take into account the differences of cost in living between countries

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5
Q

Development gap def.

A

The difference in wealth and other indicators between the worlds richest and poorest countries

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6
Q

Human development index (HDI) def.

A

The United Nations’ measure of disparities between countries: combines three measures – life expectancy (a social measure), education (average number of years of schooling and expected years of schooling– a social measure) and gross national income per capita (an economic measure).

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7
Q

Least developed country def.

A

The poorest of the developing countries. They have major economic, institutional and resource problems

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8
Q

Newly industrialised country (NIC) def.

A

Nations that have undergone rapid and successful industrialisation since the 1960’s

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9
Q

Adult literacy rate def.

A

The % of people who can read and write

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10
Q

Life expectancy def.

A

The average age a person is expected to live

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11
Q

Infant mortality rate def.

A

The number of deaths of children under one year of age per thousand live births per year

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12
Q

When does development occur?

A

When there are improvements to individual factors making jo quality of life. E.g development occurs in an LEDC when:

  • local food supply improves due to investment in farm machinery and fertilisers
  • the electricity grid extends outwards from the main urban areas to rural areas
  • levels of literacy improve throughout the country.
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13
Q

Explain the distribution of MEDCs and LEDCs

A
  • MEDCs are mainly found in the northern hemisphere (e.g England, Germany, France)
  • LEDCs are mainly found in the lower hemisphere (a lot in Africa)
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14
Q

Why is it better to use more than one indicator to measure development?

A
  • It is misleading to look at one single wealth indicator (e.g GNP per capita) because the wealth of a country might not be shared out equally.
  • Also, one country might be seen as very developed when using one indicator, but far less developed when using a different indicator.
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15
Q

What is the human development index (HDI)?

A

The United Nations uses a composite indicator called HDI which is made up of these measures:

  • real GNP per capita (GNP per capita adjusted to PPP)
  • adult literacy
  • life expectancy
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16
Q

Why is the Human development Index (HDI) a good way to measure development?

A
  • HDI uses 2 types of social data (health and education) and 1 type of economic data which means that the measure uses a broad range of information and is not tied up with only one measure. This is a much more accurate measure.
  • The information is updated annually and collected by a range of people who ensure that the data is as accurate as possible.
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17
Q

Describe + explain the regional disparities within Brazil

A

The core area, is very developed:
has fertile soils for farming
has good access to ports for trading
has benefited from business investment in the area

The periphery is not very developed, areas which:
are a long way from the core
suffer from a wet and tropical climat
include dense rainforest
are difficult for access to ports and trading links

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18
Q

What is the primary production sector (include examples)

A
  • acquiring raw materials.
  • e.g miners, farmers, fishers
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19
Q

What is the secondary production sector (give examples)

A
  • Manufactures primary materials into finished products
  • e.g production of processed foods, furniture and motor vehicles
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20
Q

What is the tertiary production sector (give examples)

A
  • provides a service which helps the production and distribution process
  • e.g teacher, doctor, lawyer, taxi driver
21
Q

What is the quaternary production sector (give examples)

A
  • provide information, research and development
  • e.g computing, ICT, programmers
22
Q

what are the sections of factors affecting inequalities within countries?

A

residence, ethnicity, education, land ownership and work

23
Q

how does residence create inequalities between countries?

A

— urban and rural disparities — urban areas (core) generally attract more investment than rural areas (periphery). this results in higher per capita incomes in core areas

— intra urban disparities — low, middle and high income areas often exist close together within the same city. many people in LEDCs live in slum conditions in cities and find it hard to break out of this situation

— climate and proximity to sea — climate affects how easy the area is to use for investment, as some areas experience natural hazards e.g flooding and desertification. proximity to sea affects transport availability

24
Q

how does ethnicity create inequalities within a country?

A

— some ethnic or religious groups have income levels much lower than the dominant group(s) in the population
— this is often because of discrimination which limits social, economic and political opportunities
— ethnic or religious minorities may be heavily concentrated in one area of a country or region

25
Q

how does land ownership affect the inequalities between countries?

A

the distribution of this (tenure) has a major impact as the ownership of even a small bit of land provides the security that those in the countryside without land do not have

26
Q

how does education create inequalities between countries?

A

— in developing countries, those with the least amount of education tend to have the largest families. also, those with more education have better employment. maintaining a large family means saving is impossible and debt likely
— standard of education varies as areas with more factories have more tax base, so more money is available to spend on education

27
Q

how does work create inequalities within a country?

A

there is an inequality between formal and informal work within a country

28
Q

what is formal work

A

— provide better pay and security than in the informal sector
— fringe benefits such as holiday and sick pay may be available

29
Q

what is informal work

A

— generally low paid and temporary and or part time
— outside the tax system

30
Q

what are the 2 areas for why the development gap exists

A

physical geography and human geography

31
Q

what are the physical factors which affect development in a country?

A

— climate: extreme climates may make food production, building infrastructure and travel difficult

— natural hazards: floods, hurricanes, volcanic eruptions etc. hinder development due to the costs of prevention and cure

— availability of resources: resources including oil, coal, rich soil mean less resources to sell

— placement: if a country is landlocked, transport is difficult

32
Q

what are the human factors which affect development?

A

— population: high population growth hinders development since resources such as food, water, jobs and housing must be spread more thinly. The government must spend more money providing for the population

— economy: open economies which welcome and encourage foreign investment develop faster. high rates of saving with low rates of spending (relative to GDP) increase rate of development. lack of corruption of government increases development

33
Q

What is the employment structure in an LEDC like?

A
  • High primary as there is little mechanisation on farms
  • Little secondary
  • Informal tertiary sector in the cities is quite strong
34
Q

What is the employment structure like in an NIC?

A

• Strong secondary sector as many transnationals move to NICs to take advantage of cheap labour and land

35
Q

What is the employment structure like in an MEDC?

A
  • Low primary as Farming mechanised
  • Lower secondary as Automation of manufacturing or transfer of manufacturing to NICs
  • Very strong tertiary sector with large numbers employed in health, education and tourism
  • Growth of jobs in the quaternary sector based on the processing of knowledge and information using telecommunications
36
Q

How do employment structures change over time? (Pre industrial)

A
  1. Pre-industrial: primary decreases
    • Mechanisation of farms reduces need for farm workers. Rural workers migrate to the urban areas
    • Raw materials become exhausted leading to loss of mining jobs
    • Rural depopulation of farmers in MEDCs. Workers prefer the better paid and less physically demanding jobs in the tertiary sector
37
Q

How do employment structures change over time? (Industrial)

A
  1. Industrial period: secondary increases, then decreases
    • Industrialisation initially requires a large secondary workforce
    • Factory jobs eventually replaced by automation
    • Manufacturing industries increasingly move from MEDCs to NICs where land and labour are cheaper
38
Q

How do employment structures change over time? (Post industrial)

A
  1. Post industrial: tertiary (and quaternary) increases
    • Large and growing informal tertiary sector in urban areas of LEDCs as workers migrate from the countryside
    • As a country develops, demand grows for services such as health, education and tourism
    • Strong growth in MEDCs of jobs in the knowledge economy based on the processing of knowledge and information using telecommunications
    • Increase in producer services for manufacturing industry, e.g. market research
39
Q

What is globalisation?

A

the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange.

40
Q

Why has globalisation occurred?

A
  • Improvements in international transport by air and sea in the second half of the twentieth century which helped to move people and goods around the world more quickly and cheaply.
  • Development of technology, particularly the internet allowed information and ideas to spread across the world instantly.
  • The growth of TNCs encouraged the development of Newly Industrialised Countries (NICs) with large and growing markets.
  • Reduced labour costs in LEDCs / NICs. TNCs moved production into selected less economically developed countries to reduce costs.
  • Removal of trade barriers in many countries which allowed the free movement of goods, services and money around the world.
41
Q

Draw the positive multiplier effect (cumulative causation diagram)

A

.

42
Q

Why do TNCs locate in LEDCs?

A

Large pool of labour, low wages and taxes and fewer restrictions (environmentally, socially)

43
Q

What are the advantages of TNCs in a country?

A
  • helps to create jobs for local people.
  • TNCs usually pay higher wages than local businesses which means employees have a higher income and a better standard of living.
  • bring wealth to the economy which has a positive multiplier effect on other local businesses
  • Local people learn new skills and how to make use of new technologies.
  • Most of the products manufactured by TNCs are exported which benefits the economy of the country.
  • TNCs pay tax to the government of the host country. This money can be invested in health, education and infrastructure.
44
Q

What are the disadvantages of TNCs in countries?

A
  • sometimes make employees work long hours in poor working conditions
  • Often profits made by the TNC are sent back to the MEDC where the company has it’s headquarters rather than benefiting the local community.
  • TNCs can close factories and transfer production to other low cost locations overseas with little warning. Local people are made redundant which brings a negative multiplier effect to a local area.
  • There are fewer laws about pollution in many LEDCs so TNCs may pollute the environment without danger of prosecution
  • TNCs become too important in the economy of the host country which becomes too dependent on the TNC. So the TNC may be able to influence decisions made by the government
  • Manufacturing jobs in MEDCs have reduced and many people are unemployed as TNCs move their factories abroad.
45
Q

Describe the distribution of Nike (HQ, branch plants, over time, reasons)

A
  • established in 1972.
  • over the course of the last 40 years has become linked to many different parts of the world and is a good example of globalisation.
  • Its headquarters are at Beaverton in the USA, where much research and development takes place.
  • Much of the manufacturing for Nike, however, is done in factories across the world, factories to whom Nike subcontracts work.
  • In 2013 Nike had factories 765 factories in 43 countries employing over 1 million workers.
  • Most of the factories are in South-east Asia.
  • In China Nike uses 206 factories with 260,000 workers making products for Nike.
  • The reasons why Nike uses factories in these countries is because labour is cheap, the governments have offered incentives to company’s who locate there, raw materials are produced locally and cheap to obtain and there was an expanding market as countries like China have developed economically.
  • At first Nike sold its products in North America and Europe.
  • Its global links expanded in the 1980s, when Japan became the first major market in the Far East where Nike has set up a regional headquarters and opened some countries.
  • China has now become the second largest market for Nike products after the USA.
  • As China’s economy has continued to grow, some of its workers have become more affluent and can afford to buy Nike Products. As a result, Nike has shops in several cities in China
46
Q

Describe and explain Nike’s impacts

A

POSITIVE IMPACTS
-has allowed 260,000 workers to be employed in 206 families, this means that lots of people get jobs easily.
-This has also enabled economic development and industrialisation to take place in China and for China to develop as an NIC.
-The increased per capita income has led to a rise in living standards and increased the government’s tax base.
-This has enabled the government to develop and invest in the hard and soft infrastructure in the country
NEGATIVE IMPACTS
- China does not have strong environmental laws which has enabled Nike factories, in Guangzhou, to dump waste material from the dying and printing process into China’s rivers. One of China’s rivers has been so polluted it is no longer drinkable
- The factories that produce products for Nike expect people to work for
long hours and low pay.
-China’s one child policy together with an ageing population has led to a decline in the workforce. This has led to a shortage of workers in some factories with factory owners having to increase wages in order to attract workers.
-The increase in wages has meant that Nike may decide to relocate some of its production to Indonesia and other countries in SE Asia. This could increase unemployment in China.

47
Q

What are the different development indicators?

A
  • GNP per capita
  • HDI
  • adult literacy
  • life expectancy
  • infant mortality
48
Q

Nikes problems

A
  • low wages
  • long hours, bad conditions
  • doesn’t provide sufficient training
  • poor + unsafe working conditions
  • allows supervisors to abuse workers
  • Nike stopped production in factories in Indonesia and relocated - negative impact on local companies which relied on Nike to buy their goods
49
Q

How did Nike respond to criticism of problems if caused

A
  • in 1992, took a code of conduct for all factories to protect workers rights and monitor environmental impacts + fire safety + air quality + minimum wage
  • in 2001, introduced the corporate responsibility report which set + monitored workers skills and set environmental targets to reduce greenhouse gas emissions
  • from 2012, Nike has inspected + monitored the performance of all its companies

GCSE Geography (7 decks)

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