----------------Economic Development and Inequality Flashcards
What is economy?
The way in which a country organises its use of money, goods and trade is described as its economy.
How do we measure economic development? (5) Explain each
Gross Domestic Product (GDP): This is the monetary (money) measure of the value of all goods and services produced in a specific time period e.g. a full year.
Type of employment: How the population is employed, e.g. in primary, secondary and tertiary economic activities.
Education rate: The average amount of time spent in education in a country.
Adult literacy rate: The percentage of adults in a country who can read and write.
Average life expectancy: The average number of years a person can expect to live from the time of birth.
What are the causes of unequal economic development?
Unfair development and globalisation
What is international trade? What is it vital for?
International trade is the exchange of capital, goods and services across international borders. International trade, including imports and exports, is vital for the growth of a country’s economy.
What is unfair trade?
If developing countries do not receive a fair price for their exports, that is called unfair trade.
What is the fairtrade foundation?
The fairtrade foundation is an organisation that works to ensure that developing countries receive fair prices for their exports.
What do MNC’s do for local communities?
MNC’s bring employment to local communities, which supports the economy of the local community.
Explain brain drain, over-reliance and dominance of MNC’s.
Brain drain: the migration of well-educated people from poorly economically developed countries due to push and pull factors resulting in a shortage of highly skilled workers to fill suitable positions.
Over-reliance: Countries can be too well-connected and as a result too reliant on each other’s economies.
Dominance of MNC’s: MNC’s in developing countries can endanger local industries
Explain brain drain, over-reliance and dominance of MNC’s.
Brain drain: the migration of well-educated people from poorly economically developed countries due to push and pull factors resulting in a shortage of highly skilled workers to fill suitable positions.
Over-reliance: Countries can be too well-connected and as a result too reliant on each other’s economies.
Dominance of MNC’s: MNC’s in developing countries can endanger local industries to the point where they may close due to an inability to compete causing unemployment. They can use up the natural resources and also leave a country with very little warning, should it no longer be profitable for them to operate there.
How can a country’s level of economic development be explained?
By gradual improvements made to the five economic indicators, life expectancy, adult literacy rate, education rates, type of employment and increased GDP
