✅economic world Flashcards
3 parts of HDI (human development index)
GNI per capita
adult literacy rate
life expectancy
HDI
human development index
measured between 0 and 1 (1 being the better score)
correlation
relationship or connection between 1 or more things
physical factors of uneven development
poor climate —> if country too hot or cold then not much will grow —> less food —> malnutrition —> can’t go to work bcos ill —> less taxes
poor farming land —> poor soils —> can’t grow food —> malnourishment —> can’t go to work —> less money made —> less taxes for government
few raw materials —> countries without raw materials like coal/oil tend to make less money —> less money for development
lots of natural hazards —> countries like bangladesh that suffer from floods—> have to spend money rebuilding —> less money for development
historial reasons for uneven development
colonisation —> when countries were colonised (ruled by a foreign country) their raw materials were often removed and they sold expensive goods for themselves
conflict —> war can stop from developing —> many people die or injured and money is spent on them instead of development
economic reasons for uneven development
poor trade links —> if poor trade links then only trade with a few countries —> won’t make a lot—> less for development
lots of debt —> have to pay back lots of money (sometimes w interest) so less money for development
an economy based on primary products —> country’s that export primary products like raw materials (wood) do not make much profit —> less money for development
population structure
how many people there are of each age group in the population and how many there are of each sex
consequences of uneven development
more international migration —> people move to wealthier and more developed countries
political instability —> inequality can lead to wars
forces billions of people to live in poverty —> average wage is 80p a day —> people can’t work there way out of poverty
increases risk of illnesses —> e.g. cholera due to poor healthcare —> 4000 cases everyday and 24% have access to clean water—> can’t go to work or school —> no tax —> dharavi
economic migrant
person who moves to seek a better life such as a better paid job
how can aid close the development gap and negative
help given by 1 country to another as money or resources
for example, goat aid from oxfam —> produces high quality manure —> helps crops grow
negative
can become too dependant on aid and unable to develop themselves
how can investment help close the development gap
Large companies can locate part of their business in other countries. This helps a country to develop as the companies build factories, lay roads and install internet cables
how can fairtrade help reduce the development gap
making sure farmers in LICs get a fair price for the goods they produce e.g. coffee and bananas, allowing them to provide for their families
negatives:
in some cases, tiny proportions of the extra money reach the producers while the rest boosts retailers profits
how can debt relief close the development gap
country’s debt is cancelled or interest rates are lowered meaning country has more money to spend on development
example of tourism that reduces the development gap
kenya in africa
located next to the indian ocean
positives of tourism in kenya to reduce development gap
attracts tourists —> in 2014, kenya attracted 1.4 million people
tourism brings $5.3 billion to the economy
600,000 people employed in tourism industry
negatives about tourism in kenya
vehicles from tourists increase pollution —> may kill organisms —> less biodiversity —> reduce profit as you can’t sell plants and animals
what is the NEE you have studied and location
india
located in asia with countries like pakistan and china around it
surrounded by indian ocean
4 different employment sectors
primary
secondary
tertiary
quaternary
what is a TNC
a company that has operations in more than one country
case study of TNC
coca cola
facts about coca cola
sells 1.4 billion servings everyday
over 900 bottling plants around the world
positives of coca cola
creates jobs (25000 people employed by coca cola) —> more local income —> locals spend more —> government gains more tax —> invest in economic development of the country
negatives of coca cola (environmental, economic and social)
environment —> pollution from shipping of goods
economic —> profits taken out of the country and sent back to developed countries
social —> poor working conditions, water supplies have been contaminated which leads to cholera
why is india important
2nd largest population in the world and it’s still growing
disadvantages of TNCs
working conditions are sometimes very poor —> lower safety standards
local workers are sometimes poorly paid
much of the profit generated goes abroad
management jobs go to foreign employees
define NGO
non governmental organisation
e.g. charity like water aid or oxfam
what are the problems with aid
corruption —> government may keep money for themselves and use it for other things
donors (people who give out money)—> can influence where the money goes for their own gain
what is the dependency theory
country could become dependant on aid and be unable to develop without it
what was the aid project in india
eureka school (started in 2006) by aid india —> 10 million children benefitted before 2010
education for children living in poverty
focus on learning english
can teach english they learn to their parents and elders
how has economic development impacted peoples quality of life
more jobs —> daily wages increase —> pay more tax —> government has money to invest in healthcare and education —> more jobs created in healthcare and education
daily wages increased by roughly 42 rupees since 2010
positives of aid
trigger development —> money to start a new business
environmental impact of development in india
air pollution —> vehicle fumes, construction burning crops
mining of minerals destroys habitats e.g. iron ore mining in karnataka
what has india done to help with air pollution
cars with odd and even number plates drive on given days
wear anti pollution masks, avoid polluted areas and keep doors/windows shut
5 million masks handed out to schools
impact of pollution in india- delhi
7x higher than in beijing
1/3 deaths due to air pollution —> many people die from diseases like lung cancer
delhi is the most polluted city in the world—> dangerous particles in the air over 10x the safe limit (set by world health organisation) —> health problems
deindustrialisation
decline of manufacturing industry
why has manufacturing decreased
machines/technology have replaced people in modern industries
other countries produced cheaper goods as labour is cheaper
positives of globalisation
cheaper goods and services —> produced in places where people earn lower wages
migration —> migrants fill jobs —> UK have a shortage of skilled workers
high value production —> UK specialises in high value manufacturer so workers are paid better and UK earns more
foreign investment —> companies invest in the UK bringing new ideas, technology and jobs
UK grows due to more trade with the rest of the world
negatives of globalisation
inequality —> gap between low paid and high paid workers is increasing
less manufacturing —> more imports means fewer goods are produced in the UK so people lose jobs
outsourcing jobs —> jobs that used to be done in the UK can be done elsewhere —> loss of jobs or lower wages
how has IT led to development of post industrial economy
computers store data and it can be accessed quickly
communication
access to internet using phone and tablet
people work from home
business parks
area of land occupied by a cluster of businesses
usually on the edges of towns
what and where is cambridge science park
50 miles away from london
close to one of the best universities
why is cambridge science park sustainable
recycling facilities —> plastic, paper and glass
buildings designed to maximise use of natural light —> reducing use of electricity
11% of commuters currently care share —> protects environment
132 cycle parking spaces and bike for free hire —> encourage use of bike for quick visits into cambridge city
how is cambridge park unsustainable
park was built on farmland (greenfield site) —> loss of ecosystems
3800 workers travelling to and from has lead to massive traffic congestion —> increase air pollution from cars
where is torr quarry located
south west of england in somerset
importance of torr quarry to local people
employs over 100 people
contributes more than £15 million towards local economy each year
importance of quarry on national scale
nationally important source of construction materials
what is torr quarry doing to become more sustainable
regularly monitor noise and water quality
plans to deepen quarry rather than extending —> less impact on environment
negative impacts of torr quarry on environment
transporting materials is usually by road —> increases pollution
chemicals and dust pollute water sources —> kill fish and other species
natural habitats destroyed —> reduce biodiversity —> affect food chains
evidence for the north-south divide
education —> GCSE results usually higher in the south
healthcare —> health is generally worse in the north
transport
wages —> wages are generally lower in the north
healthcare- evidence for north-south divide
life expectancy in male babies born in glasgow in 2012 was 72.6 years
in east dorset, it was 82.6
transport evidence for north-south divide
£376 was invested in transport per person in yorkshire
£903 was invested in transport per person in london
wages north-south divide
in 2014, average weekly wage was 40% lower in huddersfield than in london
why is there a north-south divide
decline of heavy industry has had a negative impact on the north
growth of post industrial economy has benefitted the south more
how has population of south cambridgeshire changed
rapid population growth as people move out of cambridge and london to enjoy the countryside
what are the social impacts of increasing population in south cambridgeshire
young people can’t afford high cost of houses so move away
80% of car ownership is leading to increased traffic
economic impacts of increasing population in south cambridgeshire
lack of affordable housing —> young people move away
increasing number of migrants —> puts pressure on services
high petrol prices due to high demand
how has population of yorkshire dales national park changed
population is declining
why has there been a decline in population in yorkshire dales
less jobs
less services e.g. hospitals, schools and shops
economic impacts of declining population in yorkshire dales
business closing —> lack of employment —> less tax paid —> less money for schools and hospitals etc so quality is bad and more people leave
young people have left —> less demand for schools —> close —> teachers lose jobs
social impacts of declining population in yorkshire dales
many elderly people —> strain on services —> not enough people in the area working
london gateaway
new port at the mouth of the river thames
how have UK roads been improved
£15 billion ‘road investment strategy’ to improve conditions of UK roads
what does road investment strategy include (2014]
100 new road schemes by 2020
extra lanes added to main motorways (smart motorways)
what is development
the progress a country makes
as a country develops, it usually means that peoples standard of living and quality of life improve
what factors affect a country’s level of development
environmental - natural hazards e.g. earthquakes
economic - trade and debt
social - access to clean drinking water and education
political - stable government or civil war
what is the development gap
difference in standard of living between the worlds richest and the worlds poorest countries
how can we measure development (8 ways)
-GNI per capita
-birth/death rate
-infant mortality rate
-life expectancy
-people per doctor
-literacy rate
-access to safe water
-human development index (HDI)
what is gross national income (GNI)
GNI is the total value of goods and services produced by a country plus money earned from overseas
what is the problem with using GNI
doesn’t measure the quality of life
limitations of using economic and social indicators to measure development?
-data might be outdated
-some data is difficult to collect
-informal work isn’t included in data
-government may be corrupt
what is a demographic transition model
a geographical model that shows how a country’s population changes over time
how is the demographic transition model linked to development
as a country develops (gets richer), the population of the country also changes
typically the birth rate and death rate lower as a country develops
stage 1 demographic transition model (births, deaths and overall population
-high birth rate
-high death rate
-population is low
stage 2 demographic transition model (births, deaths and overall population
-birth rate high
-death rate starts to decline
-population begins the increade
stage 3 demographic transition model (births, deaths and overall population
-birth rate drops rapidly
-death rate continues to slowly decrease
-population is increasing at a slow rate
stage 4 demographic transition model (births, deaths and overall population
-low birth rate
-low death rate
-population is high
stage 5 demographic transition model (births, deaths and overall population
-extremely low birth rate
-death rate increases slightly due to ageing population
-population decreases
give examples of health differences that result from uneven development
LICs - most deaths are children under 15. Common causes of death are HIV/AIDS or diarrhoea related diseases and malaria
HICs - most deaths are amongst people over 70. Common causes of death are heart disease, diabetes
why does uneven development lead to migration
people suffering from the negatives of uneven development (e.g. poverty, poor health) want to move away in search an improved quality of life
give an example of a country where people have migrated due to war
syria
afghanistan
8 strategies used to close the development gap
investment
industrial development
tourism
aid
intermediate technology
fairtrade
debt relief
micro finance loans
how can industrial development close the development gap
(multiplier effect) develop an industry —> creates jobs —> more tax is paid —> government can improve services for local people e.g. education
how can tourism close the development gap
amazing location —> development of hotels and tourist attractions —> jobs —> more tax paid to the government
how can intermediate technology close the development gap
intermediate technology is technology that is appropriate to a country. This could include building a well which then can be used to improve the quality of life for people e.g. not having to walk hours for water. It must not replace locals jobs
how can micro finance loans close the development gap
micro finance loans are small loans given to communities in LICs to help them start their own business. This is often because they don’t have the initial money to begin the business
what is a newly emerging economy
a country that is going through a period of rapid economic growth
what is a TNC
transnational corporation
2 different types of aid
emergency aid and development aid
what is emergency aid
aid that is given directly after a natural disaster e.g. an earthquake. Aid may take the form of water, food and medical supplies
what is development aid
aid that happens over a longer term. it may be provided by governments or charities e.g. providing education or access to safe water wells
primary sector
extracting a raw material e.g. mining or farming
secondary sector
manufacturing e.g. car making
tertiary sector
providing a service e.g. teacher, shop keeper
quaternary sector
high tech, knowledge and skilled based jobs e.g. IT, research and development
how has the UKs economic structure changed
-increasing numbers employed in tertiary and quaternary
-less employed in primary and secondary
what has caused the UKs change
-industrial revolution of the 19th century led to the increase in manufacturing
-deindustrialisation led to the decline of manufacturing as it shifted to asia
-globalisation led to the increase in quaternary sector and decline in manufacturing in some HICs
globalisation
the increasing interconnections between places around the world, made possible by developments in transport, technology. It leads to the increased movement of goods, services and people around the world
what government policies have shaped the UKs economy
1945-79 most industries were state run so received government funding but too many employees made the business unprofitable —> there were lots of strikes
1979-2010 Government privatised businesses to create more competition (state run industries were sold to private shareholders). Derelict buildings were changed into new retail parks etc
2010+ Government aimed to rebalance the economy. They did this by encouraging new businesses through investment in manufacturing and improving infrastructure
post industrial economy
the growth in tertiary and quaternary sectors that followed the decline of manufacturing industries
name some jobs in the service sector in the UK
finance and banking
name some of the UKs research industries
universities
NHS
charities e.g. cancer research
why is the research industry important to the UK economy
-lots of highly skilled workers
-contributes large amount to the economy
-growing industry
why are science parks important to the UK
-they support tertiary industries such as finance
-employ large amount of people (75000 across 100 sites)
-employs skilled graduates
why are business parks located on the outskirts of towns/cities
-close to transport links
-land is often cheaper to build on
-more land available to expand the business park later
how have UKs railways been improved
-high speed 2 - connecting south with northern cities (£50 billion)
-londons crossrail —> improve jounrey times across london —> improve congestion
purpose of road and rail improvements
reduce travel times
reduce congestion and pollution
connects southern and northern cities
how have the UKs ports been improved
liverpool2 - doubling the ports capacity
£300 million
how have the UKs airports been improved
expanding heathrow- building extra terminal and increase runways
purpose of the port improvements in the UK
-creates 1000s of jobs
-reduce freight on roads
-increase trading opportunities
purpose of airport improvements in the UK
-creates jobs
why are airports important to the economy in the UK
3.6% of UKs GDP
750,000 flights leave UK yearly to 114 countries
advantages of expanding heathrow airport
260,000 more flights
disadvantages of expanding heathrow airport
£17.6bn —> expensive
around 800 homes destroyed
what is the north south divide
The divide between the north and the south of england. Generally the south earn higher incomes, have better standard of living compared with the north
how is the government trying to reduce the north-south divide
developing power
creating enterprise zones
northern powerhouse
improving infrastructure (HS2, improving motorways)
how does developing power to local council help to close the north south divide
giving councils the power to choose how they spend money to suit the needs of the area e.g. transport or regeneration
how does the creation of enterprise zones help close the north south divide
companies get a range of benefits for locating in enterprise zones e.g. reduced taxes, improved infrastructure, less planning restrictions- this encourages more businesses to the area, reducing unemployment
how does the northern powerhouse close the north south divide
government plan to reduce inequality between north and south by improving the north of england
it includes specific plans to encourage more investment in the north
in what ways is the UK connected to other countries
trade - UK trades with european countries
culture - british TV shows are shown worldwide
transport - the UK is well connected by the channel tunnel and airports
electronic communications - UK is linked to the rest of the world via the internet
EU - being a member of the EU allows the UK to freely trade with other EU countries
commonwealth -the UK is a part of the commonwealth with aims to improve the well being of other commonwealth countries
how does improving infrastructure reduce the north south divide
improved transport to connect it to the south
how has transport infrastructure been improved
road
railway
ports
airports
what is a science park
a group of scientific or technical knowledge based industries located on a single site
