Economic World Flashcards
What are 4 physical factors affecting uneven development
Natural Resources
Natural Hazards
Climate
Location / Terrain
How do natural resources affect uneven development
Fuel sources such as oil
Minerals and metals for fuel
Availability for timber
Access to safe water
How does climate affect uneven development
Reliability of rainfall to benefit farming
Extreme climates limit industry and affects health
Climate can attract tourists
How do natural hazards affect uneven development
Risk of tectonic hazard
Benefits from volcanic material and floodwater
Frequent hazards undermine redevelopment
How does Location/Terrain affect uneven development
Landlocked countries may find trade difficult
Mountainous terrain makes farming difficult
Scenery attracts tourists
What are 6 human factors affecting human development
Aid
Trade
Education
Health
Politics
History
How does Aid affect uneven development
Helps aid projects
Can improve services
HOWEVER, too much reliance on aid can prevent trade links
How does Education uneven development
Skilled workforce leads to more goods and services being produced
Educated people earn more people leading to more taxes paid used for development
How does Politics affect uneven development
Corruption
Governments stability affects trade
Ability to invest into services and infrastructure
How does Trade affect uneven development
Export more than import have TRADE SURPLUS
Trade is more profitable than raw materials
How does Politics affect uneven development
Corruption
Governments stability affects trade
Ability to invest in services and infrastructure
How does Health affect uneven development
Lack of clean water and healthcare lead to disease
Ill people cannot work leading to less contribution to the economy
More money spent on healthcare means less spent on development
How does History affect uneven development
Colonialism has helped develop in Europe but slowed in other countries
Countries that went through industrialisation a while ago are developed further
Stage 1 of DTM
High Birth and Death rate fluctuates and balances each other
The total population is low
Stage 2 of DTM
Death rate decreases rapidly
Birth rate high
Total population increase
Stage 3 of DTM
Death rate steady
Birth rate decreases slower
Total population increase slows
Stage 4 of DTM
Death rate low
Birth rate low
Total population stable or slow increase
STage 5 of DTM
Death rate low
Birth rate very low
Total population slow decrease
What are 6 ways to reduce the global development gap
MIcrofinance Loans
Foreign-Direct Investment
Fair Trade
Aid
Debt Relief
Technology
Ways of reducing Development Gap through MICROFINANCE LOANS
Consists of people in LICs receiving small loans from traditional banks
+ Loans allow people to start businesses
- Its not clear they can reduce poverty at a large scale
Ways of reducing Development Gap through FOREIGN - DIRECT INVESTMENT
When one country buys property or infrastructure in another country
+ Leads to better access to finance, technology & expertise
- Investment can come with strings attached that the country’s will need to comply with
Ways of reducing Development Gap through FAIR TRADE
Farmers get fair pay for products
+ Paid fairly so can pay for schools and health centers
- Only a tiny proportion of the extra money reaches producers
Ways of reducing Development Gap through AID
Money or Resources are given to a country by another
+ Improve agriculture
- Corrupt governments or become too reliant
Ways of reducing Development Gap through DEBT RELIEF
The country’s debt is canceled or interest rates are lowered
+ More money spent on development
- Aid can be tied under condition
Locals may not get a say
Ways of reducing Development Gap through TECHNOLOGY
+ Renewable energy is less expensive and polluting
- Requires initial investment and skills in operating technology
