Economic World - Reducing the Development Gap Flashcards
investment
chinese companies are investing in african countries
leads to improvements in:
* infrastructure
* industrial development
* job creation
* income
industrial development
- provides employment opps
- increases individual wealth
= improvements in: - education
- healthcare
- service provision
TNCs
large businesses that have offices/operations in several countries - head offices r usually in HIC
Primary products
unprocessed raw materials e.g
from:
* mining
* farming
* forestry
manufactured or secondary products
raw materials that have been manafactured into product
trade
buying/selling goods between countries
foreign direct investment
sums of money TNC spends on ops in a foreign country
multiplier effect
positive spin-off effects bc of initial investment in area
G8 countries
8 highly industrialised nations which meet abt global issues
BRICs
brazil, russia, india, china, south africa
why TNCs invest in LICs
- reducing transport & import costs - assembling them close to ppl
- new markets - increasing dev in NEEs
- cheap labour
how TNCs help LICs
- provides employment/skills training - Shell, 65000ppl in nigeria
- modern tech introduced
- invest in local area
- government recieves export tax
TNC’s negative impact on development
- local workers exploted for low wages
- much of generated profit goes abroad (leakage)
- poor working conditions
- foreign employees get managment positions
advantages of aid
- saves lives in disasters
- improves health and standard of living
- increase food production
- rebuilds houses & livelihoods after a disaster
- creates jobs
- improves transport infrastructure
disadvantages of aid
- increases LIC’s dependency on donor countries
- corruption can stop aid from reaching ppl
- political or economic pressure on receiving country
- infrastructure can benefit employers instead of employees
- profits of projct can be sent abroad
