Issues associated with independance

Question 1

What is interdependance?

Answer 1

• Economic - Countries rely on each other for economic growth, E.g. oil is produced by one group of countries and consumed by another
• Countries depend on each other to solve issues that can’t be addressed by one country
• Social - Greater connections between people living in different countries creates social interdependence
• Environmental - All countries are dependant on the rest of the world to look after the environment

Question 2

Why can unequal flows of people create benefits?

Answer 2

• People move from countries with fewer jobs to countries with plenty of jobs
• People may also move to escape war, famine or persecution, and normally try to get to the nearest safe country
• Easier for people from developed countries to migrate than people in less developed countries
• Flows of people bring benefits - E.g. immigrants can create economic growth as they do a country’s jobs that they either can’t do or don’t want to do
• Many immigrants send money back home to their families or home communities - this is called a remittance

Question 3

Why can unequal flows of people create inequalities?

Answer 3

• Less developed countries have skilled people leaving the country and taking their knowledge with them, reinforcing existing inequalities between countries
• Low skilled migrants are often happier to work for less money than low skilled locals. This can create conflict between the local and migrant populations
• Migrant workers are sometimes made to work in dangerous conditions for little money

Question 4

Why can unequal flows of money cause inequalities?

Answer 4

• Flows of money may include remittances, foreign aid or foreign direct investment and income from trade
• Money often flows from developed countries to less developed countries E.g. governments/companies from HICs may invest in infrastructure or mineral extraction in LICs or NEEs
• LICs rarely have the capital to invest in other countries
• FDI allows foreign countries to take advantage of cheap raw materials and low labour costs whilst the host country benefits from foreign capital expertise

Question 5

What are remittances?

Answer 5

Money immigrants send back to their families or communities in their home country

Question 6

What is foreign aid?

Answer 6

Money given to a less developed country to increase development or help in a crisis

Question 7

What is foreign direct investment?

Answer 7

When a person, group or company sends money to another country to generate profit, e.g. by opening a branch of businesses or investing in local infrastructure

Question 8

What are the negative impacts of unequal flows of money?

Answer 8

• Foreign aid create dependency
• FDI can force out local businesses because foreign companies with quicker production can make products more efficiently
• Foreign aid can fund armed conflicts leading to conflict between foreign companies and local people
• Companies may pressure governments of less developed countries to pass laws making it cheaper to invest there

Question 9

How do developed countries vi