Lecture 11

Question 1

What is a developing country?

Answer 1

A country with;
Low income
High population growth
High % of labour in agriculture
Low levels of urbanisation
Low per capita consumption
Poor infrastructure
Low literacy
Short life expectancy
Poor health care
Low calorific intake
High infant mortality

Question 2

What are the two definitions of development?

Answer 2

A process of economic change that
eradicates or attenuates these defining attributes
of a developing country
The closing of gaps in these dimensions
between a developing country and a ‘developed’
country

Question 3

Which four things can MNCs do to benefit their hosts?

Answer 3

Create jobs where local firms can’t
Stimulate other businesses
Produce exportable products
Transfer know-how

Question 4

How can MNCs harm their hosts?

Answer 4

Monopolisation
Engender dependency
Manipulation of policy by threat of exit
Resource depletion
Entrench Government corruption

Question 5

What is the shareholder model?

Answer 5

Acting in the best interests of profits for shareholders

Question 6

What is the stakeholder model?

Answer 6

Acting in the best interest of the broader community

Question 7

Who is climate change likely to have the greatest impact on?

Answer 7

Developing countries

Question 8

What is the shareholder argument for the privatisation of water?

Answer 8

Water is a valuable commodity and owning it guarantees more security for shareholders

Question 9

What is the stakeholder argument against the privatisation of water?

Answer 9

Poor farmers should have a right to water

Local people are the ones who will be buying the product so reputation is important