P2 - Unit 2B - The changing economic world Flashcards
1
Q
What is development?
A
Development is the process in economic growth, use of technology and improving welfare that a country has made
-quality of life is improved
2
Q
What are different measures of development?
A
GNI Birth rate Death rate Infant mortality rate People per doctor Literacy rate Access to safe water Life expectancy HDI
3
Q
What does GNI stand for?
A
Gross National Income
4
Q
What does GDP stand for?
A
Gross Domestic Product
5
Q
What does HDI stand for?
A
Human Development Index
6
Q
What is GNI, and what is it a measure of?
A
- the total value of goods and sevices produced by a country in a year, including income from overseas (in US$)
- wealth
7
Q
What is GNI per head/GNI per capita, and what is it a measure of?
A
- the GNI divided by the population of a country (in US$)
- wealth
8
Q
What is GDP, and what is it a measure of?
A
- total value of goods and services a country produces in a year (in US$)
- wealth
9
Q
What is Birth rate, and what is it a measure of?
A
- number of live babies born per thousand of the population per year
- women’s rights
10
Q
What is Death rate, and what is it a measure of?
A
- number of deaths per thousand of the population per year
- health
11
Q
What is Infant mortality rate, and what is it a measure of?
A
- number of babies who die under 1 year old, per thousand babies born
- health
12
Q
What is People per doctor, and what is it a measure of?
A
- average number of people per doctor
- health
13
Q
What is literacy rate, and what is it a measure of?
A
- percentage of adults who can read and write
- education
14
Q
What is access to safe water, and what is it a measure of?
A
- percentage of people who can get clean drinking water
- health
15
Q
What is Life expectancy, and what is it a measure of?
A
- average age a person can expect to live to
- health
16
Q
What is HDI, and what is it a measure of?
A
- the number that is calculated using life expectancy, education level and income per head, every country has a HDI value between 0 (least developed) and 1 (most developed)
- lots of factors
17
Q
What two categories did countries used to be classified into?
A
- Richer countries were classed as MEDCs (more economically developed countries) [generally found in the north]
- Poorer countries were classified as LEDCs (less economically developed countries) [generally found in the south]
THIS CLASSIFICATION MEANT THAT YOU COULDN’T TELL WHICH COUNTRIES WERE DEVELOPING QUICKLY AND WHICH WEREN’T (needed more categories)
18
Q
What are the three categories countries are classified into based on how wealthy they are?
A
HICs (GNI and quality of life high)
NEEs (moving from mainly primary industry to secondary, rapidly getting richer)
LICs (GNI and quality of life low)
19
Q
Why can GNI per head be misleading as a way to measure development?
A
- it is an average so the variations within a country don’t show up
- can hide variation between classes and different regions of a country
20
Q
What is the DTM?
A
Demographic transition model
21
Q
What does the DTM show?
A
How changing birth rates and death rates affect population growth
22
Q
What is natural increase?
A
When the birth rate is higher than the death rate, more people are being born than dying so the population increases
23
Q
What is natural decrease?
A
When the death rate is higher than the birth rate
24
Q
What can cause a change in birth and death rates?
A
they are linked to a country’s economic development
25
How many stages are there in the DTM?
five stages
| -they are linked to a country's level of development
26
What is there at stage 1 of the DTM?
- the least developed (e.g. some tribes in Brazil)
- high birthrate (cause no use of contraception)
- high death rate (cause poor health care or famine, life expectancy is low)
- zero population growth, low population size, income is very low
27
What is there at stage 2 of the DTM?
- not very developed(e.g. Gambia, many other LICs)
- high birthrate (cause economy is based on agriculture so people have lots of children to work on farms)
- death rates fall (cause healthcare and diet is improving)
- high population growth, rapidly increasing population size
28
What is there at stage 3 of the DTM?
- more developed(e.g. Nigeria, most NEEs)
- birthrate falls rapidly (cause women have a more equal place in society, better education, use of contraception and more women work than having children)
- death rates fall (cause life expectancy increases as the economy changes to manufacturing so fewer children are needed to work, healthcare improves)
- high population growth, increasing population size
29
What is there at stage 4 and 5 of the DTM?
- most developed(e.g. 4-UK, 5-Japan, most HICs)
- low birthrate (cause people want a high quality of life and possessions so less money spent on children)
- death rate low (cause good healthcare, high life expectancy and income is high)
- 4 has no population growth, 5 has population decrease, population size is high but falling at stage 5
30
What physical factors can affect how developed a country is?
- poor climate
- poor farming land
- few raw materials
- lots of natural hazards
31
How can a poor climate lead to country being less developed?
- if climate is really hot, dry or cold not much will grow so this reduces the amount of food produced (can lead to malnutrition, causing a low quality of life)
- people have fewer crops to sell, less money spent on goods and services, also reducing the quality of life
- government get less money from taxes so there's less money to spend on developing the country
32
How can poor farming land lead to a country being less developed?
-if land is steep or has poor soil (or no soil) then they won't produce a lot of food which can cause the same problems as poor climate (malnutrition, causing a low quality of life)(less money spent on goods and services, also reducing the quality of life)(government get less money from taxes)
33
How can having few raw materials lead to a country being less developed?
- have fewer products to sell
- less money to spend on development
- some countries do have lots of raw materials but don't have the money for the infrastructure to exploit them so they still aren't very developed
34
How can lots of natural hazards lead to country being less developed?
- countries that have a lot of natural disasters have to spend a lot of money on rebuilding after disasters occur
- so they can reduce the quality of life for the people affected and reduce the amount of money the government can spend on development projects
35
What is a natural hazard?
A natural process which could cause death, injury or disruption to humans or destroy property and possessions
36
What is a natural disaster?
A natural hazard that has actually happened
37
What historical reasons can cause uneven development?
colonisation
| conflict
38
How can colonisation be a reason for uneven development?
- countries which have been colonised are often a lower level of development when they gain independence than if they hadn't been colonised
- European countries colonised much of Africa (removed raw materials & slaves & returned expensive manufactured goods) leaving parts of Africa dependent on Europe and led to famine and malnutrition
39
How can conflict be a reason for uneven development?
- war, especially civil wars can slow and reduce levels of development even after the war
- money is spent on arms and fighting instead of development, people are killed and infrastructure and property is damaged
40
What economic factors can cause uneven development?
poor trade links
lots of debt
an economy based on primary products
41
How can poor trade links cause uneven development?
- world trade patterns seriously influence a country's economy and so affect their level of development
- if a country has poor trade links, it won't make much money and has less to spend on development
42
What is trade?
the exchange of goods and services between countries
43
How can lots of debt cause uneven development?
- very poor countries borrow money from other countries and international agencies
- this money has to be paid back (often with interest)
- any money a country makes is used to pay back the debt, so isn't used to develop
44
How can an economy based on primary products cause uneven development?
- countries that export mainly primary products tend to be less developed (don't make as much profit from primary products, price also fluctuates sometimes below the cost of production)
- countries don't make much money and so governments don't have much money
45
What consequences does uneven development cause?
great differences in wealth
great differences in health
international migration
46
How is great differences in wealth a consequence of uneven development?
-people in more developed countries have a higher income than less developed countries
47
How is great differences in health a consequence of uneven development?
- healthcare in more developed countries is better than it is in less developed countries
- people in HICs live much longer
- infant mortality is also much higher in less developed countries
48
How is international migration a consequence of uneven development?
if neighbouring or nearby countries have a higher level of development, people will seek to enter that country to make use of the opportunities it provides to improve their quality of life
49
What strategies are there for reducing the development gap?
```
aid
fair trade
using intermediate technology
debt relief
investment
industrial development
tourism
micro finance loans
```
50
How is aid a strategy for reducing the development gap?
- aid is given by one country to another as money or resources
- it is spent on development projects
- aid can definitely help, but sometimes it is wasted by corrupt governments or once money runs out projects can stop working as there isn't enough local knowledge or support to keep the projects going
51
How is fair trade a strategy for reducing the development gap?
- companies who want to sell products labelled as 'fair trade' have to pay producers a fair price
- buyers also pay extra on top of that to help develop the area that they come from
- but it has problems, such as only a tiny proportion of money reaches the original producers
52
What is the fairtrade movement?
It is a movement about farmers getting a fair price for their goods produced in LICs
53
How is using intermediate technology a strategy for reducing the development gap?
-it allows people to work in their homes or businesses and children to study after dark, as a result skills, incomes and industrial output can increase which helps reduce the development gap
54
What is intermediate technology?
intermediate technology includes tools, machines and systems that improve the quality of life but are also simple to use, affordable to buy and cheap to maintain
55
How is debt relief a strategy for reducing the development gap?
-debt relief means countries have more money to develop rather than paying back debt
56
What is debt relief?
When some or all of a country's debt is cancelled or interest rates are lowered
57
How is investment a strategy for reducing the development gap?
FDI leads to better access to finance, technology and expertise, and improved infrastructure, improved industry and an increase in services
58
What is FDI?
FDI - Foreign-direct investment
| -when people or companies in one country buy property or infrastructure in another
59
How is industrial development a strategy for reducing the development gap?
-developing industry increases the GNI and helps improve levels of devlopment as productivity, levels of skill and infrastructure are improved
60
How is tourism a strategy for reducing the development gap?
-can provide an increased income as there will be more money entering a country
61
How is microfinance loans a strategy for reducing the development gap?
When small loans are given out to people in LICs who may not be able to get loans from banks, this loan allows them to start their own businesses and become financially independent
62
What is an example of where tourism is increasing the development of an LIC?
Kenya - a LIC in east Africa
63
Why does Kenya attract tourists?
tribal culture
safari wildlife
warm climate
beautiful unspoilt scenery
64
How is Kenya's government try to boost tourism to increase its development?
- Visa fees for adults were cut by 50% in 2009 to make it cheaper to visit the country and were scrapped for children under 16
- landing fees on at airports have also been dropped for chartered airlines
- tourism has increased by 0.9million between 1995 and 2011
65
What are the benefits of tourism in Kenya?
- tourism contributes to over 12% of the GDP
- 600,000 people are directly or indirectly employed by the tourism industry
- 24 national parks charge entry fees to tourists which are used to protect the environment and wildlife
- since 2000 Kenya's HDI has increased from 0.45 to 0.55
66
What are the problems of tourism in Kenya?
- only a small proportion of money earned goes to locals
- some Maasai tribespeople were forced of their land to create national parks for tourists
- tourist vehicles can damage the environment
67
What are TNCs?
TNCs - trans-national corporations
| -companies that are located in, or produce and sell products in more than one country
68
Where are TNC factories located and why?
-in poorer countries, because labour is cheaper, fewer environmental and labour regulations so they can make more profit
69
Where are TNC offices and headquarters located and why?
-in richer countries, because there are more people with administrative skills (better education)
70
What are the advantages of TNCs?
- create jobs in all the countries they are located in
- employees in LICs get a more reliable income than from farming
- TNCs spend money improving the locals infrastructure
- new technology and skills are brought into poorer countries
71
What are the disadvantages of TNCs?
- employees in poorer countries get paid less than those in richer countries
- in poorer countries workers work long hours in poor conditions
- most TNCs come from richer countries so the profits go back there
- jobs created in poorer countries aren't secure the TNC could relocate at any time
72
What is causing the UK's economy to change?
de-industrialisation
globalisation
government policies
73
How is de-industrialisation and the decline of the UK's industrial base causing the UK's economy to change?
- fewer jobs are available in manufacturing and heavy industries (e.g. coal mining and steel production)
- industries were once a primary source of employment and income for the UK
74
How is globalisation causing the UK's economy to change?
- lots of manufacturing has moved overseas (lower labour costs) but headquarters have often remained in the UK
- trade with other countries is an increasingly important part of UK GDP
75
How is government policy causing the UK's economy to change?
- government decisions on investment in new infrastructure, technology and support for businesses (e.g. tax breaks) affect how the economy grows
- membership in government groups make it easier for companies in the UK to operate across the world
76
What is the most important part of the economy post-industrial?
services
| -tertiary and Quaternary industries are growing as secondary manufacturing is declining
77
What are some the of the most important industries in the UK?
- services (employing 4.4 million people)
- information technology (employing 60000 people)
- finance (especially in the city of London)
- research and development (making use of skilled university graduates)
78
Where are Quaternary industries found?
in science parks or business parks
79
What are some common features of science parks and business parks?
- outskirts of a city near to good transport links
- close to housing to accommodate the workforce
- near universities so they can have access to university research allowing them to develop cutting edge technology
80
Why have science parks and business parks grown?
- large and growing demand for high-tech products
- UK has a high number of strong research universities for them to link with
- clusters of related businesses in one place can boost each other
81
What is the north-south divide?
- economic and social indicators tend to be better in the south than the north
- decline of heavy industry has had a greater negative impact on the north and the growth of post-industrial service industry has mostly benefited the south
82
What is some evidence for the north-south divide?
- wages are lower in the north (40% less in Huddersfield than in London)
- health is worse in the north (in 2012 in Glasgow male life expectancy was 73 year, but in East Dorset 83 years)
- education (GCSE results are generally better in the south than the midlands or the north)
83
What are some examples for how changes in the UK's economy is changing rural landscapes?
- in Cumbria the population of some villages have decreased as their are fewer jobs
- North Somerset population has increased as people move to quiet towns and villages with easy access to the centre of Bristol
84
What are the social and economic effects of the UK economy changing in rural areas?
- as the population has dropped in Cumbria it's caused a decrease in services, unemployment in above the national average in 2 of the 7 districts
- North Somerset has house prices rising, roads are congested and services like schools are oversubscribed
85
What are the strategies that the UK government has come up with to resolve regional differences (the north-south divide)?
devolving more powers
creating enterprise zones
the northern powerhouse
86
How is devolving more powers a way to try and resolve regional differences?
- Scotland, Wales and Northern Ireland all have their own governments and some powers are being devolved to local councils
- allows them to use money they feel will best benefit the local community
87
How is creating enterprise zones a way to try and resolve regional differences?
- 55 enterprise zones have been created across England, Scotland and Wales (this offers companies reduced taxes, simpler planning rules, financial benefits, improved infrastructure)
- can be used to encourage companies to locate in areas of high unemployment, bringing jobs and income
88
How is the northern powerhouse a way to try and resolve regional differences?
- government's plan to reduce the inequality between the north and south by attracting investment into the north and improving transport links between northern cities
- has been criticised for being more of a concept than an actual plan
89
What transport in the UK is being improved?
roads
railways
airports
ports
90
How are roads being improved in the UK?
capacity on motorways is being increased by upgrading to 'smart motorways' with extra lanes
91
How are railways being improved in the UK?
crossrail will increase central London's rail capacity by 10% opened in 2018
proposed HS2 linking London, Birmingham, Leeds and Manchester will increase capacity and allow for faster journeys
92
How are airports being improved in the UK?
UK government has agreed that a new runway is needed in the South East as existing airports are full or filling up
93
How are ports being improved in the UK?
a new port London Gateway is operating at the mouth of the river Thames (able to handle the world's largest container ships and hope to be a hub for global trade)
94
How does the UK have strong links with other countries?
- trade (particularly USA, Europe and Asia, exports worth over 250 billion per year)
- culture (strong creative industries, shaun the sheep shown in 170 countries)
- transport (channel tunnel, Heathrow hub airport)
- electronic communications (trans-Atlantic cables)
- European union (130 billion of exports to EU in 2015)
- commonwealth
95
What is the EU?
an economic and political partnership of 28 countries
| -membership to the EU gives UK citizens and businesses access to a large market without trade or political barriers
96
What is the commonwealth?
An association of 53 independent states, including the UK (it exists to improve the well being of everyone in commonwealth countries)
97
How can the effect to industry on the physical environment be reduced?
-more environmentally sustainable as a result of strict environmental regulations, better environmental awareness and increasing energy and waste disposal costs (e.g. Jaguar Land Rover opened in 2014, built to maximise natural cooling and light, has solar panels which provide 30% of the energy used and almost all waste is recycled)
98
Where is Nigeria and what are some general facts about it?
- west Africa (former colony of the UK)
- capital city Abuja, fourth most densely populated city in the world
- gulf of guinea in the south
- tropical climate with variable dry and wet seasons
- a NEE
99
What is the importance of Nigeria regionally?
- one of the fastest growing economy in Africa
- highest GDP in the continent in 2014
- highest farm output in Africa (70% of population employed in agriculture)
100
What is the importance of Nigeria globally?
- in 2014 Nigeria became the world's 21st largest economy
- youthful population (high proportion educated - skilled workforce)
- supplies 3% of the world's oil, 12th largest producer
- Lagos is a thriving global economic hub
- fifth largest contributor to UN peacekeeping missions
101
What is the political context of Nigeria?
- has progressed from civil war, several military dictatorships to a stable democracy today
- have regular elections and people chose their government
- still conflict in Nigeria in the north Boko Haram an extremist organisation that want to abolish democracy
- Ebola outbreak in 2011, only 8 people died in Nigeria (they managed to contain the disease with good healthcare and planning)
102
What is the social context of Nigeria?
- more than 500 different ethnic groups
- three ethnic groups dominate Hausa (Muslim), Igbo(christian), Yoruba(christian)
- ethnic diversity causes conflict in Nigeria
103
What is the environmental contest of Nigeria?
- in tropical Africa
- to the north of the country the Sahara desert
- to the south of the country tropical rainforest, much of the natural vegetation has been replaced by agriculture
104
How is Nigeria's industrial structure changing?
shifting from mainly primary (faming and extracting oil and gas) to making more money from manufacturing or secondary industries and more services in the tertiary sector
105
What are some of the fastest-growing industries in Nigeria?
telecommunications (over 115 million mobile users)
retail and wholesale
film industry (Nollywood, the third largest film industry in the world)
106
What are the factors supporting the economic potential of Nigeria?
- large national domestic market
- geograpical position is good in West Africa
- has human resources (a large work force)
- plentiful natural resources such as Oil
107
What are the limits to Nigeria's development?
- poor infrastructure such as roads (especially in north)
- lack of electricity (especially in north)
- reliance on agriculture as the main livelihood for poor people
- Nigeria has problems with corrupt politicians and recent terrorist attacks by Boko Haram
108
What is the importance of oil and manufacturing in Nigerian economy?
- oil industry is located in the Niger Delta region, Shell is the main TNC involved with it
- Shell has spent 12 billion in LICs
- USA regards to Nigeria's oil as 'sweet oil'
- manufacturing can have a positive multiplier effect (secondary goods also command a higher price and so can raise a country's GDP)
- manufacturing plants creates jobs for locals, so they pay taxes and spend money in the local areas which intern boosts the economy further
109
What is a TNC?
TNC - Trans Nstional Corporation
| A company that has operations in more than one country
110
Why do TNCs have manufacturing in poorer LIC countries?
- cheaper labour
- tax incentives
- access to a wider market
- laxer environmental laws
111
What are some TNCs which operate in Nigeria?
Shell
Unilever
IBM
Walmart
112
What are the advantages of TNCs in Nigeria?
- bring new investment into the country's economy
- provide jobs (which can create a multiplier effect)
- bring expertise and skills that a country doesn't have
- provide new technology that helps economic development
113
What are the disadvantages of TNCs in Nigeria?
- take profits out of the country to the country of origin so it doesn't benefit the host country
- can withdraw their investment from a country if they wish
- working conditions are sometimes very poor
- can cause environmental damage and deplete natural resources
114
What does Unilever do?
produces a range of foods, drinks and items for the home
115
What are some facts about Unilever and Nigeria?
- Unilever employed about 1500 people
| - promoted healthcare, education and water supply improvements
116
What are the environmental impacts of economic growth in Nigeria?
- in Lagos many harmful pollutants go directly into open drains and water channels (harmful to people and ecosystems)
- industries dispose of chemical waste on nearby land (polluting groundwater)
- 75% of Nigeria's forests have been destroyed
- industrial chimneys emit poisonous gases that can cause respiratory and heart problems in humans
- oil spills impacting freshwater and marine ecosystem and can cause fires emitting carbon dioxide
117
What changes has urban growth in Nigeria caused?
- squatter settlements are common in most cities
- services have failed to keep pace with the rate of economic growth
- waste disposal has become a major injury
- traffic congestion is a major problem in most Nigerian cities leading to high levels of exhaust emissions
118
How have Nigeria's political links changed?
- until 1960 it was part of the British Empire, its political links were with the UK and now part of the commonwealth
- part of African union (economic panning and peacekeeping group)
- part of UN (5th largest number of troops to the UN peacekeeping force)
119
What are Nigeria's global trading relationships?
- trades with UK, USA, China, India
- Nigeria's main exports include crude and refined petroleum, natural gas, rubber, cocoa and cotton
- main imports are refined petroleum for EU and USA
- fastest growing import if telephones (from China)
120
Why does Nigeria receive international aid?
- birth rate and infant mortality is high and life expectancy is low
- over 60% of the population live on less than $1 a day
- has 15% of the world's children out of school
- less than 1 in 4 women move on to secondary school
- businesses lack regular electricity supply
- terrorism occurs in the north
121
What aid does Nigeria receive?
- World Bank approved $500 million to fund development projects and provide long-term loans to businesses
- aid from the USA helps to educate people against the spread of AIDS
- the NGO provides education on malaria prevention and distributes anti-mosquito nets (60 million nets)
- USAID-funded community care in nigeria project provides support packages for orphans and vulnerable children
122
What prevents aid being used effectively?
- corruption in the government and individuals is a major factor in loss of aid
- government may divert money to be used for other purposes
- donors may have political influence over what happens to the aid
123
What is HDI?
HDI - Human development index
| -combined measure of life expectancy, years of schooling and GNI per capita
