P2B Changing economic world Flashcards
define development
an improvement in living standards through better use of resources
describe the Brandt line
- shows a divide in economic wealth
- countries in northern hemisphere tend to be richer
- anomaly identified is Australia+ New Zealand which were identified as rich countries
- line is becoming increasingly inaccurate - NEEs
describe the Human Development Index (HDI) and why it is considered the best development indicator
- takes into account life expectancy, education, and wealth/standard of living
- a single measure such as income only measures economic development, whereas combined measures take into account both social+economic factors eg. education
state economic development indicators (3)
- employment type- proportion of population working in primary/secondary/tertiary/quaternary industries
- GDP per capita- total value of goods/services produced in a country per person (per yr)
- GNI per capita- average gross national income per person (per yr)
state social development indicators (3)
- infant mortality- no. children who die bfr age 1, per 1000 live births
- literacy rate- percentage of population over 15yrs who can read+write
- life expectancy- average lifespan of someone born in that country
describe the first stage of the demographic transition model
high birth rate, high death rate
low population
no population growth
eg. native tribes
describe the second stage of the demographic transition model
high birth rate, declining death rate
low population growth
eg. Kenya, India
describe the third stage of the demographic transition model
low birth rate, low declining death rate
high population growth
eg. Brazil
describe the fourth stage of the demographic transition model
low birth rate, low death rate
no population growth
eg. USA, France, UK
describe the fifth stage (predicted) of the demographic transition model
low birth rate, low decreasing death rate
(predicted) population decline
eg. Japan, Germany
why do LICs have a high death rate (stage 1 DTM)
- no access to healthcare to treat diseases (native tribes, LICs)
- tough weather conditions
why do LICs have a high birth rate (stage 1 DTM)
- mortality rate is high so people have a lot of kids
why do HICs have a low death rate (stage 4/5 DTM)
- access to good healthcare
- able to afford healthcare
- better quality of life so people live longer
why do HICs have a low birth rate (stage 4/5 DTM)
- access to contraception
- many people don’t want lots of children
- adoption from foreign countries
describe human factors affecting uneven development (6)
- HISTORY: rich countries colonised others with resources to expand+exploit, Europe developed but slowed down development in LICs
- WORLD TRADE: HICs buy LIC resources at a low price (benefits HICs), goods+services more profitable than raw materials
- POLITICS: corrupt LIC leaders sell resources at a low price for personal benefit, stability of gov. affects country’s ability to trade+ invest
- EDUCATION: educated people earn more money+ pay more taxes (taxes help HICs develop), a more skilled workforce can produce more goods+services for trade
- WARS/CIVIL WARS: ethnic/tribal/religious groups in LICs fight for political power (money loss), LICs often lose wars due to poorer resources
- HEALTHCARE: ill people cannot work so no contribution to economy
describe physical factors affecting uneven development (4)
- NATURAL DISASTERS: (LICs) cause destruction/death/injury, more money spent on repairs+healthcare, educated people die
- CLIMATE: rainfall can benefit farming, people cannot work in extreme climates so no contribution to economy, climate attracts tourists so beneficial, farmers have reduced income in poor growing seasons
- NATURAL RESOURCES: availability of timber/coal provides energy+trading resources, LICs may be invaded
- LOCATION/TERRAIN: landlocked countries difficult to trade, mountainous places difficult for farming, scenery attracts tourits
describe consequences of uneven development (3)
- WEALTH: people in more developed countries have higher incomes, can afford services + better quality of life
- HEALTH: better healthcare in developed countries means people live longer
- MIGRATION: people move to nearby countries which are more developed for better opportunities+ standard of living
describe global trade between HICs/LICs/NEEs
- HICs benefit from LIC raw materials and NEE manufactured goods
- these poorer countries then benefit from the resulting income made from global trades
describe economic benefits of TNCs for the host country/LIC
- provides local people with direct jobs+ a wage (factory work)
- TNCs pay tax to the government which can be spent on development projects
- creates a multiplier effect- thousands of indirect jobs created (delivery/tourism)
+social benefits: allows people to provide for families, improved services improves quality of life
describe economic benefits of microfinance loans from HICs for LICs
- allows people to pay back debts
- use money for daily expenses
- use loan to fund a small business to generate more income- can be run by women in their home eg. sewing clothes
describe international aid (pros/cons +example)
- gift of money/goods/services to an LIC, from a charity/NGO or HIC/rich person
- for long-term development projects
- given when LIC is suffering from famine/natural disasters
- aid sometimes doesn’t reach those in need due to corruption, eg. governments syphon off a large portion of money
- eg. rope hand pump funded by NGOs/ WaterAid/ UNICEF, locals maintain+ build the pump themselves, provides safe drinking water
describe the location+ significance of an NEE which benefits economically from tourism (case study)
Tunisia: north Africa, coast of Mediterranean sea, capital named Tunis (in far north)
* popular tourist attraction- 7.1m people brought $1b in 2017
* sandy beaches, warm sea, beautiful scenery - hot summer weather
* ancient history+ culture, set of Star Wars
* life expectancy has risen fron 42-74yrs
* government reforms helped the country to diversify+ grow the economy- through promoting tourism+ manufacturing
describe economic benefits of tourism in an NEE (case study)
Tunisia
* multiplier effect- thousands of indirect jobs created, eg. taxi companies to transport tourists
* tourists spend money in informal sectors eg. markets and formal sectors eg. hotels/restaurants
* 473,000 local jobs, 15% of the economy from tourism
describe drawbacks of tourism in an NEE (case study) (3)
Tunisia
* increase in pollution- larger amount of waste pollutes beaches, unappealing for tourists
* leakage of profits- foreign travel companies keep large % of profits, limits money for local reinvestment
* terrorism- 2 attacks in 2015- declared an unsafe location which reduces no. tourists+ foreign investment
how effective was tourism in an NEE for reducing the development gap? (case study)
Tunisia- extremely effective
* GDP increased x5 (quintupled) to $42B
* life expectancy risen to 75yrs, local health improved
* GNI per capita trebled
* Tunisia now one of the wealthiest countries in Africa
* more educated children- school compulsory for both genders
describe the location+ significance of an NEE which benefits economically from TNCs (case study)
India: south-east Asia, tropic of cancer, coast of Indian ocean
Coca-Cola plant in Kaladera
* largest population in the world- 1.4B
* fast-growing economy but high wealth inequality, 1 in 5 live in poverty
* part of the BRIC countries (richest NEEs)
* industrial structure has changed significantly from primary to tertiary industry
* imports mostly raw materials which are processed into higher-value products+ exported
describe benefits that a TNC brings to its host country (NEE case study)
Coca-Cola plant in Kaladera, India
* company plans to invest several hundred million $ into community projects- helps development
* work with government to improve infrastructure, eg. Delhi-Mumbai industrial corridor built, improves links (jobs/trade) between major cities
* direct jobs - locals can earn a wage to provide for families
* increases multiplier effect - 100,00 indirect jobs eg. delivery drivers
* TNC pays tax to host country - used by government for development - improves quality of life for locals
describe drawbacks that a TNC brings to its host country (NEE case study)
Coca-Cola plant in Kaladera, India
* environmental+social conflict, eg. company accused of draining water from local villages, uses 900,000l of water per yr
* therefore farmers must walk further / drill deeper for water for crops- increased danger/cost/energy usage
* TNCs can esily use their market power to drive down supply prices
* harsh working conditions- accused of using child labour - negatively impacts workers’ health
* India cannot afford to refuse Coca-Cola’s business /TNCs as they depend on the money they bring (through wages/taxes) to fund development
describe the UK industrial sectors (+examples)
PRIMARY: farming, mining, forestry
SECONDARY: factory work, building (eg. Coca-Cola production)
TERTIARY: commercial (shops), social (teachers), entertainment (restaurants, tourism)
QUATERNARY: genetics researcher, ICT
describe the current UK economy/industry
- declining primary industry due to increased mechanisation+ importing of resources
- declining secondary industry due to de-industrialisation (after Industrial Revolution) - factories have moved abroad for cheaper wages+ relaxed laws
->post-industrial economy - also technological advancements mean secondary industry jobs are replaced by machinery/robots
- growing tertiary industry due to greater demand for services (education/healthcare and leisure (tourism))
- growing quaternary sector as UK can afford to invest in research
-> described as knowledge economy
describe the pros of a UK science park (case study)
Cambridge science park: high-tech quaternary industries
eg. pharmaceuticals, celltech
* easy access to M11 - links to rest of network by car, quick access to London centre
* London airports (LHR, LGW, LTN) - links to foreign countries for meetings abroad
* close link to Cambridge uni - well-educated students, collaborative projects
* railway access - fast transport to London centre, <1hr to King’s Cross
* nearby housing estates for employees
* landscaping - attractive
* multiplier effect - thousands indirect jobs created
* many car parks
describe why there has been a growth in science parks in HICs (2)
- HIC invests in research projects to support new ideas/development
- growth in demand for new products - eg. phones need newer technology
- concern about environment - energy-efficient appliances
describe why+where counter-urbanisation occurs
HICs - people migrate from urban to rural areas (past the greenbelt) for a better quality of life
richer so can afford it, less noise/air pollution, natural scenery
describe what a greenbelt is
- major cities surrounded by a greenbelt
- protects land from urban sprawl - prohibits development
- preserves greenfield sites, open land, nature
- beyond the greenbelt is commuter settlements for people who want jobs in the city but want to live in rural areas for better quality of life
describe the differences between the north-south divide UK (8)
- EMPLOYMENT higher in N - larger population in south so higher competition
- WEALTH higher in S - hosts more businesses/companies, tertiary/quaternary industry
- LIFE EXPECTANCY higher in S - better healthcare, more hospitals than north
- POPULATION GROWTH higher in S
- HOUSE PRICES higher in S (double)
- CONNECTIONS (road/rail/airport) higher in S - higher population so more investment
- QUALITY OF LIFE higher in S
- TERRAIN - upland in N, fertile/flat land in S
describe unemployment across the UK
- highest in NE England (9%) - area suffered from de-industrialisation - decline in secondary industry jobs
- high in London (7%) - large population so high competition for jobs
- lowest in SE England (4%) - connections to Europe provides access to wider range of jobs
describe ways of narrowing the north-south divide UK (3)
- assisted areas - providing money for new businesses
- improve infrastructure - linking major cities to the north, eg. HS2 rail links London to Birmingham
- giving more power to individual cities to make their own decisions on spendings
describe the aim+ benefits of the construction of HS2 rail (5)
- help bridge north-south divide - improves transport links to London+ the north (Birmingham)
- faster journeys+ fewer delays - benefits commuters, people can access a wider range of jobs
- boosts UK economy
- good for the environment/sustainable - uses zero carbon energy, reduced traffic congestion
- boosts national pride+ UK assets
describe drawbacks of the construction of HS2 rail (3)
- difficult to predict final cost+ future profit - could damage economy
- demolitiom of homes+ damage to rural England to construct railway - loss of greenbelt+ greenfield land
- there are better-value projects the UK could spend the money on eg. NHS
describe the location+ significance of a UK MNC (case study)
Toyota factory: Multinational Company, Darby, the Midlands, England
* makes 200,000 cars a year
* Derbyshire council invested £20M
describe benefits of a UK MNC (case study) (2)
Toyota factory
* 3000 jobs created, many previously unemployed
* secure jobs as it is a successful company - workers assured
* biggest car producers in the world
describe environmental impacts of a UK MNC (case study) (6)
Toyota factory
* built on greenfield site - countryside destroyed
* increase in traffic+ noise pollution
* Japanese company - many profits taken abroad
environmental impacts of car industry:
* some components (plastic) difficult to recycle - adds to landfill
* energy consumed during manufacture - uses as much energy to make as it will consume in its lifetime
* air pollution - buring of fuel (petrol/diesel) releases pollutants
describe ways UK MNCs try to be sustainable (case study) (2)
Toyota factory
* solar panels on roof of factory - renewable energy for production
* they manufacture electric/hybrid cars - more energy efficient, less air pollution
how does fairtrade deal with problems of uneven development (2)
- ensures farmers in LICs are paid a fair price for their produce - so they can afford services eg. healthcare and improves standard of living
- profits are spent in the LIC - then invested locally in health/education/infrastructure
why are Fairtrade schemes sometimes unsuccessful
fairtrade products are more expensive so not purchased by consumers in developed countries
