Paper 2 - The Changing Economic World Flashcards

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1
Q

What is development?

A

Its the process in economic growth, use of technology and improving welfare that a country has made.

When a country develops it basically gets better for the people living there - their quality of life improves.

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2
Q

What is the global development gap?

A

The difference in development between more and less developed countries.

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3
Q

Name the different ways to measure development

A
  1. Gross National income (GNI).
  2. GNI per head
  3. Gross domestic product (GDP)
  4. Birth rate
  5. Death rate
  6. Infant mortality rate
  7. People per doctor
  8. Literacy rate
  9. Access to safe water.
  10. Life expectancy
  11. Human development index (HDI)
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4
Q

What is gross national income (GNI)?

A

The total value of goods and services produced by a country in a year, including income form overseas. Its often given in US$.

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5
Q

What is GNI per head?

A

The GNI divided by the population of a country.

Its sometimes called GNI per capita.

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6
Q

What is gross domestic product (GDP)?

A

The total value of goods and services country produces in a year.

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7
Q

What is birth rate?

A

The number of live babies born per thousand of the population per year.

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8
Q

What is death rate?

A

The number of deaths per thousand of the population per year.

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9
Q

What is infant mortality rate?

A

The number of babies who die under 1 year old, per thousand babies born.

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10
Q

What is people per doctor?

A

The average number of people for each doctor.

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11
Q

What is literacy rate?

A

The percentage of adults who can read and write.

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12
Q

What is access to safe water?

A

The percentage of people who can get clean drinking water.

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13
Q

What is life expectancy?

A

The average age a person can expect to live to.

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14
Q

What is human development index (HDI)?

A

This is a number that’s calculated using life expectancy, education level (e.g - average number of years of schooling) and income per head.

Every country has an HDI value between 0 (least developed) and 1 (most developed).

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15
Q

Name the two categories based on how economically developed a country is

A

Richer countries were classed as more economically developed countries (MEDC’s).

Poorer countries were classed as less economically developed countries (LEDC’s).

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16
Q

What is the demographic transition model?

A

Shows how changing birth rates a death rates affect population growth.

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17
Q

What is natural increase?

A

When the birth rate is higher than the death rate, so the population grows.

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18
Q

What is natural decrease?

A

Death rate is higher than birth rate, so the population decreases.

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19
Q

What happens in stage 1 of the DTM?

A

Its the least developed -

The birth rate is high because there’s no use of contraception.
People also have lots of children because poor heathcare means that many infants die.
The death rate is high due to poor healthcare or famine, and life expectancy is low.
Income is very low.

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20
Q

What happens in stage 2 of the DTM?

A

Not very developed - Many LICs are in stage 2

The economy is based on agriculture so people have lots of children to work on farms, which means that birth rates are high.
Death rate fall due to improved healthcare and diet so life expectancy increases.

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21
Q

What happens in stage 3 of the DTM?

A

More developed - most NEEs are at stage 3.

The brith rate falls rapidly as women have a more equal place in society and better education.
The use of contraception increases and more women work instead of having children.
The economy also changes to manufacturing, so income increases and fewer children are needed to work on farms.
Healthcare improves so life expectancy increases.

22
Q

What happens in stage 4 and 5 of the DTM?

A

Most developed - most HICs

Birth rates are low because people want possessions and a high quality of life, and may have dependent elderly relatives, so there is less money available for having children.
Healthcare is good, so death rate is low and life expectancy is high.
Income is high.

23
Q

What are the physical factors for uneven development?

A

Poor climate
Poor farming land
Few raw materials
Lots of natural hazards

24
Q

How does poor climate cause uneven development?

A
  1. If a country is really hot/dry not much will grow. This reduces the amount of food produced, which can lead to malnourishment, and a low quality of life.
  2. People also have fewer crops to sell, so make less money.
  3. The government gets less money from taxes, meaning there’s less to spend on development.
25
Q

How does poor farming land cause uneven development?

A

If the land in a country is steep or has poor soil then they wont produce lots of food.

26
Q

How does few raw materials cause uneven development?

A
  1. Countries without many raw materials tend to make less money because they’ve got fewer products to sell.
    This means there is less money for development.
  2. Some countries do have a lot of raw materials but still aren’t very developed because they don’t have the money to develop the infrastructure to exploit them.
27
Q

How do natural hazards cause uneven development?

A

Countries that have had lots of natural disasters have to spend a lot of money rebuilding after disasters occur.

So they reduce quality of life for the people affected, and they reduce the amount of money the government has to spend on development projects.

28
Q

What are the historical reasons for uneven development?

A

Colonisation

Conflict

29
Q

How has colonisation caused uneven development?

A

Countries that were colonised are often at a lower level of development when they gain independence than they would be if they had not been colonised.

European countries colonised much of Africa in the 19th century. They controlled the economies of their colonies, removed raw materials and slaves, and sold back expensive manufactured goods.

Parts of Africa became dependent on Europe.

30
Q

How has conflict caused uneven development?

A

War can slow or reduce levels of development even after the war is over. E.g - healthcare becomes much worse and things like infant mortality increases a lot.

Money is spent on arms and fighting instead of development, people are killed and infrastructure/ properties are destroyed.

31
Q

What economic factors cause uneven development?

A

Poor trade links
Lots of debt
An economy based on primary products

32
Q

How do poor trade links cause uneven development?

A

Poor trade links means it trades with a small amount of countries.

If they do have poor trade links it wont make a lot of money.

33
Q

How does debt cause uneven development?

A

Very poor countries borrow money from other countries and international organisations.
This money has to be paid back.

Any money made is used to pay back the debt, so isn’t used to develop.

34
Q

How does an economy based on primary products cause uneven development?

A

Countries that mostly export primary products (raw materials) tend to be less developed.
This is because not much profit is made by selling primary products. Their prices also fluctuate.
This means people don’t make much money.

35
Q

What are the consequences of uneven development?

A

It leads to a great difference in wealth, health and has caused large flows of international migration.

36
Q

How is a difference in wealth a consequence of uneven development?

A

People in more developed countries have a higher income than those in less developed countries.

37
Q

How is a difference in health a consequence of uneven development?

A

Healthcare in more developed countries is better than in less developed countries.
People in HICs live much longer
Infant mortality is also much higher in less developed countries.

38
Q

How is international migration a consequence of uneven development?

A

If neighbouring or nearby countries have a higher level of development, people will seek to enter that country to make use o the opportunities it provides to improve their quality of life.

39
Q

What are the strategies used to reduce the development gap?

A
Aid 
Debt relief 
Fair trade 
Investment 
Industrial development 
Using intermediate technology 
Tourism 
Microfinance loans
40
Q

How can aid reduce the development gap?

A

Aid is given by one country to another as money or resources.

It is spent on development projects, for example constructing schools to improve literacy rates, and well to improve clean water supplies.

It can definitely help, but sometimes it is wasted by corrupt governments. Or once the money runs out, projects can stop working if there isn’t enough local knowledge and support to keep it going.

41
Q

How can debt relief reduce the development gap?

A

Its when all or some of a country’s debt is cancelled, or interest rates are lowered. This means they have mor money to develop rather than to pay back the debt.

42
Q

How can fair trade reduce the development gap?

A

Its all about farmers getting fair prices for goods produced in LICs, allowing them to provide for their families.

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 where the goods come form.

However, only a tiny proportion of the extra money reaches the original producers. Much gos to retailers profit.

43
Q

How can investment reduce the development gap?

A

Foreign direct investment is when people or companies in one country buy property or infrastructure in another.

FDI leads to better access to finance, technology and expertise, and improved infrastructure, improved industry and an increase in services.

44
Q

How can industrial development reduce the development gap?

A

In countries with a very low level of development, agriculture makes up a large portion of the economy.

Developing industry increases GNI and helps improve levels of development as productivity, levels of skills and infrastructure are improved.

45
Q

How can using intermediate technology reduce the development gap?

A

Intermediate technology includes tools, machines and systems that improve quality of life, but are also simple to use, affordable to buy or build and cheap to maintain.

As a result, skills, incomes and industrial output can increase, which helps reduce the development gap.

46
Q

How can tourism reduce the development gap?

A

Can provide increased income as there will be more money entering the country.

47
Q

How can a Microfinance loan reduce the development gap?

A

Microfinance is when small loans are given to people in LICs who may not be able to get loans from traditional banks.
The loans enable them to start their own businesses and become financially independent.

48
Q

What are TNCs?

A

Trans-national corporations, are companies that are located in, or produce and sell products in more than one country.

49
Q

What are the advantages of TNCs?

A
  1. Create jobs in all the countries they’re located in.
  2. Employees in poorer countries get a more reliable income compared to jobs like farming.
  3. TNCs spend money to improve the local infrastructure.
  4. New technology and skills are brought to poorer countries.
50
Q

What are the disadvantages of TNCs?

A
  1. Employees in poorer countries may be paid lower wages.
  2. Employees in poorer countries may have to work long hours in poor conditions.
  3. Most TNCs come from richer countries so the profits go back there.
  4. The jobs created in poorer countries aren’t secure - companies could relocate the jobs to another country at any time.