Section B- The Changing Economic World Flashcards
what can be used to measure development? (11)
- GDP
- GNI
- Birth rate
- death rate
- infant mortality rate
- literacy rate
- people per doctor
- access to safe water
- life expectancy
- HDI
which is is the best development measurement to use?
human development index because it combines social and economic factors
what was the earliest method of dividing countries?
first second and third world based on their income
why is the first second and third world classification system useless?
their are other factors that contribute to development not just income
parts of countries are wealthier than others
How does the demographic transition model work?
measures population change over time
studies birth+ death rate
what is stage one of the demographic transition model?
high stationary
includes a few remote groups
what is stage two of the demographic transition model?
early expanding
include egypt,kenya,india
what is stage three of the demographic transition model?
late expanding
includes brazil
what is stage four of the demographic transition model?
low stationary
includes USA,France,UK
what is stage five of the demographic transition model?
declining?
includes Germany
How has history caused uneven development?
colonism harmed many countries+ created conflict
European countries wanted global influence
South America+Africa badly affected-slave trade
How have economic factors caused uneven development?
European powers took raw materials at low prices-jeopardise economic development
How have physical factors caused uneven development?
countries with no coastline can’t trade
natural hazards destroy settlements
What are the consequences of uneven development?
disparities in health,wealth + international migration
What is the Gini Coefficient? (disparity of wealth)
a measure of intenal disparities. LICs tend to have a high Gini coefficient
Is there a disparity in health between LICs and HICs?
yes e.g
LICs only 20% of deaths are people over 70
HICs 70% of deaths people over 70
How does uneven development lead to international migration?
migrants in search of a better life
others leave due to flee disasters
how can investment help reduce the development gap?
TNCs- produce goods+ services in lots of countries (mcdonalds)
the multiplier effect
FDI
what is the multiplier effect?
investment in a business helps to thrive- this can turn into help for other businesses- and so on
what is FDI
Foreign Direct Investment, cash injected from TNCs
give an example how investment can improve the quality of life in a LIC?
Apples iphones are manufacture in china but invented in the US. Give jobs to chinese workers
How has industrial development helped to improve the development gap?
Set up factories in LICs
look for new markets in LICs
produce close to where you are selling
what is top down aid?
money is given to the government to spend on the country
doesn’t always ‘trickle down’ to the poor people so it’s not fair
what is bottom up aid?
giving money to the poorest people to start development
money isn’t lost to corruption
how does aid improve the development gap?
if used correctly in can start up business in LICs and build their economy
how has intermediate technology helped reduce development gap?
region not fit for farming so solar cookers given to india- sustainable
what is fairtrade?
people get a fair price for goods they produce
how has fair trade helped reduce the development gap?
people get fair prices for their goods which means they get paid properly
What is debt relief?
reduce the amount of debt in a country
e.g $1 billion of debt was dropped per year for the most in debt countries
what is microfinance?
type of banking service provided to low-income individuals who have no other access to financial services.
how has Tourism in Kenya helped?
600,000 directly or indirectly employed by tourism
tourism contributes to 12%+ Kenyas GDP
since 2000 HDI increased 0.45 to 0.55
how has toursim in Kenya not helped? (3)
tourist vehicles damage environment
small proportion of money goes to locals-goes to big companies
tribes for of land to create parks
what is the quaternary sector?
industries providing information services such as ICT
what is globalisation?
growth and spread of ideas around the world
what is deindustrialisation?
the reduction of industrial activity or capacity in a region of economy
How has decline in traditional industrial base caused economic change?
less free money
less money spent on leisure
tertiary sector employment increases
what were the causes of de-industrialisation? (3)
NEEs opened their countries to global businesses- UK firms moved there
UK has strict environmental laws
more expensive in the uk (wages)