THE CHANGING ECONOMIC WORLD Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

What is GNI?

A

GROSS NATIONAL INCOME
The total value of goods and services produced by a country US$

Measure of wealth

As a country develops it ↑

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

GNI Per head

A

The GNI divided by the population of a country also US$

😱When used on it’s own can be misleading, because it is an AVERAGE - variations within a country don’t show up 😱
EG QATAR - GNI is high but small number are very wealthy and many are very poor

Measure of wealth

As a country develops it ↑

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Birthrate BR

A

Number of births per 1000 per year

Measure of education

As a country develops it ↓

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Death rate DR

A

Number of deaths per 1000 per year

Measure of health

As a country develops it ↓

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Infant mortality rate IMR

A

Number of babies who die before 12 months old per 1000 babies born.

Measure of health

As a country develops it ↓

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Literacy Rate LR

A

% adults who can read and write

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Access to safe water

A

% people who can get clean drinking water

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Life Expectancy LE

A

Average age a person can expect to live to

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Human Development Index HDI

A

CALCULATION:
GNI per head, LE & Education level = value between 0-1
1 - most developed
0 - least developed

This measurement shows economic dev and quality of life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

DTM

STAGE 1

A
LEAST DEVELOPED
Not many places are ST1 now
BR high - little contraception
DR high - poor healthcare or famine
POP Growth Rate - Zero
LE - low
Eg - Tribes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

DTM

STAGE 2

A
NOT VERY DEVELOPED
Majority are LIC's
BR high - agriculture base living - children work on farms
DR falls - Better healthcare than ST1
POP Growth Rate - V high
Eg - Gambia
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

DTM

STAGE 3

A
MORE DEVELOPED
Most NEE's are at ST3
BR falls rapidly - more contraception, more women working
Economy changes from farming to Manu so less kids needed to work
DR falls - better healthcare
LE - increases
POP Growth Rate - high
Eg - India
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

DTM

STAGE 4&5

A
MOST DEVELOPED
Most HIC's are at one of these stages
BR - Low
People expect high standard of living
DR - low - healthcare is good
LE - High
Eg - Japan
POP Growth Rate - 4 = Zero     5 = Negative
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

DEVELOPMENT GAP - INVESTMENT

A

FDI - Foreign Direct Investment
When people or companies in one country buy property or invest in infrastructure in another.

Result - better access to finance, technology and expertise.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

DEVELOPMENT GAP - AID

A

Money or resources given to a country by a charity or foreign government.

Used for Farming equip, constructing schools and dams

Can be open to corruption 😢

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

DEVELOPMENT GAP - FAIR TRADE

A

Farmers in LIC’s getting a fair price for their produce.

Buyers pay extra so farmers receive a premium to help develop the area.

Problems - sometimes very little cash gets to the farmers as retailers boost their own profits 😩

17
Q

DEVELOPMENT GAP - USING INTERMEDIATE TECHNOLOGY

A

Tools, machinery and systems - affordable, simple to use, cheap to maintain and improve quality of life

18
Q

DEVELOPMENT GAP - MICRO FINANCE LOANS

A

Small loans given to people in LIC’s who cannot get loans from banks. Enables them to start a business.

Negative - can cause debt

19
Q

DEVELOPMENT GAP - INDUSTRIAL DEVELOPMENT

A

Countries with very low dev, agriculture makes up a large % of the economy. Developing industry boosts GNI as productivity, skills and infrastructure are improved.

20
Q

DEVELOPMENT GAP - DEBT RELEIF

A

When some or all of a country’s debt is cancelled OR Interest rates are lowered so they can have more to spend on development.

21
Q

KENYA - EG HOW TOURISM CAN REDUCE THE DEVELOPMENT GAP - OVERVIEW

A

LIC - East Africa
Tourist attraction for - wildlife, sun, culture, scenery
Visa fees cut by 50% in 2009 - to make it cheaper to visit the country
and scraped for kids to encourage more families
Tourism has been increasing since 1995

22
Q

KENYA - EG HOW TOURISM CAN REDUCE THE DEVELOPMENT GAP - BENEFITS

A

4% of Kenyas GDP - this is used on development.
Its HDI has improved
Over 9% of employed people in Kenya work in Tourism
Investment in transport has encouraged more to visit and benefits locals.
24 National Parks charge entry fees - to generate cash
to maintain them

23
Q

KENYA - EG HOW TOURISM CAN REDUCE THE DEVELOPMENT GAP - NEGATIVES

A

Only small proportion goes back to locals - rest to big companies.
Some Maasai communities forced off their land to create national parks.
Tourist vehicles damage environment
Terrorism can threaten tourisms reliability in terms of jobs and income.