The Changing Economic World Flashcards
What is development?
What is the global development gap?
The progress in economic growth, use of technology and improving welfare that a country has made
The difference in development between more and less developed countries
What are some measures of development?
- Gross National Income = total value of goods and services produced in a year, including from overseas
- GNI per capita = GNI divided by population
- Birth rate
- Death rate
- Infant mortality rate = number of babies who die before 1 year old annually per thousand born
- People per doctor
- Literacy rate
- Access to safe water
- Life expectancy
What is a HIC? Give an example
What is an LIC? Give an example
What is an NEE? Give an example
High income country, wealthiest countries e.g Japan
Low income country, poorest countries e.g Somalia
Newly emerging economy, rapidly getting richer e.g India
What is HDI?
Human Development Index, calculated using GNI per capita, life expectancy and education level. Tells you the level of economic development and quality of life
What is the demographic transition model (DTM)?
Shows how birth rates and death rates affect population growth. Can indicate levels of development.
Describe the stages of the DTM
1 - least developed, no countries, high birth rate (no contraception), high death rate (poor healthcare)
2 - not very developed, many LICs, high birth rate (economy mostly agriculture so children work on farms), death rates fall (better healthcare increases life expectancy)
3- more developed, most NEEs, birth rate falls (more contraception + women working), death rate falls (better healthcare)
4/5 - most developed, most HICs, birth rates low (people want high standard of living so less money for children), death rate low (good healthcare)
What are some physical factors towards uneven development?
- Poor climate = poor crop yields = malnutrition, less to sell so lower incomes = less taxes = less development
- Poor farmland = difficult to grow crops, same effects as poor climate
- Few raw materials = less to sell, make less money, lack of infrastructure to exploit them has the same effects
- Frequent natural disasters = money spent on rebuilding not developing, reduce quality of life and the government’s money
What are some economic factors of uneven development?
- Poor trade links = won’t make a lot of money = less to spend on development
- Lots of debt = loans have to be paid back, mostly with interest, so less money is spent on development
- Economy based on primary products = primary products have lower value than manufactured goods, prices fluctuate, sometimes below cost of production so money is lost
What are some historical causes of uneven development?
- Colonisation - colonisers removed raw materials, profits went to colonisers instead of the colonised country, preventing the country from developing their own industries
- Conflict - war slows development, money spent on the war (e.g arms, training) not development, people killed, property damaged and healthcare disrupted, reducing development
What are some consequences of uneven development?
- Disparities in wealth - differences in GDP between HICs and LICs + wealth disparities within countries
- Disparities in health - HICs usually have better healthcare than LICs
- Migration - Many people from LICs/NEEs move to HICs to escape conflict / seek better quality of life. This means they contribute to the HIC’s economy, not the LIC, widening the development gap
What are some ways of reducing the development gap?
- Investment - Foreign Direct Investment (FDI) = companies buying properties abroad = increase in services + better industry
- Aid - money/resources given to increase development
- Fairtrade - helps farmers in LICs get fair prices
- Intermediate technology - improves quality of life, but simple to use and affordable to buy
- Microfinance loans - small loans given to people in LICs to help them start businesses
- Industrial development - boosts GNI
- Debt relief - money can be spent on development not paying back debt
Describe the tourism sector in Jamaica
One of the few growth sectors of the economy, as it is a popular tourist destination (sandy beaches, hot etc). There are good international air connections and it is a hub for cruise ships.
It generates taxes, helps employment, increases income and reduces the development gap
How is tourism in Jamaica improving:
The economy?
Employment?
Infrastructure?
Quality of life?
Tourism generates US $2 billion annually, it makes up 24% of Jamaica’s economy
Tourism employs 200,000 people
There is a high level of investment on the north coast now with new facilities, but some areas are still isolated
Wealthy Jamaicans in tourist areas have high standard of living, but many people have poor housing, limited food/water, education etc
How does tourism in Jamaica impact the environment?
Mass tourism causes footpath erosion, excessive waste and harmful emissions. BUT tourism increases conservation projects. Ecotourism is becoming more common
What is a TNC?
Why do they operate in foreign countries?
How many operate in Nigeria?
A Transnational Corporation is a company that operates in several countries
Tax incentives, cheap labour, access to wider market, laxer environmental laws
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