the changing economic world Flashcards
what is development of a country?
progress of economic growth, use of technology and improving welfare that a country has made.
what are some measures of development [10]
GNI, GDP, birth rate, death rate, infant mortality rate, people per doctor, literacy rate, access to safe water, life expectancy, HDI
what is GNI
the total value of goods and services produced by a country a year, including overseas income
what is GDP
the total value of goods and services a country produces per year
what is birth rate
the number of live births per thousand of the population per year
what is death rate
the number of deaths per thousand of the population per year
what is infant mortality
the number of infants that die before the age of 1 year, per thousand babies
what is people per doctor
the number of people for each doctor
what is literacy rate
the percentage of adults who can read and write well
what is HDI
number between 0-1 that is calculated using the life expectancy, education and wealth rates.
strengths of using GNI as a measure of development
- easy to present data (graphs)
- easy to compare data (same currency)
- reliable (if the data can be trusted)
weaknesses of using GNI as a measure of development
- people can lie about their income
- anomalies can mess up data
strengths of using HDI as a measure of development
- easy to compare
- reveals global patterns
- tells us about a country’s health, welfare AND education
weaknesses of using HDI as a measure of development
- people may lie
- anomalies mess up data
draw a demographic transition model
http://tinyurl.com/5b5cz4fh
- that link has a good image of it
what happens in stage 1 of the DTM
in stage 1, the population is low, and the birth and death rate are high, but fluctuating by a bit. this is due to low access to healthcare and contraception
what happens in stage 2 of the DTM
in stage 2, the death rate plummets down, as the healthcare access is a lot better. the population starts to increase as the birth rate is still fairly high (due to lack of contraception methods)
what happens in stage 3 of the DTM
in stage 3, the death rate continues to decrease, and the birth rate starts to fall at a higher rate. this is due to the discovery of reliable contraception methods
what happens in stage 4 of the DTM
in stage 4 the population stays constant and then death rate is at its lowest as there is a good standard of living. the birth rate fluctuates but stays at a low rate
what happens in stage 5 of the DTM
in stage 5, the birth rate is slowly staying constant as there are more women focusing on their careers, and have children later in life. this would lead to them having less children overall, so the population fluctuates. another reason for the fluctuation of population is that the death rate increases. this is because there are a higher proportion of elderly people, who are dying.
physical causes for uneven development and why [3]
- natural hazards: lots of money needs to be spent rebuilding infrastructure
- few raw materials: less overall products to sell
- poor climate: not much crops will grow for both subsistence farming and selling
historic causes for uneven development [2]
- conflict: development is slow after war as money is spent of weapons instead of development
- colonisation: when they gain independence, they struggle to develop as typically they lose raw materials and wealth
economic causes for uneven development [3]
- poor trade links: higher trade links lead to higher development, so if the trade links is poor, they will be making less money, so less to spend on development
- debt: if a country needs to pay back debt, any money they make will be spent for paying back (sometimes w interest) instead of being used for development
- primary sector products: countries that export raw materials typically less developed as profit fluctuates
consequences of uneven development [3]
- wealth: people in HIC typically get higher income so better quality of life
- health: healthcare in more developed countries is better
- migration: if there is a HIC near an NEE/LIC, people will legally migrate to the HIC for a better quality of life (eg. Mexico to USA
strategies that can reduce the development gap [4]
- aid: money given to help develop
- debt relief: interest lowered, debts cancelled
- fair trade: farmers get paid a fair price for goods produced (LICs)
- tourism: more money entering so can be put towards development
p2. strategies that can reduce the development gap [4]
- investment: leads to better access to finance, tech and expertise so improved infrastructure etc
- intermediate tech: machines that improve quality of life. eg solar power LED light bulbs, people can work in dark so improving productivity
- industrial development: agriculture makes up a large portion of the economy. developing industry = better infrastructure etc
- microfinance loans: small loans given to people in LICs so they can become financially independent
what are trans-national corporations
companies that are located in, or produce and sell products in more than one country
advantages of TNCs?
- create jobs
- employees get a more reliable income
- new tech brought into country
- TNCs spend money to improve the infrastructure
disadvantages of TNCs?
- employees are still exploited (paid less than they would’ve been paid in richer countries)
- poor conditions ( have to work long hours)
- profits typically go back to richer countries
- business can relocate if cheaper country is found
