The Changing Economic World Flashcards
GNI meaning?
Gross national income - total value of goods and services produced by a country including income from overseas
What is development?
Development is the progress in economic growth, use of technology and improving welfare that a country has made.
What is GDP?
Gross domestic product is the total value of goods and services a country orifices in a year
What is birth rate?
Number of babies born per thousand of the population per year
What is Death rate?
The number of deaths per thousand of the population each year
What is infant mortality rate?
The number of babies who die under 1 per thousand born
What is HDI?
human development index is a number that calculated using life expectancy, literacy rate, education level and income per head. Every country has a HDI between 0 and 1
What are the limitations of using an denomination measure of development?
It can hide variation between regions
It’s an average - could be couple really rich people to a couple thousand really poor and that could be considered a HIC
What is the demographic transition model?
Shows how changing birth rates and death rates effect population growth.
What are the characteristics of stage 1 on the DTM?
High birth rate - no contraception, poor medicine - many infants die
High death rate - poor medicine and healthcare, famine, low life expectancy
What are the characteristics of stage 2 on the DTM?
Economy based on agriculture - children need to work
Birth rates are high
Death rates are low due to improved healthcare and diet
What are the characteristics of stage 3 on the DTM?
Most NEEs are stage 3
Birth rate falls as women have a more equal part in society and use of contraception increase - less children need to work
Healthcare improves and life expectancy increases further
What are the characteristics of stage 4 and 5 on the DTM?
Low birth rates - people want possessions, careers, high QoL, les money for children
Healthcare is good - low death rates and high life expectancy
Outline the three categories of causes for uneven development.
Physical
Economical
Historical
Explain briefly how different physical aspects effect a countries development.
Poor climate - not much will grow, fewer things to sell and low income
Poor farming land - steep land or poor soil - won’t produce food
Few raw materials - fewer things to sell, less money to develop
Natural hazards - spend lots of money rebuilding
Explain briefly how different historical aspects effect a countries development.
Colonisation - colonised countries have lower development when they become independent than if they had never been colonised
Conflict - war and civil wars can slow or reduce development
Explain briefly how different economic aspects effect a countries development.
Poor trade links - less countries to trade with - less money
Debt - poor countries borrow money, income has to be used to pay it
Outline and explain the three main consequences of uneven development
Wealth - purple in more developed countries have higher income
Healthcare - people in HICs live lots longer
International migration - many people move to neighbouring developed for work and income
What is an example of migration as a consequence of uneven development?
Lots of international migration from poorer areas of Eastern Europe to the UK. Since 2004 nearly 2million Economic migrants have moved to the uk in search of work
Most migrants pay tax and work hard but the lack of jobs can cause unemployment for uk citizens
Outline the strategies used to reduce the development gap?
Investment
Industrial development
Tourism
Aid
Intermediate technology
Fair trade
Debt relief
How can investment reduce the development gap?
Improvements of harbours and ports
New industry developments
Allows employment and income and as economy grows the countries education increases and poverty decreases
How can industrial development reduce the development gap?
Brings employment and income
New opportunities to invest in housing, education and infrastructure
Which causes better education and healthcare
Which cause new opportunities for investment in shops and supply industries
This is the multiplier effect
How can tourism reduce the development gap?
Countries with a amazing landscape have become tourist destinations.
This has led to job opportunities and investment from abroad
What is the name of an example where tourism has helped close the development gap?
Jamaica
How has tourism decreased the development gap in Jamaica?
Economy - tourism contributes largely to GDP, income and taxes to the government allows for better development
Employment - tourism provides new jobs and a stable income and provides over 200,000 jobs
Infrastructure - lead to high levels of investment in hotels and infrastructure to attract more tourists but also increasing qol for locals
How has aid decreased the development gap?
Aid is when a country or NGO donates resources to help another country.
Only long term , freely given aid can help the development gap.
Enabled countries to invest in better infrastructure and development projects that increase QoL
What is intermediate technology?
Sustainable technology that is appropriate to the needs, skills and knowledge of locals
How can has intermediate technology reduced the development gap?
Intermediate technology takes the form of small scale projects often associated with health, water and agriculture
How can fair trade reduce the development gap?
Provides more money to ordinary farmers which reduces pay and QoL gap
How can debt relief reduce the development gap?
Help poor countries invest money by cancelling debts to invest their money into development.
What is the case study of a NEE going through economic development?
Nigeria
Where is Nigeria?
Nigeria is a country in west Africa
What is Nigerias importance globally?
2.7% of worlds oil
5th largest contributor to UN peacekeeping
Diverse economy including telecommunications, media and finance
What is Nigeria’s importance to Africa?
Has one of the fastest growing economies in Africa
Largest population and highest gdp
Could lead the way in africas development
Barack Obama - ‘critical to the rest of the continent’
What is some political context surrounding Nigeria?
Africa gained independence in 1960s
Series of dictatorships and a civil war
Lack of political stability effected development
Stable government since 1999
What is some social context surrounding Nigeria?
Multiethnic, mulitfaith
4x bigger than the uk
3x bigger population than uk
Life expectancy - 52
70% in poverty
What is some cultural context surrounding Nigeria?
Nigerian music is enjoyed across the continent
Third largest cinema industry - Nollywood
Well known literacy writers
What is some environmental context surroundings Nigeria?
Northern Nigeria is semi desert. Savannah is used for cotton and groundnuts
Southern Nigeria has high temperatures and high rainfall. Large forests and cocoa, palm oil and rubber is grown
What are nigerias sources of income?
Oil and agriculture
Does Nigeria have a balanced economy and why?
Employment in agriculture has fallen
Increased employment in oil production, manufacturing and construction
The growth of communications, retail and finance
How is nigerias manufacturing industry growing?
Processed foods
Textiles
Leather items
Soaps and detergents
Now make up 10% of economy
How is manufacturing in Nigeria affecting economic development?
- regular paid workers gives mores secure income
- industries stimulate growth through close links with each other
- attracts more foreign investment
- industries created chemical byproducts that cause growth in chemical industries
What is a TNC?
A trans national corporation is a large company that operates in several countries
They locate in foreign countries to take advantage of tax, cheap labour, wider market and laxer environmental laws
What are the advantage of TNCs on the host country?
Provide employment and development of new skill
More money spent on economy
Investment by companies in local infrastructure
Pay taxes on exports to the government
What are the disadvantages of TNCs on the host country?
Local paid workers can be poorly paid
Working conditions can be poor
Management jobs often go to foreign employees
Most of the profit goes abroad
Grants that attract TNCs could have been used on economic development
What is an example of a TNC in Nigeria?
Shell oil in the Niger Delta
What benefits did shell bring to Nigeria?
Making major contributions in taxes and export revenue
Direct employment to 65000 and 250000 in related industries
Giving 91% of contracts to Nigerian industries
What were some negative impacts of shell in Nigeria?
Oil spills caused water pollution
Frequent oil flares send toxic fumes into the air
Oil theft and sabotage became bug problems
How have Nigerias trading relationships changed?
Major global trading nation
Majority of trade goes to the EU - mainly exports
Trading is slowly become wider with more connections in Asia
How are Nigerias political relationships changing?
Until 1960 it was part of the British empire
Member of commonwealth of nations
African Union - economic planning and peacekeeping
UN - 5th largest contributes of troops
OPEC - aims to stabilise the price of oil
What are the two types of aid?
Emergency aid and developmental aid
What is emergency aid?
Aid that usually follows a natural disaster, war or conflict. May take the form of water, food, shelter or medical supplies
What is developmental aid?
Long term support given by charities, governments of ngos. It aims to improve the QoL by providing education, safe water and infrastructure
Why does Nigeria receive international aid?
In 2013 Nigeria received around 5 billion usd of aid
Majority of aid went to benefit healthcare and social infastructure and services
Nigeria has over 100million People living in poverty on less than 1usd per day
Nigerias has exceptionally low life experncatncy and high infant morality rate
How can aid benefit the receiving country - Nigeria ?
World bank approved 500million usd to fund development projects and long term business loans to stop dependence on oil exports
Aid from USA helps to educate and protects from spread of aids
Uk department for international development has funded a health programme providing health education in rural areas
What prevents aid from being used efficiently?
Corruption in governments
Government diverts money to be used for other purposes
Donors may have political influence on the use of aid
Money may be used to promote commercial self interest of donor
How does economic growth in indutry effect the environment?
Industrial growth causes harmful pollutants that go directly into water channels and damage the ecosystem
Industries disposal of chemicals waste threatens groundwater quality
Industrial chimneys emitt poisonous gas
How does economic growth in urbanisation effect environment?
Economic growth causes urbanisation and a increase in squatter settlements
Urban expansion leads to deforestation to build houses, service and roads
Traffic congestion causes pollution
How does the economic growth of farming and oil causes environmental issues?
Farming leads to land degradation and water pollution
Deforestation for more farmland and food demand
Mining leads to soil erosion and pollution of water
Mining causes deforestation for mines and roads.
What are the effects of economic development on quality of life?
Reliable, better paid jobs in industry
Better access to water and sanitation
Higher disposable income to spend on schools and medical care
Reliable electricity supplies providing heating, lighting and water sanit
Better quality healthcare with more doctors and better equipment
What will effect the improvement of quality of life in Nigerias future?
Political - need for continuing stable governments
Environmental - pollution devastated lives of people. Pests restrict commercial farming
Social - religious divides and tension coudl causes conflicts and lead to war or lower QoL
Outline the causes of economic change in the UK?
Deindustrialisation
Globalisation
Government policies
How has deindustrialisation changed the uk economy?
Decline in manufacturing industry and growth in tertiary and quaternary employment
Machines have replaced many people in modern industries
Lack of investment and machinery meant uk products were too expensive
How has globalisation changed the uk economy?
Globalisation is responsible for the explosion of the quaternary sector with many people now working on global brands and products
What is globalisation?
The growth and spread of ideas around the world. Such as the movement or spread of culture, people, money and goods
How have government policies caused economic change in the UK?
State run industries were cold to many new private companies who brought innovation and change
Improvements to transport infrastructure
More investment in manufacturing
Easier access to loans and finance
What is a post industrial economy?
Is the decline of manufacturing industry and replaced by the growth of the service sector.
Outline the factors contributing to a post industrial economy?
Service industries and finance
Development of information technology
Research
Science and business parks
Explain how the development of information technology contributes a post industrial economy?
Computers allow large amount of data to be stored
Internet enables worldwide communications
Technology developing rapidly
Uk one of the world leading digital economies
Explain how research contributes a post industrial economy?
Contributes over 3 billion to uk economy
Research is done by universities, private companies and government sectors,
Cambridge, bbc, MoD
Explain how services and financial industry contributes a post industrial economy?
Service sector has grown rapidly and is now uk biggest economic output
Finance is impart part of service sector. Includes banking, insurance and securities. The uk is the world leading centre for financial services
What are the impacts of industry on the physical environment?
Manufacturing plants can look very dull and uninteresting
Industrial processes can cause air and water pollution
Waste products are often places in landfill
Transport of raw materials is usually by road can leads to congestion and pollution.
Explain how science parks contribute a post industrial economy?
Science park like Southampton science park has strong links with the university of Southampton
Has excellent uni links providing academic talent
Source of graduate employees and excellent transport links
Has a lot of industries that develop tech and software
Explain how business parks contribute to a post industrial economy?
Cobalt business park in Newcastle is the uks largest
Several support facilities
Home to many large industries
Location in northeast qualifies for government assistance
What is a science park?
A group of scientific and technical knowledge based businesses located on a single site
What is a business park?
Business park is an area of land occupied by a cluster of business’s
What is the name of an example on how modern industrial development can be more environmentally sustainable?
Torr Quarry, Somerset
How can industrial development be more sustainable?
Technology can be used to reduce harmful emissions
Stricter environmental targets placed on industry
Heavy fines imposed when an industrial pollution incident occurs
What can quarrying do to the uk landscape?
Destroy natural habitats
Scar the landscape
Pollute nearby water courses and groundwater supplies
How is the Torr Quarry becoming more environmentally sustainable?
Being restores with wildlife lakes and water supply
Limestone features will be created to make landscape look natural
Regular monitoring of noise and emissions
Rail transport minimises impact on local roads and villages
What are some general facts about the torr quarry in Somerset?
15million to local economy per year
2.5km2 site
Around 5 million tonnes of limestone yearly
What is an example of an area of population growth and some facts about it?
Southern Cambridgeshire
Estimated to reach 182000 by 2031
People are moving out of Cambridge for a slower paced life in country
Proportion of people 65 and over in souther Cambridgeshire is growing
What are the social changes caused by population growth in southern Cambridge?
Commuters continue to use services where they work so don’t contribute to local economy
80% car ownership is leading to traffic on narrow country roads
Young people can’t afford high housing costs and move away
Development on small villages breakdown the community spirit
What are the economic changes caused by population growth in southern Cambridge?
Reduction in agricultural employment as farmers sell their land for housing
Lack of affordable housing
Highest petroleum prices due to high demand
What is an example of an area of population decline and some facts about it?
The outer Hebrides
Population of around 25000
Decrease due to outward migration and limited opportunities
What are the social changes caused by population decline in the outer Hebrides ?
Number of school children excepted to fall and may result in closures
Younger people moving for jobs leading to less people of working age
Increasingly aging population with few young people to support them
What are the economic changes caused by population decline in the outer Hebrides ?
Increase in tourism but no infrastructure to cope and support the scale
The main farming economy is breeding sheep but they can only provide work for two days a week
Fishing as decreased due to environmental concerns
What is the north south divide?
The cultural and economical differences between the south and north of England
In general the south enjoys higher standards of living, higher incomes, higher house prices and more congestion
Why is there a north south divide?
Industrial Revolution caused growth in north, this meant a decline in employment during the growth of post industrial economy
London and South developed rapidly due to fast growing service sector and London is a global finance centre
How can regional strategies address the issue?
Financial support for new businesses, improvements and infrastructure
Foreign investment in the north
Developing economies in major northern cities
Creating transport links to help commuting to the south
Explain the improvements and new developments in road infrastructure?
100 new road schemes
1300 new lane miles added to motorways and trunk roads to tackle congestion
Extra lanes added onto main motorways
What is the south west superhighway?
A303 improvements to help keep traffic flowing creating jobs.
Explain the improvements and new developments in railway infrastructure?
Electrification of TransPennine Express Railway between Manchester and York - reducing journey times
HS2 - 50 billion plan for new high speed train connecting London with northern cities
Explain the improvements and new developments in port infrastructure?
Around 32million passengers per year and 120k employees
Belfast - 500million invested in facilities to service offshore renewable energy
Bristol - 195milliom invested for bulk handling and storage facilities
New terminal at port of Liverpool to double capacity - 300million
Explain the improvements and new developments in airport infrastructure?
aviation sector is around 4 percent of uks gdp
2million tonnes of freight yearly
Heathrow’s third runway - 20billion
Increasing length of existing runway - 12 billion
What are uks links with the wider world?
As globalisation increases it’s becoming more dependent on inter culture
The uk has global links through trade, culture, transport and electro communications.
Explain the place of uks trade in the wider world?
Most links are with the USA, Ireland and countries within the EU
Explain the place of uks culture in the wider world?
Television is one of the uks most successful media exports with main markets being English speaking countries
English language is used worldwide and you can find English books, musics and film anywhere you travel
Migrants have brought their own culture to the uk
Food - Indian, Chinese and Thai
Fashion - Italy and France
Explain the place of uks transport in the wider world?
Heathrow is one of the busiest airports worldwide and is a crucial airport hub
Channel tunnel allows travel between uk and Europe
Southampton is a major port for cruise liners
Explain the place of uks electro communications in the wider world?
Vital part of the global economy and the uk is a focus for the multibillion dollar network of high power cables
Explain the place of the Uks economic and political links with the commonwealth
Member of commonwealth
Voluntary group of 53 countries and 2.2 billion
Provides advice on issues from political standpoint
Important trading links between commonwealth countries
Explain the place of the Uks economic and political links with the eu
Left in 2020 - brexit
Eu was uks biggest trading partner
Uk still trades with the eu but it’s trading with more countries now such as Singapore USA, Australia and new Zealand
