The Changing Economic World Flashcards
Define ‘development’
The progress in economic growth, use of technology and improving welfare a country has made
Define ‘development gap’
Difference in development between more and less developed countries
What is Gross National Income (GNI)?
The total value of goods and services produced by a country in a year, including income from overseas
What is birth rate?
Number of live births per thousand of the population per year
What is death rate?
Number of deaths per thousand of the population per year
What is literacy rate?
The percentage of adults who can read and write
What is the limitation of GNI per head as a measure of development?
It can be misleading when used on its own because it is an average - variations within the country don’t show up
What is the limitation of using social indicators as a measure of development?
Misleading when used on their own because, as a country develops, some aspects develop before others. So it might seem like a country is more developed than it actually is
What are HICs?
The wealthiest countries in the world, where the GNI per head is high
What are LICs?
The poorest countries in the world, where the GNI per head is very low
What are NEEs?
Countries which are rapidly getting richer as their economy moves from being based on primary industry to secondary industry
How is HDI calculated?
GNI per head, life expectancy and education level
What does a country’s HDI value tell you about the country?
Country’s level of economic development and the quality of life for the people living there
Why is the birth rate high in stage 1 of the DTM? [2]
- No use of contraception
- People have lots of children because infant mortality rates are high
Why is the death rate high in stage 1 of the DTM? [2]
- Poor healthcare
- Famine
Why is the birth rate still high in stage 2 of the DTM?
Economy is based on agriculture, so people have lots of children to work on farms
Why does the death rate fall in stage 2 of the DTM?
Better healthcare
Why does the birth rate fall in stage 3 of the DTM? [3]
- Use of contraception increases
- More women working instead of having children
- Economy changes from farming to manufacturing, so fewer children are needed to work on farms
Why does the death rate fall in stage 3 of the DTM?
Better healthcare
Why are birth rates low in stages 4 and 5 of the DTM? [3]
- Many women working
- Children not needed for working
- Low infant mortality rates
Why are death rates low in stages 4 and 5 of the DTM?
Good healthcare
What are the 4 physical causes of uneven development?
- Poor climate
- Poor farming land
- Few raw materials
- Lots of natural disasters
What are the 3 economic causes of uneven development?
- Poor trade links
- Lots of debt
- Economy based on primary products
What are the 2 historical causes of uneven development?
- Colonisation
- Conflict
What are the 3 consequences of uneven development?
- Disparities in wealth
- Disparities in health
- International migration
How does investment help to reduce the development gap?
It leads to better access to finance, technology and expertise, as well as improved infrastructure and industry, and an increase in services
How does aid help to reduce the development gap?
The money can be used for development projects e.g. constructing schools, building dams and wells
What are the limitations of aid to reduce the development gap? [2]
- Can be wasted by corrupt governments
- Once the money runs out, projects can stop working
How does Fair Trade help to reduce the development gap?
Farmers receive more money which they can use to help develop their local area
What are the limitations of Fair Trade to reduce the development gap?
Only a tiny proportion of extra money goes to the producers, whilst the rest boosts the retailers’ profits
How does intermediate technology help to reduce the development gap?
Machines and systems improve quality of life. For example, solar-powered LED lightbulbs can be used to light homes after hours in developing countries
How do microfinance loans help to reduce the development gap?
Enables people to start their own businesses and become financially independant
What are the limitations of microfinance loans to reduce the development gap?
It enourages people to go into debt
How does industrial development help to reduce the development gap?
Boosts GNI and therefore development, as productivity, skills and infrastructure are improved
How does debt relief help to reduce the development gap?
Increases the amount of money a country has to spend on development
What is provided as part of short-term aid?
Money and supplies are given to help countries cope with emergencies
What are the impacts of short-term aid?
Helps people to survive disasters, but doesn’t help long-term recovery
What is provided as part of long-term aid?
Money is invested in longer-term projects to help countries become more developed
What are the impacts of long-term aid?
Helps countries to improve infrastructure or education
What is involved in top-down aid?
An organisation or the government decides how aid should be used
What is the problem with top-down aid?
It may not help the poorest people or be supported by local people
What is involved in bottom-up aid?
Money or supplies are given directly to local communities so they can decide how to use aid themselves
What is a positive of bottom-up aid?
Provides help where it is needed most - poor communities
What is the UK’s economy changing from and to?
From manufacturing to services
What are the 3 main causes of economic change in the UK?
- De-industrialisation
- Globalisation
- Government policies
Explain why de-industrialisation occured in the UK [2 reasons]
- UK’s industrial base declined as increased automation (use of machines) led to job losses in manufacturing industries
- As other countries industrialised, they could produce goods more cheaply than the UK - this forced some UK manufacturing industries to close
Describe two changes in globalisation to the UK economy
- A lot of manufacturing has moved overseas, where labour costs are lower
- Some TNCs have moved their tertiary and quaternary operations to the UK
Describe some changes to government policies in the UK which have affected the economy [2]
i) decline in manufacturing
ii) increase in tertiary + quaternary
- In the 1980s, several manufacturing industries that had been owned by the government were privatised - led to major job losses (but increased efficiency)
- Since the 1980s, the government has removed restrictions and taxes on businesses to encourage entrepreneurs to move to the UK. This has attracted tertiary and quaternary industries
What are the 4 most important industries in the post-industrial UK economy?
- Services
- Information technology
- Finance
- Research
What type of industry are science/business parks?
Quaternary
Where are science/business parks often located? [2]
- Near to housing and good transport links
- Near universities (so they can work with university researchers)
Why have the number of science/business parks increased? [2]
- Large and growing demand for high-tech products
- UK has a number of respected research universities for science parks to form links with
What are some environmental impacts of industry? [3]
- Pollutants and greenhouse gases
- Energy and water usage
- Extracting raw materials destroys habitats
Why are modern industrial developments more environmentally sustainable? [2]
- Stricter environmental regulations
- Better awareness
