The Changing Economic World. Flashcards
Globalisation
then interconnectedness of the world
Quality of life
The standard of health, comfort, and happiness experienced by an individual or group.
Development
How far a country has grown economically and technologically and the typical quality of life
How is development measured?
GNI, Birth rate, Death rate, infant mortality rate, life expectancy, people per doctor, literary rate, access to safe water, Human development index
GNI
Gross National Income
This is calculated by adding together
· The total value of goods and services produced by population (GDP)
· The income earned from investments that its people and business have made overseas
Birth rate
the number of births in a year for every 1,000 people in a population
Death rate
the number of deaths each year per 1,000 people
infant mortality rate
The total number of deaths in a year among infants under one year old for every 1,000 live births in a society.
life expectancy
the average number of years a person might be expected to life
literacy rate
The percentage of a country’s people who can read and write.
Access to safe water
The percentage of people who can get clean drinking water
Human Development Index (HDI)
Income- GNI per capita
Education - the average number of years of schooling
Life expectancy - numbers of years expected to live
Is GNI Reliable?
Informal sector work doesn’t count to GNI
errors and omissions can happen - Nigeria did not include earnings for entertainment and the internet in their official calculations until very recently
The Development Gap
Historical - colonisation
Economic - Food prices fluctuate heavily, Corrupt leaders of LICs, TNCs
Physical - Landlocked countries, Natural Hazards, Extreme Climate
Reducing the development gap
Special Economic zones, TNC investment
Special Economic zones
Specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract TNC investment
TNCs
Transnational company/corporation - a large company operating in several countries
TNC’s invest in LIC’s because of the cheap land and labour this investment
Advantages of TNCs
- Bring new investment into the country’s economy
- Provide jobs, often at higher wage levels than average in the local economy
- Bring expertise and new skills that the country does not have
- Have international links that bring access to world markets
- Provide new technology that helps economic development
Disadvantages of TNCs
- Take profits out of the country back to the HIC
- Exploit the workers and pay them low wages- often called “sweat shops”
- Can cause environmental damage and deplete natural resources
- TNCs can withdraw their investment from a country at any time leaving the country in jeopardy
- They are powerful organisations and can exert political influence over the government in a country . They can often be more powerful than the government itself.
International aid
A gift of money, goods or services to a developing country. Unlike a loan the gift does not need to be repaid
Bilateral aid
A single country aid
Long term development aid
Aid given to a country to develop over a period of time
Aid
Through investment projects - Money and equipment to help with education
through social development
through contraceptive through intermediate technology - simple, easily learned and maintained technology used in a range of economic activities serving local needs in LICs
Disadvantages of fair trade
Higher prices means consumers avoid buying them, especially in economic hardship
*There is a limit to the number of farms or villages on the scheme -> social tension
*The money does not always go to the farmers
Advantages of fair trade
*Farmers still receive regular income if the global price of their crop collapses
*Families have more money to send their children to school- more skilled
*Fair trade often have things like a health care/ housing scheme
*Quality of life improves
The Gini co-efficient
A measurement of inequality in the distribution of income. The closer the coefficient is to one, the more unequal the income distribution in the country.
The world bank
A global system that lends LICs money that has been given by HICs for big development projects
Remittance
Money migrants send home from rich countries
advantage - Boost the country’s GNI that are receiving the remittances
disadvantage - Can become too dependant of it and then if there are problems getting the money to the country can face big issues
The Demographic Transition model
a model that shows how birth and death rates change over time, and how these changes affect a country’s population.
Overpopulation
*Environmental degradation-over grazing of the land can lead to soil erosion especially in denser fringes
*Reduced happiness- due to reduced health, falling incomes, less housing
*Falling incomes- high unemployment, out-migration and low wages
*Lack of water- due to so many people relying on it. sanitation also worsens
*Lack of housing and transport- overstretched
*Reduced health- malnourishment occurs due to insufficient food and the spread of disease (people’s immune system weakens when hungry)
debt crisis
When a country is unable to repay debt without cutting essential government spending
counter-urbanisation
The movement of people and businesses from large cities to smaller towns and rural areas.
The green belt
limited housing from developing on the edges of cities there is pressure on the government to build on this land due to the housing shortage.
North/South Divide
· Identify areas that need help
o Called assisted areas
· Improve infrastructure linking cities in the north e.g. M62, HS2
· Give more power to individual cities to take decisions on how to spend their money
· New enterprise zones (24 new ones been made since 2011) e.g. Enterprise Zone across Birmingham aims to create 40,000 jobs over its lifespan and give a £2.8bn annual boost to the local economy
Roads in uk
35 million vehicles on the road each year
* The government’s most recent strategy is to increase road capacity with over 100 new road schemes by 2020 and over 100 miles of new lanes added to motorways.
* The M4 will also become a ‘smart motorway’.
* This involves helping reduce congestion for example, by varying the speed limits to keep traffic moving smoothly.
car industry in UK
one of the few large-scale manufacturing industries left in the UK. 1.5 million cars made per year in the UK.
UK’s influence on the world
· 90% of people in the UK use the internet making it one of the most connected countries in the world. The means the UK is on an international stage.
· It is an internal hub
· It is also a financial hub
