The Changing Economic World Flashcards

1
Q

Define gross domestic product

A

value of goods and services produced by a country in one year

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2
Q

Define migration

A

movement of people from one permanent to another

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3
Q

Define transnational corporation

A

initial investment and jobs leading to multiplier effect

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4
Q

Define industrial structure

A

proportion of workforce employed in sectors of economy

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5
Q

Define development

A

progress of country in terms of economic growth, technology and human welfare

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6
Q

Define development gap

A

different standards of living and wellbeing in countries

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7
Q

Define Gross National Income

A

measurement of economic activity that is calculated by national income divided by population

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8
Q

Define human development index

A

method of measuring development in GDP per capita

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9
Q

Define quality of life

A

wide range of humans’ needs met alongside income growth

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10
Q

How are GDP and GNI different?

A

GDP within a country
GNI international trade/investments

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11
Q

What is GDP?

A

value of country’s output from within borders of a country

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12
Q

What are the elements that make up quality of life?

A

economic
social
psychological
physical

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13
Q

What are LICs?

A

poor quality of life with inadequate services
inadequate services and few opportunities

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14
Q

What are NEEs?

A

rapid economic growth based on industrial development

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15
Q

What are HICs?

A

modern industries with high proportions of people in service sector

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16
Q

What are the BRIC countries?

A

Brazil
Russia
India
China

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17
Q

What are the MINT countries?

A

Mexico
Indonesia
Nigeria
Turkey

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18
Q

How can we measure development?

A

disease
GNI
HDI
birth / death rates
infant mortality
life expectancy
people per doctor
literacy rates
safe water

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19
Q

How does life expectancy differ globally?

A

HIC - high
NEEs - increasing
LIC - low

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20
Q

Why does life expectancy differ globally?

A

Industrial Revolution different rates
- income/work conditions improve differently

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21
Q

What does Gross National Income measure?

A

wealth

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22
Q

What does GNI per head measure?

A

wealth

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23
Q

How does Gross National Income change as a country develops?

A

increases

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24
Q

What is Gross National Income measured in?

A

US dollars

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25
Q

What is GNI per head a measure of?

A

wealth

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26
Q

How does GNI per head change as a country develops?

A

increases

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27
Q

What is a limitation of GNI per head?

A

small number of extremely wealthy people
- lots of poorer people

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28
Q

What are the limitations of Gross National Income?

A

only income
average calculation
dishonesty on earnings
informal sector not included

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29
Q

What is birth rate a measure of?

A

education

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30
Q

Give examples of social measures of development

A

birth rates
death rates
infant mortality rates
life expectancy
literacy rates
safe water

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31
Q

Give an example of a economic measure of development

A

Gross National Income

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32
Q

What are birth rates?

A

number of live births per 1000

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33
Q

What is a limitation of birth rates?

A

low birth rates despite poverty
birth control policies distort results

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34
Q

What are death rates?

A

number of deaths per 1000

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35
Q

What are death rates a measure of?

A

health

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36
Q

What are the limitations of death rates?

A

high due to poverty OR elderly population

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37
Q

Which is more reliable? Birth rates or death rates?

A

birth rates

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38
Q

What are infant mortality rates?

A

number of deaths for children under 1 per 1000

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39
Q

What are infant mortality rates a measure of?

A

health

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40
Q

What are the limitations for infant mortality rates?

A

not all deaths reported

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41
Q

What is life expectancy?

A

average number of years expected to live

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42
Q

What is life expectancy a measure of/

A

health

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43
Q

What are the limitations of life expectancy?

A

not always reliable data
misleading for high infant rates - may live longer past infant rates

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44
Q

What are literacy rates?

A

people with basic reading and writing skills

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45
Q

What is literacy rates a measure of?

A

education

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46
Q

What are the limitations of literacy rates?

A

lack of monitoring in LICs
war zones and squatter settlements

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47
Q

What is people per doctor?

A

average number of people per doctor

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48
Q

What is people per doctor a measure of?

A

health

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49
Q

How will people per doctor change as a country develops?

A

decreases

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50
Q

What are the limitations of people per doctor?

A

densely populated or scarcely populated areas

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51
Q

What is percentage of access to safe water?

A

percentage of people with access to safe mains water

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52
Q

What is percentage of access to safe water a measure of?

A

health

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53
Q

What are the limitations of percentage of access to safe water?

A

data collection inaccurate
access but high costs force unsafe water used

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54
Q

What is the Human Development Index?

A

composite measure of income, life expectancy and education

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55
Q

What is the Human Development Index measured between?

A

0 to 1

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56
Q

What are the limitations to Human Development Index?

A

only 3 indicators
average calculations
subjective weighting
unreliable statistics provided

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57
Q

What 3 indicators are used in Human Development Index?

A

education
income
life expectancy

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58
Q

What does a Demographic Transition model show?

A

birth rates
death rates
life expectancy
total population size

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59
Q

How many stages does the Demographic Transition model have?

A

5 stages

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60
Q

What is birth rate and death rate like in Stage 1?

A

high

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61
Q

What is birth rate and death rate like in Stage 2?

A

birth rate high
death rate falls rapidly

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62
Q

What is birth rate and death rate like in Stage 3?

A

birth rate falls
death rate falls slowly

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63
Q

What is birth rate and death rate like in Stage 4?

A

low

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64
Q

What is birth rate and death rate like in Stage 5?

A

very low

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65
Q

What is natural increase in Stage 1 like?

A

stable increases and decreases

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66
Q

What is natural increase stage 2 like?

A

very rapid increase

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67
Q

What is natural increase stage 3?

A

increases slowly

68
Q

What is natural increase at stage 4?

A

slow increase

69
Q

What is natural increase at stage 5?

A

slow decrease

70
Q

Why are birth rates high in sage 1 and stage 2?

A

religious values strong
high infant mortality
lack of contraceptives and family planning

71
Q

Why are birth rates decreasing in stage 3?

A

laws against child labour
improved medical care and diet

72
Q

Why are birth rates decreasing in stage 4 and 5?

A

emancipation and education
materialism
later child birth
later and fewer marriages
family planning

73
Q

Why are death rates high in stage 1?

A

diseases
famines
poor medical knowledge

74
Q

Why are death rates decreasing in stage 2 and 3?

A

improvements in medical care
sewers
water supply
sanitation
improved food supply and education

75
Q

Why are death rates decreasing in stage 4 and 5?

A

medical advances
food supply
preventative medicine

76
Q

What factors cause uneven development?

A

physical
economic
historical

77
Q

How do historical factors cause uneven development?

A

disease
colonisation
religion
education
conflict

78
Q

Give examples of colonised areas

A

Haiti by French
Dominican Republic by Spain

79
Q

What caused colonialism?

A

Europe wanted global influence
competition between rival states
new sea routes

80
Q

What events occurred due to colonialism?

A

new technologies
power struggles
transatlantic slave trade
education / religion
modern borders

81
Q

How do physical factors cause uneven development?

A

landlocked
climate diseases and pests
extreme weather
limited access to clean water

82
Q

How does landlocked cause uneven development?

A

cut off from sea borne trade

83
Q

How does climate related diseases and pests cause uneven development?

A

not healthy enough to work - malaria
destroy crops - locusts

84
Q

How does extreme weather cause uneven development?

A

droughts, floods, tropical storms
- costly repairs to infrastructure

85
Q

How does limited access to clean water cause uneven development?

A

unable to work and sickness

86
Q

When did Haiti experience an earthquake?

87
Q

What magnitude was the earthquake in Haiti?

88
Q

Where did the earthquake in Haiti effect?

A

Port - au - Prince

89
Q

How many people died in Haiti earthquake?

A

300,000 people died

90
Q

How many people were injured in Haiti earthquake?

A

300,000 people injured

91
Q

How many homes destroyed in Haiti earthquake?

A

300,000 homes destroyed

92
Q

How many schools were destroyed in Haiti earthquake?

A

25% of schools

93
Q

What did high death rates lead to in Haiti?

A

orphaned children
- lost wage earner
- no multiplier
- children work / no education

94
Q

What did high injury rates lead to in Haiti?

A

time off work / inability
- loss of income
- no multiplier
- remain in poverty

95
Q

What did homes destroyed lead to in Haiti?

A

1 million people homeless
- crime
- rebellions
- riots
- money spent on rebuild

96
Q

What did schools destroyed lead to in Haiti?

A

lack of education
- literacy falls
- crime
- lack of job opps.
- reduces economic growth

97
Q

How do economic factors cause uneven development?

A

poverty
trade

98
Q

How does poverty cause uneven development?

A

lack of money slows development
- prevent improvements in education, living standards, sanitation and infrastructure

99
Q

How does trade cause uneven development?

A

trade dominated because of secondary goods
- dictate trade to their advantage

100
Q

What do LICs trade?

A

primary goods

101
Q

What effect does LIC trade have on them?

A

low value
- earn little money
- limited funds to invest to develop

102
Q

What do LICs rely on?

A

single exports

103
Q

What does LICs reliance on single exports mean?

A

fluctuations in market price
- drop in market value
- losing proportion of income

104
Q

What are the consequences of uneven development?

A

health
wealth
global migration

105
Q

How many deaths are under 15s in LICs?

A

40% under 15s

106
Q

How many deaths are under 15s in HICs?

A

1% under 15s

107
Q

How many deaths are over 70s in LICs?

A

20% over 70s

108
Q

What causes infant mortality of children under 5 in LICs?

A

childbirth complications

109
Q

What are the main causes of death in LICs?

A

lung infections
HIV/AIDS
diarrhoea
malaria
tuberculosis

110
Q

How many deaths are people 70 and over in HICs?

A

70% over 70s

111
Q

What are the main causes of death in HICs?

A

chronic diseases
heart cancer
lung cancer
dementia
diabetes

112
Q

How much of total wealth is in North America?

113
Q

How of population is in North America?

114
Q

How many people died of Ebola between 2014 and 2015?

A

11,000 deaths

115
Q

Where did Ebola effect?

A

Sierra Leone
Guinea
Liberia

116
Q

Which country suffered most due to Ebola?

A

Sierra Leone
- indebtedness
- civil war

117
Q

How many economic migrants have come to the UK since 2004?

A

1.5 million economic migrants

118
Q

How many economic migrants are Polish?

119
Q

What is the unemployment rate in Poland?

120
Q

How much more can economic migrants earn in UK?

A

5 times more than Poland

121
Q

What are the benefits of economic migrants?

A

tax causes multiplier effects
manual jobs on farms

122
Q

What are the disadvantages of economic migrants?

A

pressure on education and healthcare

123
Q

What strategies can be used to reduce development gap?

A

investment
industrial development
fair trade
tourism
aid
reparations
microfinance lonas

124
Q

How does Investment by TNCs work?

A

help sector grow more quickly
- investors collect ‘return’ on investments

125
Q

Why is investment by TNCs a popular method?

A

develops rapidly and HICs can earn money back

126
Q

Give examples of sectors that are invested to in Investment by TNCs

A

health
education
insurance
agriculture

127
Q

Give an example of Investment by TNCs

A

Royal Dutch Shell employs more than 4500 people in Nigeria

128
Q

How many people does Royal Dutch Shell employ in Nigeria?

A

4500 employees in Nigeria

129
Q

What are the advantages of Investment by TNCs?

A

viable in many places
allows movement from primary sector

130
Q

What does Investment by TNCs allow?

A

movement from primary sector

131
Q

What are the disadvantages of investment by TNCs?

A

earn more than physical workers
poor conditions
economic leakages

132
Q

What are economic leakages?

A

profit returns to country of investment origin

133
Q

What is industrial development and how does it work?

A

investment in primary industries

134
Q

How does industrial development reduce development gap?

A

increases manufacturing
generates wealth
increases productivity

135
Q

Give an example of industrial development

A

6 years of industrial growth reduced proportion of poverty by 15% in Mozambique

136
Q

How did industrial development Mozambique?

A

6 years reduced poverty by 15%

137
Q

What are the advantages of industrial development?

A

increases wages
quality of life
multiplier effect

138
Q

What are the disadvantages of industrial development?

A

struggle to find funds for investment

139
Q

Where can aid come from?

140
Q

What types of aid are there?

A

tied or untied

141
Q

What is aid and how does it work to reduce uneven development?

A

gift of money, goods or services that do not have to be repaid

142
Q

Give an example of aid that reduces uneven development

A

UK spends 0.7% of national income on overseas projects in Sierra Leone and Syria

143
Q

How much of UK’s national income is spent on aid?

A

0.7% to Sierra Leone and Syria

144
Q

What are the advantages of aid?

A

improves living standards
recovery after war or natural disaster

145
Q

What are the disadvantages of aid?

A

dependency on aid
wasted on corrupt government

146
Q

What is intermediate technology and how does it work to reduce uneven development?

A

simple and practical tools speed up process

147
Q

What does intermediate technology benefit?

A

local people harvest crops quickly and manual labour decreased

148
Q

What are the advantages of intermediate technology?

A

sustainable and cheap
empowers locals
simple
crop yield increased

149
Q

What are the disadvantages of intermediate technology?

A

machinery replaces man power

150
Q

Give an example of intermediate technology

A

solar box cookers in India and Kenya produce energy for domestic cleaning

151
Q

What is fair trade and how does it help to reduce uneven development?

A

fair percentage of retail price received by farmers or factories

152
Q

Give an example of fair trade

A

Columbian household income of banana farmers increased by 34%

153
Q

How much has household income increased for Columbian banana farmers?

A

34% increase

154
Q

What are the advantages of fair trade?

A

increases crop yield
workers rights
sustainable

155
Q

What are the disadvantages of fair trade?

A

higher prices in HICs - not purchased

156
Q

What is debt relief and how does it reduce uneven development?

A

HICs loaning to LICs

157
Q

Give an example of debt relief

A

Indonesia agreed to protect Sumatran forests for $30 million borrowed from USA

158
Q

How much had Indonesia borrowed from US and how did they repay it?

A

$30 million
protection of Sumatran forest

159
Q

What are the advantages of debt relief?

A

eases pressure
allows spending on education and health

160
Q

What are the disadvantages of debt relief?

A

not all debt is written off

161
Q

What are microfinance loans and how do they work to reduce uneven development?

A

subsistence farmers loaned microfinances from bank

162
Q

What are microfinance loans designed to do?

A

escape cycle of poverty
staring point for family

163
Q

Give an example of microfinance loans

A

buying fertiliser to increase crop yield
- profit pays off loan

164
Q

What are the advantages of microfinance loans?

A

low interest

165
Q

What are the disadvantages of microfinance loans?

A

hard to create surplus
no pay back if fails

166
Q

Which strategy is least effective at reducing uneven development and why?

A

TNC investment
- economic leakage
- poor working conditions
+ movement from primary

167
Q

Which strategy is most effective at reducing uneven development and why?

A

intermediate technology
+ empowers locals
+ easily taught
+ increase crop yield
- machinery reduces jobs