The Changing Economic World Flashcards
Define gross domestic product
value of goods and services produced by a country in one year
Define migration
movement of people from one permanent to another
Define transnational corporation
initial investment and jobs leading to multiplier effect
Define industrial structure
proportion of workforce employed in sectors of economy
Define development
progress of country in terms of economic growth, technology and human welfare
Define development gap
different standards of living and wellbeing in countries
Define Gross National Income
measurement of economic activity that is calculated by national income divided by population
Define human development index
method of measuring development in GDP per capita
Define quality of life
wide range of humans’ needs met alongside income growth
How are GDP and GNI different?
GDP within a country
GNI international trade/investments
What is GDP?
value of country’s output from within borders of a country
What are the elements that make up quality of life?
economic
social
psychological
physical
What are LICs?
poor quality of life with inadequate services
inadequate services and few opportunities
What are NEEs?
rapid economic growth based on industrial development
What are HICs?
modern industries with high proportions of people in service sector
What are the BRIC countries?
Brazil
Russia
India
China
What are the MINT countries?
Mexico
Indonesia
Nigeria
Turkey
How can we measure development?
disease
GNI
HDI
birth / death rates
infant mortality
life expectancy
people per doctor
literacy rates
safe water
How does life expectancy differ globally?
HIC - high
NEEs - increasing
LIC - low
Why does life expectancy differ globally?
Industrial Revolution different rates
- income/work conditions improve differently
What does Gross National Income measure?
wealth
What does GNI per head measure?
wealth
How does Gross National Income change as a country develops?
increases
What is Gross National Income measured in?
US dollars
What is GNI per head a measure of?
wealth
How does GNI per head change as a country develops?
increases
What is a limitation of GNI per head?
small number of extremely wealthy people
- lots of poorer people
What are the limitations of Gross National Income?
only income
average calculation
dishonesty on earnings
informal sector not included
What is birth rate a measure of?
education
Give examples of social measures of development
birth rates
death rates
infant mortality rates
life expectancy
literacy rates
safe water
Give an example of a economic measure of development
Gross National Income
What are birth rates?
number of live births per 1000
What is a limitation of birth rates?
low birth rates despite poverty
birth control policies distort results
What are death rates?
number of deaths per 1000
What are death rates a measure of?
health
What are the limitations of death rates?
high due to poverty OR elderly population
Which is more reliable? Birth rates or death rates?
birth rates
What are infant mortality rates?
number of deaths for children under 1 per 1000
What are infant mortality rates a measure of?
health
What are the limitations for infant mortality rates?
not all deaths reported
What is life expectancy?
average number of years expected to live
What is life expectancy a measure of/
health
What are the limitations of life expectancy?
not always reliable data
misleading for high infant rates - may live longer past infant rates
What are literacy rates?
people with basic reading and writing skills
What is literacy rates a measure of?
education
What are the limitations of literacy rates?
lack of monitoring in LICs
war zones and squatter settlements
What is people per doctor?
average number of people per doctor
What is people per doctor a measure of?
health
How will people per doctor change as a country develops?
decreases
What are the limitations of people per doctor?
densely populated or scarcely populated areas
What is percentage of access to safe water?
percentage of people with access to safe mains water
What is percentage of access to safe water a measure of?
health
What are the limitations of percentage of access to safe water?
data collection inaccurate
access but high costs force unsafe water used
What is the Human Development Index?
composite measure of income, life expectancy and education
What is the Human Development Index measured between?
0 to 1
What are the limitations to Human Development Index?
only 3 indicators
average calculations
subjective weighting
unreliable statistics provided
What 3 indicators are used in Human Development Index?
education
income
life expectancy
What does a Demographic Transition model show?
birth rates
death rates
life expectancy
total population size
How many stages does the Demographic Transition model have?
5 stages
What is birth rate and death rate like in Stage 1?
high
What is birth rate and death rate like in Stage 2?
birth rate high
death rate falls rapidly
What is birth rate and death rate like in Stage 3?
birth rate falls
death rate falls slowly
What is birth rate and death rate like in Stage 4?
low
What is birth rate and death rate like in Stage 5?
very low
What is natural increase in Stage 1 like?
stable increases and decreases
What is natural increase stage 2 like?
very rapid increase
What is natural increase stage 3?
increases slowly
What is natural increase at stage 4?
slow increase
What is natural increase at stage 5?
slow decrease
Why are birth rates high in sage 1 and stage 2?
religious values strong
high infant mortality
lack of contraceptives and family planning
Why are birth rates decreasing in stage 3?
laws against child labour
improved medical care and diet
Why are birth rates decreasing in stage 4 and 5?
emancipation and education
materialism
later child birth
later and fewer marriages
family planning
Why are death rates high in stage 1?
diseases
famines
poor medical knowledge
Why are death rates decreasing in stage 2 and 3?
improvements in medical care
sewers
water supply
sanitation
improved food supply and education
Why are death rates decreasing in stage 4 and 5?
medical advances
food supply
preventative medicine
What factors cause uneven development?
physical
economic
historical
How do historical factors cause uneven development?
disease
colonisation
religion
education
conflict
Give examples of colonised areas
Haiti by French
Dominican Republic by Spain
What caused colonialism?
Europe wanted global influence
competition between rival states
new sea routes
What events occurred due to colonialism?
new technologies
power struggles
transatlantic slave trade
education / religion
modern borders
How do physical factors cause uneven development?
landlocked
climate diseases and pests
extreme weather
limited access to clean water
How does landlocked cause uneven development?
cut off from sea borne trade
How does climate related diseases and pests cause uneven development?
not healthy enough to work - malaria
destroy crops - locusts
How does extreme weather cause uneven development?
droughts, floods, tropical storms
- costly repairs to infrastructure
How does limited access to clean water cause uneven development?
unable to work and sickness
When did Haiti experience an earthquake?
2010
What magnitude was the earthquake in Haiti?
7.0
Where did the earthquake in Haiti effect?
Port - au - Prince
How many people died in Haiti earthquake?
300,000 people died
How many people were injured in Haiti earthquake?
300,000 people injured
How many homes destroyed in Haiti earthquake?
300,000 homes destroyed
How many schools were destroyed in Haiti earthquake?
25% of schools
What did high death rates lead to in Haiti?
orphaned children
- lost wage earner
- no multiplier
- children work / no education
What did high injury rates lead to in Haiti?
time off work / inability
- loss of income
- no multiplier
- remain in poverty
What did homes destroyed lead to in Haiti?
1 million people homeless
- crime
- rebellions
- riots
- money spent on rebuild
What did schools destroyed lead to in Haiti?
lack of education
- literacy falls
- crime
- lack of job opps.
- reduces economic growth
How do economic factors cause uneven development?
poverty
trade
How does poverty cause uneven development?
lack of money slows development
- prevent improvements in education, living standards, sanitation and infrastructure
How does trade cause uneven development?
trade dominated because of secondary goods
- dictate trade to their advantage
What do LICs trade?
primary goods
What effect does LIC trade have on them?
low value
- earn little money
- limited funds to invest to develop
What do LICs rely on?
single exports
What does LICs reliance on single exports mean?
fluctuations in market price
- drop in market value
- losing proportion of income
What are the consequences of uneven development?
health
wealth
global migration
How many deaths are under 15s in LICs?
40% under 15s
How many deaths are under 15s in HICs?
1% under 15s
How many deaths are over 70s in LICs?
20% over 70s
What causes infant mortality of children under 5 in LICs?
childbirth complications
What are the main causes of death in LICs?
lung infections
HIV/AIDS
diarrhoea
malaria
tuberculosis
How many deaths are people 70 and over in HICs?
70% over 70s
What are the main causes of death in HICs?
chronic diseases
heart cancer
lung cancer
dementia
diabetes
How much of total wealth is in North America?
35%
How of population is in North America?
5%
How many people died of Ebola between 2014 and 2015?
11,000 deaths
Where did Ebola effect?
Sierra Leone
Guinea
Liberia
Which country suffered most due to Ebola?
Sierra Leone
- indebtedness
- civil war
How many economic migrants have come to the UK since 2004?
1.5 million economic migrants
How many economic migrants are Polish?
66%
What is the unemployment rate in Poland?
10%
How much more can economic migrants earn in UK?
5 times more than Poland
What are the benefits of economic migrants?
tax causes multiplier effects
manual jobs on farms
What are the disadvantages of economic migrants?
pressure on education and healthcare
What strategies can be used to reduce development gap?
investment
industrial development
fair trade
tourism
aid
reparations
microfinance lonas
How does Investment by TNCs work?
help sector grow more quickly
- investors collect ‘return’ on investments
Why is investment by TNCs a popular method?
develops rapidly and HICs can earn money back
Give examples of sectors that are invested to in Investment by TNCs
health
education
insurance
agriculture
Give an example of Investment by TNCs
Royal Dutch Shell employs more than 4500 people in Nigeria
How many people does Royal Dutch Shell employ in Nigeria?
4500 employees in Nigeria
What are the advantages of Investment by TNCs?
viable in many places
allows movement from primary sector
What does Investment by TNCs allow?
movement from primary sector
What are the disadvantages of investment by TNCs?
earn more than physical workers
poor conditions
economic leakages
What are economic leakages?
profit returns to country of investment origin
What is industrial development and how does it work?
investment in primary industries
How does industrial development reduce development gap?
increases manufacturing
generates wealth
increases productivity
Give an example of industrial development
6 years of industrial growth reduced proportion of poverty by 15% in Mozambique
How did industrial development Mozambique?
6 years reduced poverty by 15%
What are the advantages of industrial development?
increases wages
quality of life
multiplier effect
What are the disadvantages of industrial development?
struggle to find funds for investment
Where can aid come from?
NGOs
What types of aid are there?
tied or untied
What is aid and how does it work to reduce uneven development?
gift of money, goods or services that do not have to be repaid
Give an example of aid that reduces uneven development
UK spends 0.7% of national income on overseas projects in Sierra Leone and Syria
How much of UK’s national income is spent on aid?
0.7% to Sierra Leone and Syria
What are the advantages of aid?
improves living standards
recovery after war or natural disaster
What are the disadvantages of aid?
dependency on aid
wasted on corrupt government
What is intermediate technology and how does it work to reduce uneven development?
simple and practical tools speed up process
What does intermediate technology benefit?
local people harvest crops quickly and manual labour decreased
What are the advantages of intermediate technology?
sustainable and cheap
empowers locals
simple
crop yield increased
What are the disadvantages of intermediate technology?
machinery replaces man power
Give an example of intermediate technology
solar box cookers in India and Kenya produce energy for domestic cleaning
What is fair trade and how does it help to reduce uneven development?
fair percentage of retail price received by farmers or factories
Give an example of fair trade
Columbian household income of banana farmers increased by 34%
How much has household income increased for Columbian banana farmers?
34% increase
What are the advantages of fair trade?
increases crop yield
workers rights
sustainable
What are the disadvantages of fair trade?
higher prices in HICs - not purchased
What is debt relief and how does it reduce uneven development?
HICs loaning to LICs
Give an example of debt relief
Indonesia agreed to protect Sumatran forests for $30 million borrowed from USA
How much had Indonesia borrowed from US and how did they repay it?
$30 million
protection of Sumatran forest
What are the advantages of debt relief?
eases pressure
allows spending on education and health
What are the disadvantages of debt relief?
not all debt is written off
What are microfinance loans and how do they work to reduce uneven development?
subsistence farmers loaned microfinances from bank
What are microfinance loans designed to do?
escape cycle of poverty
staring point for family
Give an example of microfinance loans
buying fertiliser to increase crop yield
- profit pays off loan
What are the advantages of microfinance loans?
low interest
What are the disadvantages of microfinance loans?
hard to create surplus
no pay back if fails
Which strategy is least effective at reducing uneven development and why?
TNC investment
- economic leakage
- poor working conditions
+ movement from primary
Which strategy is most effective at reducing uneven development and why?
intermediate technology
+ empowers locals
+ easily taught
+ increase crop yield
- machinery reduces jobs