The Changing Economic World Flashcards
Define LIC
Low income Country
Define NEE
Newly Emerging Economy
Define HIC
High income Country
Define GDP
Gross Domestic Product is a measure of the size of an economy
Define Socio-economic
relating to interaction of social and economic factors e.g. Education and wealth
Define Development Indicators
Usually, a numerical measure of quality of life in a country.
define development
the progress in economic growth, use of technology and improving welfare that a country has made.
define the development gap
the widening difference in levels of development between the worlds richest and poorest countries
define birth rate
-the number of births per year per 1000 of the total population
-social indictor
-rates would be low in a HIC because more babies will survive
define death rate
-the number of deaths in a year per 1000 of the total population
-social indicator
-rates would be low in a HIC because they have access to better healthcare
define GNI per capita
-a measure of economic activity that is calculated by dividing the gross national income by the size of the population. It includes foreign earnings
-economic indicator
-rates would be high in HIC because there is more money to invest and sell goods and services
define HDI
a composite score between 0-1 that takes into account GDP, life expectancy and adult literacy
define life expectancy
-the average number of years a person might be expected to live
-social indicator
-high rates in HIC
define infant mortality
-the average number of deaths of infants under 1 year of age per 1000 live births.
define literacy rates
-the percentage of people who have basic reading and writing skills
define demographic data
-statistical data about the characteristics of a population, such as age, gender, health, employment and income of the people within the population
what are the top 5 countries with the highest HDI score
-Switzerland
-Norway
-Iceland
-Hong Kong
-Sweden
what are the top 5 countries with the lowest HDI score
-Somalia
-South Sudan
-Central African Republic
-Niger
-Chad
Define the quaternary sector
high-tech, IT, consultancy
define informal sector
unregulated work, no tax, no sick pay, no contract
What are some examples of a NEE country that is developing?
-Pakistan
-Hati
-Mali
-Mayanmar
What are the countries like if they are an NEE developing?
It has achieved some industrial capacity and some people are becoming more wealthy. Employment in the secondary sector is high as the industrial economy grows.
What are some examples of LIC countries that are emerging?
-China
-India
-Brazil
What are the countries like if they are an LIC emerging?
Most people work in the informal sector and lots of people work in low-skilled tertiary jobs
What are some examples of HIC countries that are developed?
-Germany
-Norway
-USA
-Japan
-UK
What are the countries like if they are an HIC developed
Most people work in the tertiary sector because there is an educated workforce. There is some employment in the quaternary sector
define population pyramids
it shows the structure of the people in a country in terms of age and gender
What happens in stage 1 of the demographic transition model
high birth rates, high death rates, lots of subsistence farming, really bad healthcare, happens in a pre-industrial country
what happens in stage 2 of the demographic transition models
less famine, better living standards, country starts to develop, there is a natural increase, death rate goes down total population increases, birth rate starts to decrease
what happens in stage 3 of the demographic transition model?
rural-urban migration, jobs in manufacturing + service sector, women start to have less children, advancements in production and trade, industrialisation, gender equality improves, low infant mortality
what happens in stage 4 of the demographic transition model?
post-industrial, working in service economy, more people in cities, high population, cost of living increases, women choose a career
what happens in stage 5 of the demographic transition model?
birth rate decreases, population decreases, more elderly, aging population, death rate is low, increase in obesity, Japan and Germany is in this stage
what are the physical causes of global inequalities
-topography (shape of land)
-climate
-Landlocked countries
-natural hazards
-natural resources
what are the human/history causes of global inequalities
-colonialism
-systems of government
-education
-health care
-international relations
-war/conflict
define colonialism
where one nation takes control of another nation or place
how can colonialism cause inequalities
countries that were colonised have a lower level of development when they gain independence. Some countries removed raw materials and slaves and sold back expensive manufactured goods. Colonised countries then become dependent on other countries which can lead to famine and maltrition
define neo colonialism
ways that ex-colonial powers still maintain control of other countries, even after they have gained independence
how does neo colonialism cause inequality
richer countries continued to control others. Some TNCs exploit the cheaper labour and raw materials of poor countries.
how does topography cause inequality
if the land in a country is steep then it won’t produce a lot of food. Steep land can also make it difficult to develop infrastructure. This can limit trade and make it hard to provide basic services
how does education cause inequality
if the population has a good education then the people are more likely to get good jobs that they will then earn an income.
how does international relations cause inequalities
countries with good international relations are more likely to get good trade agreements. They can also get loans form international organisations to invest in development projects
how does the system of governance cause inequalities
authoritarian governments can put development policies in place without worrying about anyone stopping them. Democratic governments is usually less extreme. Corrupt governments can hinder development by taking money instead of building new infrastructure.
how does health cause inequality
it could lead to high death rates if the whole population is unhealthy. these people may become so ill they then cannot work which then means they won’t earn an income. Therefore, the economy of the country will suffer.
how does the climate cause inequality
if a country is really hot or really dry not much will grow. this reduces the amount the food being produced, which can lead to malnutrition. people have fewer crops to sell so less money to spend on goods and services.
what strategies can we use to reduce the development gap?
-investment
-industrial development
-aid
-debt relief
-fair trade
-intermediate technology
-microfinance loans
what is fair trade
it is about farmers getting a fair price for goods produced in LICs, allowing them to provide for their families.
what is an example of fair trade
divine chocolate bard, it is the only company which is 44% owned by cocoa farmers
what are the positives of fair trade
farmers receive a regular income, protecting their quality of life
what are the negatives of fair trade
some customers avoid buying them as they are higher in price. This happens in HICs. This limits the number of farmers or villages that can be put on the scheme
how does fair trade reduce the development gap
it helps people focus on water, health, education and sanitation to improve standards of living
what is intermediate technology
it is a sustainable technology that is appropriate to the needs, skills, knowledge and wealth of local people.
what is an example of intermediate technology
WaterAid’s provision of the Afridev hand pump to help provide clean water.
what are the positives of intermediate technology
-it increases life expectancy as fewer deaths
-education has improved as children are not missing days off school
what are the negatives of intermediate technology
it is very small scale and therefore, only the local people will benefit
how does intermediate technology reduce the development gap
many people are getting a better quality of life and so skills, income and industrial output can increase which helps to reduce the development gap
what is microfinance loans
when small loans are given to people in LICs who may not be able to get the loans from traditional banks.
what is an example of microfinance loans.
The Grameen Bank: it lends $200 to village women to buy a mobile phone. Other villagers pay her to use it .
what are the positives of microfinance loans
-lager scale impact can be unclear as it can be viewed as better than charitable aid as the poor feel they can stand on their own.
what are the negatives of microfinance loans
-works on small, local level places
-the loans must be paid back eventually
how does microfinance loans reduce the development gap.
-it breaks the poverty cycle as now more people have enough money to sell or get a job to earn more.
what is mean by bottom up approach?
-given by NGOs
-Helps smaller, local communities
-lower cost
-appropriate technology
-e.g. building a well/Goat aid
what is meant by top down approach?
-given by governments/ TNC
-larger scale
-higher cost
-high-tech
-e.g. building a HEP station
what is aid?
given by one country to another as money or resources.
what is an example of aid?
one laptop per child is funded by google. It has helped to distribute free laptop computers to hundreds of thousands of children and teachers in South America and Africa
what are the positives of aid>
-can improve sanitation and improve health and living standards
-provision of medical training, medicines and equipment can improve health and standards of living
what are the negatives of aid?
-it can be wasted by corrupt governemnts. projects can fail when money runs out or is there isnt enough local knowledge,
-countries can become dependent
how does aid reduce the development gap?
-reduces health inequalities
-gives better quality of life to people
-can offer people better opportunities for education
-doesn’t necessarily tackle wealth disparities.
what is industrial development
moving away from primary sector industry and into manufacturing
what is an example of industrial development
the Chinese goverment introduced policies that turned the country into ‘the workshop of the world’
what are the positives of industrial development
-secondary goods can be sold at a higher price and are less vulnerable to price fluctuations. value is added to the primary product, increasing profits for manufacturing companies.
what are the negatives of industrial development
-huge inequalities still exist in these countries
-many areas will be less developed compared to the county as a whole.
how does industrial development reduce the development gap
-it leads to a multiplier effect whereby growth leads to more growth. If people have jobs, they will have more money to spend, further boosting the economy
what is investment
TNCs produce goods all around the world. The money invested into other countries is called Foreign direct investment
what is an example of investment
-more than 2000 chinese companies have invested billions of dollars in Africa, mainly in energy, mining, construction and manufacturing
what are the positives of investment
-new roads, stadiums and other projects can be built
-employment opportunities and investment
what are the negatives to investment
-cheap labour can lead to exploitation of workers
-can be argued that some countries are exploiting the continents resources to benefit their own economy
how does investments reduce the development gap
-people can get jobs in places. leading to a multiplier effect. it can trigger further investments and help other businesses
what is debt relief
when some or all of a countries debt is cancelled or interest rates are lowered. THis means they have more money to develop rather than paying back the debt
what is an example of debt relief
Zambia had $4 billion of debt cancelled in 2005. In 2006 the country had enough money to start a free health care scheme for millions of people living in rural areas
what are the positives of debt relief
it gives countries more money to spend on services and infrastructure rather than debt
what are the negative of debt relief
-it could be seen as a reward to countries that lack financial discipline and doesn’t give ‘the good guys’ anything
-it can lead to serious problems around the world, such as through corruption
how does debt relief reduce the development gap
-it can help poor countries invest in development projects. Such as industry, resources pr infrastructure. By cancelling their debts, some countries have used the money saved to improve the quality of life for their people
Where is Jamaica located?
it is one of the largest islands i the West Indies. It is located in the Caribbean Sea. it is south of Cuba and West of Hati
what are the 5 main tourist attractions of Jamaica?
-Negril Marine Nature Park
-Dunns River Falls
-Cockpit Country
-Blue mountains
-Montego Bay
define ecotourism
focusing to conserve the environment and improving the well being of local communities as people travel to natural areas
How does tourism help employment in Jamaica
-it provides 200,00 jobs in hotels, transport, shops, manufaturing
-provides income which boosts the economy
-employment means people get better skills which improves their prospects of better paid jobs in the fuure
what percentage has tourism contributed of Jamaicas GDP
34%
what affect has tourism had on the quality of life in Jamaica?
in the northern tourist areas of Montego bay and Ocho Rios, wealthy Jamaicans live in high-quality housing with a high standard of living. These areas have benefited from the tourist industry. However, large numbers of people live nearby in poor housing with limited food supply and inadequate access to fresh water, healthcare and education
what is the total income each year from tourism in Jamaica
$2 billion
How does tourism help improve infrastructure?
-it has lead to a high level of investment on the north coast where much of the countries tourism is centred
-new port and cruise-liner facilities have been built at Trelawnry together with new hotels accommodation
-improvements in roads and airports have been slower and some parts of the island remains isolated
Where is Nigeria located?
it is a country in West Africa. It boarders Benin, Niger, Chad and Cameroon. It has a tropical climate with variable rainy and dry seasons. It extends from the Gult of Guinea in the south to the Sahel in the north.
why is Nigeria globally important?
-its an NEE so experience rapid economic development
-supplies 22% of the worlds oil
-centre of Lagos is a thriving global economic hub
-major contributor to UN peacekeeping missions around the world
Why is Nigeria regionally important
-low levels of productivity and there are widespread issues over land but still has the highest farm output in Africa
-around 35%(2020) of the population are employed in agriculture.
-has over 19 million cattle, largest in Africa
-despite lack of infrastructure there is huge potential.
What is the political background of Nigeria
-i 1960 they gained independence from the UK.
-lack of political stability affected their development and lead to corruption. only since 1999 they have has a stable government
-several countries have started to invest in Nigeria.
what are some social and economic factors of Nigeria.
-multi-ethnic and multi-faith country. this social diversity is a strength of them but can cause conflict.
-1967 the Igbo dominated south east tried to separate from them to become the Republic of Biafra. created a civil war which Nigeria won in 1970
-economic inequality between the north and south has created new religions and ethic tensions. Can create a reduction in investment from abroad and a rise in unemployment
what are some cultural factors of Nigeria.
-their music is enjoyed across the continent and beyond.
-their cinema ‘nolllywood’ is the second largest film industry in the world
-lots of writers in literature
-their football team has won the african cup of nations 3 times, most recently in 2013. several football players have played for Premier League
what are come environmental factors
-its natural environments form a series of bands across the country. This reflects the decreasing rainfall towards the north.
-pests and disease affect different parts. The tsetse fly transmits a parasite that can be fatal to livestock. Therefore, cattle cannot be kept in the humid south.
-deforestation resulted in losing 14% of its tropical rainforest between 2005 and 2020. Due to population growth, agricultural expansion.
-oil industry has been responsible for environmental degradation.
how has nigerias employment structure changed over time?
from people mostly working in agriculture to most people working in services and industry.
Why is Nigeria’s economy developing?
-rapid advances in technology (mechanisation)
-greater concern for the environment
-many people English, giving potential for growth in telecommunications
-increase use of telecommunications. Nigeria is able to benefit from global finance and trade
-Information technology is beginning to drive the economy rather than oil
-investment in science and technology training. Huge population is seen as a potential asset for the country
-the main one is the discovery of oil
how is manufacturing affecting economic development?
-better than selling raw materials as it adds value to the product
-manufacturing industries crease more employment and jobs in the secondary sector
-increased employment means that more formal jobs are available and then people can get taxed
-a thriving industrial sector attracts large corporations form many other countries
What is a TNC?
Transnational Corporation (global company)
-has operations in more than one country
What are the advantages of TNC?
-company provide formal employment and development of new skills
-investment by companies in local infrastructure and education
-other local companies benefit from increased orders
-valuable export revenues are earned
what are the disadvantages of TNC?
-local workers are sometimes poorly paid (exploited)
-working conditions are sometimes poor
-management jobs often go to foreign employees
-much of the profit goes abroad rather than being reinvested
what are the advantages of Shell in Nigeria
-makes major contributions in taxes and exports revenue
-trying to reduce pollution from flaring by capturing the natural gas and turning it into a product
-supports small businesses
-gives 91% of its contracts to Nigerian companies
-provides direct employment for 650,000 workers
-unilever promotes healthcare, education an water supply as part of its social responsibility programme
-unilever tries to use environmentally friendly materials such as locally produced palm oil
-they agreed to pay £55 million in compensation to people living in Bodo which went towards health clinics and improving schools
-they play a leading ole in setting up health clinics to help vaccinate young children and provide medication fot HIV/AIDS
what are the disadvantages of Shell in Nigeria
-pollution from factories drains into water channels causing damage
-oil spills cause fires which send lots of CO2 into the atmosphere
-militant groups disrupt oil supply in the delta causing violence and suffering
-industrial chimneys emit poisonous gases that can cause respiratory and heart problems.
-it can cause conflict as local people feel they are not benefiting from their natural resources
-oil spills in the Niger Delta have damaged freshwater and marine ecosystems
-tin mining has led to pollution in local water supplies which created a health hazard
-traffic congestion leads to high levels of exhaust fumes
-70-80% of Nigeria’s forests have been destroyed
-desertification has been made worse
