The Changing Economic World Flashcards
What is development?
Development is the progress in economic growth, use of technology, and improving welfare that a country has made.
How does development affect the quality of life?
When a country develops, the quality of life improves for the people living there, including wealth, health, and safety.
What is the global development gap?
The difference in development between more and less developed countries.
List three measures of development.
- Gross National Income (GNI)
- Literacy rate
- Life expectancy
What does Gross National Income (GNI) measure?
The total value of goods and services produced by a country in a year, including income from overseas.
What is GNI per head?
The GNI divided by the population of a country, often referred to as GNI per capita.
What does a high birth rate indicate?
A high birth rate indicates a higher number of live births per thousand of the population per year.
What does a low death rate indicate?
A low death rate indicates a lower number of deaths per thousand of the population per year.
What does the infant mortality rate measure?
The number of babies who die before they are 1 year old, per thousand babies born.
What does the measure ‘people per doctor’ indicate?
The average number of people for each doctor.
What does literacy rate measure?
The percentage of adults who can read and write.
What does access to safe water measure?
The percentage of people who can get clean drinking water.
What does life expectancy measure?
The average age a person can expect to live to.
As a country develops, what happens to GNI?
GNI typically gets higher.
As a country develops, what happens to the birth rate?
The birth rate typically gets lower.
True or False: GNI per head is always an accurate measure of development.
False
Why can GNI per head be misleading?
It is an average, and variations within the country don’t show up.
Provide an example of a country with a high GNI per head but significant income disparity.
Qatar
What is a limitation of social indicators in measuring development?
Some aspects develop before others, which can mislead the assessment of development.
What does Cuba’s low birth rate suggest about its development?
It suggests that Cuba is more developed.
What does Cuba’s relatively high death rate suggest about its development?
It suggests that Cuba is less developed.
What are the three classifications of countries based on wealth?
HIC, LIC, NEE
What does HIC stand for?
Higher Income Countries
Give an example of a Higher Income Country (HIC).
UK, USA, Canada, France
What does LIC stand for?
Lower Income Countries
Give an example of a Lower Income Country (LIC).
Afghanistan, Somalia, Uganda
What does NEE stand for?
Newly Emerging Economies
Name a characteristic of Newly Emerging Economies (NEEs).
Rapidly getting richer as their economy moves from primary to secondary industry
List examples of BRICS countries.
- Brazil
- Russia
- India
- China
- South Africa
List examples of MINT countries.
- Mexico
- Indonesia
- Nigeria
- Turkey
What is the Human Development Index (HDI)?
A measure combining income, life expectancy, and education level
What values can HDI range between?
0 (least developed) and 1 (most developed)
What three measures are combined to calculate HDI?
- Income (GNI per head)
- Life expectancy
- Education level (average years of schooling)
True or False: HDI values always match GNI per head classifications.
False
What does a very high HDI value indicate?
Greater than 0.8
What does a low HDI value indicate?
Less than 0.55
What is the Demographic Transition Model (DTM)?
A model showing how birth rates and death rates affect population growth
What is natural increase?
When the birth rate is higher than the death rate
What is natural decrease?
When the death rate is higher than the birth rate
What is stage 1 of the Demographic Transition Model characterized by?
High birth and death rates, low life expectancy
In which stage of the DTM do most LICs fall?
Stage 2
What is the population growth rate in stage 5 of the DTM?
Negative
What happens to birth rates in stage 3 of the DTM?
They fall rapidly
How does improved healthcare affect death rates?
It causes death rates to fall and life expectancy to increase
What factors contribute to low birth rates in stages 4 and 5 of the DTM?
- High standard of living
- Dependent elderly relatives
- Good healthcare
What is the typical HDI for a country in stage 2 of the DTM?
Around 0.4 (e.g., Gambia)
What is the typical HDI for a country in stage 4 of the DTM?
Around 0.9 (e.g., UK)
What is the typical HDI for a country in stage 3 of the DTM?
Around 0.6 (e.g., India)
What are the physical factors that can affect a country’s level of development?
A poor climate, poor farming land, few raw materials, lots of natural disasters
These factors can lead to reduced food production, lower income, and hindered development.
How does a poor climate affect development?
It leads to malnutrition and lower quality of life, fewer crops to sell, and reduced government tax revenue
Countries like Chad and Ethiopia exemplify the impact of poor climate.
What is the impact of poor farming land on a country’s development?
Difficulties in growing crops or grazing animals result in food scarcity and economic challenges
Steep or poor soil significantly limits agricultural productivity.
How do few raw materials affect a country’s economy?
Less money is made from exports, leading to limited funds for development projects
Countries may have raw materials but lack the infrastructure to exploit them.
What is the effect of frequent natural disasters on development?
High costs for rebuilding and reduced government funds for development projects
Bangladesh is an example of a country frequently affected by floods.
What economic factors can cause uneven development?
Poor trade links, lots of debt, economy based on primary products
These factors inhibit economic growth and development.
How do poor trade links impact a country’s development?
Limited trade results in less income and fewer resources for development
Countries that trade with only a few partners face economic challenges.
What are the consequences of accumulating lots of debt for a developing country?
Less money available for development due to repayment obligations
Many poor countries borrow money to cope with crises, worsening their debt situation.
Why is an economy based on primary products often less developed?
Primary products yield lower profits and fluctuating prices compared to manufactured goods
Example: Ghana’s cocoa prices dropped below production costs in 2018.
What historical causes contribute to uneven development?
Colonisation, conflict
These factors have lasting impacts on a country’s economic and social structures.
In what ways does colonisation affect a country’s development?
It often leaves countries less developed and prevents industrial growth
Colonisers extracted resources, benefiting themselves at the expense of the colonised.
How does conflict influence a country’s development?
Resources are diverted from development to military spending, infrastructure is damaged, and services are disrupted
Syria’s HDI dropped significantly due to the civil war.
What are the consequences of uneven development on wealth?
Higher income disparities between developed and developing countries, and within countries
Example: In 2017, the richest 10% of Kenya’s population earned 23 times more than the poorest 10%.
How does uneven development affect health outcomes?
Better healthcare and higher life expectancy in developed countries, higher infant mortality in less developed countries
UK’s life expectancy is 81; Chad’s is 53.
Fill in the blank: People in HICs live longer than those in LICs, with the UK’s life expectancy being _______.
81
What is the impact of international migration on development?
Migration from LICs and NEEs to HICs increases the development gap
Migrant workers often contribute more to HIC economies than to their home countries.
True or False: People move from LICs to HICs primarily for better job opportunities and quality of life.
True
What is foreign-direct investment (FDI)?
FDI is when people or companies in one country buy property or invest in infrastructure in another.
What are some benefits of FDI?
Benefits of FDI include:
* Better access to finance
* Improved technology and expertise
* Enhanced infrastructure
* Increased services
How much FDI did Vietnam receive between 1987 and 2018?
Vietnam received more than US $182 billion in FDI.
What is aid in the context of global development?
Aid refers to money or resources given to a country by a charity or foreign government.
What is one use of aid?
Aid is used for development projects, such as constructing schools and providing farming knowledge.
How much aid did the UK provide to South Sudan in 2018-2019?
The UK provided over £180 million in aid to South Sudan.
What is the fair trade movement?
The fair trade movement focuses on ensuring farmers in LICs receive a fair price for their goods.
What do companies need to do to sell ‘fair trade’ products?
Companies must pay producers a fair price.
What is one issue with fair trade?
In some cases, only a small proportion of the extra money reaches the producers.
What is intermediate technology?
Intermediate technology includes tools and systems that improve quality of life but are simple and affordable.
Give an example of intermediate technology.
Solar-powered LED lightbulbs used in Nepal are an example of intermediate technology.
What is microfinance?
Microfinance involves providing small loans to people in LICs who may not qualify for traditional bank loans.
What is one benefit of microfinance?
It enables individuals to start their own businesses and become financially independent.
What is a potential downside of microfinance?
It can encourage people to incur debt and may not reduce poverty on a large scale.
What is debt relief?
Debt relief is when some or all of a country’s debt is cancelled or interest rates are lowered.
What happened to Zambia’s debt in 2005?
Zambia had $4 billion of debt cancelled in 2005.
How does tourism contribute to Kenya’s development?
Tourism contributes nearly 4% of Kenya’s GDP and creates jobs.
What measures has Kenya taken to boost tourism?
Kenya cut visa fees and dropped landing fees for charter airlines.
What percentage of employment in Kenya is related to tourism?
9% of all employment in Kenya is related to tourism.
What is one negative impact of tourism in Kenya?
Only a small proportion of the money earned goes to locals; the rest goes to big companies.
True or False: Tourist vehicles can damage the environment.
True.
Fill in the blank: The 24 national parks in Kenya charge ______ fees to tourists.
entry
What is one consequence of fluctuating tourist numbers in Kenya?
Tourism is not a reliable source of jobs and income.
What has the UK’s economy transitioned from and to?
From manufacturing to services
This transition has been ongoing since the 1960s.
What percentage of the UK’s workforce was employed in tertiary and quaternary industries in 2017?
83%
This proportion is increasing.
What is an example of a sector that employs about 4 million people in the UK?
Retail
Retail is part of the services sector.
How many people work in information technology in the UK?
Over 670,000
Companies like IBM and Microsoft employ individuals in this sector.
Which city in the UK is home to many global financial institutions?
City of London
Institutions like HSBC have their global headquarters here.
How much was spent on research and development (R&D) in the UK in 2016?
Over £33 billion
This spending reflects the increasing importance of R&D in the economy.
Where are science and business parks typically located?
On the outskirts of cities and near universities
This facilitates good transport links and collaboration with researchers.
What is one reason for the growth of science and business parks?
Large and growing demand for high-tech products
These parks help develop new technology for such products.
What is de-industrialisation?
Decline of the UK’s industrial base
This is due to increased automation and competition from other countries.
What has caused job losses in manufacturing industries in the UK?
Increased automation
Automation involves the use of machines in production.
What impact has globalisation had on UK manufacturing?
Manufacturing has moved overseas
This is due to lower labor costs in countries like India and China.
What was the percentage of the UK’s GDP coming from foreign trade in 1965?
38%
This increased to 62% by 2017.
What has been a significant effect of government policies on the UK economy?
Privatisation of key manufacturing industries
This led to job losses but increased efficiency.
What has the UK government done since the 1980s to attract businesses?
Carried out deregulation
This involves removing restrictions and taxes to encourage investment.
True or False: Membership in trade agreements makes it harder for UK companies to operate globally.
False
Trade agreements facilitate easier global operations for companies.
Fill in the blank: The UK’s economy has increasingly emphasized _______ and quaternary industries.
tertiary
These industries include services like finance and IT.
What negative effects can industry have on the environment?
Pollutants, greenhouse gases, high energy and water usage, habitat destruction, toxic chemical release
Factories can release pollutants and greenhouse gases, and extracting raw materials like mining can damage environments.
How are modern industrial developments more environmentally sustainable than older ones?
Increasing energy and waste disposal costs, stricter regulations, better awareness
Modern industrial plants have adapted to be more sustainable due to these factors.
What sustainable practices has the Unicorn Group implemented?
Installed solar panels, biomass boilers, 100% renewable electricity, recycling leftover steel and plastic
These practices aim to reduce environmental impact.
What improvements are being made to the UK’s transport network?
Increasing motorway capacity, Crossrail, HS2, new runway at Heathrow, London Gateway port
These projects aim to enhance transport efficiency and capacity.
What is the significance of the proposed HS2 line?
Increase rail capacity, allow faster journeys between major cities
It connects London, Birmingham, Leeds, and Manchester.
What are the economic impacts of population decline in South Lakeland, Cumbria?
Closure of shops, risk of more closures, affects employment and local economy
The decline in jobs in agriculture and manufacturing contributes to this trend.
What social impacts arise from population decline in South Lakeland?
Higher proportion of older people, strain on medical services, potential school closures
Younger people leaving leads to demographic shifts.
What economic benefits have been observed in North Somerset due to population growth?
House prices increased, employment and wages above national average
The population grew by 2.8% from 2005 to 2015.
What social issues have arisen from population growth in North Somerset?
Congested roads, oversubscribed schools, increased pressure on healthcare
Many new residents are elderly, which impacts healthcare services.
What is the north-south divide in the UK?
Economic and social indicators are generally more positive in the south than the north
This includes wages, health, and education differences.
True or False: Wages are generally higher in the north than in the south of the UK.
False
For example, the average weekly wage in Huddersfield was 40% lower than in London.
What are some exceptions to the north-south divide?
Wealthy areas in the north, high deprivation in the south
Not all trends apply uniformly across regions.
What is the main aim of the UK government’s initiatives regarding regional differences?
To reduce the north-south divide.
What is one way the UK government is trying to reduce regional differences?
Devolving More Powers.
Which regions in the UK have their own devolved governments?
Scotland, Wales, and Northern Ireland.
What is the purpose of devolving powers to local councils in England?
To allow local communities to use money on schemes that best benefit them.
Give two examples of schemes local councils might fund with devolved powers.
- Better public transport
- Regeneration projects for disused buildings.
How many Enterprise Zones have been created across the UK?
Around 50.
What is one benefit companies receive for locating in enterprise zones?
Reduced taxes.
What is the maximum reduction in business rates for companies in enterprise zones?
Up to 100%.
What type of developments are automatically allowed within enterprise zones?
New industrial buildings.
What financial benefit can businesses gain by investing in enterprise zones?
They can reduce future tax bills.
What is one infrastructure improvement guaranteed by the government in enterprise zones?
Superfast broadband availability.
What is the goal of the Northern Powerhouse initiative?
To reduce inequality between the north and south.
What amount is being spent on improving schools as part of the Northern Powerhouse plan?
£70 million.
What criticism has been leveled against the Northern Powerhouse initiative?
It is seen as more of a concept than a concrete plan.
Which cities does the Northern Powerhouse focus on, according to critics?
Manchester and other big cities.
Fill in the blank: The Sheffield City Region Enterprise Zone was approved in _______.
2011.
What major project is being built to connect the Sheffield City Region with Doncaster Sheffield Airport?
Great Yorkshire Way.
How many new jobs were created in the Sheffield area by 2017 due to the Enterprise Zone?
16,000.
How much investment was brought in from private companies to the Sheffield Enterprise Zone?
£318 million.
What partnership was formed at the McLaren Composites Technology Centre?
McLaren worked with researchers from the University of Sheffield.
What is anticipated to be the economic impact of the McLaren Composites Technology Centre on the local economy?
£100 million.
