The Changing Economic World Flashcards
define development
- a positive change that makes things better.
- usually people’s standard of living & quality of life improve as a country develops
what factors affact the rate of development in a country
- environmental (natural hazards ie Haiti is corrupt & plagued w earthquakes)
- economic (trade/ debt)
- social (access to clean water/ education - population is unhealthy)
- political (stable government/ civil war)
define the development gap
difference in standards of living btwn world’s richest 7 poorest countries
give examples of how to measure development
- economic (GNI)
- social (standard of living)
- combination (HDI)
what is GNI
total value of goods & services produced by a country plus money earned from & paid to other countries. usually shown as per head (per capita) of the population
name strategies of how to close the development gap
- investment
- tourism
- debt relief
- fair-trade
describe how investment helps to close the development gap
- TNC spends money in a foreign country ie investing in infrastructures and developing new industries
- leads to the creation of new jobs for locals
- locals invest into the local economy & pay tax, spent improving healthcare/schools leading to a healthier more educated population (MULTIPLIER EFFECT)
what is the multiplier effect
- company/country spends money in foreign country ie investing in infrastructures and developing new industries
- leads to the creation of new jobs for locals
- locals invest into the local economy & pay tax, spent improving healthcare/schools leading to a healthier more educated population
describe how tourism helps to close the development gap
- makes country more appealing to tourists ie beaches/tropical landscapes
- adapt businesses to fit tourism so ppl in other counties travel to spend money there
- leads to investment/ increased overseas income bringing in more money & multiplier effect
describe how fair-trade helps to close the development gap
- ensures producers in smaller countries get a fair deal for their products
- improves quality of life of farmers
- farmer gets all the money from product to support their family/spend in local economy (multiplier effect)
describe how debt relief helps to close the development gap
- developing countries agree to have their debts wiped by richer countries if there will be no future corruption
- ## government doesn’t need to repay debts so can spend it on improving infrastructure/ quality of life for citizens
what are the uk’s main trade links
- US, Germany, Switzerland are main export buyers
- Germany, China, USA are main import customers
what are the uk’s main culture links
- TV exports from UK worth £1.3 bill e.g downton abbey/Dr. Who
- 41% TV exports from UK go to USA
what are the uk’s main electronic communications links
- internet/social media
- submarine cables
- arctic cables (improves connection to japan)
what are the uk’s main transport links
- Southampton port
- international airport i.e gatwick
- channel tunnel (to France)
describe the difference between the north and south of the UK
- avg house price N: £130,000 S: £265,000
- life expectancy N lower by 2 years than S
- N has more poverty than S
reasons for the north-south divide
- deindustrialisation mainly happened in N which lead to unemployment
- London & south east is where growth in service sector mainly occured
describe the land type/use and rate of employment in the north
- mountainous
- higher rates of unemployment
- people move south to find work
- lower house prices (demand is lower)
describe the land type/use and rate of employment in the south
- flat, fertile farm land
- higher employment rates & population growth
- higher house prices (demand is higher)
describe what the government has done to help reduce the north-south divide
- 39 LEPs (local enterprise partnerships) in UK (voluntary partnerships btwn councils & businesses) they encourage companies to invest boosting the economy
- enterprise zones
describe what the government has done to help reduce the north-south divide
- 39 LEPs (local enterprise partnerships) in UK (voluntary partnerships btwn councils & businesses) they encourage companies to invest boosting the economy
- 24 enterprise zones in UK. they encourage new buinesses to set up = new jobs in areas where no businesses were before
- –business discounts over 5 years & loans to support machinery
- –superfast broadband
how have improvements to ports helped to reduce the regional difference
“Liverpool 2” (deep-water dock for container ships)
- will be 1.5 mill containers each year
- will boost trade in the north
how have improvements to rail helped to reduce the regional difference
“HS2” £50 bill train line to “northern powerhouse” (manchester)
- costs £50 bill
- technology will be outdated when it will be opened (2033)
- not the north
- people have had to houses for the railway to be built
how have improvements to aeroplanes helped to reduce the regional difference
- plans to expand heathrow’s 3rd runway
- government argue money would ‘trickle down’ to the north
- would be better to expand northern airports
- concerns over environmental issues
how have improvements to road helped to reduce the regional difference
£15 bill project
- 100 new roads by 2020
- 1300 miles of new roads
- creates jobs
- A1 (from london to edinburgh) NE & South improvements
- but A1 to scotland road still a single lane
benefits of being in the commonwealth
- employment (provides job opportunities for poorer countires)
- promotes education (scholarships & bursaries for unis)
- millitary assitance (training/advice from other countires givej so they can defned themselves)
- promotes democracy (elections are monitored so are fair & population is represented properly)