The Changing Economic World Flashcards

1
Q

What is development?

A

Progress in economic growth, use of technology & improving welfare that country has made

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the global development gap?

A

Difference in development between more and less developed countries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is GNI?

A

Total value of goods and services produced by country in year (including income from overseas)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is GNI per head?

A

GNI divided by population of county

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is GDP?

A

Total value of goods and services a country produces in a year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is birth rate?

A

Number of live babies born per thousand of population per year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is death rate?

A

Number of deaths per thousand of population per year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is infant mortality rate?

A

Number of babies who die under 1 year old, per thousand babies born

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is people per doctor?

A

Average number of people for each doctor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

As a country develops, the no. of people per doctor should…

A

Decrease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is birth rate a measure of?

A

Women’s rights

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is literacy rate?

A

% of adults who can read and write

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is access to safe water?

A

% of people who can get clean drinking water

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is life expectancy?

A

Average age a person can expect to live to

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is HDI?

A

Calculated using life expectancy, educational level and income per head

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What does the HDI value 0 represent?

A

Least developed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What does the HDI value 1 represent?

A

Most developed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Why can individual indicators be misleading if used on their own?

A

Because as country develops, some aspects develop before others (country may seem more developed than it is)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

How were countries classified before?

A

Into 2 categories:

Richer countries = More Economically Developed Countries (MEDCs)

Poorer countries = Less Economically Developed Countries (LEDCs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What was the problem with old, simpler classification?

A

Couldn’t tell which countries were developing quickly & which weren’t developing at all

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are happening to NEEs?

A

Rapidly getting richer as economy is moving from being based on primary industry to secondary industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Why is using GNI per head misleading when used on its own? Give an example to back your answer

A

Bc it’s an average, hide variations between regions in county, between classes

e.g. GNI per head of Russia = might seem quite developed BUT in reality, there’s small no. of extremely people and a lot of very poor people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What does DTM stand for?

A

Demographic Transition Model

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What does a DTM show?

A

Shows how changing birth rates and death rates affect population growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is natural increase?

A

When birth rate > death rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is natural decrease?

A

Death rate > birth rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What are the 5 stages of DTM are linked to?

A

A country’s level of development

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

In stage 1, what is the birth rate like?

A

High and fluctuating

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

In stage 1, what is the death rate like?

A

High and fluctuating

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

In stage 1, what is the population growth rate?

A

0

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

In stage 1, what is the population size like?

A

Low and steady

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Give an example of a country in stage 1

A

No counties but some tribes in Brazil

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

In stage 2, what is the birth rate like?

A

High and steady

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

In stage 2, what is the death rate like?

A

Rapidly falling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

In stage 2, what is the population growth rate?

A

Very high

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

In stage 2, what is the population size like?

A

Rapidly increasing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Give an example of a country in stage 2

A

Gambia

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What does stage 1 represent?

A

The least developed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Why is the birth rate high in stage 1? Give 2 reasons

A
  1. No use of contraception
  2. People have lots of children because poor healthcare means that many infants die
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Why is the death rate high and life expectancy low?

A

Due to poor healthcare or famine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

What does stage 2 represent?

A

Not very developed = many LICs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What is the economy based in stage 2?

A

Agriculture

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Why is the birth rate high in stage 2?

A

People have lots of children to work on farms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Why did the death rate decrease and life expectancy increase?

A

Due to improved healthcare and diet

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

In stage 3, what is the birth rate like?

A

Rapidly falling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

In stage 3, what is the death rate like?

A

Slowly falling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

In stage 3, what is the population growth rate?

A

High

48
Q

In stage 3, what is the population size like?

A

Increasing

49
Q

Give an example of a country in stage 3

A

India

50
Q

What does stage 3 represent?

A

More developed = most NEEs in this stage

51
Q

Name 3 reasons why birth rates are decreasing in stage 3

A
  1. Women have more equal place in society & better education
  2. Use of contraception increases and more women work instead of having children
  3. Economy changes to manufacturing = income increases and fewer children needed to work on farms
52
Q

Why does life expectancy increase & death rate decrease in stage 3?

A

Healthcare improved

53
Q

In stage 4, what is the birth rate like?

A

Low and fluctuating

54
Q

In stage 4, what is the death rate like?

A

Low and fluctuating

55
Q

In stage 4, what is the population growth rate?

A

0

56
Q

In stage 4, what is the population size like?

A

High and steady

57
Q

Give an example of a country in stage 4

A

UK

58
Q

In stage 5, what is the birth rate like?

A

Slowly falling

59
Q

In stage 5, what is the death rate like?

A

Low and steady

60
Q

In stage 5, what is the population growth rate?

A

Negative

61
Q

In stage 5, what is the population size like?

A

Slowly falling

62
Q

Give an example of a country in stage 5

A

Japan

63
Q

What do stages 4 and 5 represent?

A

Most developed = most HICs in one of these stages

64
Q

Why is the birth rate low?

A

Because people want possessions and high quality of life, and may have dependent elderly relatives, less money available for having children

65
Q

Why is death rate is low and life expectancy is high?

A

Healthcare is good

66
Q

Name 4 physical factors of uneven development

A
  1. Poor climate
  2. Poor farming land
  3. Few raw materials
  4. Lots of natural hazards
67
Q

Explain how a poor climate can lead to uneven development

A
  1. If country has poor climate = not much will grow
    1. Reduces amount of food produced = malnutrition
    2. Malnourished = low quality of life
  2. People have fewer crops to sell = less money to spend on goods/servcies
    1. Reduces quality of their life
  3. Government gets less money from taxes
    1. Less money to spend on developing country
68
Q

Explain how poor farming land can lead to uneven development

A
  • If land in country is steep or poor soil (or no soil) = won’t produce a lot of food
    • (Same effects as poor climate)
69
Q

Explain how few raw materials can lead to uneven development

A
  1. Countries without many raw materials (e.g. coal, oil or metal ores) = make less money
    1. Less money spent on development
  2. Some countries have lot of raw materials but still aren’t very developed ∵ don’t have money to develop infrastructure to exploit them
70
Q

Explain how lots of natural hazards can lead to uneven development

A
  1. Countries with lots of natural disasters (e.g.. Bangladesh, which floods regularly) = have to spend a lot money rebuilding
  2. ∴ natural disaster reduce quality of life & reduce amount of money government has to spend on development projects
71
Q

Name 2 historical reasons for uneven development

A
  • Colonisation
  • Conflict
72
Q

State what’s happening to colonised countries (development wise)

A
  • Countries colonised = at lower level of development when they gain independence than they would be if they hadn’t been colonised
73
Q

Explain how colonisation leads to uneven development with the aid of an example

A
  1. European counties colonised much of Africa in 19th century
  2. Controlled economies of their colonies:
    1. Removed raw materials & slaves
    2. Sold back expensive manufactured goods
  3. Bad for African development ∵ made parts of Africa depended on Europe
    1. = led to famine + malnutrition
74
Q

Explain how conflict leads to uneven development

A
  • War (especially civl wars) = slow/reduce levels of development even after war
    • e.g. healthcare becomes much worse & infant mortality increases
  • Money spent on arms and fighting instead of development
    • People are killed & infrastructure/property is damaged
75
Q

Give an example that supports the fact that ‘conflict leads to uneven development’

A

10 years after civil war in Uganda = levels of development barely returned to pre-war levels

76
Q

Name 3 economic factors that can cause uneven development

A
  1. Poor Trade Links
  2. Lots of Debt
  3. An Economy Based on Primary Products
77
Q

What is trade?

A

Exchange of good and services between countries

78
Q

What is meant by world trade patterns?

A

Who trades with whom

79
Q

Explain how poor trade links can lead to uneven development

A

Poor trade links (i.e. trades small amount with few countries) = won’t make enough money = less to spend on development

80
Q

Explain how lots of debt can lead to uneven development

A
  1. Very poor countries borrow money from other countries + international organisations
  2. Money has to be paid back (sometimes with interest)
  3. Any money country makes is used to pay back debt instead of development
81
Q

Explain how basing an economy on primary products can lead to uneven development

A
  • Countries that export mainly primary products = less developed
    • ∵ Don’t make much profit + prices fluctuate → price falls below cost of production
    • People don’t make much money = less to spend on development
82
Q

What can wealthy countries do that makes things worse for economies based on primary products

A

Can force down price of raw materials they buy from poorer countries

83
Q

Name 3 things uneven development can affect

A
  • Wealth
  • Health
  • International Migration
84
Q

Explain how uneven development can affect wealth

A

People in more developed countries have higher income than those in less developed countries

85
Q

Give an example of uneven development affecting wealth

A

GNI per head in UK is 40x higher than in Chad

86
Q

Explain how uneven development can affect health

A
  1. Healthcare in more developed countries = better than in less developed countries
    1. People in HICs live much longer
    2. Infant mortality higher in less developed countries
87
Q

Give an example that supports that ‘People in HICs live much longer’

A

UK’s life expectancy = 81 but Chad = 51

88
Q

Give an example that supports that ‘Infant mortality higher in less developed countries’

A

85 per 1000 biters in Chad compared to 4 per 1000 births in UK

89
Q

Explain how uneven development can affect international migration

A

If nearby countries have higher level of development = people will want to enter them ∵ they have opportunities that will improve their quality of life

90
Q

Give an example of uneven development affecting international migration

A

Mexico (NEE) borders USA (HIC)

Every year over 130,000 Mexicans move to USA legally (& thousands more illegally) = for better paid jobs & higher quality of life

91
Q

Name 8 strategies that can reduce the development gap

A
  1. Aid
  2. Debt Relief
  3. Fair Trade
  4. Investment
  5. Industrial Development
  6. Tourism
  7. Using Intermediate Technology
  8. Microfinance Loans
92
Q

What is aid?

A

Help given by one country to another as money or resources

93
Q

What can aid be used on?

A

Can be spent on development projects

94
Q

Name 3 examples of development projects (i.e. where aid can spent and why)

A
  • Providing farming knowledge and equipment to improve agriculture
  • Constructing schools = improve literacy rates
  • Building dams and wells to improve clean water supplies
95
Q

What are 2 downsides of aid?

A
  • Sometimes wasted by corrupt governments
  • Or once money runs out = projects can stop working if not enough local knowledge + support
96
Q

What is debt relief?

A

When some/all of country’s debt cancelled or interest rates are lowered

97
Q

Explain how debt relief can reduce the development gap

A

LICs have more money to develop rather than pay back debt

98
Q

Give an example of how debt relief helped reduce the development gap

A
  • Zambia had $4 billion of debt cancelled in 2005
  • In 2006: had enough money to start free healthcare scheme for millions of people living in rural areas
    • = improved quality of their lives
99
Q

What is fair trade?

A

Farmers getting fair price for goods produced in LICS

100
Q

What do companies who sell products labelled as ‘fair trade’ have to do & buyers that purchase them?

A
  • Pay producers fair price
  • Buyers also pay extra on top of that to help develop area where goods came from (e.g. to build schools or health care)
101
Q

What does fair trade allow the producers to do?

A

To provide for their families

102
Q

What is the downside about fair trade?

A

Only tiny proportion of extra money reaches original producers → much goes to retailers’ profits

103
Q

Explain how industrial development can help to reduce the development gap

A
  • Countries with very low development: agriculture = large proportion of economy
  • Developing industry = increases GNI + helps improve levels of development as productivity, levels of skill &
    infrastructure are improved
104
Q

What is FDI?

A

People/companies in one country buy property or infrastructure in another

105
Q

Name 3 things FDI can lead to

A
  • Increases in services
  • Better access to finance, technology and expertise
  • Improved infrastructure & industry
106
Q

What is intermediate technology?

A

Includes tools, machines + systems = improve quality of life BUT simple to use, affordable to buy/build & cheap to maintain

107
Q

Give an example of how intermediate technology helped reduce the development gap

A

e.g. solar powered LED lightbulbs used in parts of Nepal

  • Other lighting options = polluting & dangerous
    • e.g. kerosene lamps or wood fires
  • Allows people to work in their homes or businesses + children to study after dark
    • = skills, incomes & industrial output can increases = help reduce development gap
108
Q

What is microfinance?

A

Microfinance = small loans given to people in LICs who many not be able to get loans from traditional banks

109
Q

How can microfinance loans help to reduce the development gap?

A

Loans = people can start own businesses & become financially independent

110
Q

What’s the issue with microfinance loans?

A

Not clear if it can reduce poverty on large scale

111
Q

How can tourism help to reduce the development gap?

A

Provides increased income = can be used to increase level of development

112
Q

What are trans-national corporations?

A

Companies located in, or produce/sell products in more than one country

113
Q

Where are TNC factories normally located and why?

A

In pooper countries ∵ labour is cheeper + fewer environmental & labour regulations = more profit

114
Q

Where are TNC offices & headquarters normally located and why?

A

In richer counties ∵ more people with administrative skills (∵ education is better)

115
Q

Name 4 advantages of TNCs

A
  • Employees in poorer countries = get more reliable income compared to jobs like farming
  • Create jobs in counties they’re located in
  • New technology and skills are brought to poorer countries
  • Spend money to improve local infrastructure
116
Q

Name 4 disadvantages of TNCs

A
  • Employees in poorer countries = paid lower wages than those in richer countries
  • Employees in poorer countries = work long hours in poor conditions
  • Jobs created in poorer countries aren’t secure
    • TNC could relocate jobs to another country
  • Most TNCs come from richer counties ∴ profits go back there
    • Aren’t reinvested in poorer countries the TNC operates in