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. The more developed, the better the quality of life.
What is GNI?
Gross National Income:
- the total value of goods and services produced by a country in a year, including income from overseas
- often given in US$
- a measure of wealth
- as a country develops, it gets higher
What is GNI per head/capita?
Gross National Income per head/capita:
- the GNI divided by the population of a country
- often given in US$
- a measure of wealth
- as a country develops, it gets higher
What is GDP?
Gross Domestic Product:
- the total value of goods and services a country produces in a year
- often given in US$
- a measure of wealth
- as a country develops, it gets higher
What is birth rate?
birth rate:
- the number of live babies born per thousand of the population per year
- as a country develops, it gets lower
What is death rate?
death rate:
- the number of deaths per thousand of the population per year
- a measure of health
- as a country develops, it gets lower
What is infant mortality rate?
infant mortality rate:
- the number of babies who die under one year old, per thousand babies born, per year
- a measure of health
- as a country develops, it gets lower
What is people per doctor?
people per doctor:
- the average number of people for each doctor
- a measure of health
- as a country develops, it gets lower
What is literacy rate?
literacy rate:
- the percentage of adults who can read and write
- a measure of education
- as a country develops, it gets higher
What is access to safe water?
access to safe water:
- the percentage of people who get clean drinking water
- a measure of health
- as a country develops, it gets higher
What is life expectancy?
life expectancy:
- the average age a person can expect to live to
- a measure of health
- as a country develops, it gets higher
What is HDI?
Human Development Index:
- a number that is calculated using life expectancy, education level and income per head
- between 0 (least) and 1 (most developed)
- a measure of lots of things
- as a country develops, it gets higher
What are the two categories that are based on how economically developed a country is? Give where they are generally found and examples.
- MEDCs - more economically developed countries are generally in the north (USA, European countries, Australia, New Zealand)
- LEDCs - less economically developed countries are generally in the south (India, China, Mexico, Brazil, African countries)
What are the three categories that show how wealthy a country is? Give examples of each.
- HICs - high income countries are the wealthiest in the world, GNI per head is high and most have high quality of life (UK, USA, Canada, France)
- LICs - low income countries are the poorest in the world, GNI per head is low and most have low quality of life (Afghanistan, Somalia, Uganda, Nepal)
- NEEs - newly emerging economies are rapidly getting richer as their economy is majorly moving from primary to secondary industry, quality of life and GNI per head is improving (China, Brazil, Russia, India)
What is the issue with using GNI per head as a measure of wealth? Give a real life example.
using GNI per head as a measure of wealth:
- can be misleading as it is an average, so variations don’t show up
- it can hide variations between regions in the country
- eg. Russia may look like a HIC with its GNI per head, but really it’s just a small amount of people that are very wealthy
What is the DTM and what does it show?
The Demographic Transition Model shows how changing birth and death rates affect population growth.
Describe stage one of the DTM. Give an example of a country in this stage.
DTM - stage one (least developed, very low income)
- high and fluctuating birth rate (no contraception)
- high and fluctuating death rate (poor healthcare, famine)
- low population, almost no growth rate
- eg. some tribes in Brazil
Describe stage two of the DTM. Give an example of a country in this stage.
DTM - stage two (not very developed, most LICs)
- high and fluctuating birth rate (economy based on agriculture, so children work on farms, so high rate)
- rapidly falling death rate (improved healthcare and diet)
- rapidly increasing population, so very high growth rate
- eg. Gambia (HDI = 0.4)
Describe stage three of the DTM. Give an example of a country in this stage.
DTM - stage three (more developed, most NEEs)
- rapidly falling birth rate (women have a more equal role, better education, contraception, less agriculture so children don’t need to work)
- slowly falling death rate (further improving healthcare)
- increasing population, so high growth rate
- eg. India (HDI = 0.6)
Describe stage four of the DTM. Give an example of a country in this stage.
DTM - stage four (most developed, HICs)
- low and fluctuating birth rate (people want possessions, high quality of life and may have dependent elderly relatives, so less money available for having children)
- low and fluctuating death rate
- high and steady population, almost no growth rate
- eg. UK (HDI = 0.9)
Describe stage five of the DTM. Give an example of a country in this stage.
DTM - stage five (beyond development, HICs)
- slowly falling birth rate (too many people, so advocate against having children)
- low and steady death rate
- slowly falling population size, so negative rate of growth
- eg. Japan (HDI = 0.9)
Describe four physical factors that can affect how developed a country is.
physical factors that affect development:
1) a poor climate
- really hot, cold or dry
- reduces amount of food produced, fewer crops to sell
- less money from taxes to develop country (as less sold / bought)
2) poor farming land
- steep or poor/no soil, less food
3) few raw materials
- like coal, oil, metal ores
- make less money
- some do have raw materials, but don’t have the money to develop the links with other countries
4) lots of natural hazards
- spend a lot of money on rebuilding
- reduce quality of life
Describe two historical factors for uneven development.
historical factors for uneven development:
1) colonisation
- countries that were colonised usually are at a lower development level when they gain independence
- eg. European countries colonised much of Africa, which meant that some parts were dependent on Europe, which led to famine and malnutrition
2) conflict
- war, especially civil wars, slow or reduce development
- money is spent on fighting rater than development
- people killed, damage to infrastructure
Describe three economic factors for uneven development.
economic factors for uneven development:
1) poor trade links
- they won’t make as much money, so less development
2) lots of debt
- most money the country gets is used to pay it back
3) an economy based on primary products
- there isn’t much profit from selling primary products
- their prices fluctuate
Describe three consequences of uneven development.
consequences of uneven development:
1) wealth
- more developed countries have a higher income
2) health
- healthcare in more developed countries is better
- people in HIC’s live longer
- infant mortality is much higher in less developed
3) international migration
- if nearby countries have a higher development level, people may move there
Name eight ways to reduce the development gap.
reducing the development gap:
- aid
- fair trade
- using intermediate technology
- debt relief
- investment
- industrial development
- tourism
- microfinance loans
Describe how aid reduces the development gap.
aid:
- one country giving another money or resources
- spent on development projects (constructing schools to improve literacy rates, building dams and wells to improve clean water)
- however, it is sometimes be wasted by corrupt government or once money runs out, the projects stop as there isn’t enough local knowledge or resources
Describe how fair trade reduces the development gap.
fair trade:
- the fair trade movement is about farmers getting a fair price for goods produces in LIC’s
- however, only a tiny proportion of the extra money goes to the original producers, so much goes to the retailers’ profits
Describe how using intermediate technology reduces the development gap.
using intermediate technology:
- this uses tools, machines and systems that improve the quality of life but are also simple to use, affordable and cheap to maintain eg. solar powered LED lightbulbs
- skills, incomes and industrial output can increase, reducing the development gap
Describe how debt relief reduces the development gap.
debt relief:
- some or all of a country’s debt is cancelled or lowered
- therefore, more money to develop the country
- eg. Zambia had $4 billion cancelled in 2005 and in 2006, there was enough money to start a free healthcare scheme for millions
Describe how investment reduces the development gap.
investment:
- foreign direct investment (FDI) is when people or companies in one country buy property or infrastructure in another
- this leads to better access to finance, technology and expertise, improved infrastructure, industry and services
Describe how industrial development reduces the development gap.
industrial development:
- where there is low development, agriculture makes up a large proportion of the economy
- developing industry increases GNI and helps improve levels of development as productivity, levels of skill and infrastructure increase
Describe how tourism reduces the development gap.
tourism:
- increased income as more money will be coming into the country
Describe how microfinance loans reduces the development gap.
microfinance loans:
- this is small loans given to people in LICs
- they can then start their own businesses and become independent
- it works for some people, but it can’t completely reduce poverty on a large scale
What are TNCs? Give an example.
TNCs are trans-national corporations, which are companies that are located in, or produced and sell products in, more than one country.
eg. Sony makes electronic products in China and Japan
Where are TNC factories usually located? Why?
TNC factories are usually located in LICs as labour is cheaper, and there are fewer environmental and labour regulations, so they make a higher profit. They can also improve the countries they work in, reducing the development gap.
Where are TNC offices and headquarters usually located?
TNC offices and headquarters are usually located in HICs because there is more people with administrative skills because education is better.
What are four advantages of TNCs?
advantages of TNCs:
- create jobs in all the countries they’re located in
- employees in poorer countries get a more reliable income compared to jobs like farming
- TNCs spend money to improve the local infrastructure
- new technology and skills are brought to poorer countries
What are four disadvantages of TNCs?
disadvantages of TNCs:
- employees in poorer countries may be paid lower wadges than employees in richer countries
- employees in poorer countries may have to work long hours in poor conditions
- most TNCs come from richer countries so the profits go back there
- jobs in poorer countries aren’t secure, so the TNC could relocate
Describe three causes of economic change.
causes of economic change:
1) de-industrialisation
- there is a decline in the UK’s industrial base, so fewer jobs are available in manufacturing and heavy industries (coal mining, steel production, etc)
2) globalisation
- a lot of manufacturing moved overseas, where labour costs are lower, though headquarters have often remained in the UK
3) government policies
- government decisions on investment in new infrastructure and technology and support for businesses affect how well the economy grows
What is the proportion of tertiary and quarternary industry in the UK?
In 2011, 81% of the UK’s workforce they employed was in the tertiary and quarternary industries, and this proportion is increasing.
What is the UK’s largest working sector?
The UK’s largest working sector is retail, employing more than 4.4 million people.
Name four of the most important industries in the UK.
services, information technology, finance, research
Give three reasons why the number of science and business parks has grown in the UK.
growth of science and business parks:
- large and growing demand for high tech products, and science parks help develop new technology
- the UK has a high number of strong research universities for businesses to form links with
- clusters of related businesses in one place can boost each other
Describe the north-south divide in the UK.
north-south divide in the UK:
- the decline of heavy industry has had a greater negative impact on the north of the UK
- the growth of post-industrial service industry has mostly benefited the south
- wages are generally lower in the north, health is worse there and GCSE results are higher in the south
What effects does the changing UK economy have on rural landscapes?
effect on rural landscape:
- eg. Cumbria (north), population has decreased as fewer jobs as farming and manufacturing are big industries there, and they’re in decline
- so less services there, businesses closing
- eg. North Somerset (south), mainly rural, close to Bristol, more people moving there as easy access to Bristol and quieter
- house prices rising, roads congested, services oversubscribed
Give three ways the government is trying to end the north-south divide.
ending north-south divide:
1) devolving more powers
- Scotland, Northern Ireland and Wales have their own devolved governments, and some powers are being devolved to local councils in England too
- this means they use money on schemes they think will best benefit the local community
2) creating enterprise zones
- 55 across England, Scotland and Wales
- they offer companies a range of benefits for locating in enterprise zones, like reduced taxes, simpler planning rules, financial benefits and improved infrastructure
- they encourage companies to go to places with high unemployment
3) the northern powerhouse
- attracting investment into the north and improving transport links between northern cities
- it is more of a concept than a plan, so criticism
Describe four ways the UK is improving their transport links.
improving transport links in the UK:
- roads - capacity on motorways is being increased, so more lanes, and new roads
- railways - crossrail will increase central London’s rail capacity by 10%, and HS2 line for faster journeys and higher capacity
- airports - new runway in south east as existing ones are full
- ports - a new one at the River Thames
Name six ways the UK has strong links with other countries.
UK’s strong links:
- trade - trades globally, exports worth £250b a year
- culture - Shaun the Sheep shown in 170 countries
- transport - Channel Tunnel, airports
- electronic communications - offices for global IT firms, trans-Atlantic cables linking Europe and USA
- EU - 28 countries, access to a large market easily
- Commonwealth - 53 independent states, improves well being
