The changing economic world-A Flashcards
what is gross domestic product (GDP)?
the total value of goods and services a country produces in a year
what is gross national income (GNI)?
the total value of goods and services people of that nationality produce in a year. also called gross national product
what is GNI per head?
GNI divided by population of country
what is birth rate?
number of live babies born per thousand of the population per year
what is death rate?
number of deaths per thousand of the population per year
wat is infant mortality rate?
number of babies who die under 1 year old per thousand babies born
what is people per doctor?
average number of people for each doctor
what is literacy rate?
the percentage of adults who can read and write
what is life expectancy?
the average age a person is expected to live
what is human development index (DI)?
number calculated using life expectancy, literacy rate, education level and income per head.
what are the reasons for historical different levels of development?
- power and status
- access to land
- resulted in conflict
- countries borders redrawn
what are the reasons for economic different levels of development?
- bad fair trade
- corrupt leaders profit personally from selling resources
- food prices fluctuation depending on quality of crop
what are the reasons for physical different levels of development?
- coastline- trade easily with ports
- natural disasters
- climate- poor growing conditions like desert in Chad
what is the gini coefficient?
- measure of international disparities
- 0 means that everyone has some income
- 1 means that all income is controlled by one person
- LIC’s and NEE’s have high gini coefficient
what are the consequences of uneven development?
- disparities in wealth and heath
- i.e. LIC’s often borrow money off world bank to pay for hospitals
- internation migration - 2015 14 million being fired from homes
- people from LIC’s moving to HIC’s
what is a TNC?
transnational corporation, produce goods and services inside many different countries EG McDonalds
what is a FDI?
foreign direct investment, the cash injected into countries from TNC’s
what is the multiplier effect?
investment in a business helps it to thrive crating work this can turn help onto other businesses
what are some strategies which are used to help reduce the development gap?
- investment
- tourism
- fairtrade
- aid
- debt relief
- microfinacne loans
how does aid help reduce the development gap?
- money or resources
- spent on development projects i.e. constructing schools
- can be wasted on corrupt governments
how does debt relief help reduce the development gap?
- debt cancelled or interest rates lower
- i.e. Zambia had $4 billion removed allowing them to build a healthcare system for people in rural areas
how does investment help reduce the development gap?
- people or companies buy property in another country
- improves infrastructure, technology, increases services
how does fair-trade help reduce the development gap?
- farmers getting fair price
- can help develop an area
- but still only a small amount goes to original producer
how does micro loans help reduce the development gap?
- small loans given so people can start their own business
- doesn’t reduce poverty on a large scale
how does tourism help reduce the development gap?
- increase income as more money into country
- Kenya is using tourism to increase levels of development
what is an example of a LIC which is using tourism to help levels of development?
Kenya
what is the benefits of Kenya using tourism for better development?
- 12% of Kenyas GPD
- 600,000 directly or indirectly employed through tourism (10%)
- visa fee for adults were cut by 50% in 2009 to make it cheaper to enter the country
- increased from 0.9 million in 1995 to 1.8million in 2011
