🔵The Changing Economic World Mock Flashcards
What are the negative effects on quality of life for the population as a result of economic development?
Bangladesh
Pollution – very bad for population, factories release untreated water into rivers And releases toxic gases which was an airborne diseases. These can lead to heart and respiratory issues
The most vulnerable people live in industrial areas, or running water is used by factories so they use polluted water. They have substandard housing.
They have a very low wage, and an even lower minimum wage this does not support the well-being of those in Bangladesh.
What are the positive effects on quality of life for the population as a result of economic development?
Jobs are generated which allows for income allowing them to have money to buy more items which can lead to the multiplier effect. But due to the low wage it’s unlikely that the very vulnerable will partake in the multiplier effect.
They have money in income allowing them to upgrade house in an upgrade their lifestyle, but the minimum wage is very low which doesn’t allow them to upgrade the housing or lifestyle
What are the causes of economic change? (In the UK)
Deindustrialisation
Decline of traditional industrial base
Globalisation
Government policies
What’s deindustrialisation?
Deindustrialisation and the decline of the U.K.’s industrial base – fewer jobs are available in manufacturing and heavy industries such as coal mining and steel production, these industries or once the primary source employment and income for the UK GDP
Deindustrialisation is the reduction of industrial activity or capacity in a region/economy
What are the reasons deindustrialisation occurred in the UK?
- Mechanisation (the use of machines) has taken place as businesses and farms began to replace many workers for machines as they are generally more reliable and cheaper to run.
- Many of the UK’s secondary industries like arms manufacture and coal heavily polluted the environment - people were not in favour of this and wanted to move away from this
- Some resources such as iron ore and coal have declined in availability in the UK or become uneconomic to mine, so employment declined
What is globalisation?
A lot of manufacturing has moved overseas where labour costs are lower although the headquarters have often remain in the UK. Trade with other countries is increasingly important for the UK GDP.
the increasing integration (combination) of economies, people and places around the world
What are the reasons globalisation occurred in the UK?
- Many factories in the UK have shut down and production has continued in low income countries, which have less educated workforces, limited health and safety or no minimum wage laws. This makes costs cheaper.
1B. Newly Emerging economies like China opened their countries to global business in the 1980s and many UK firms chose to move there.
- Many industries like coal have shut down as firms chose to import this and other resources from abroad where both labour and land were cheaper
- Much cheaper crops can be imported from countries overseas where mass production brings costs down and labour and land are both cheaper than in the UK.
- In 2013 nearly 50% of young people in the UK entered university, and results in a very high demand and high aspirations for graduate level jobs often in services and the quaternary sector.
- Compared to other countries the UK’s manufacturing sector is less productive.
What are government policies?
Government decisions on investment in new infrastructure and technology support for businesses (tax breaks) affects how well the economy grows. Membership in the government groups (World Trade Organisation) make it easier for companies in the UK to operate across the world.
Government Policy is a plan or course of action decided by a government to manage issues in a country.
What are the reasons Government policies affected the UK’s economic structure?
- Many UK governments have invested in the “knowledge economy” rather than primary and secondary industries - The UK government pumped nearly £5billion into high tech research and development in 2015
- The UK Government in the 1970s and 1980s sold or turned many of its secondary and primary industries to companies in a process called privatisation. This cost many jobs in steel making and coal in particular.
- The UK and EU have very strict laws for environmental pollution for businesses; this makes it expensive to make products here.
- The UK has to follow European Union law. Policies limiting fishing and helping farmers mechanise cost jobs in primary industries. Some primary industries have been affected by laws and treaties – fishing is limited by quotas imposed by the European Union
What is a post-industrial economy?
A post-industrial economy is a period of growth within an industrialised economy or nation in which the relative importance of manufacturing reduces and that of services, information, and research grows.
The UK is moving towards a post industrial economy
What are the reasons for a post industrial economy?
Development of information technology Service industries Finance Research Science and Business Parks
What does a post industrial economy involve?
Quaternary / services
Services = knowledge based services - doctor visits / personal services - hairdresser
Quaternary = IT / finance / research + development / creative industries
What’s the difference between a science and a business park?
Business Park is an area of land occupied by a cluster of businesses. The parks are purpose-built areas of offices and warehouses, often at the edge of the city and on a main road.
Science parks are often located in a university site, and high-tech/scientific industries are established. Scientific research and commercial development may be carried out in cooperation with the University.
Is the UK moving towards a post industrial economy?
Why / Why not?
The UK has a changing economy. The manufacturing or secondary industry section of our economy is in decline, and a smaller percentage of our GDP and employment comes from manufacturing.
The UK is moving towards a post-industrial economy, where the focus of our economy is not on the making of traditional manufactured products (although this is still an important party of our economy) but on products based on knowledge and research. This is known as the knowledge economy.
What’s the information technology industry?
these businesses use computers and other hardware to store, process and use data, often to help businesses and governments.
What are service industries?
these are businesses that do work for a customer, and sometimes provides goods, but is not involved in manufacturing
What is the finance industry?
the financial services industry is a major part of the UK and especially London economy. They provide services to do with money, such as accountancy, money transfer, trading and credit.
What is the research industry?
these industries involve research and development, where ideas are transformed into workable products.
What are the advantages of information technology/ service / finance / research / science and business parks?
- they are not tied to heavy raw materials so can locate wherever they have a cost advantage.
- They often locate close to transport routes such as motorways and railways stations to offer maximum access for customers and employees
- They are dependent upon HUMAN RESOURCES – they need people’s ideas and skills to make them work and innovate new products and ideas. They therefore require a highly educated work force - improving the image of the UK
- They are often more sustainable than heavy industry, with lower energy needs, low or zero air pollution emissions, landscaping to offer a nice environment and carbon neutral buildings.
- They often group together so that ideas can be exchanged – this is known as agglomeration
How’s Cambridge science park sustainable?
low density of building and the landscaping is done in a way to increase the amount of green space
Green space = photosynthesis + reduction of co2 emissions + wildlife habitats
Water features = aquatic life
Recycling of plastic bottles / glass / aluminium drink cans / office paper and newspaper / cardboard. Cambridge has recycling facilities on campus.
Recycling reduces the need to grow, harvest or extract new raw materials from the earth = fewer forests cut + less pollutants produces
Green transport (bikes + buses) - renewable energy (wind / solar power) - release nosignificantly less greenhouse gases.
Bikes release no carbon/no greenhouse gases bracket zero emission form of transportation)
Buildings composed of lots of glass, allows more of suns heat and light to enter building, reduces need for heating and lighting, reducing carbon emissions and overall greenhouse gas emissions.
Reduces the need of energy which reduces the amount of toxic fumes released by power plants conserving the earths natural resources in protecting ecosystems from destruction
What’s a HIC?
these are countries with a GNI per capita above US$ 12,746, eg Germany and the USA
What a MIC?
these are countries with a GNI per capita of more than $1,045 but less than $12,746, eg Mexico and Iraq
What’s a LIC?
these are countries with a GNI per capita of $1,045 or less, eg Chad and Ethiopia
What’s the best measurement of development and why?
HDI
takes into account economic and social factors
What’s HDI?
Human Development Index
HDI is calculated by the United Nations. It measures average life expectancy, level of education and income for each country in the world.
Each country is given a score between 0 and 1 - the closer a country gets to 1, the more developed it is.
What’s access to safe water development measurement?
% of people who have access to safe / clean water
Social
What’s Birth rate + advantages/disadvantages?
The number of live births per 1,000 people. Birth rates are often high in a less developed country
Social
Good indicator of social progress
Brith rates can be changed by government policies, there policies don’t always mean a country is developed
What’s death rate + advantages/disadvantages?
The number of deaths per 1,000 people. High death rates can indicate a less developed country.
Social
Shows how effective a country’s health system is / indicates standard of living.
Richer countries = more older people so death rate can be higher than expected (more old age deaths)
What’s GNI per capita + advantages/disadvantages?
Gross national income per person. The value of a country’s income, divided by the number of people in that country.
Economic
Average - hides two extremes of the spectrum
shows nothing about countries standard of living
What’s infant mortality rate?
The number of babies who don’t survive to the age of 1 per 1,000 live births.
Social
What’s life expectancy?
The average age a person may live to
Social
What’s literacy rate?
% of adults that can read / write.
Social
High literacy rate usually means more developed country - high literacy rates also benefit economy
What’s people per doctor x development measurement?
Ratio to show the number of people per doctor.
Lower ratio indicates richer country.
Social / (economic)
What is The Demographic Transition Model?
The Demographic Transition Model (DTM) shows population changes over time.
There are five stages in the DTM and these stages can be linked to levels of development.
DTM stage 1
High stationary
BR / DR are high
High infant mortality rate due to poor sanitation
Death rate high due to disease / famine / poor medical knowledge
Natural increase is stable / slow
DTM stage 2
Early expanding
BR remains high
DR falling rapidly
leading to higher natural increase - population grows
Still high infant mortality rates therefore high BR
DR falling due to investments in sanitation / healthcare
DTM stage 3
Late expanding / life expanded
BR falling DR falling (more slowly) Natural increase slowing down but still increasing
BR falling = women’s rights / lower infant mortality/ better healthcare / more contraception available
DR falling = improved investments in sanitation’s / healthcare
DTM stage 4
Low stationary
BR+DR low
Stable natural increase
BR low = contraception / better sanitation / decrease infant mortality
DR low = investments in sanitation / healthcare
DTM stage 5
Declining
BR+DR low
Natural decrease as DR is higher than BR
Can be tackled by allowing immigrants of reproducing age in / better housing + pay for parents + paternity leave
Causes of uneven development- physical
Some areas have hostile / difficult landscape malign development harder
Eg. Hot / arid climates with a lack of water make it harder to grow food.
Climate related disease / climate hazards
Causes of uneven development - economic
Some countries have high levels of debt meaning they must pay a lot of money in interest/repayments so not a lot is left over for development projects
Colonialism
Poverty trap - constantly having to invest in new things - unable to fully invest in 1 thing and make it good
Causes of uneven development - environmental
Extreme flooding / desertification
Causes of uneven development - social
Low levels of education / poor water quality / lack of doctors making development harder
Instability
rapid population growth - money goes to helping extra people rather than development
Causes of uneven development - political
ECONOMIC
Some countries are at war / have a corrupt government.
Money can’t reach the people who need it most and spending it on infrastructure/ education may be insufficient due to the circumstances
Causes of uneven development - natural resources
PHYSICAL
Some countries have an abundance of raw materials such as oil or precious minerals. Countries with few natural resources have little to sell. They find it difficult to trade and make money.
These can be sold and the money invested into developing the country.
All efforts of the country are put into that resource.This limits the potential development of other industries.
Consequences of uneven development - Wealth
HICs have a lot of money so have the power to make decisions that affect LIC’s negatively but benefit them.
LIC’s sell raw materials sell for less than finished products as they don’t have the right equipment to create finished products.
Some LIC’s government is corrupt so money that’s earned isn’t always used to benefit the people.
HIC’s usually have stable governments so money earner is used to benefit the people so fewer disparities on wealth/health occur
HIC’s imports costs less than their exports so they have a good balance of trade - they can become wealthier
Consequences of uneven development - Health
LIC’s have a shortage of safe/clean water therefore low levels of health.
HIC’s have good clean water supplies and sanitation systems
HIC’s usually have stable governments so money earner is used to benefit the people so fewer disparities on wealth/health occur
Consequences of uneven development - international migration
Some LIC’s have high levels of international migration as people move to find work / better living standards. This results in fewer people of working age and an increased proportion of dependent people.
What’s the development gap?
difference in levels of development between the richest and poorest countries in the world.
Reducing the development gap would lead to an increase in the quality of life for millions of people around the world.
Ways to reduce the development gap - Investment
Large companies can locate part of their business in other countries. This helps a country to develop as the companies build factories, lay roads and install internet cables.
Ways to reduce the development gap - Aid
Aid is when one or more countries give money to other countries. The money has to be spent on things that will benefit the population.
Ways to reduce the development gap - using intermediate technology
Intermediate technology is using equipment and techniques that are suitable for their country of use.
Many poorer countries do not have the skills to maintain expensive equipment. Small-scale, basic solutions are usually more appropriate.
Ways to reduce the development gap- Fairtrade
Fairtrade is paying producers a reasonable price for the goods that they produce.
Many farmers in LICs are paid very low wages. This means that they cannot escape poverty.
Fairtrade gives farmers a better chance in life.
Ways to reduce the development gap - Debt relief
Many LICs owe money to other countries. Often the repayments and interest are so expensive that indebted countries have no money left to spend on development projects.
Debt relief is when debts are either reorganised so they’re more manageable/ reduced
Ways to reduce the development gap - Microfinance loans
Microfinance loans are when money is lent to LICs to help them to develop. These are often small loans with reasonable interest rates.
They are available to people and businesses who may normally struggle to get credit.
Why does Kenya need to bridge the development gap?
They suffered from famine (201-2012 - Africa famine)
Terrorist attacks (Al-Shabaab group 2011-2012)
Low food security
2018 GNI per capita was $3440 per person (LIC/MIC)
75% of people lived in rural areas
Main sector was agriculture - low profit
Low life expectanc
Why do tourists want to go to Kenya?
Weather
Nature
Safari
Culture
Beaches
Activities (water sports)
How much has tourism increased in Kenya from 1995-2011?
0.9 million in 1995 to 1.8 million in 2011
Why were visa fees for adults cut by 50% and scrapped for children under 16 in Kenya?
So it’s cheaper to visit the country to attract more people / families to come.
Landing fees at airports on Kenyan coast also decreased making it more accessible for airlines.
Positives of tourism in Kenya
Tourist like to see cultural shows by Maasai warriors and will pay a lot of money for it.
Local infrastructure (roads/airports/water/sanitation facilities) improved for tourists
Tourists go to see beautiful landscapes and can be educated about the dangers to fragile ecosystems in the modern world
Kenyan government uses money from tourists to improve education/health services
Tourism creates jobs - 10% of people in Kenya employed by tourism industry
National parks have an entry fee, this money is used to maintain + protect the environment and wildlife in national parks
Evidence that tourism in Kenya is working in closing the development gap
Tourism contributes to over 12% of Kenya’s GDP - this is money that can be spend on development / improving quality of life
Nearly 600,000 are directly/indirectly employed by tourism industry (10% of population)
Kenya’s HDI has increased from 0.45 to 0.55
Negatives of tourism in Kenya
Foreign companies may bring foreign workers to do the skilled bibs so local people only do low skilled,poorly paid jobs
Important projects for locals may be overlooked and infrastructure developments may be focused on tourists
Profits often go to foreign companies, such as tour operators / hotel chains rather than to the local community
Destruction of coral reefs as tourists step on the coral / take souvenirs
Evidence that tourism in Kenya is not working to closing the development gap
Some Maasai tribes were forced off their land to create national parks for tourists
Tourist vehicles damage the environment
Eg. Safari vehicles destroy vegetation / disturbs animals
Only a small proportion of the money goes to locals. The test goes to big companies based in HICs overseas, so doesn’t help to close the development gap
What is the North-South divide?
Refers to real/imagined cultural and economic differences between the south of England (Greater London / South East) and the North of England (North East / North West).
In general the south enjoys higher standards of loving / longer life expectancies / higher incomes.
South also has higher house prices / more congestion
Why is there a north south divide in the UK?
During the industrial revolution the UK’s growth was ventured on coalfields in Wales / Northen England / Scotland. Heavy industries + engineering thrived in cities such as Manchester / Sheffield, generating wealth.
Since 1970’s many industries (steel making) have declined. Importance of coalfields have reduced.
London / South England developed rapidly doe to fast growing service sector. London is a major global financial centre and has grown faster than the rest of the UK. This has lead to high house prices across the south east.
Give some regional strategies that address the North South divide issue?
Financial support from the UK goverment and the EU has helped new business and improvements in infrastructure.
Foreign investment has been encouraged in the North.
In 2015 the government aligned a new stratagem doe a ‘Northern Powerhouse’ to help balance wealth and influence of London / South East. Involved developing of major Northern England cities such as Liverpool and Manchester. Tourism, food and energy are to be developed in rural areas.
Evidence for North South divide
Wages are lower in the north than the south.
Eg. Huddleston average weekly wage is 40% lowers than London’s in 2014.
Health is worse in areas in the north than the south. Life expectancy can be lower by up to 10years.
GCSE results are better in the south of England than the Midlands / North
How do changes in the UK cause changes in Rural Landscapes / areas?
In Cumbria they population of some villages has decreased mainly due to there being fewer jobs - agriculture / manufacturing are big industries in Cumbria but they both decline.
This leads to decrease in services/schools/shops and increase in unemployment.
In North Somerset the population has increased as people are moving to quieter towns/villages with easy access to centre of Bristol.
This leads to house prices rising risking pricing out locals. Roads are congested with people commuting to Bristol - services like schools are oversubscribed.
How does creating enterprise zones close the North South divide?
They offer companies a range of benefits for locating in enterprise zones:
Reduces taxes
Simpler planning rules
Financial benefits - (can reduce future tax bills)
Improved infrastructure - (ensures super fast broadband is available)
The UK’s transport system - Roads
Capacity on motorways is being increased by upgrading to “smart motorways” with extra lanes
Eg. M4
Eg. New road being built from Lancaster to M6
The UK’s Transport system - railways
Crossrail increased central London’s rail capacity by 10% in 2018.
The HS2 line linking London, Birmingham, Leeds, Manchester will increase capacity + allow faster journeys between major English cities
Electrification of midland mainline between London / Sheffield by 2023
The UK’s transport system - airports
The UK government has agreed that a new runway is needed in the south east as existing airports are full / filling up
The UK’s transport system - Ports
A new port (London Gateway) is operating at the mouth of the River Thames. It is able to handle the worlds largest container shops + hopes to become a hub for global trade.
Impacts of industry on physical environment
Manufacturing plants - dull - negative visual effect
Industrial processes - water / air pollution + degrade soil
Waster products from manufacturing industry are taken to landfill where they can pollute air/water/soil
Transport of raw/manufactured products is usually by road which increases levels of air pollution and damage the environment when roads are widened / newly built
How can industrial development be more sustainable
Technology can be used to reduce harmful emissions from power stations / heavy industry
Desulphurisation can remove harmful gases such as sulphur dioxide + nitrogen oxide from power station chimneys
Stricter environmental, targets put in place for industry on water / air quality + landscape damage
Heavy fines imposed when an industrial pollution incident happens
How’s quarrying harmful?
Destroys natural habitats
Pollutes nearby water sources
Scars landscape
What are companies expected to so to a quarry after it’s been used?
Restore / improve it
Restoration examples:
Landfill
Agriculture
Habitat creation
Housing
Flood storage
Ways the Torr Quarry aims to be environmentally friendly?
The quarry is being restored to create wildlife lakes for recreation + water supply
Characteristic limestone features will be created to make it look natural
200 acres of the site has already been landscaped to blend in with the countryside (planting grass / trees)
Regular monitoring of noise / vibration / dust / water quality
Raul transport minimised impacts on local villages / local roads
UK’s link to wider world - trade
UK’S trades globally with links to USA, Europe, Asia being particularly significant.
UK’s overseas exports are worth more than £250billion per year
UK’s link to wider world - culture
UK’s strong creative industries mean UK culture is exported worldwide
Eg. Shaun the Sheep (Bristol) now shown in 170 countries
UK’s link to wider world - transport
Channel tunnel links the UK to France by rail, providing a route for goods and people to access mainland Europe.
Large airports like Heathrow act as a hub and provide links to hundreds of countries around the world
UK’s link to wider world - electronic communications
Home to offices for many IT firms
Most of the trans Atlantic cables (phone lines / internet) linking USA to Europe are found in the UK
UK’s link to wider world - European Union
The EU is an economic / political partnership of 28 countries.
Membership of the EU gave UK citizens access to a large market without traded / political barriers.
Over £130billion of UK’s exports were to EU in 2015
UK’s link to wider world - commonwealth
Commonwealth - association of 53 independent states including the UK.
It aims to improve the well being of everyone in the commonwealth countries
