🔵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)
