*The Changing Economic World (Paper 2) Flashcards

This is a compulsory topic. It cover economic development, closing the development gap, rapid economic development in LICs/NEEs and the impacts and major changes in the UK economy.

You may prefer our related Brainscape-certified flashcards:
1
Q

What does NEE stand for?

A

Newly Emerging Economy

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

What is an Newly Emerging Economy?

A

A country that is going through a period of rapid economic growth

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

Give an example of the NEE you have studied

A

Nigeria

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

Where is Nigeria located?

A

Nigeria is a country located in Western Africa

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

Why is Nigeria an important country globally?

A
  • It is the world’s 21st largest economy
  • It supplies 2.7% of the world’s oil (12th larger producer)
  • It has a diverse economy offering a range of jobs in the tertiary and quaternary sector
  • It is a big player in UN global peace keeping missions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Why is Nigeria an important city nationally?

A
  • It has one of the fastest growing economies in Africa
  • High GDP
  • High farm output
  • Location of TNC, Shell
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Describe the political context of Nigeria

A
  • Gained independence from the UK in 1960
  • Has a history of civil war
  • Many companies now investing in Nigeria
  • It has links with OPEC (Organisation of Petroleum Exporting Countries), UN and the African Union.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Describe the social context of Nigeria

A
  • Diverse religious beliefs
  • Increasing levels of conflict between different groups
  • Rise of extremist groups e.g. Boko Harem
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Describe the cultural context of Nigeria

A
  • Diverse and varied culture
  • Popular Nigerian cinema: Nollywood
  • Range of music and sports events
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Describe the environment of Nigeria

A
  • Northern Nigeria is semi-desert
  • Southern Nigeria: high temperatures and high rainfall
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What does Nigeria export?

A

Crude oil, refined petroleum, natural gas, rubber, cocoa and cotton.

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

What are Nigeria’s main imports?

A

Cars, refined petroleum, rice, wheat and telephones (due to its rising wealth)

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

How has Nigeria’s industrial structure changed over time?

A
  • Decrease in agriculture
  • Increase in industry
  • Increase in services
  • Overall more balanced economy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Why has Nigeria’s industrial sector changed?

A
  • Less agriculture due to increase in machinery
  • Increase in industry due to industrialisation
  • Growth of communications and retail
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What products does Nigeria manufacture?

A

Processed foods, leather items, textiles, soaps and detergents

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

What impact is the growing manufacturing sector having on Nigeria’s economy?

A
  • More formal work = more population paying tax
  • More regular paid work = more employed
  • Lots of manufacturing industries are connected so they create work for each other - TNCs are attracted to Nigeria
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What does TNC stand for?

A

Transnational Corporation

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

Describe the characteristics of a TNC

A
  • Headquarters are located in one country
  • Production plantations in several others
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What might a TNC choose to locate in a country?

A
  • Access to cheaper labour
  • Access to new markets (to sell their product)
  • Less environmental laws to adhere to
  • Tax breaks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Name some advantages of TNCs for the host country

A
  • New skills learned by people
  • Creates more jobs
  • TNCs often invest in infrastructure of the country
  • Can reduce poverty
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Name some disadvantages of TNCs for the host country

A
  • Poor working conditions for workers
  • Low pay
  • Higher skilled/ higher paid jobs often given to foreign workers
  • Profits drains from the area
  • The financial incentives offered to attract TNCs can often be better spent investing in healthcare etc.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Name the case study of a TNC that invested in Nigeria

A

Shell

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

What kind of company is Shell?

A

An oil company

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

What are the advantages of Shell to Nigeria?

A
  • Generating a lot of wealth for Nigeria
  • Directly employing 65,000 people and 250,000 indirectly
  • 91% of all of Shell’s work contracts are given to Nigerian companies rather than foreign companies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What are the disadvantages of Shell to Nigeria?

A

Extracting oil creates problems for the natural environment:

  • oil spills cause water pollution and are difficult to clean up
  • ecosystems are killed off if oil enters water systems; affecting fishing industries
  • oil flares give off harmful fumes into the air
  • theft of oil is becoming a big problem
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Name the two different types of aid

A

Emergency aid and development aid

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

What is emergency aid?

A

Aid that is given directly after a natural disaster e.g. an earthquake. Aid may take the form of water, food, medical supplies

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

What is development aid?

A

Aid that happens over a longer term. It may be provided by governments or charities and may include providing education or access to safe water wells in order to improve quality of life

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

What impact can aid have on the receiving country? (+ and -)

A

+ Aid can immediately improve a situation e.g. providing medical aid after a disaster

+ Aid can provide people with the means of helping themselves i.e. tools / knowledge

+ Aid can be the trigger to start development i.e. financial support to start a businesses

  • Receiving countries can become reliant upon donor countries
  • Some forms of aid aren’t suitable i.e. some technologies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Why is Nigeria in need of aid?

A
  • It has large amounts of people living in poverty (60+% of the population live on less than US$1 per day.
  • Infant mortality rate is high
  • Life expectancy is low.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What aid does Nigeria receive?

A

Some money from HICs - UK and USA World Bank funded business start ups Charity work in communities

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

What impact has aid had in Nigeria?

A

+ Most successful aid has been in small communities

+ World Bank donations helped start up new businesses which reduced over reliance on oil industry

+ Education projects from the USA aim to educate population about HIV/AIDS prevention

+ ‘Nets for Life’ provide mosquito nets to households

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

Why is aid sometimes difficult to implement?

A
  • Sometimes governments are corrupt which means aid isn’t spent on what it is meant to be spent on
  • Aid may come with conditions
  • Aid is sometimes used to promote interests of the donor country
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Summarise the Aduwan Health Centre (Nigeria) example

A
  • Previously no health clinic
  • High levels of HIV/AIDS in the community
  • High infant mortality rate
  • ActionAid helped to fund build health clinic
  • Trained local people about immunisations
  • Tested for HIV and other illnesses
35
Q

How has industrial development impacted the environment of Nigeria?

A
  • Lots of illegal industries have developed
  • In Lagos, many chemicals enter water systems
  • Ecosystems damaged by industrial waste
  • Dumping industrial waste on land means some chemicals pollute groundwater
  • High levels of deforestation to make room for developments
  • Land is becoming drier due to large scale dam developments
36
Q

What are the impacts of urban growth in Nigeria?

A
  • High proportions of squatter settlements
  • Lack of adequate provisions of services
  • Difficulty removing waste
  • High levels of traffic congestion and pollution
37
Q

What has been the impact of farming on the environment of Nigeria?

A
  • Lots of water pollution as a result of illegal farming practices
  • Building of roads to access farms has led to high levels of deforestation
  • Increased CO2 emissions
  • Loss of habitats (500+ plants destroyed)
38
Q

What has been the impact of mining on the environment of Nigeria?

A
  • Digging up the ground in search of minerals can cause soil to erode
  • Eroded soil can be irreversible
  • Oil spills can cause fires
39
Q

How has economic development affected the quality of life in Nigeria?

A
  • Better paid jobs available in manufacturing or services
  • Higher disposable income
  • Improved access to clean water
  • Improved infrastructure
40
Q

Has all of Nigeria benefited from economic development?

A
  • Nigeria has seen one of the world’s biggest improvements in HDI
  • Many Nigerian’s still lack access to clean water Nigeria still depends heavily on oil.
  • Nigeria hasn’t fully diversified its economy
41
Q

Define ‘primary sector’

A

Extracting a raw material e.g. mining or farming

42
Q

Define ‘secondary sector’

A

Manufacturing e.g. ship building, car making

43
Q

Define ‘tertiary sector’

A

Providing a service e.g. teacher, shop keeper

44
Q

Define ‘quaternary sector’

A

High tech, knowledge and skills based jobs e.g. IT, research and development

45
Q

How has the UKs economic structure changed?

A
  • Increasing numbers employed in tertiary (Services)
  • Less employed in primary and secondary
  • Increasing number employed in quaternary
46
Q

What has caused the UKs change?

A
  • The Industrial Revolution of the 19th century led to the increase in manufacturing
  • Deindustrialization led to the decline of manufacturing as it shifted to Asia
  • Globalisation - led to the increase in quaternary sector and decline in manufacturing in some HICs
47
Q

Define globalisation

A

The increasing interconnections between places around the world, made possible by developments in transport, technology. It leads to the increased movement of goods, services and people around the world.

48
Q

Define deindustrialisation

A

The loss of a country’s manufacturing industry caused by overseas competition or loss of raw materials.

49
Q

What government policies have shaped the UK’s economy?

A
  1. 1945-79: Government supported failing industries. A period of strikes and power cuts
  2. 1979-2010: Government privatised businesses to create more competition. Old industrial land was changed into new retail parks
  3. 2010+ : Government aimed to rebalance the economy. They did this by encouraging new businesses through investment in manufacturing and improving infrastructure.
50
Q

What is the post industrial economy?

A

The growth in the tertiary and quaternary sectors that followed the decline of manufacturing industries

51
Q

How has IT led to the development of a post-industrial economy?

A
  • lots of data and information can be stored and shared
  • instant communication around the world
  • broadband in more remote areas connects more places
  • smart phones allow people to work from home
52
Q

Name some jobs in the service sector in the UK

A

Finance, banking, insurance, security

53
Q

Name some of the UKs research industries?

A
  • Universities
  • Ministry of Defence
  • NHS
  • Charities e.g. Cancer Research
54
Q

Why is the research industry important to the UK economy?

A
  • Lots of highly skilled workers
  • Contributes large amount to the economy
  • Growing industry
55
Q

What is a science park?

A

A group of scientific and technical knowledge-based businesses located on one site.

56
Q

Why are science parks important to the UK?

A
  • They support tertiary industries such as finance
  • Employ large amount of people (75,000 across 100 sites)
  • Employs skilled graduates
57
Q

What is a business park?

A

An area of land comprising of a selection of businesses usually located on the edges of towns.

58
Q

Why are businesses parks located on the outskirts of towns/cities?

A
  • Close to transport links
  • Land is often cheaper to build on
  • More land available to expand the business park later
  • Businesses can collaborate
59
Q

What impact does the car industry have on the physical environment?

A
  • Creates air pollution contributing to climate change and breathing problems
  • Large amounts of plastic waste created
  • Manufacturing cars uses a lot of energy
  • Most cars use petrol to run which increases demand for oil drilling
60
Q

What has the car industry done to be more sustainable?

A
  • Move towards electric cars e.g. Nissan Leaf
  • Reduce the waste going to landfill
  • Use less water and energy in production has reduced Nissan, Sunderland now only produces electric cars.
61
Q

Name the case study example of a place experiencing rural population decline

A

Outer Hebrides

62
Q

Name the case study example of a place experiencing rural population growth

A

South Cambridgeshire

63
Q

Why is South Cambridgeshire’s population growing?

A

Lots of migrants from Eastern Europe

64
Q

What are the social impacts of population growth in South Cambridgeshire?

A
  • Increased car ownership is causing more traffic congestion
  • Decline in use of services as commuters use facilities in the city
  • loss of community spirit in the rural areas
  • young people driven out due to high cost of living
65
Q

What are the economic impacts of population growth in South Cambridgeshire?

A
  • loss of employment in farming
  • lack of affordable housing
  • increasing numbers of poor migrants which puts strain on services
66
Q

Why is the Outer Hebrides population declining?

A

Isolated location, lack of job opportunities for young

67
Q

What are the social impacts of population decline in the Outer Hebrides?

A
  • number of school children will fall
  • fewer people of working age left
  • increasing ageing population puts strain on area
68
Q

What are the economic impacts of population decline in the Outer Hebrides?

A
  • loss of fishing industry
  • farming jobs don’t offer full time employment
  • increasing levels of tourism has meant the area can’t cope with the high levels of visitors
69
Q

How have the UK’s roads been improved?

A
  • South-west super highway
  • Extra lanes added to motorways
  • Development of smart motorways
70
Q

How have the UK’s railways been improved?

A
  • Making railways electric
  • Development of High Speed 2 (HS2) - connecting South with Northern cities
  • London’s Crossrail
71
Q

What is the purpose of the road and rail improvements in the UK?

A
  • Boost regional growth in declining areas Increase employment (better infrastructure attracts businesses)
  • Reduces congestion and pollution
  • Reduce travel time
  • Connects Southern and Northern Cities
72
Q

How have the UK’s ports been improved?

A

Liverpool2 - doubling the ports capacity to trade.

73
Q

How have the UK’s airports been improved?

A

Expanding Heathrow - building extra terminal and increase runways

74
Q

What is the purpose of the port improvements in the UK?

A
  • Increase trading opportunities
  • Reduce the amount of freight on the roads
  • Create jobs
75
Q

What is the purpose of the airport improvements in the UK?

A
  • Creates jobs
  • Boosts the economy
  • Supports local businesses
76
Q

What is the North-South divide?

A

The divide between the North and the South of England. Generally, the South earn higher incomes, have a better of standard of living compared with the North

77
Q

What is the evidence for the North - South divide?

A
  • Wages are generally lower in the North
  • Health is generally worse in the North
  • Exam results are generally worse in the North
78
Q

Why is there a north - south divide?

A
  • North was prosperous during Industrial Revolution.
  • The North was impacted heavily after heavy industries, such as ship building and mining, declined after 1970s.
  • The South adapted and developed a strong service industry due to its proximity to the capital.
79
Q

How is the government trying to reduce the north - south divide?

A
  1. Devolving power
  2. Creating Enterprise Zones
  3. Northern Powerhouse - a government plan to attract investment to the North
  4. Improving infrastructure (HS2, improving motorways)
80
Q

How does ‘devolving power’ to local councils help to close the north - south divide?

A

Giving councils the power to choose how they spend money to best suit the needs of the area. e.g. transport or regeneration.

81
Q

How does the creation of ‘enterprise zones’ help to close north - south divide?

A

Enterprise zones offer incentives to businesses that locate there, e.g. reduced taxes, access to good infrastructure, less planning restrictions - this encourages more businesses to the area, reducing unemployment.

82
Q

What is the Northern Powerhouse? How does it close the north - south divide?

A

It is a government plan to focus on improving the north of England. It includes specific plans to encourage more investment in the North and improved transport to connect it to the South.

83
Q

In what ways is the UK connected to other countries?

A
  1. Trade - the UK trades with the USA, Asia and Europe
  2. Culture - British TV shows are shown worldwide
  3. Transport - the UK is well connected by the Channel tunnel, rail and airports
  4. Electronic communications - most internet and phone cables connect USA to Europe via UK.
  5. EU - being a member of the EU allows the UK to freely trade with other EU countries
  6. Commonwealth - the UK is part of the commonwealth with aims to improve the well being of other Commonwealth countries.