Theme 3 - 3.1 - Development Flashcards

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1
Q

Define development.

A

The use of resources to improve the quality of life in a country.

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2
Q

Define Gross National Product.

A

The total value of goods and services produced by a country in a year, plus income earned by the country’s residents from foreign investments (and minus income earned within the domestic economy by overseas residents).

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3
Q

Define Gross Domestic Product.

A

The total value of goods and services produced by a country within its borders, by national citizens and foreign citizens.

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4
Q

What does GDP stand for?

A

Gross Domestic Product

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5
Q

What does GNP stand for?

A

Gross National Product

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6
Q

What is the difference between GNP and GDP?

A

Both are a measure of the goods and services produced by a country.
GDP takes into account products and services within a country, regardless of who earns the money.
GNP takes into account products and services by citizens of a certain country, regardless of where they are.

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7
Q

What are GDP and GNP measured in?

A

Dollars

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8
Q

Define Gross National Product per capita.

A

The total GNP of a country divided by the total population.

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9
Q

Define development gap.

A

The difference in wealth, and other indicators, between the world’s richest and poorest countries.

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10
Q

Define Human Development Index (HDI).

A

Combines 4 indicators of development: life expectancy at birth; mean years of schooling for adults aged 25 years; expected years of schooling for children of school entering age; GNI per capita (PPP$)

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11
Q

Define least developed countries.

A

The poorest of the developing countries. They have major economic, institutional and human resource problems.

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12
Q

What does LDCs stand for?

A

Least developed countries

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13
Q

Define newly industrialised countries.

A

Nations that have undergone rapid and successful industrialisation since the 1960s.

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14
Q

What does NICs stand for?

A

Newly industrialised countries

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15
Q

Define Gini coefficient.

A

Technique used to show the extent of income equality.

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16
Q

Define cumulative causation.

A

The process whereby a significant increase in economic growth can lead to even more growth as more money circulates in the economy.

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17
Q

Define formal sector.

A

That part of the economy known to the government department responsible for taxation and to other government offices.

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18
Q

Define informal sector.

A

That part of an economy operating outside official recognition.

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19
Q

Define product chain.

A

The full sequence of activities needed to turn raw materials into a finished product.

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20
Q

Define globalisation.

A

The increasing interconnectedness and interdependence of the world economically, culturally and politically.

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21
Q

Define transnational corporation.

A

A firm that owns or controls productive operations in more than one country through foreign direct investment (FDI).

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22
Q

Define diffusion.

A

The spread of phenomena over time and space.

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23
Q

Define internet.

A

Basically a group of protocols by which computers communicate.

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24
Q

Define new international division of labour.

A

Divides production into different skills and tasks that are often spread across a number of countries.

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25
Q

What does TNC stand for?

A

Transnational corporation

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26
Q

What does NIDL stand for?

A

New international division of labour

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27
Q

Is there a difference between economic growth and development?

A

Yes. Economic growth is an increase in GDP, while development is a wider concept concerning many more aspects of the quality of life.

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28
Q

What are some indicators of development?

A
  • GNP (per capita)
  • Literacy
  • Life expectancy
  • Infant mortality
  • Doctors per 100,000
  • Energy consumption (per capita)
  • Percentage of population living in urban areas
  • Internet penetration rate
  • Diet
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29
Q

When was the Human Development Index developed and who by?

A

1990 - United Nations

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30
Q

What are the 4 indicators that make up HDI?

A
  • Life expectancy at birth
  • Mean years of schooling for adults aged 25
  • Expected years of schooling for children of school entering age
  • GDP per capita

(Sometimes, the 2 about education are substituted by adult literacy)

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31
Q

What factors affect quality of life?

A
Economic
• Income, Job security, Standard of living
Physical
• Diet/nutrition, Water supply, Climate, Environment
Social
• Family/friends, Education, Health
Psychological
• Happiness, Security, Freedom
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32
Q

Explain the most simple division of countries in terms of development.

A
  • In the 1980s, the Brandt report divided the world into the rich north and poor south.
  • The north included the more economically developed countries (MEDCs)
  • The south included the less economically developed countries (LEDCs)
  • Since then, the poorest countries have been given the name of least developed countries (LDCs) and the wealthier, quickly developing LEDCs are now called newly industrialised countries (NICs)
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33
Q

Why is GNP (per capita) not the best indicator of development?

A

It does not take into account the quality of life.

34
Q

What are the categories of indicators that can be used to measure development?

A
  • Economic indicators

* Social indicators

35
Q

What are economic indicators?

A

Indicators which show how developed a country may be through financial and industrial means.

36
Q

What are social indicators?

A

Indicators which show how developed a country may be through non-financial and economic means.

37
Q

What are the limitations of many development indicators?

A
  • Many indicators are used to calculate averages for the whole population -> This does not take into account inequalities in a country
  • Individual indicators are usually not as good as a combination of them
38
Q

What are the 4 BRIC countries?

A
  • Brazil
  • Russia
  • India
  • China
39
Q

What is HDI measured in?

A

A number from 0 to 1.

40
Q

What can the HDI do?

A
  • Measure differences within a country
  • Highlight where is the worst
  • Shows how a country has developed
  • Helps a country set targets for development
41
Q

When does development occur in low-income countries?

A
  • When local food supply improves due to investment in farm machinery
  • Electricity grid extends outwards from urban areas to rural areas
42
Q

What are some factors which cause inequality between countries?

A
HUMAN
• Economic
• Social
• Political
• Historical development
PHYSICAL
• Climate
• Natural hazards
• Environmental -> Geography + Natural resources
43
Q

Explain how economic factors may be causes of inequality between countries.

A
  • LEDCs have to compete on primary produce, while MEDCs do not.
  • MEDCs can also afford to develop new factories, etc.
44
Q

Explain how social factors may be causes of inequality between countries.

A

• The more a country develops, the more it can invest in education, health and housing.

45
Q

Explain how political factors may be causes of inequality between countries.

A

• Poor governance may result in money being spent on war or an affluent lifestyle, instead of on development

46
Q

Explain how historical development factors may be causes of inequality between countries.

A
  • Colonialism hindered a developing country’s development

* Certain countries/populations were set against each other, which created tension

47
Q

Explain how climatic factors may be causes of inequality between countries.

A

• Regions without rainfall may struggle to produce crops (e.g. The Sahel)

48
Q

Explain how natural hazards may be causes of inequality between countries.

A
  • Floods, drought and tectonic activity can limit future growth and destroy buildings and agricultural areas
  • Country may have to divert income to help recover
49
Q

Explain how environmental factors may be causes of inequality between countries.

A
  • Some areas may have more natural resources, such as oil, to exploit and drive development
  • Some areas many be geographically closer to major trade routes, making trade easier
50
Q

Why may there be inequality within a country?

A
  • Some areas may be geographically less well positioned in terms of trade and communication
  • Some areas may have fewer natural resources, such as minerals
  • There may be divisions imposed by colonialism
  • Some areas may have more fertile soil
  • Government may choose to invest in certain areas more than others
  • Some areas may have suffered from natural hazards, halting their development
  • Some areas may have a more developed sevices sector
  • Ethnicity
  • Residence
  • Education
  • Land ownership
51
Q

What is the path for development of a country?

A
  1. Least developed countries
  2. Developing countries
  3. Newly industrialised countries
  4. Developed countries
52
Q

What are some consequences of the development gap?

A
  • Some parts of the world are in extreme poverty and cannot get out due to competition
  • Countries may sink into debt
  • Poor countries are more at risk of natural disasters, etc.
  • Poor countries are more likely to have non-democratic governments
  • Poor countries generally have a shorter life expectancy, higher birth rates, etc.
  • Poor countries have more jobs in the primary and informal sectors
  • Poor countries have less trade
  • Poor counties have less power purchasing per capita
53
Q

What is used to measure inequality in a country?

A

Gini coefficient

54
Q

What is the Gini coefficient measured in?

A

A scale of 0 to 1, where a low value indicates more equality, while a high value indicates inequality.

55
Q

How does inequality within countries compare in MEDCs and LEDCs?

A

MEDCs tend to have a lower income gap than LEDCs.

56
Q

Which regions of the world have the highest income inequality?

A

Southern Africa and South America

57
Q

Which region of the world has the lowest income inequality?

A

Europe

58
Q

Which theory helps to explain regional differences within a country?

A

Cumulative causation

59
Q

What are the stages of cumulative causation?

A
  • Pre-industrial stage where regional differences are small
  • A period of rapid economic growth with increasing regional economic divergence
  • A stage of regional economic convergence
60
Q

Explain how cumulative causation may affect inequality within a country.

A
  • First, economic growth begins with the location of new manufacturing industry in a region with a combination of advantages over other parts of the country
  • This growth stimulates flow of labour, capital and raw materials, encouraging further expansion and more growth due to cumulative causation
  • This also has a negative effect on other parts of the country as skilled labour is dragged in + smaller industries there are outcompeted
  • The wealth gap widens
  • Eventually, the increasing demand for raw materials may result in these being taken from other parts of the country, which stimulates growth in these regions
  • Similar growth happens here until the wealth gap has narrowed significantly
61
Q

What are the different employment sectors?

A
  • Primary - Extracting raw materials straight from the sea/earth
  • Secondary - Processing and manufacturing primary products
  • Tertiary - Providing services
  • Quaternary - Providing information and expertise
62
Q

Remember to learn the product chain.

A

Revision guide - Pg 61

63
Q

Give some examples of primary industry.

A
  • Farming
  • Fishing
  • Forestry
  • Mining
64
Q

Give some examples of secondary industry.

A
  • Steelmaking
  • Furniture
  • Construction + assembly -> E.g. Car assembly
65
Q

Give some examples of tertiary industry.

A
  • Education
  • Health
  • Office work
  • Retail
  • Transport
  • Entertainment
66
Q

Give some examples of quaternary industry.

A
  • Micro-electronics
  • Biotechnology
  • Aerospace engineers
67
Q

Describe the employment structure in MEDCs.

A
  • Low percentage in primary
  • High percentage in secondary
  • Very high percentage in tertiary
68
Q

Describe the employment structure in LEDCs.

A
  • Very high percentage in primary

* Low percentage in secondary and tertiary

69
Q

Why do MEDCs have a different employment structure to LEDCs?

A
  • Less reliant on agriculture
  • More developed, larger services, offering more jobs
  • Provide better education, which allows more people to become doctors, etc.
  • Better access to advanced tech for manufacture (in the secondary sector)
  • People have more money to spend on services
70
Q

Describe how employment structure changes as a country develops.

A
Pre-industrial
• Very high primary
• Low secondary
• Very low tertiary
Industrial
• Rapidly falling primary
• Secondary increases, peaks, and then slowly falls
• Tertiary increases
Post-industrial
• Very low primary
• Low secondary (but higher than pre-industrial)
• Tertiary peaks

See diagram on pg 61 of revision guide.

71
Q

How does primary sector employment change with development?

A

It decreases.

72
Q

How does secondary sector employment change with development?

A

It increases and then decreases.

73
Q

How does tertiary sector employment change with development?

A

It increases.

74
Q

Give some examples of NICs.

A
  • Brazil
  • Russia
  • India
  • China
75
Q

What characteristics do NICs share?

A
  • Strong government
  • Move from primary to secondary industries
  • Free trade with other countries
  • Lots of foreign investment because of low tax rates and other benefits
  • Big, successful, home-grown multinational companies
76
Q

What are some reasons for globalisation?

A
  • Improvements in transportation
  • Freedom of trade
  • Improvements in communications
  • Labour availability and skills
  • People have more money to spend on TNCs’ products, etc.
  • TNCs growing -> Due to finding cheaper labour in LEDCs
  • Capitalism is unchallenged and accepted
  • Increasing cultural diversity in countries
  • Many new NICs
  • Rising levels of international migration -> Take ideas with them
77
Q

What effect has technology had in globalisation?

A

Transport
• Allows products and ideas to be distributed
• Allows parts of products (e.g. cars) to be produced in different parts of the world
• Allows cheap labour to be accessed
Communications
• Internet allows people to buy products online
• Easy for TNCs to analyse market demand
• Easy for TNCs to manage complex actions all over the world

78
Q

What factors may attract a TNC to a country?

A
  • Cheap raw materials
  • Cheap labour supply
  • Good transport
  • Access to markets where the goods are sold
  • Friendly government policies
79
Q

What are some negative impacts of globalisation?

A
  • Concerns about loss of sovereignty and culture (idea of “Americanisation)
  • Increasing complexity of global economy
  • Environmental degradation caused by economic activity
  • TNCs avoiding paying tax through ‘creative accounting’
  • Increasing trans-boundary pollution
  • Small businesses struggle to compete against TNCs
  • Closure of a TNC branch can cause high local unemployment
  • Families more likely to be spread out due to international migration
  • Possibility of exploitation of workers by TNCs
  • Money flows back to MEDCs, rather than the counties where factories are
  • Loss of jobs in MEDCs as TNCs move factories
  • TNCs may have more power than small governments
80
Q

What are some positive impacts of globalisation?

A
• Increasing number of NICs
• Cultural diffusion
• TNCs create jobs + Boost economies
• Lower cost of international travel
• Increase in tourism
• Larger availability of products for consumers
• More multicultural areas
•
81
Q

What are the benefits of globalisation on the UK?

A
  • Creates employment
  • Contributes to GDP
  • Investment in the UK
  • Low-cost manufactured goods from China keep inflation low
  • Economic growth -> Better education and health
  • Transport and communication revolution has improved lifestyles
  • Trade relationships strengthen political influence
  • Deindustrialisation has improved environmental conditions
82
Q

What are the costs of globalisation to the UK?

A
  • High job losses in traditional industries
  • Widening gap between the highest and lowest-paid workers
  • Economy has attracted immigrants
  • Loss of government’s power to TNCs
  • Greater risk of terrorism
  • Damage to environment