Theme 6 - Causes and consequences of uneven development at the global scale Flashcards
How do HICs protect their local economies/buisnesses from losing customers due to trade with LICs?
.tariffs - taxes imposed on imported goods
.quotas - limits on the amount of goods imported
.subsidies - benefits given by governments to domestic buisness in the from of cash payments or tax allowances
What are NICs (Newly Industrialised Countries) characterised by? (7)
.rapid economic growth
.rapid industrialisation and urbanisation
.stable goverments
.large amounts of foreign direct investment from overseas MNCs
.an expanding domestic market
.well-developed infrastructure
.development of NICs own MNCs
Globalisation?
process which leads to the free flow of goods, people, ideas and money on a worldwide scale.
What are 5 reasons for the growth in globalisation?
.improved technology
.improvements in communications
.advances in transport
.the removal of trade barriers
.the growth of MNCs
What are 4 factors attracting investment in a country by a MNCs?
.availability of raw materials
.lower labour costs
.reduced costs of buildings and land
.weaker legislation with regard to staff safety and welfare
What are 3 benefits of MNCs in a country?
.provide new jobs and skills for local people
.brings foreign currency to local economies
.multiplier effect spreads the wealth through society
What are 4 disadvantages of MNCs in a country?
.profits are often sent back to the HIC where the MNC is based
.may drive local companies out of buisness
.if and MNC moves the factory may close and people lose jobs
.lack of international laws means that the MNCs may operate in a way that would not be allowed in a HIC
What are 6 facotors that have contributed to the rapid growth in tourism?
.increased life expectancy and early retirement
.higher salaries and savings
.modern aircrafts
.growth in holiday companies
.improved internet
.more stable government
Enclave tourism?
tourists pay one price and get all their travel accommodation, food, drink, and entertainment in one place
What are 4 advantages of tourism?
.generates employment
.brings foreign exchange
.wealth can be invested in services (such as health)
.new facilities provided for tourists can be used by locals
What does fair trade aim to provide? (4)
.minimum wages and safe working conditions
.restrictions on child labour
.protection of the environment
.improved schools and healthcare