Topic 2 - The Changing Economic World

Question 1

Development

Answer 1

Positive change that makes things better. As a country develops, it usually means that their quality of life and standard of living will improve.

Question 2

HIC

Answer 2

Higher Income Country
Wealthy nations- more than $11,456 (GNI per person)
Eg: UK, USA, Germany

Question 3

NEE

Answer 3

Newly Emerging Economy
Experiencing higher rates of economic development and a rapid growth of industry.
Eg. Brazil, Russia, India, China (B.R.I.C)
Malaysia, Indonesia, Nigeria, Turkey (M.I.N.T)

Question 4

LIC

Answer 4

Lower Income Country
Poor nations-less than $975 (GNI per capita)
Eg. Nepal, Afghanistan, Ethiopia, Madagascar, Chad

Question 5

GNI (Gross National Income)

Answer 5

The total amount of goods and services produced by a country, plus money earned from, and paid to, other countries. It is expressed per head (per capita) of the population.

Question 6

HDI

Answer 6

A socioeconomic measure of 3 components :
Health- life expectancy at birth
Education- Adult literacy rate
Money- GNI per capita

Question 7

Name five things that effect quality of life.

Answer 7

Freedom, Running water, Education, Healthcare, Rights

Question 8

Describe stage one of the demographic transition model.

Give a current example.

Answer 8

Population total- low and fluctuating
Birth rate- high and fluctuating
Death rate- high and fluctuating
Eg. Amazon Basin tribes (LICs)

Question 9

Describe stage two of the demographic transition model.

Give a current example.

Answer 9

Population total- increasing
Birth rate- High and more stable
Death rate- Decreasing
Eg. Ethiopia (LICs)

Question 10

Describe stage three of the demographic transition model.

Give a current example.

Answer 10

Population total- Rapidly increasing
Birth rate- Rapidly decreasing
Death rate-Decreasing
Eg. India, Brazil (NEEs)

Question 11

Describe stage four of the demographic transition model.

Give a current example.

Answer 11

Population total- High
Birth rate- Low
Death rate- Low
Eg. UK, USA (HICs)

Question 12

Describe stage five of the demographic transition model.

Give a current example.

Answer 12

Population total- High but slightly decreasing
Birth rate- Low and fluctuating
Death rate- Low (possible small increase due to obesity)
Eg. Germany, Japan.

Question 13

Name four physical factors of uneven development.

Answer 13

Poor Climate
Poor farming land
Few raw materials
Lots of natural hazards

Question 14

Name two historical reasons for uneven development.

Answer 14

Colonisation

Conflict

Question 15

Name three economic reasons for uneven development

Answer 15

Poor trade links
Lots of debt
An economy based on primary products

Question 16

Explain why a poor climate/ poor farm land would hinder development.

Answer 16

If a country is too hot/cold or the farm land is poor crops won’t grow well
Which means less food is produced
This can lead to malnutrition and a poorer quality of life (Chad, Ethiopia)
Also more money spent on importing food means less spent on healthcare, education, infrastructure etc.

Question 17

Explain why a country having few raw materials would hinder development.

Answer 17

If a country has less natural resources (like coal, oil, metal) they have less to sell
So the government collect less money which could be spent on development.
(Some countries have a lot of raw materials but can’t develop as they don’t have the money to exploit them).

Question 18

Explain why having lots of natural hazards would hinder a country’s development.

Answer 18

A natural hazard is a natural process which could cause death/injury or damage to human property.
Countries with lots of natural hazards have to spend money which could have been spent on development on rebuilding and repairing the damage caused by these hazards.
So less money for development of education, infrastructure etc.

Question 19

Explain why past colonisation could hinder development.

Answer 19

Colonised countries are less developed when they gain independence than they would be if they hadn’t been colonised.
This is because the country’s natural resources are used to develop the colonising country.
Meaning the colonised country becomes dependent on it’s colonisers
Which can lead to malnutrition and famine

Question 20

Explain why being/ having been in conflict can hinder a country’s development.

Answer 20

Because money is spent on the war effort and cleaning up and repairing damage after the war rather than developing the economy.
Also it can take a lot of money to just get a country to back where it was before the war.
Eg: 10 yrs after a civil war in Uganda the level of development had barely returned to pre-war state.

Question 21

Explain why poor trade links can hinder development.

Answer 21

Trade is the exchange of goods and services between countries.
If a country has poor trade links (weak links with only a few countries) they will make less money
So less money for development of healthcare and infrastructure etc.

Question 22

Explain why having lots of debt could slow a country’s development.

Answer 22

Countries have to borrow money from other countries and international organisations (to help recover from natural disaster etc.)
This money must be paid back (sometimes with interest)
Money used to pay of debt can’t be spent on development, so less development.

Question 23

Explain why an economy based on primary products might hinder the development of a country.

Answer 23

Primary products (wood, stone, etc.) don’t make a large profit.
Wealthy countries can also force down the price of raw materials as they buy from poorer countries who have no choice but to except the little money being offered.
So they have less money to spend on development of education etc.

Question 24

What is a population pyramid and what are the axis?

Answer 24

A type of graph which shows the gender and age of the population of an area.
It looks like a pyramid with males on the left (-x,+y quadrant) , females on the right (+x,+y quadrant).
Population on the x axis
Age on the y axis

Question 25

What does a narrow top on a population pyramid tell you?

Answer 25

There is a low life expectancy

Not many old people

Question 26

What does a wide base on a population pyramid tell you?

Answer 26

There is a high birth rate.

Lots of young people

Question 27

What do steep sides on a population pyramid tell you?

Answer 27

There is a low death rate

There is pretty much the same amount of people in each age category, not many people dying

Question 28

In stage 1 of the demographic transition model, why is the death rate high and fluctuating?

Answer 28

Because of diseases (eg:plagues) and famines. There is also no/only very poor medical treatment available.

Question 29

In stages 1 and 2 of the demographic transition model, why is the birth rate high and fluctuating(1)/more stable(2)?

Answer 29

Religious values are strong and promote large families
Children are needed for work
The death rate is high so you need to have lots of kids to have some survive
Lack of contraception or family planning

Question 30

In stages 2 and 3 of the demographic transition model, why is the death rate decreasing?

Answer 30

Improvements in medical care (eg: sterilisation,vaccines)
Better sewage and water systems etc.
Better education so an understanding of health and what keeps you healthy and how to avoid disease etc.

Question 31

In stage 3 of the demographic transition model, why is the birth rate rapidly decreasing?

Answer 31

More children surviving because of health care so less need to be born
Laws against child labour so less needed

Question 32

In stages 4 and 5 of the demographic transition model, why is the death rate low (with a possible small increase in stage 5)?

Answer 32

Medical advances (transplants, heart operations etc.)
Better food supply
Medicine
(Slight increase due to obesity)

Question 33

In stages 4 and 5 of the demographic transition model, why is the birth rate low and fluctuating?

Answer 33

Emancipation (freedom/liberation) of women means they have the choice of having a child and focus more on their career and have children later (rather than at 16)
Materialism (things over large families)
Later and fewer marriages
Lots of family planning options

Question 34

What do the population pyramids look like for each stage of the demographic transition model?

Answer 34

Stage 1- large base, narrow top, sharply curved sides
Stage 2- large base, less narrow top, straighter steeper sides
Stage 3- smaller base, medium top, vertical sides for part then steep sides for the rest
Stage 4- small base, large top, vertical sides till right at the top
Stage 5- tiny bass, large top, sides bulge in the middle (ageing population)

Question 35

Name the seven ways we can manage and reduce the development gap.

Answer 35

Investment, aid, intermediate technology, free trade, fair trade, debt relief, micro finance loans.

Question 36

Give an example of investment being used to reduce the development gap, and some positives and negatives of investment.

Answer 36

Unilever (multi billion dollar company) invested in India recently, Unilever also works with charities and provides sanitation for 115 million people in India.
+ : TNCs provide employment (Unilever employ 16000 people in India) which means more tax, and more money for development.
- : Some profits made in the country leave that country; some TNCs cause environmental problems (Shell); TNCs can move around and take advantage of country’s governments.

Question 37

What is investment?

Answer 37

Investment is where money and expertise is put into an LIC. Large companies (TNCs) will invest in LICs as it can improve profits.