Topic 2 - The Changing Economic World

Question 1

What is development

Answer 1

The progress of economic growth

When its more developed quality of life is better

Question 2

Define:

HIC
NEE
LIC

Answer 2

HIC - income above $12,746

NEE - between $1,045 and $12,746

LIC - $1,045 or less per person

Question 3

How can we measure development?

Answer 3

How indicators have changed over time to assess development

Question 4

What is HDI and why is it considered a better measurement of development?

Answer 4

HDI IS a number calculated using life expectancy, literacy rate, education level, and income per head (human development index)

It avoids anomalies - lots of factors. Better overview of both economic development and quality of life

Question 5

What are the limitations of economic and social measures?

Answer 5

One indicator doesn’t show everything, only one thing taken into account

Variations within a country dont show up

May portray a country more/less developed than it is

Question 6

What are the social and economic development indicators?

Answer 6

GNI (gross national income) 
GNI per head
 birth and death rate
life expectancy
literacy rate
people per doctor
access to clean water
infant mortality rate

Question 7

Explain how the stages in the demographic transition model are linked to level of development

BR - birth rate
DR - death rate

Answer 7

STAGE 1 - LEAST developed. high BR bc of no contraception. Infant mortality high —> people having more children. High DR - poor healthcare/famine, low life expectancy

STAGE 2 - NOT VERY developed, many LIC’s here. High BR, agriculture based economy. Better healthcare, lower death rate, higher life expectancy

STAGE 3 - MORE developed, most NEE’s. Falling BR —> contraception, women working. Economy agriculture —> manufacturing. + healthcare —> DR falls, life expectancy increases

STAGE 4 & 5 - MOST developed, HIC’s, low BR —> high living standard, more elderly dependents, less money for children. BR low, life expectancy high —> good healthcare

Question 8

Explain how a POOR CLIMATE can affect how developed a country is

Answer 8

1. Overly hot, cold or dry means less food grown —> malnutrition, lower quality of life
2. Fewer crops to sell, less money spent on goods and services, less taxes to government. Less money spent on developing country

Question 9

Explain how POOR FARMING LAND can affect how developed a country is

Answer 9

If steep or poor soiled, producing food is hard

Can have same effect as poor climate

Question 10

Explain how FEW RAW MATERIALS can affect how developed a country is

Answer 10

1) countries without them have less to export
2) less money made - less money to spend on development projects
3) some have lots of raw materials but cant afford to develop infrastructure needed to exploit them (roads/ports)

Question 11

Explain how LOTS OF NATURAL DISASTERS can affect how developed a country is

Answer 11

1) countries that have a lot, spend lots on rebuilding

2) reduce quality of life, reduce amount of money government has to spend on development projects

Question 12

Explain how POOR TRADE LINKS cause uneven development

Answer 12

1) exchange of goods and services
2) world trade patterns influence a country’s economy
3) if a country has poor trade links less money made, less development money

Question 13

Explain how LOTS OF DEBT causes uneven development

Answer 13

1) very poor countries borrow money

2) this has to be paid back (sometimes with interest) less money for development

Question 14

Which physical factors affect how developed a country is

Answer 14

1. Poor climate
2. Poor farming land
3. Few raw materials
4. Lots of natural disasters

Question 15

Which economic factors can cause uneven development

Answer 15

1. Poor trade links
2. Lots of debt
3. An economy based on primary products

Question 16

Explain how an ECONOMY BASED ON PRIMARY PRODUCTS can cause uneven development

Answer 16

1) primary product selling countries tend to be less developed as they sell for less profit than manufactured goods
2) prices of these fluctuate, sometimes price falls below production cost
3) wealthy countries can also force down the price of these from poorer countries

Question 17

What are the historical causes of uneven development

Answer 17

1. Colonisation

2. Conflict

Question 18

Explain how colonisation caused uneven development

Answer 18

1) colonised countries - lower development level when they gain independence than they would be if they hadn’t been colonised
2) colonisers removed raw materials and sold back manufactured goods - profits goes to colonisers rather than countries, inequality increased. Also prevented colonised countries from developing their own industries