Unit 2 - Section B - The changing economic world Flashcards

1
Q

Define GNI (Gross National Income)

A

The total value of goods and services produced by a country in a year, including some from overseas

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2
Q

Define GNI Per head/GNI Per Capita

A

The GNI divided by the population of a country

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3
Q

Define birth rate

A

The number of live births per thousand of the population each year

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4
Q

Define death rate

A

The number of deaths per thousand of the population each year

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5
Q

Define infant mortality rate

A

The number of babies who die before they are 1 year old per thousand babies born

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6
Q

Define literacy rate

A

The percentage of adults who can read and write

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7
Q

Define life expectancy

A

The average age a person can expect to live to

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8
Q

What is the development gap?

A

The difference in development between more developed and less developed countries

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9
Q

Define a HIC

A

Higher income country where the GNI per capita is high

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10
Q

What are some examples of HICs?

A

U.K, USA, France and Canada

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11
Q

Define a LIC

A

Lower income country where the GNI per capita is low

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12
Q

What are some examples of LICs?

A

Somalia, Uganda and Afghanistan

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13
Q

Define the term NEE?

A

Newly emerging economy where some countries are rapidly getting richer as their work shifts from the primary industry to the secondary industry

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14
Q

What are some examples of NEEs?

A

Mexico
Indonesia
Nigeria
Turkey

Brazil
Russia
India
China
South Africa

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15
Q

Why can measuring development of a country using a single economic factor be misleading?

A

GNI per capita can be misleading as it is an average meaning the variations in the country don’t show up

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16
Q

Why can measuring development of a country using a single social factor be misleading?

A

Social factors can be misleading when they are used on their own due to the fact as a country develops some aspects develop before others

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17
Q

Define the term HDI

A

Human development index

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18
Q

What are the advantages of the Human development index?

A

It avoids problems of using individual measures as it tells you the country’s economic development as well as the country’s quality of life

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19
Q

How is HDI calculated?

A

By using income (GNI per capita), life expectancy and education level. Each country gets a value between 0(less developed) and 1(most developed)

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20
Q

What happens at stage 1 in the demographic transition model?

A

-Least developed

-High birth rate as there is a lack of contraception and infant mortality rates are high

-High death rate due to poor healthcare and famine

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21
Q

What is the birth rate, death rate, population growth and size like at stage 1 on the demographic transition model? And some example countries

A

-High birth rate
-High death rate
-Zero population growth
-Low and steady population size
-Tribes in Brazil

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22
Q

What happens at stage 2 in the demographic transition model?

A

-Not very developed (LICs)

-High birth rate due to a high agricultural rates meaning children have to work

-Better healthcare increases life expectancy

-Death rates fall

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23
Q

What is the birth rate, death rate, population growth and size like at stage 2 on the demographic transition model? And some examples of countries

A

-High and steady birth rate
-Falling death rate
-Very high population growth
-Increasing population size
.Gambia (HDI = 0.4)

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24
Q

What happens at stage 3 on the demographic transition model?

A

-More developed - mostly NEEs

-Falling birth rate due to the use of contraception

-The economy changes from farming to manufacturing causing less child labour

-Improved healthcare means a falling death rate

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25
Q

What is the birth rate, death rate, population growth and size like at stage 3 on the demographic transition model? And some examples

A

-Birth rate rapidly falls
-Death rate slowly falls
-Population growth = Slowly falls
-Population size = increasing
-India (HDI 0.6)

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26
Q

What happens at stage 4 and 5 on the demographic transition model?

A

-Most developed countries (HICs)

-Low birth rates and there is a higher standard of living

-Many elderly

-Good healthcare means low death rate and a high life expectancy

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27
Q

What is the birth rate, death rate, population growth and size like at stages 4 and 5 on the demographic transition model? And some examples

A

-Birth rate low and fluctuating (stage 5 - slow and falling)

-Death rate low and fluctuating (stage 5 = low and stead)

-Population growth zero(stage 4) or negative (stage 5)

-Population size - High and steady (Stage 5 = slowly falling)

-UK (Stage 4 (HDI = 0.9))
.Japan (Stage 5(HD - 0.9))

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28
Q

What are the physical causes to uneven development?

A

.Poor climate
.Poor farming land
.Few raw materials
.Lots of natural disasters

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29
Q

How does poor climate lead to uneven development?

A

-Some countries have either a really hot, cold or dry climate
-This means not much will grow which can lead to malnutrition and a low quality of life

-And less crops to sell means people will have less money to spend of goods and services meaning the government gets less money from taxes
-This means less money to spend on developing the country

Chad and Ethiopia are some examples

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30
Q

How does poor farming land lead to uneven development?

A

-If the country has steep or poor soil then it is difficult to grow crops or graze animals for food
-This means more malnutrition and less income as less people spend money o goods and services

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31
Q

How does having few raw materials lead to uneven develpment?

A

,There are less materials to export to other countries
.Therefore less income to spend on development projects

OR

.Some countries have lots of raw materials and not enough money to develop the infrastructure needed to exploit them

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32
Q

How does having lots of natural disasters lead to uneven development?

A

-As the countriies will have to spend lots of money rebuilding the country after a disaster

-This means less money to spend on redevelopment projects and a lower quality of life

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33
Q

What are the economic factors that lead to uneven development?

A

-Poor trade links
-Lots of debt
-A economy based on primary products

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34
Q

How does poor trade links lead to uneven development?

A

.Trade is an exchange of goods

.World trade patterns influence a country’s economy which affects its development

.Poor trade links means a lack of income which means less money to develop the country

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35
Q

How does lots of debt lead to uneven development?

A

.Very poor countries need to borrow money to help them cope with events like natural disasters

.This money needs to be paid back so there is less money for development

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36
Q

How does an economy based on primary products lead to uneven development?

A

-Countries that export primary products like metal and timber tend to be less developed

-As primary products tend be sold for cheaper

-And the cost can fluctuate meaning the price can fall below the cost of production

-This means less income and less money to be spent on development

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37
Q

What are the historical factors that lead to uneven development?

A

Colonisation
Conflict

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38
Q

How does colonisation lead to uneven development?

A

-Countries that were colonised are often at a lower development level when they gain independance

-This is because the colonisers removed the raw materials from the colonised countries meaning profits went to the colonisers not the colonised countries

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39
Q

How does conflict lead to uneven devlopment?

A

-War slows down and reduces development

-As money is spent on equipment and training soldiers rather than developing the country

-People are also killed and damage is done to infrastructure and property

-Important services like healthcare are disrupted which can lead to infant mortality and a decline in literacy rates

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40
Q

What are the consequences of uneven development?

A

-Wealth
-Health
-international migration

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41
Q

What is the inequalities to wealth in terms of uneven development?

A

-People in more developed countries have a higher income than those in less developed

-Uneven development also can lead to inequalities in wealth within countries

-Wealth has an impact on people’s standard of living with means people can’t afford basic needs in an undeveloped country

42
Q

What is the consequence to health in terms of uneven development?

A

-Healthcare is better in a more developed country aswell as a longer life expectancy

-Infant mortality rates are much higher in less developed countries. 73 per 1000 in
Chad compared to 3.7 per 1000 in the U.K

-There is a lack of healthcare in LICs and NEEs meaning people can die from diseases that could be easily treated in a HIC

-Diarrhea killed around over 1.4 million people in South Asia and Sub Saharan Africa

43
Q

What is the consequence to international migration in terms of uneven development?

A

-Many people in LICs and NEEs move to HICs to escape conflict and or imrpove quality of life

-For example over 130 000 people moved from Mexico to the USA legally and thousands illegally in search for a better quality of life or a better well paid job

-Migrant workers contribute to the economies of the HICs which further increases the development gap

44
Q

What are the strategies to reduce the development gap?

A

-Fair trade
-Investment
-Intermediate technology
-Aid
-Microfinance loans
-Debt relief
-Industrial development
-Tourism

45
Q

How does fair trade reduce the development gap?

A

-This is a movement all about farms in LICs getting fair price for the goods they produce

-Companies who sell products labelled as fair trade have to pay producers a fair price

46
Q

How does Investment reduce the development gap?

A

-Foreign direct investment (FDI) is when people or companies buy property or invest in infrastructure

-FDI leads to better finance, technology and expertise as well as improved infrastructure, industry and an increase in services

-For example Vietname recieved FDI worth more then US $182 billion to help develop many industries

47
Q

How does aid reduce the development gap?

A

-Money or resources are given to a country by a charity or foreign government
-The money is used for development projects like constructing schools

-The UK provided over £180 million in aid to South Sudan funding 17 projects

48
Q

How does the use of intermediate technology help to reduce the development gap?

A

-Intermediate technology includes tools, machines and systems that improve quality of life

-They are simple to use, affordable and cheap to maintain

-For example LED lightbulbs are used in parts of Nepal where other lighting could be dangerous

49
Q

How does the use of microfinance loans reduce the development gap?

A

-When a small loan is given to people in LICs who may not be able to get a loan from a bank

-This enables them to start their own business and become financially independent

50
Q

How does industrial development reduce the development gap?

A

-Agriculture is the main part of the economy in low level development countries

-Developing industry boosts GNI and development as productivity, skills and infrastructure are improved

51
Q

How does debt relief reduce the development gap?

A

-Debt relief is where some or all of a country’s debt is cancelled or interest rates are lowered

-Therefore a country has more money to spend of development

-For example Zambia had $4 billion of debt cancelled in 2005

-In 2006 the country had enough money to start a free healthcare scheme for millions of people living in rural areas

52
Q

How does tourism reduce the development gap in Kenya?

A

-Kenya is a LIC

-It attracts tourism by the use of wildlife and the warm climate

-Kenya’s government is trying to increase the number of tourists by:

-Visa fees have been cut by 50% in 2009 to make it cheaper to visit the country

-Landing fees at airports on the Kenyan coast have been dropped for charter airlines

-Tourism increased from 0.9 million visitors in 1995 to 1.4 million in 2017

53
Q

What are the benefits of Kenya increasing tourism to reduce the development gap?

A

-Tourism contributes to 4% of Kenya’s GDP which can be spent to improve quality of life and to develop the country

-Over 1.1 million people are directly or indirectly employed by the tourism industry which is 9% of all employment in Kenya

54
Q

What are the disadvantages to Kenya increasing tourism to reduce the development gap?

A

-Only a small proportion of the money earned goes to locals, the rest goes to companies often based in HICs so it doesn’t help reduce the development gap

-Some Maasi countries have been forced off their land to create national parks and game reserves for tourists

-Tourist vehicles damage the environment by destroying vegetation and disturbing animals

-In recent years tourist numbers have fluctuated which means it isn’t a reliable source of income

55
Q

What is a transnational corporation (TNC) ?

A

A company that operates in more than one country

56
Q

Where are TNC factories located?

A

-Lower income countries as labour is cheaper meaning more profit

57
Q

Where are TNC offices located?

A

Higher income countries as there are more people with administrative skills (Education is better)

58
Q

What are the types of aid?

A

-Short-term
-Long-term
-Top-down
-Bottom-up

59
Q

What is short term aid?

A

Money and supplies are given to countries to cope with emergencies

60
Q

What is long term aid?

A

Money is invested in longer term projects to help countries become more developed

61
Q

What is top-down aid?

A

An organisation or the government decides how aid should be used

62
Q

What is Bottom-up aid?

A

Money or supplies are given directly to local communities so they can decide how to use it themselves

63
Q

How has the UK’s economy changed?

A

It used to be based on manufacturing but since the 1960s the manufacturing industry has declined and the tertiary and quaternary industries have grown

-The global shift in manufacturing

These employ 83% of the workforce

64
Q

What are the important industries in the UK?

A

Retail - employs 4 million people

IT - Over 670,000 people work in IT

Finance - City of London is home to many global financial institutions like HSBC

Research - Over £33 billion was spent on research and development

65
Q

Why have the number of science and business parks grown in the UK?

A

-There is a large demand for high tech products - Science parks can help develop this

-The UK has a high number of respected research universities for these parks to link with

-Clusters of related businesses can boost each other

66
Q

What are the reasons for economic change in the UK?

A

-Globalisation
-De-inustrialisation
-Government policies

67
Q

How is De-industrialisation caused economic change in the UK?

A

-The UKs industrial base declined as increased automation led to job losses

-As other countries industrialised they produced goods cheaper than the UK so this forced some UK manufacturing industries to close

68
Q

How has globalisation caused economic change in the UK?

A

-Lots of manufacturing has moved overseas where labour costs are cheaper

-Some TNCs have moved quaternary and tertiary operations to the UK - Apple employs over 6500 people in the UK

-Trade with other countries is increasingly important part of the UK - The proportion of the UK’s GPD that comes from foreign trade increased form 38% to 62%

69
Q

How has government policies led to economic change?

A

-Government decisions on investment and support for businesses affect the economy

-Several key manufacturing industries owned by the government were privatised leading to major job losses

-Membership on trade agreements and organisation (World Trade Organisation) makes it easier for companies in the UK to operate across the world and move manufacturing overseas

70
Q

How has economic change had negative impacts on the UK?

A

-Factories release pollutants and greenhouse gases - running them also uses lots of energy and water
-Mining also destroys habitats and releases toxic chemicals into the water

-Modern industrial developments are more environmentally sustainable

71
Q

How are the roads improving in the UK?

A

Capacity on motorways is being increased to “Smart motorways” by adding new lanes

72
Q

How are railways in the UK changing?

A

Crossrail will increase central London’s capacity by 10%

The proposed HS2 line will increase capacity and allow faster journey’s between major English cities

73
Q

How are airports in the UK changing?

A

A new runway is being implemented at Heathrow airport to add 700 more planes a day

This would increase air pollution and greenhouse gas emissions

74
Q

How are ports in the UK changing?

A

-London Gateway opened in 2013 to handle the world’s largest container ships which is now a hub for global trade

75
Q

How does the UK have good trade links with other countries?

A

-The UK trades globally and its overseas exports are worth £160 billion a year

76
Q

How does the UK have good culture links with other countries?

A

-Immigration has helped shape the UK’s culture leading to diversity

77
Q

How does the UK have good transport links?

A

-The channel tunnel links the UK to France providing a route to main Europe

-Also Heathrow airport is an international hub

78
Q

How does the UK have good electronic communication links?

A

-Trans Atlantic cables link Europe with the USA and routed via the UK

79
Q

How has population decline in Cumbria (UK) had economic and social impacts?

A

-Population of South Lakeland dropped by 4.3% in some areas due to lack of jobs available

-Shops have had to close which affects employment and the local economy

-Younger people have left meaning there is a higher strain of elderly - this puts strain on the medical services and social care

80
Q

How has population increase (North Somerset) had Social and economic impacts?

A

-North Somerset increased by 7.8%

-House prices therefore have risen
-However employment and wages are above national average

-Roads are congested now and many elderly are moving the area which puts strain on healthcare

81
Q

How has economic change affected the north and south of the UK?

A

-Wages are generally lower in the north than south
-Healthcare is worse in the north than the south
-And GCSE results are generally better in the South than north or midlands

82
Q

How is the UK resolving the North and south divide?

A

-Devolving more powers
-Creating enterprise zones
-The northern powerhouse

83
Q

What caused the north-south divide?

A

-The decline of the heavy industry has negatively impacted the north

-Whereas the growth of the post-industrial services has benefited the south

84
Q

How is devolving more powers resolving the regional differences in the UK?

A

-Scotland, Wales and Northern Ireland have their own devolved governments

-This allows them to use money on schemes they feel will best benefit the local community

85
Q

How is creating enterprise zones resolving the regional differences in the UK?

A

-Around 50 enterprise zones have been created across England, Scotland and Wales

-Companies get a range of benefits like:
-Reduced taxes
-Simpler planning rules
-Financial benefits - reduced tax bills
-Improved infrastructure - super fast broadband available

-These encourage companies to locate in areas of high unemployment which brings jobs and income

86
Q

How does the Northern powerhouse resolve the regional divide?

A

-This is the government plan to reduce the inequality between the north and south by attracting invested and improving transport links between northern cities

-This aims to spend £70 million on improving schools and allow super fast broadband

-However some say it neglects smaller cities and prioritises Manchester

87
Q

What is the global importance of Nigeria?

A

-It is the 12th largest producer of oil and it supplies 2.7% of the world’s oil

-It is the 5th largest contributor to UN peacekeeping missions around the world

-It has the world’s 21st largest economy

-It has a youthful population and therefore will serve in the manufacturing and service industries

88
Q

What is the regional importance of Nigeria?

A

-It had the highest GPD per capita in Africa in 2014 and the 3rd largest manufacturing sector

-It has the highest agricultural output in Africa despite suffering issues with land ownership

-It has the largest population in Africa and 70% are employed in the primary sector with many being subsistence farmers

89
Q

What is the population in Nigeria?

A

182 million

90
Q

What is the population in the UK?

A

65 million

91
Q

What is the birth rate and death rate in Nigeria?

A

Birth rate: 38
Death rate: 13

92
Q

What is the birth rate and death rate in the UK?

A

Birth rate: 12
Death rate: 9

93
Q

What is the life expectancy, literacy rate and infant mortality rate in Nigeria?

A

Life expectancy: 52 years
Infant mortality rate: 73
Literacy rate: 61%

94
Q

What is the life expectancy, literacy rate and infant mortality rate in the UK?

A

Life expectancy: 81 years
Infant mortality rate: 4
Literacy rate: 99%

95
Q

What is Nigeria’s political context?

A

-During 19th and 20th century it was part of the British empire and therefore resources were exploited and many people were slaved

-A civil war between 1967 and 1970 and widespread corruption meant that development was slow

-Now however, other countries are investing in Nigeria (E.G. China is investing in construction in Abuja)

96
Q

What is the social context in Nigeria?

A

-It is a multi-faith and multi-ethical country

-Over 500 ethnic groups are present

-However this social diversity has caused for there to be some conflict in the past

-Birth rate is higher and life expectancy is shorter in Nigeria compared with the UK

97
Q

What is the cultural context in Nigeria?

A

-It is multi-faith and multi-ethnic country

-Nigerian music is enjoyed all over the world

-Nollywood (Nigerian cinema) is the second largest film industry in the world. Nigeria produces around 1,000 films yearly

-Nigeria has a strong football team who have won the African cup of nations 3 times and several footballers have played in the premier league

98
Q

What is the environmental context to Nigeria?

A

-In the far north east the country is semi-desert and is close to the Sahel region

-Further south savannah grasslands start to dominate - this is where cattle and crop farming takes place

-Central Nigeria (Jos Plateau) is an upland region where it is densely populated with woodland and is wetter and cooler than the surrounding savannah region

-The south has high temperatures and high annual rainfall where farming takes place however not for cattle as the tsetse fly transmits a parasite lethal to livestock

99
Q

How has the employment structure of Nigeria changed?

A

-Before 1990 the primary sector used to dominate as many primary products where necessary for Nigeria’s income

-Since 1990 however, the primary sector has fallen because there is increased mechanisation and better pay in other sectors

-The secondary sector has therefore increased as industries like paper and refining sugar have been established

-The tertiary sector has also grown as a result of the growth in communications, retail + finance

100
Q

What is the effect of Nigeria have a mix in the employment structure?

A

It makes the economy more stable as it is less reliant on a single industry

101
Q

What is the problem with Nigeria’s economic improvements?

A

Despite these improvements many people are still poor and live on <$1.25 a day

There is a growing inequality between rich and poor

102
Q

How has the growth of the secondary sector benefitted Mumbai?

A

-Regular work has given people a more secure income which has enabled them to invest in luxury goods like electrical appliances and clothes

-Large factories are less dependent on small companies to supply component parts and now many business are benefitting

-More employment means more tax payers and therefore this benefits government budgets