Unit 2 - Section B - The changing economic world Flashcards

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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

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)

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

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)

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

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))

28
Q

What are the physical causes to uneven development?

A

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

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

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

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

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

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

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

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

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

37
Q

What are the historical factors that lead to uneven development?

A

.Colonisation
.Conflict

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

39
Q

How does conflict lead to uneven devlopment?

A

.War slows down and reduces development

.As money is spent of arms 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

40
Q

What are the consequences of uneven development?

A

.Wealth
.Health
.international migration

41
Q

What is the consequence 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

.Fir 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?

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 form 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