Unit 2B The Changing Economic World Flashcards
define Gross National Income (GNI)
total value of goods and services produced by a country in a year, including income from overseas
define GNI per head/ GNI per capita
GNI divided by population of a country
define Gross Domestic Product (GDP)
total value of goods and services a country produces in a year
define birth rate
number of live babies born per thousand of the population per year
define death rate
number of deaths per thousand of the population per year
define infant mortality rate
number of babies who die under 1 year old, per thousand babies born
define people per doctor
average number of people for each doctor
define literacy rate
percentage of adults who can read and write
define access to safe water
percentage of people who can get clean drinking water
define life expectancy
average age a person can expect to live for
Human Development Index
number calculated using life expectancy, education level and income per head. every country has an HDI value between 0(least developed) and 1(most developed)
how is development is linked t the Demographic transition model
DTM shows how changing birth rates and death rates affect population growth
- birth + death rates differ in different countries, meaning population growth faster in some countries, especially in less developed contries
- changing birth + death rates linked to country’s economic development so 5 stages of DTM linked to country’s development level
what is natural increase
when birth rate higher than death rate, so population grows
describe stage 1 of DTM
- least developed
- birth rate high, no use of contraception
- death rate high, poor healthcare/famine
- life expectancy low
- income very low
describe stage 2 of DTM
- not very developed, many LICs
- economy based on agriculture so lots of children needed to work means birth rates high
- death rates fall, improved healthcare and diet
- life expectancy increases
describe stage 3 of DTM
- more developed - most NEEs
- birth rate falls rapidly, women more equal place in society + better education, use of contraception increases
- economy changes to manufacturing, so income increases
- healthcare improves so life expectancy increases
describe stage 4 and 5 of DTM
- most developed, most HICs
- birth rates low as people want possessions and high quality of life, and may have dependent elderly relatives, so less money available for having children
- healthcare good, so death rate ow and life expectancy high
- income high
describe a poor climate as a physical factor causing uneven development
- if country has poor climate not much will grow, reduces amount food produced. can lead to malnutrition in some countries
- fewer crops to sell, so less money to spend on goods and services, reduces quality of life
- government gets less money from taxes, means lees to spend on developing country
describe few raw materials as a physical factor causing uneven development
- countries without many raw materials tend make less money to spend on development
- some countries do have lots raw materials, but not very developed because don’t have the money to develop infrastructure to exploit them
describe lots of natural hazards as a physical factor causing uneven development
- lots money spent rebuilding after disasters occur
- natural disasters reduce quality of life for people affected, and reduce amount of money government has to spend on development
describe colonisation as a historical factor causing uneven development
-countries that were colonised often at lower level of development when they gain independence than they would be if they had not been colonised
describe conflict as a historical factor causing uneven development
- war can slow or reduce levels of development even after war is over
- money spent on arms and fighting instead of development, people killed and damage done to infrastructure and property
describe poor trade links as an economic factor casing uneven development
- trade is exchange of goods and services between countries
- world trade patterns seriously influence country’s economy and so affect level of development
- if country has poor trade links it won’t make lot of money, so there’ll be less to spend on development
describe lots of debt as an economic factor casing uneven development
- very poor countries borrow money from other countries and international organisations
- money has to be paid back
- any money country makes used to pay back debt so isn’t used to develop
describe an economy based on primary products as an economic factor casing uneven development
- countries that export mostly primary products less developed because don’t make much profit by selling primary goods, prices fluctuate
- people don’t make much money, so government has less to spend on development
wealth consequences of uneven development
- people in more developed countries have higher income than those in less developed countries
- GNI per head in UK is over 40 times higher than in Chad
health consequences of uneven development
- healthcare better in more developed countries
- people in HICs live longer
- infant mortality much higher in less developed countries
international migration consequences of uneven development
-if nearby countries have higher level of development, people will seek to enter that country to make use of opportunities it provides to improve quality of life
describe investment as a strategy used to reduce the development gap
foreign-direct investment (FDI) when people or companies in one country buy property or infrastructure in another . FDI leads to better access to finance, technology and expertise, and improved infrastructure, improved industry and an increase in services
describe industrial development as a strategy used to reduce the development gap
countries with v low development, agriculture makes up large portion of economy. developing industry increases GNI and helps improve levels of development as productivity, levels of skill and infrastructure are improved
describe tourism as a strategy used to reduce the development gap
can provide increased income as more money entering country.
describe aid as a strategy used to reduce the development gap
- given by 1 country to another as money or resources
- spent on development projects
- helps, but sometimes is wasted by corrupt governments, or once money runs out, projects can stop working is isn’t enough local knowledge and support to keep projects going
describe using intermediate technology as a strategy used to reduce the development gap
-includes tools, machines and systems that improve life but simple to use, affordable to buy/build and cheap to maintain
describe fair trade as a strategy used to reduce the development gap
- about farmers getting fair price for goods produced in LICs
- companies who wan to sell products labelled ‘fair trade’ have pay producers fair price
- buyers pay extra on top to help develop area where goods come from
- however, only tiny proportion of extra money reaches original producers, much goes o retailer’s profit
describe debt relief as a strategy used to reduce the development gap
when some or all of countries debt cancelled, or interest rates, means more money to develop rather than pay back debt
describe microfinance loans as a strategy used to reduce the development gap
when small loans given to people in LICs who may not be able to get loans from banks. loans enable them start own business + become financially independent
describe how tourism is helping Kenya to increase its development
Kenya LIC in East Africa. attract tourists- tribal culture, safari wildlife, warm climate, beautiful unspoilt scenery.
- visa fees for adults cut by 50% in 2009
- landing fees at airports on Kenyan coast dropped for charter airlines
- tourism increased from 0.9 million visitors per year in 1995 to 1.8 million in 2011
explain the benefits of tourism’s effectiveness in Kenya
- tourism contributes over 12% of Kenya’s GDP
- nearly 600,000 people directly or indirectly employed by tourism industry
- 24 national parks charge entry fees to tourists, money used maintain them
explain the negatives of tourism’s effectiveness in Kenya
- only small proportion of money earned goes to locals, rest goes to big companies, often based in HICs overseas
- some Maasai tribespeople forced off their land to create national parks for tourism
- tourism vehicles damage environment
describe de-industrialisation and the decline of traditional industrial base as a cause of economic change in the UK
fewer jobs available in manufacturing and heavy industries. these industries once primary source of employment and income for UK
describe globalisation as a cause of economic change in the UK
lot of manufacturing moved overseas, where labour costs lower, though headquarters of manufacturing companies have often remained in UK. trade with other countries is increasingly important part of UK GDP
describe government policies as a cause of economic change in the UK
government decisions on investment in new infrastructure and technology and support for businesses affect how well economy grows. Membership in government groups makes easier for companies in UK to operate across world
describe the development of information technology in moving towards a post-industrial economy
important part of UK’s economy, over 60,000 people employed in IT sector by companies like Microsoft and IBM
describe services in moving towards a post-industrial economy
eg. retail, entertainment and personal services. retail is UK’s largest sector, employing 4.4 million people
describe finance in moving towards a post-industrial economy
UK home to many global financial institution
describe research in moving towards a post-industrial economy
research and development increasing in UK, making use of UK’s skilled university graduates. in 2013 nearly £30 billion spent on R&D in UK
describe science and business parks in moving towards a post-industrial economy
often;
- on outskirts of cities near to good transport links
- close to housing, accommodate workforce
- near universities so research businesses in science park can have access to university research
- UK has high number of strong research universities for businesses on science parks to form links with
- clusters of related businesses in 1 place can boost each other
explain the impacts on the physical environment
-releasing pollutants, greenhouse gases or through raw material extraction
give an example of how modern industrial development can be more environmentally sustainable
Jaguar Land Rover opened new engine manufacturing centre in Wolverhampton in 2014.factory designed to operate more sustainably- built to maximise natural cooling and natural light to reduce energy use, has solar panels in roof can generate 30% of the plant’s electricity. almost all of waste from plant recycled, small proportion going to landfill
describe the social and economic changes in rural landscape in one area of population decline (Cumbria)
as population dropped caused decrease in services in Cumbria. Schools, shops and other businesses in some areas closing. unemployment above national average in 2 of 7 districts in Cumbria
describe the social and economic changes in rural landscape in one area of population decline (North Somerset)
in North Somerset house prices rising which risks pricing out locals. Roads congested with people commuting to Bristol, and services like schools oversubscribed
describe the improvements and new developments in roads
capacity on motorways being increased by upgrading to ‘smart motorways’ with extra lanes
describe the improvements and new developments in railways
crossrail will increase central London’s rail capacity by 10% when opens in 2018. proposed HS2 line linking London, Birmingham, Leeds, and Manchester increase capacity and allow faster journeys between major English cities if its built
describe the improvements and new developments in airports
UK government agreed that new runway needed in south est as existing airports are full or filing up
describe the improvements and new developments in ports
new port, London gateway, operating at mouth of river Thames. if able to handle world’s largest container ships and hopes to become a hub for global trade
describe the north-south divide
in general, economic and social indicators tend to be better in south than north;
- wages generally lower in north than south
- health generally better in south
- education/ GCSE results generally better in south
describe devolving more powers in trying to reduce the north-south divide
Scotland, Wales and northern Ireland have their own developed governments, and some powers are being devolved to local councils in England too. allows them to use money on schemes they feel will best benefit local community
describe the northern powerhouse in trying to reduce the north-south divide
northern powerhouse government’s plan to reduce inequality between north and south by attracting investment into north and improving transport links between northern cities
describe creating enterprise zones in trying to reduce the north-south divide
offer benefits to companies that locate there;
-reduced taxes
-simpler planning rules
-financial benefits
-improved infrastructure
measures used to encourage companies to locate in areas of high unemployment, bringing jobs and income, help reduce north-south divide
describe the links through trade
UK trades globally, links to USA, Europe and Asia being particularly significant. UK’s overseas exports worth over £250 billion per year
describe the links through culture
UK’s strong creative industries mean that UK culture is exported worldwide
describe the links through transport
channel tunnel links UK to France by rail, providing route for goods and people to access mainland Europe. large airports like Heathrow act as hub and provide links to hundreds of countries around world
describe the links through electronic communications
as well as being home to offices for many global IT firs, most of trans-Atlantic cables linking Europe with USA routed via UK
describe the links through the EU
EU is economic and political partnership of 28 countries. membership of EU gives UK citizens and businesses access to large market without trade or political barriers. important part of UK’s economy- over £130 billion of UK’s exports to EU in 2015
describe the links through the commonwealth
commonwealth is association of 53 independent states, including UK. exists to prove well being of everyone in commonwealth countries
