Theme 6 - Causes and consequences of uneven development at the global scale

Question 1

How do HICs protect their local economies/buisnesses from losing customers due to trade with LICs?

Answer 1

.tariffs - taxes imposed on imported goods
.quotas - limits on the amount of goods imported
.subsidies - benefits given by governments to domestic buisness in the from of cash payments or tax allowances

Question 2

What are NICs (Newly Industrialised Countries) characterised by? (7)

Answer 2

.rapid economic growth
.rapid industrialisation and urbanisation
.stable goverments
.large amounts of foreign direct investment from overseas MNCs
.an expanding domestic market
.well-developed infrastructure
.development of NICs own MNCs

Question 3

Globalisation?

Answer 3

process which leads to the free flow of goods, people, ideas and money on a worldwide scale.

Question 4

What are 5 reasons for the growth in globalisation?

Answer 4

.improved technology
.improvements in communications
.advances in transport
.the removal of trade barriers
.the growth of MNCs

Question 5

What are 4 factors attracting investment in a country by a MNCs?

Answer 5

.availability of raw materials
.lower labour costs
.reduced costs of buildings and land
.weaker legislation with regard to staff safety and welfare

Question 6

What are 3 benefits of MNCs in a country?

Answer 6

.provide new jobs and skills for local people
.brings foreign currency to local economies
.multiplier effect spreads the wealth through society

Question 7

What are 4 disadvantages of MNCs in a country?

Answer 7

.profits are often sent back to the HIC where the MNC is based
.may drive local companies out of buisness
.if and MNC moves the factory may close and people lose jobs
.lack of international laws means that the MNCs may operate in a way that would not be allowed in a HIC

Question 8

What are 6 facotors that have contributed to the rapid growth in tourism?

Answer 8

.increased life expectancy and early retirement
.higher salaries and savings
.modern aircrafts
.growth in holiday companies
.improved internet
.more stable government

Question 9

Enclave tourism?

Answer 9

tourists pay one price and get all their travel accommodation, food, drink, and entertainment in one place

Question 10

What are 4 advantages of tourism?

Answer 10

.generates employment
.brings foreign exchange
.wealth can be invested in services (such as health)
.new facilities provided for tourists can be used by locals

Question 11

What does fair trade aim to provide? (4)

Answer 11

.minimum wages and safe working conditions
.restrictions on child labour
.protection of the environment
.improved schools and healthcare