Changing Economic World - 2 Flashcards

1
Q

What is Development?

A
  • Progress in economic growth
  • Use of technology
  • Improving welfare
  • Country gets better when developed - their quality of living, health, safety, wealth
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are Measures of Development?

A
  • Gross national income (GNI)
  • GNI per head
  • Gross domestic product (GDP)
  • Birth rate
  • Death rate
  • Infant mortality rate
  • People per doctor
  • Literacy rate
  • Access to safe water
  • Life expectancy
  • Human development index (HDI)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is Gross National Income?

A

Total value of goods and services produced by country in year, including overseas

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is Gross Domestic Product?

A

Total value of goods and services a country produces in s uear

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is Birth rate?

A

Number of live babies born per thousand of population per year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is Death rate?

A

Number of deaths per thousand of population per year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is Infant Mortality Rate?

A

Number of babies who die under 1 year old, per thousand babies born

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is Literacy Rate?

A

Percentage of adults who can read and write

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is Human Development Index?

A

Number calculated using life expectancy, education level, income per head

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are More Economically Developed Countries (MEDCs) and Where are they found?

A
  • Richer countries
  • Found in north
  • USA, Australia, New Zealand, European countries
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are Less Economically Developed Countries (LEDCs) and Where are they found?

A
  • Poorer countries
  • Found in south
  • India, China, Mexico, Brazil, all African countries
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are Higher Income Countries (HICs) and give examples?

A
  • Wealthiest countries
  • GNI per head is high
  • Citizens have a high quality life
  • UK, USA, Canada, France
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are Lower Income Countries (LICs) and give examples?

A
  • Poorest countries
  • GNI per head is low
  • Citizens have a low quality life
  • Nepal, Uganda, Somalia, Afghanistan
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are Newly Emerging Economies (NEEs) and give an example?

A
  • Rapidly getting richer
  • Primary industry(agriculture) to secondary industry (manufacturing)
  • Quality of life improving
  • China, Brazil, Russia, India
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the Demographic Transition Model (DTM)?

A

Shows changing birth rates and death rates affect population growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What’s a Natural Increase?

A

When birth rate higher than death rate so population grows

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is a Natural Decrease?

A

Death rate is higher than birth rate so population decreases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What Physical Factors affect how Developed a Country is?

A
  • Poor climate
  • Poor farming land
  • Few raw materials
  • Lots of natural hazards
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is Stage 1 of the Demographic Transition Model (DTM)?

A
  • Least developed
  • High birth rate
  • High death rate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is Stage 2 of the Demographic Transition Model (DTM)?

A
  • Not very developed
  • High birth rate
  • Rapidly falling death rate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is Stage 3 of the Demographic Transition Model (DTM)?

A
  • More developed
  • Rapidly falling birth rate
  • Slowly falling death rate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is Stage 4/5 of the Demographic Transition Model (DTM)?

A
  • Most developed
  • Low birth rate
  • Low death rate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

How does the Physical Factors of a Poor Climate mean a Country is Less Developed?

A
  • Too hot/cold/dry = no growth
  • Reduces food produced = malnutrition = low quality of life
  • Fewer crops to sell = less money
  • Government gets less money from taxes, less money to spend on developing the country
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

How does the Physical Factors of Poor Farming Land mean a Country is Less Developed?

A
  • Land is steep/poor soul = not a lot of food produced
  • Starvation
  • Less money
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

How does the Physical Factors of Few Raw Materials mean a Country is Less Developed?

A
  • Without coal, oil, metal ores = less money made

* Less money to spend on development

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

How does the Physical Factors of Lots of Natural Hazards mean a Country is Less Developed?

A
  • Causes death, injury, destroy property, disruption to humans
  • Spend a lot of money on rebuilding after disaster occurs
  • Reduce quality of life
  • Reduce amount of money government spends on development projects
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What Historical Reasons cause Uneven Development?

A
  • Colonisation

* Conflict

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

How does the Historical Reason of Colonisation mean a Country has Uneven Development?

A
  • Lower level of development when gain independence from being colonised
  • Lead to famine & malnutrition and dependant on another country
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

How does the Historical Reason of Conflict mean a Country has Uneven Development?

A
  • War reduce levels of development, healthcare worse
  • Money spent on arms & fighting instead of development
  • People killed & damage to infrastructure & property
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What Economic Factors cause Uneven Development?

A
  • Poor trade links
  • Lots of debt
  • An economy based on primary products
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

How does Economic Factors of Poor Trade Links cause Uneven Development in a country?

A
  • World trade patterns affect country economy & their level of development
  • Poor trade links = less money made = less to spend on development
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

How does Economic Factors of Lots of debt cause Uneven Development in a country?

A
  • Very poor countries borrow money from other countries
  • This money has to be paid back
  • Money country makes used to pay back dept, not used to develop
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

How does Economic Factors of an Economy Based on Primary Products cause Uneven Development in a country?

A
  • Countries that export primary products (wood, metal, stone) are less developed
  • Don’t make much profit, their prices fluctuate - price below cost of production
  • Less money made - government spend less on development
  • Countries that export manufactured goods are more developed - make good profit
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What are the Consequences of Uneven Development?

A
  • Large flows of international migration

* Great differences in wealth and health

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

How does Uneven Development lead to Differences in Wealth?

A
  • More developed countries = higher income
  • Less developed countries = lower income
  • GNI per head in UK is over 40 times higher than in Chad
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

How does Uneven Development lead to Differences in Health?

A
  • More developed countries = better healthcare
  • People in HICs live longer - in UK is 81 but in Chad it’s 51
  • Less developed countries = infant mortality higher - 85 per 1000 births in Chad
37
Q

How does Uneven Development lead to Large flows of International Migration?

A
  • If nearby countries have higher level of development, people enter to improve quality of life
  • Mexico (NEE) borders USA (HIC) - every year 130,000 Mexicans move to USA legally to get better paid jobs and higher quality of life
38
Q

What Strategies reduce the Development Gap?

A
  • Aid
  • Debt Relief
  • Fair Trade
  • Investment
  • Industrial Development
  • Tourism
  • Using Intermediate Technology
  • Microfinance Loans
39
Q

What is Aid?

A

Given by one country to another as money or resources

40
Q

What is Debt Relief?

A

Some or all of country’s debt is cancelled or interest rates are lowered so have more money to develop

41
Q

What is Foreign Direct Investment?

A

People/companies in one country buy property or infrastructure in another

42
Q

What is Microfinance?

A

Small loans are given to people in LICs who can’t get loans from banks so they can start their own business and become financially independent

43
Q

What is Intermediate Technology?

A
  • Tools, machines, systems that improve quality of life
  • Simple to use
  • Affordable to buy/build
  • Cheap to maintain
44
Q

What is Fair Trade Movement?

A

Farmers getting a fair price for goods produced in LICs (coffee, bananas) to provide for their families

45
Q

How can Aid Reduce the Development Gap and what is the Problem?

A
  • Spent on development projects - constructing schools to improve literacy rates, building dams to improve clean water, etc
  • Sometimes wasted by government, or when money runs out the projects stop working
46
Q

How can Fair Trade Reduce the Development Gap and what is the Problem?

A
  • Companies who want to sell ‘fair trade’ products have to pay producers a fair price
  • Buyers pay extra to help develop the area where goods came from to build school, etc
  • But, only tiny proportion of extra money goes to original producers
47
Q

Give an example of Debt Relief that reduces the a Development Gap?

A
  • Zambia had $4 billion of debt cancelled in 2005

* 2006 - start free healthcare scheme for millions of people living in rural areas which improved quality of life

48
Q

How can Investment Reduce the Development Gap?

A
  • Better access to finance, technology, expertise
  • Improved infrastructure and industry
  • Increase in services
49
Q

How can Industrial Development Reduce the Development Gap?

A
  • Countries with very low level of development - agriculture makes up large proportion of economy
  • Developing industry increases GNI & improves levels of development as productivity, levels of skills and infrastructure improved
50
Q

How can Tourism Reduce the Development Gap and give an Example?

A
  • Provide increased income as more kinetic entering country

* Kenya Using Tourism to increase their level of development

51
Q

How can Using Intermediate Technology Reduce the Development Gap and give an example?

A
  • E.g. solar powered LED lightbulbs used in Nepal where other options are polluting and dangerous kerosene lamps
  • Allows people to work at home, in businesses, children study after dark
  • Skills, incomes, industrial output increase which reduces development gap
52
Q

What are the Advantages of Trans National Corporations (TNCs)?

A
  • Create jobs
  • Employees in poorer countries get more reliable income
  • Spend money to improve local infrastructure (roads, airports)
  • New technology (computers) and skills brought to poor countries
53
Q

What are the Disadvantages of Trans National Corporations (TNCs)?

A
  • Employees in poorer countries paid lower wages than richer
  • Employees in poorer countries work long hours in poor conditions
  • TNCs come from richer countries so profit goes back there
  • Jobs created in poorer countries aren’t secure
54
Q

What are Trans National Corporations (TNCs)?

A

Companies located in or produce and sell products in more than one country

55
Q

Where are Trans National Corporations (TNCs) Located?

A
  • Poorer countries because labour is cheaper

* Fewer environmental and labour regulations - make more profits

56
Q

How can TNCs reduce the Development Gap?

A

Improve development of countries by transferring jobs, skills, money to less developed countries

57
Q

Where are TNC offices and headquarters located?

A

Richer countries because more people with administrative skills because education is better

58
Q

What are the Causes of Economic Change in the UK?

A
  • De-industrialisation and decline of UK’s industrial base
  • Globalisation
  • Government Policies
59
Q

How is De-Industrialisation and the Decline of UK’s Industrial Base a cause of the Change of Economy in the UK?

A
  • Fewer jobs available in manufacturing and heavy industries (coal mining)
  • These were once primary source of employment and income for UK
60
Q

How is Globalisation a cause of the Change of Economy in the UK?

A
  • A lot of manufacturing moved overseas, where labour costs are lower
  • Headquarters of manufacturing remained in UK
  • Trading with other countries is increasingly important part of UK GDP
61
Q

How is Government Policies a cause of the Change of Economy in the UK?

A
  • Growth of economy affected by government decisions on investment in new infrastructure + technology + support for business
  • Membership in Government groups (World Trade Organisation) make it easier for countries in UK to operate around world
62
Q

What do Important Industries include in UK and give details and facts?

A
  • Services - retail is UK largest sector-employing 4.4 million ppl
  • Information Technology - 60,000 people employed in IT sector
  • Finance - home to many global financial institutions - HSBC
  • Research/Development- 2013 £30 billion spent on R+D in UK
63
Q

Where are Science/Business Parks Located?

A
  • Outskirts of cities near good transport links
  • Close to housing
  • Near universities to have access to their research
64
Q

Why have the number of Science/Business Parks Grown?

A
  • Growing demand for high-tech products
  • High number of strong research universities to form links with
  • Clusters is related businesses in one place can boost each other
65
Q

What are the differences of Wages, Health and Education in North and South in UK and use evidence?

A
  • Wages lower in North - In 2014 the weekly wage was 40% lower in Huddersfield than London
  • Health worse in North - In 2012 life expectancy for males was 72.6 years in Glasgow and in Dorset it was 82.9 years
  • Education better in South - GCSE results were better
66
Q

How is the UK government trying to Reduce the North-South Divide?

A
  • Devolving more powers
  • Creating enterprise zones
  • Northern Powerhouse
67
Q

How does Devolving More Power Reduce the North-South Divide?

A
  • Scotland, Wales, Northern Island have their own devolved Governments
  • Allows them to use money on schemes they feel will benefit the local community - better public transport or regeneration projects to attract businesses
68
Q

How does Creating Enterprise Zones Reduce the North-South Divide?

A

•55 enterprise zones created across England, Scotland, Wales
•These offer companies benefits for locating enterprise zones:
-Reduced taxes
-Simpler planning rules = certain developments are allowed in enterprise zone
-Financial benefits = reduce future tax bills
-Improved infrastructure
•These are used to encourage companies to locate in areas of high unemployment, bringing jobs and income helping north-south divide

69
Q

How does the Northern Powerhouse?

A
  • Governments plan to reduce inequality between north and south
  • Attracting investment into north
  • Improving transport links between northern cities
70
Q

How is the UK improving its Transport Networks?

A
  • Roads - upgrading to ‘smart motorways’ w/ an extra lane
  • Railways - crossrail will increase London’s rail capacity by 10%
  • Airports - new runway in south east
  • Ports - new port, London Gateway, operating at mouth of River Thames - hub for local trade because can handle largest container ships
71
Q

How has the UK formed strong links with other countries?

A
  • Trade
  • Culture
  • Transport
  • Electronic communications
  • European Union
  • The commonwealth
72
Q

How has Trade helped the UK form strong links with other countries?

A
  • Links with USA, Europe, Asia

* Overseas exports worth over £250 billion per year

73
Q

How has Culture helped the UK form strong links with other countries and give an example?

A
  • Creative industries mean UK culture is exported worldwide

* E.g. Shaun the Sheep TV series shown in 170 countries

74
Q

How has Transport helped the UK form strong links with other countries?

A
  • Channel tunnel links UK to France by rail

* Large airports (Heathrow) act as hub and provide links to hundreds of countries

75
Q

How has Electronic Communications helped the UK form strong links with other countries?

A
  • Offices to many global IT firms

* Trans-Atlantic cables linking Europe to USA routed via UK

76
Q

How has the European Union helped the UK form strong links with other countries?

A
  • EU is Economic & political partnership of 28 countries
  • Membership gives access to large market without trade/political barriers
  • Over £130 billion of UK’s exports were to the EU in 2015
77
Q

How has the Commonwealth helped the UK form strong links with other countries?

A
  • Association is 53 independent states, including UK

* Exists to improve well being of everyone in commonwealth countries

78
Q

How can Industry have Negative Effects on the Environment?

A
  • Releasing pollutants
  • Greenhouse gases
  • Damaging environment through raw material extraction
79
Q

How can the effect of industry on physical environment be reduced?

A
  • Modern industrial developments are more environmentally sustainable
  • More strict environmental regulations
  • Better environmental awareness
  • Increasing energy and waste disposal costs
80
Q

What are the Benefits of Tourism in Kenya?

A
  • Over 12% of Kenya’s GDP - can be spent on development + improving quality of life
  • 600,000 people directly/indirectly employed by tourism industry - 10% of employment
  • 24 national parks charge entry fees to tourists - money used to maintain parks
  • HDI increased from 0.45 to 0.55 since 2000
81
Q

What are the Negatives of Tourism in Kenya?

A
  • Small proportion of money earned goes to locals - most to big companies in HIC - doesn’t help close development gap
  • Maasai tribespeople forced off their land to create national parks for tourists
  • Tourist vehicles damages environment - safari vehicles destroy vegetation + disturb animals
82
Q

How is Tourism is helping Kenya to Increase it’s Development?

A
  • Kenya = LIC
  • Attracts tourists with tribal culture, safari wildlife, was climate, beautiful scenery
  • 2009 - visa fees for adults cut by 50% so cheaper to visit, scrapped for children under 16 so more families visit
  • Landing fees at airports on Kenyan coast dropped for charter airlines
  • Tourism increased from 0.9million visitors per year in 1985 to 1.8 million in 2011
83
Q

Describe India:

A
  • Rapidly developing NEE
  • 2nd largest population in world (1.3 billion)
  • Large inequalities of wealth - most poor
  • Over 20% population live in poverty
  • Adult literacy rate = less than 70%
84
Q

What are the Advantages of TNCs in India?

A
  • Provide employment - Unilever employs 16,000 people in India
  • More companies = greater income - Hindustan Unilever have annual sales of $4.5 billion
  • TNCs run programs to help development in India - Unilever’s Project Shakti helps poor woman in rural villages become entrepreneurs (45,000 ppl in this scheme)
  • Unilever works with charities helping run hygiene education programs + provide sanitation to 115 million people in India
85
Q

What are Disadvantages of TNCs in India?

A
  • Profits can leave India - Unilever is Dutch/British company
  • Cause environmental problems - mercury contaminated glass from Unilever company ended up in waste dump - mercury is poisonous chemical
  • Move around India to take advantage of local government incentives- Unilever accused of closing factories in Mumbai once local tax breaks ended
86
Q

What is Short-term aid and how was it used in India?

A
  • Help recipient countries cope with emergencies
  • Come from foreign governments or non-governmental organisations
  • Helps with immediate distasteful relief
  • UK sent £10m, recuse team, 1200 tents after earthquake in 2001
  • Oxfam provide supplies + temporary buildings
87
Q

What is Top-down aid and what does it do?

A
  • Organisation/government receives aid + decides where it should be spend
  • Often large infrastructure projects (dams, hydroelectric power or irrigation schemes)
  • Improves country’s economy, but not quality of life of poorest people
88
Q

What is Long-term aid and how was it used in India?

A
  • Help recipient countries funded to become more developed
  • Until 2015 - India recurved over £200m each year from UK to help poverty
  • Impact can vary - India has corruption problems - aid not always reach poorest people
89
Q

What is Bottom-up Aid and how is it used in India?

A
  • Money given directly to locals
  • WaterAid trains locals to main village handpumps in rural India
  • Large Impact - Improve health, skills, income