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Changing economic world Flashcards

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1
Q

What is a post industrial economy?

A

A country has moved away from traditional industries (eg. manufacturing) to services (tertiary, quaternary)

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1
Q

What technological improvements have increased globalisation? (3)

A
  • development of IT: (Wi-Fi, work from home)
  • increased service industries, finance.
  • more quaternary jobs
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1
Q

What changes has globalisation brought to the UK economy? (4)

A
  • Outsourcing (moving services and factories abroad eg. China, India. Cheaper for us, more profit for businesses, workers earn more than they usually could)
  • IT: (sharing ideas globally so communication between trading companies improved)
  • Transport (containerisation and shipping easily trade globally)
  • Tourism (improved transport -> ease of travel -> attracts tourism to the UK -> increased jobs in tourism)
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2
Q

What is the UKs North South divide?

A

The real or imagined differences between the South and North of England.

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3
Q

What is the evidence for the UKs North and South divide? (3)

A
  • Social: life expectancy, in the North East it is 1.3 years below average, in South East it is 1.2 higher than average.
  • Economic: average income in North East is £24,000 per year. Average Income in South East is £28,000 a year. However, housing prices do reflect this.
  • unemployment: 9.9% in the North East, 4.4% in South East. Caused by deindustrialisation.
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4
Q

How is the Uks Transport being improved? (Roads) *

A

Smart motorways: used technology to improve flow of traffic and congestion. Faster travel means businesses don’t need to worry about the traffic, which increases investment.

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5
Q

How is the Uks Transport being improved? (Ports)

A

Fast growing ports are improving trade and efficiency (eg. London Gateway)

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6
Q

How is the Uks Transport being improved? (railways) *

A

HS2. Would have connected North and South to increase investment in the North. Would have cut journey times, which would lead to investment as people can commute easier. Now been scrapped (partially), but the money will still be used to help the North.

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7
Q

How is the Uks Transport being improved? (Airports)

A

Heathrow’s third runway. This will improve infrastructure and allow more people to visit the country (tourism)

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8
Q

Define a NEE

A

Newly Emerging Economy. A country just begun a high rate of economic development, usually with rapid industrialisation.

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9
Q

What is the NEE that we learn about? Where is it?

A

India in South Asia. Borders China, Bangladesh. Borders Indian sea. Capital is New Delhi in the North.

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10
Q

How has manufacturing led to economic development in India?

A
  • Agriculture: employs 30% of the population but only produces about 17% of GDP. Not very reliable or profitable.
  • Secondary: Employs 22% of the population. Provides less educated people with a reliable job. Manufactured goods can be sold for more that raw materials, so manufacturing increases the GNI.
  • Investment (FDI): industrial growth, leads to more formal, well paid jobs, which gives people disposable income. Government can spend taxes on infrastructure etc… (positive multiplier effect)
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11
Q

List 3 main factors that cause uneven development (with examples):

A
  • Physical: landlocked (no sea for trade), climate related diseases (eg. malaria), drought.
  • Economic: LICs trade low value raw materials, HICs pay LICs low prices, poverty makes development hard.
  • Historical: war, colonialism.
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12
Q

What are the three main consequences of uneven development?

A
  • Disparities in wealth: Africa’s share of global wealth is about 1%, Quatar is world’s richest country.
  • Health: Main causes of death in LICS: HIV, childbirth, polio. Main causes of death in HICS: poor lifestyle, old age. HICs: 1 in 100 deaths are <15s, LICs: 1 in 100 deaths are <15s.
  • Migration: Economic migrants: move for better paid jobs. Send money home. Refugee: seeking safety from countries with conflict.
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13
Q

What is GNI?

A

Gross National Income: total amount of money earned in a country per year through selling products and services.

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14
Q

What is HDI?

A

Human Development Index: a method of measuring development in which GNI per capita, life expectancy and adult literary rate are combined.

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15
Q

What are the limitations of some development indicators?

A
  • Don’t consider extremes
  • Risk of Gov. corruption.
  • May not be accurate or data may not be available
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16
Q

What’s the dependency ratio?

A

The number of dependents (<15s, >65s) to the amount of working people. High ratios of dependents put strain on Governments eg. healthcare etc.

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17
Q

Describe stage 1 of the Demographic Transition model:

A

High stationary. Eg: a few remote groups. High birth rates, high fluctuating death rates. Low overall population.

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18
Q

Describe stage 2 of the Demographic Transition model:

A

Early expanding. Eg. Egypt. High birth rates. High death rates, but beginning to decrease. Start of natural increase.

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19
Q

Describe stage 3 of the Demographic Transition model:

A

Late expanding. Eg: Brazil. High birth rates, but they are beginning to slow. Death rates continue to decrease. Rapid population growth.

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20
Q

Describe stage 4 of the Demographic Transition model:

A

Low stationary. Eg: USA, UK. Birth rates have dropped so they are almost equal to death rates. Death rates are very low. Population is very large but there is now barely any growth.

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21
Q

Describe stage 5 of the Demographic Transition model:

A

Declining. Eg: Japan, Germany. There are now more deaths than birth. Ageing population is leading to a high dependency ratio. Natural decrease.

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22
Q

How can Debt relief reduce the development gap?

A
  • 2005: Britain cancelled debts to highly in debt countries like Ghana. As long as they use it for development and decreasing poverty. Allows countries to develop faster.
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23
How can Aid reduce the development gap?
- Country / organisation donates resources to another country eg. money, food, skills etc. - Enables countries to invest in infrastructure, services etc. This helps to decrease poverty. - Eg: Oxfam Goat Aid. Gives goat to African families. Easy to look after, make milk etc.
24
How is India important globally?
- Largest democracy and population in the world: 1.4 billion. - Export services and manufactured goods around the world. - Part of the United Nations, G20 etc.
25
How is India regionally important?
- Biggest population and economy in South Asia, plays a major role in politics and trade. - Trades with South East Asia and the Middle East.
26
Describe briefly how India's economic structure has changed.
1991: biggest sector is agriculture, highest earning sector is services. 2014: agriculture is still the largest, but manufacturing is growing. Services is still the highest earning sector, but is now earning even more. - India's economy is becoming increasingly reliant on services and manufacturing.
27
Describe India's trading links with the rest of the world and trading habits:
- Main transport: ships - Main imports: raw materials - Main exports: manufactured goods - Trade: 'Asia - Pacific trade agreement' (Bangladesh, China, South Korea, Sri Lanka)
28
Describe India's politics:
- India is part of BRICS, a group of NEES. - Influential role in world politics. - Invested heavily in military power. Has a military budget of $32 billion a year. Smaller, nearby countries rely on it for protection.
29
Describe disparities in wealth between the urban core and rural periphery.
- URBAN CORE: MUMBAI - HDI: 0.67 - Main industries: manufacturing and services (reliable, formal economy) - Industries and ports have developed, attracting investment and people to work. - Location: coast and ports increase trade. - RURAL PERIPHERY: BIHAR - HDI: 0.47 - Main industry: agriculture (poor quality of life, have to pay high land rents, unreliable) - people migrate away to the core for a better QOL - Caste based system, stuck in a cycle of poverty. - Literacy rates are low
30
How is tourism helping India's development?
- 9.6% of GNI - Higher disposable income for people (40 million) employed in tourism leads to positive multiplier effect. - Increase taxes in formal economy, leads to development. - Low cost airlines have led to an increase in domestic tourism.
31
What are the feature of the most successful aid India receives?
- Most successful is bottom up projects, as the money definitely goes to those in need / no risk of corruption from Governments.
32
Give two specific examples of aid India receives:
- SAVE THE CHILDREN: STOP DIARRHEA - Biggest killer of <5s. - Improving sanitation and hygiene in rural areas of BIhar. -BIHAR RURAL ROADS: - US$235 million to improve the state's rural road network - Constructing 2,500km of roads
33
What are the positives of TNC's like BT on India?
- Workers earn more with BT than any other Indian company - Training and skills funded by the company - BT has invested millions into new technology & communication in India eg. Wifi
34
What are the negatives of TNC's like BT on India?
- Call centres / software development centres use large amounts of energy, often from fossil fuels. - BT does not pay for worker's health insurance or pensions. - Health and safety laws are more relaxed in India, so equipment may not be as safe.
35
How has development affected India's environment? (water)
CAUSE: - Fertiliser run off - Rubbish sewage - Chemicals from industry (esp. leather) EFFECTS: - Numbness, rotting nails, boils, known carcinogen - Ganges: severely polluted and provides food for 100 million people, so they will be unhealthy.
36
How has development affected India's environment? (air)
CAUSE: - Urban pollution (20 million people live in Delhi) - Crop burning to clear the fields EFFECTS: - Schools closed - Restrictions on cars - Stroke, respiratory illness, from toxins in air.
37
How has development affected India's environment? (waste)
CAUSE: - Too much waste being produced too quick EFFECTS: - Landfill produces greenhouse gases - Landfill leeches toxins into soils (in food) - People dig through rubbish to find recycling.
38
List the four employment sectors:
Primary, secondary, tertiary and quaternary.
39
How has the UK employment changed? (1800, 1900, 2006)
(Order of largest to smallest sector) - 1800: Primary, secondary, tertiary. - 1900: secondary, primary, tertiary - 2006: tertiary, secondary, primary, quaternary.
40
Why has UK economy changed? (gov. policy)
- 1949-79: state run, strikes, manufacturing moves abroad. - 1979-2010: privatisation, jobs lost, modern retail. - >2010: more investments, rebuilding.
41
Why has Uk economy changed? (de-industrialisation)
- Other countries have cheaper labour - Traditional industries have declined - Lack of investment - High Labour costs - outdated machinery
42
Why has the UK economy changed? (globalisation)
- Growth / spread of ideas around the world - UK connected through transport - Improvement in internet: communication and share data.
43
De-industrialisation
The decline of a countries traditional manufacturing industries.
44
Post-industrial
Manufacturing industry declines and repeated by growth in services / quaternary
45
Science parks
Located near universities, high tech industries: scientific research with university. With good transport links, near big cities. Mainly in the South East and the Midlands. Centred around London, Cambridge area. Carry out research and advanced manufacturing. Greenfield sites on the edge of towns.
46
Business parks
Area of land occupied by group of offices and businesses usually on the edge of towns.
47
Changing rural landscapes: South Cambridge, England
CAUSES OF GROWTH: - Attracting highly skilled and educated people employed in Cambridge, rural areas are attractive, attracted economic migrants from EU to work in agriculture. EFFECTS: - Congestion on small country roads, increase in fuel prices (more driving), urbanisation of the rural areas, commuter settlement, no economic development of local rural industries.
48
Changing rural landscapes: Outer Hebrides, Scotland
CAUSES OF DECLINE: - Limited opportunities for education, housing or employment, isolation, decline of local industry (fishing). EFFECTS: - School closures, care issues (aging population), key services closing (postoffice).
49
What is the North South divide?
The real or imagined cultural and economic difference between the South and North of England.
50
Why is there a North South divide?
- During Industrial Revolution, development was centred around Manchester, Sheffield, Glasgow, creating wealth. Decline of traditional industries, has led to increased unemployment, dereliction and poverty. - London and South East have developed rapidly due to fast growing service sector. London: major global financial centre. Grown faster than rest of the UK: high house prices.
51
What can be done to fix the North South divide? (Local Enterprise Zones)
- et up between local councils and businesses. England currently have 39. Aim to identify business needs in local area, fix them to encourage businesses to invest.
52
What can be done to fix the North South divide? (Enterprise zones)
- Encourages new businesses to set up in deprived areas 24 in England. - Reduces taxes - Access to high speed broadband - Simpler planning regulations
53
What can be done to fix the North South divide? (Northern powerhouse)
- Aim to boost economic growth in the North, started in 2014. Eg. transport links, science.
54
What are the four types of global links the uk has?
Trade, culture, transport, electronic communications.
55
Who are the UK's important trade partners?
- Top export destinations: USA, Germany, Netherlands. - Imports: mostly from Germany and China. - Most important trading link: EU (trade without tariffs between members)
56
What are the UK's most successful culture exports?
- 350 million speak English: biggest language in the world - 36. million tourists visit every year. - TV: most successful markets are British speaking countries. Most successful media export. eg. Doctor Who!
57
What examples of foreign culture that have come to the UK?
- Food: Indian, Chinese, Thai - Fashion: France, Italy - Music: USA - Films: Bollywood
58
What are the UK's most important transport links between countries?
- Heathrow airport: busiest in Europe, 3rd busiest World. 7.5 million people used Heathrow in 2015. - Channel tunnel: connects London to Europe. 10.3 million people use the tunnel every year.
59
What global links does the UK have? (IT)
- 82% of the people use the internet everyday (UK) - 24th in the world for internet speed - Major focus for underwater cables (connections focused between USA and UK) - Arctic Fibre: laid the first cables between London and Tokyo.
60
How does the EU affect the UK positively? (4)
- Biggest single market in the world - Goods, services, people can move freely between countries, encouraging trade. - EU investment provides financial support for disadvantaged regions for the UK - Financial support for farmers.
61
How does the EU affect the UK negatively? (3)
- EU laws (eg. crime & pollution) can be restrictive for member states (like UK) - UK may have to support poorer EU states by paying more money. - High unemployment and low wages leads to mass migration of migrant workers from poorer EU countries.
62
How does the UK benefit from the Commonwealth? (6)
- Made up of mostly former colonies - Provides advice on a range of issues eg. human issues - Aim: helps Gov. to achieve sustainable, inclusive, equal development. - Commonwealth Games are held every 4 years. - Voluntary - Share common links eg. English language and laws.
63

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