Changing economic world-Overview Flashcards
(50 cards)
1
Q
What is GNI?
A
- Gross national income
-a measurement of economic activity calculated by dividing total national income by the size of the population
-(money made abroad bt TNCs accounts for GNI)
2
Q
What is quality of life?
A
- The wide range of human needs that should be met alongside economic growth
3
Q
What is HDI
A
- Human development index
-Composite measure using data on GNI, life expectancy and education (2 social, 1 economic) to calculate an index from 0-1
4
Q
Nigeria HDI (2021)
A
0.535
5
Q
What is the demographic transition model
A
- Graphs birth rate, death rate and natural increase- proposes what should happen to a population over time and how it changes
6
Q
Stage 1 of demographic transition model (DTM)
A
- High fluctuating
-Birth and death rates fluctuating
-population low
7
Q
stage 2 of DTM
A
- Early expanding
-Death rates drop drastically, birth rates remain high- natural increase
-population on rise
8
Q
Stage 3 of DTM
A
- Late expanding
- Death rates remain low, Birth rates begin to fall
-Population large- still on rise
9
Q
Stage 4 of DTM
A
- Low fluctuating
-Birth and death rates both low and fluctuating
-Population large and plateauing
10
Q
Stage 5 of DTM
A
- Decline
-birth rate goes below death rate- natural decline
-population slowly decreases
11
Q
Causes of uneven development
A
- Historical
- Physical
- Economic
12
Q
what are historical causes of uneven development
A
- LICs colonised by powerful trading nations- much of Africa and south America
- Only recently become independent and so are affected by power struggles and civil wars
13
Q
what are physical causes of uneven development
A
- Landlocked- countries are cut off from seaborne trade
- Extreme weather- droughts, floods and tropical storms can slow development
- Climate related diseases/pests- Diseases (eg malaria) affect ability of population to stay healthy for work, pests (eg locusts) can decimate crops
14
Q
What are economic causes of uneven development
A
- Poverty- Lack of money in a country slows development
- Trade- wealthier regions are able to dominate trade as they export secondary goods for more income- meaning they are able to dictate terms of trade for their advantage, whereas LICs trade mostly primary goods which have low value/demand
15
Q
what does uneven development lead to?
A
- global inequalities in:
-Wealth
-health - global migration
16
Q
Stats showing global inequalities in health
A
- In LICs, 40% of deaths are in children under 15, compared to under 1% in HICs
- In LICs, only 20% of deaths from people 70 or over, in HICs this is 70% of deaths
17
Q
Stats showing global inequalities in wealth
A
- 35% of total wealth is held in North America, only 5% of population
18
Q
how many economic migrants in UK since 2004?
A
1.5 million
19
Q
Different strategies to reduce development gap
A
- Investment from TNCs
- Industrial development
- Aid
- Intermediate/appropriate technology
- Fairtrade
- Debt relief
- Microfinance loans
20
Q
What is investment from TNCs- how does it work?
A
- Large companies produce goods and services in many different countries as there is a low cost in short term
- Cash injected helps countries develop- Multiplier effect etc
21
Q
examples of TNCs
A
- Mcdonalds
- Shell
- Apple
22
Q
Problems with TNC investment
A
- Cheap labour- often leads to poor working conditions
23
Q
- What is industrial development
A
- Large scale introduction of factories in order to create manufactured goods which are more valuable than primary goods
- Creates more jobs- less unemployed, taxes payed, multiplier effect etc
24
Q
Examples of industrial development
A
- China- known as ‘workshop of world’ as had rapid development since 1800s
25
Problems with industrial development
- poor working conditions
- factories produce a lot of CO2- environmental impacts
26
what is aid/how does it work?
- Gift of money, goods or services that doesn't need repayment, usually from charities e.g Oxfam
- helps struggling areas develop in short term
- can create jobs- multiplier effect
27
scale of TNC investment?
International
28
scale of industrial development
National
29
scale of aid
Local/national
30
scale of intermediate tech
local/national scale
31
scale of fairtrade
international scale
32
scale of Microfinance loans
local scale
33
problems with aid
- not very long term- funds run out
34
what is intermediate tech/how does it work?
- providing things, such as sustainable energy or more efficient ways of cooking to help countries reach development goals
- helps countries become developed on small scale, but if done everywhere, becomes large scale
35
examples of intermediate technology
- fuel efficient stoves- use 50% less wood
- Water Aid- providing improved water supplies installing hand pumps to pump clean water
36
What is fairtrade/how does it work?
- alternate approach to trade
-producer gets higher proportion of what consumer pays
37
how many people benefit from fair-trade across Africa
7 Million
38
problems with Fairtrade
- Not available to all- farmers have to pay initially to be part of scheme- £500 + VAT
39
what is debt relief/how does it work?
- LICs owing money to international organisations/richer countries have debt dropped if money is ensured to be spent efficiently
40
What are Microfinance loans/how do they work
- Poor people in LICs/ NEEs borrowing small amounts of money with little interest to help start local development- multiplier effect
- idea to develop small areas everywhere to cause large scale development
41
Case study for tourism
Tunisia
42
What economic classification is Tunisia?
NEE
43
Why is Tunisia tourism industry growing- Climate
- Hot summers and mild winters- attract sun seekers from UK
44
Why is Tunisia tourism industry growing- Links w Europe
- Easily accessible by low cost airlines to mainland Europe
- ex-colony of France- attracts the French due to language
45
Why is Tunisia tourism industry growing- Culture/history
- Hosts 7 UNESCO world heritage sites
46
Why is Tunisia tourism industry growing- Cheap package holidays
- Government worked with tourist operators such as Tui to develop country into tourist destination- hotels, transport etc
47
Why is Tunisia tourism industry growing- Physical landscape
- Varied and diverse- beaches, mountains and desert
-range of activities for tourists
48
positive impacts of tourism in Tunisia
- Tunisia one of fastest growing tourism economies worldwide
- one of wealthiest countries in Africa
- literacy rates increased from 66-79% since 1995
- jobs created in hotels- multiplier effect
49
negative impacts of tourism in Tunisia
- Too much tourism can make area less attractive and reduce the amount of people wanting to travel here in future
- economic growth focused mainly along coast- central and southern areas have less development
- tourist areas use 8x as much water as the average in Tunisia
50
stats about benefits of tourism in Tunisia
- $900 million contributed to economy from tourism in 2009
- 370,000 jobs directly/indirectly created by tourism in 2009
