Economic Development 💰 Flashcards

(68 cards)

1
Q

What is development

A

Development is a positive change that makes things better

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2
Q

What does HDI account for

A

Multiple factors in order to increase development:
Life expectancy
Literacy rate
Education level
Income per head

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3
Q

What was the earliest method of dividing the world and how did it work

A

First , second & third worlds
Classified from a western perspective - based on WEALTH only

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4
Q

How do we divide the world now

A

HIC, NEE & LIC
Splitting countries by earnings

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5
Q

What does the demographic transition model measure

A

Population change over time by birth and death rates

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6
Q

What could an ageing population suggest

A

Better health and social care
Birth rates have decreased

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7
Q

Why did European countries want to build empires to increase development ?

A

Competition for power
To build global influence
Access to raw materials and labour
** These countries gained a profit and could further develop their own counties **

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8
Q

What difficulties do countries experience once given independence

A

Conflicts between religions and faiths
Deciding on a leader (often falls to dictatorship)
No support
Many had little education (not qualified for positions of power)
Deprivation economies

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9
Q

How does a coastline influence the rate and level of development

A

Can’t trade easily without ports
(Less developed counties often have no coastline)

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10
Q

How does a country being prone to natural hazards influence the rate and level of development

A

Long term impacts of natural disasters
(Haiti - struggled to redevelop since earthquake)

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11
Q

How does climate influence the rate and level of development

A

Unclear some thrive and some struggle

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12
Q

What are 2 issues uneven development might cause

A

Exploitation of resources
Increasing wealth gap

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13
Q

What is the Gini coefficient

A

A measure of internal disparities (within one country)
e.g. a score of 0 means everyone has exactly the same income but the score of 1 means that all income in one place is controlled by a single person
(LICs and NEEs have a high gini coefficient)

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14
Q

In LICs what percentage of deaths are in children under the age of 15

A

40%

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15
Q

In LICs what is the main cause of death in children under the age of 5

A

Complications in childbirth

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16
Q

In HICs what percentage of deaths are in people over the age of 70

A

70%

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17
Q

In HICs what percentage of deaths is among the children under the age of 5

A

1%

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18
Q

What could the disparity in health be to do with

A

Lack of health workers in LICs
Less money to put into healthcare and to fund medicines

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19
Q

What are primary products

A

They are low value products as there is a large market for these goods

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20
Q

What are secondary products

A

Products turned into a consumable product which adds huge income

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21
Q

What is China nicknamed following its move towards manufacturing form primary production

A

‘The workshop of the world’

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22
Q

What are TNCs

A

Transnational corporations - produce goods and services inside many different countries
eg. Mac Donald’s

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23
Q

What is FDI

A

Foreign direct investment - the cash injected into countries from TNCs

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24
Q

What is the multiplier effect

A

Investment in an in a business helps it to thrive, creating work.
This can in turn help other businesses

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25
How do TNCs reducing transport and import costs affect quality of life in NEEs
By assembling the products close to the people they will be selling them to, companies can reduce transport costs Investment brings employment to the country 
26
How can TNCs looking for new markets affect the quality of life of NEEs
By TNCs building retail stores in NEEs= worldwide over 1 billion people in NEEs now have a ‘middle class’ income and lifestyle
27
How does looking for cheap labour affect the quality of life in LICs and NEEs
TNCs have invested in the creation of new factories and offices as cost of labour is cheaper. However workers are sometimes exploited and they have a low quality of life
28
What might be a concern with regards to so much investment by TNCs in LICs
Workers could be exploited and may have a lower quality of life. This could be due to low pay, low workers rights and bad working conditions
29
What are 6 different types of aid to reduce the development gap
Send skilled people to train people Equipment such as machinery, hospital equipment and education materials Money Food Projects such as building new roads, factories etc. Emergency assistance to disaster areas
30
How does sending skilled people to LICs help reduce the development gap
Educates and trains people which provides them with long-term security and prepares the country for the future
31
Give 5 ways in which tourism helps development
Literacy rates GDP per capita Number of doctors per 1000 people Access to clean water Life expectancy
32
How much of Kenya’s GDP does tourism contribute to
12%
33
How many people in Kenya are either directly or indirectly employed by the tourism industry
600,000 (10% of all employment in Kenya)
34
In 2011 how many visitors did Kenya have a year
1.8 million
35
Since 2000 how much has Kenya’s score on the Human Development Index increased by
Increased from 0.45 to 0.55
36
What is intermediate technology
The simple, easily learned and maintained technology used in a range of economic activities serving local needs in LIC‘s
37
Why might fair trade be considered better than offering financial aid
So countries doesn’t become reliant on aid Long term impacts Social premium Gives farmers more freedom
38
What is fair trade
The company paying a farmer a fair and guaranteed price for their goods
39
What is social premium
Extra income from fare prices can then be spent on things the community need
40
What are the cons of financial loans
Not reliable Corruption LICs might end up in debt 
41
What are the benefits of a microfinance loan over aid given by the world bank
Sustainable No corruption Loan is easier to repay
42
What is the primary sector
Produces the raw materials through extraction
43
What is the secondary sector
Manufacturing of primary materials into finished products
44
What is the tertiary sector
Selling of services in skills e.g. finance/medicine
45
What is the quaternary sector
Industries providing information services such as ICT and the media
46
What is globalisation
The growth and the spread of ideas around the world and the world becoming more interconnected
47
What is deindustrialisation
The reduction of industrial activity or capacity in a region or economy
48
What are the causes of deindustrialisation in the UK
NEE’s opening their countries to TNCs in the 1980s Industries like coal have shut down - cheaper to import Strict laws for environmental pollution - expensive to make products here Primary resources have declined and have become uneconomic to mine -employment declined
49
What are the impacts of deindustrialisation
More segregation Small businesses affected More abandoned brown field sites Unemployment (Government have more work to counter for this)
50
Why did globalisation mean there was a push towards privatisation
More profitable to sell industries to private stakeholders Allowed industries to become more competitive on a global scale
51
How many of the UKs jobs does the quaternary sector account for
15%
52
What is footloose
Industries that don’t need raw materials and make use of information & technology instead
53
Name 4 ways technology has changed the UK working practices
Recruiting is easier geographical boundaries are broken filing is easier flexible working arrangements
54
How much of the UKs GDP does financial services account for
10%
55
How many people does the UKs financial services employ
2 million + people
56
What are the 4 environmental issues with industry
Industrial waste Air pollution Resource exploitation Energy use
57
Fo an industry to become sustainable they must…
Recycle the product Reduce waste production Reduce need for fossil fuels Conserve natural resources
58
What is sustainable about Jaguars engine plant
Solar panels on roof for electricity Underground water collector Efficient compressor systems
59
What is useful about Jaguar using carbon offsetting
By producing energy via solar panels they are not using carbon (Equivalent to 1 million miles of car travel)
60
Why is using lightweight and recyclable materials at Jaguar so important
Less carbon used in transporting materials (only from a 50 mile radius) Less materials are needed for production
61
What are 3 positives of population growth in small villages
Local businesses are thriving Local healthcare is well used and to a high standard Historical sites/ buildings get enough money to remain open
62
What are 3 negatives of population growth in villages
Air pollution from increased vehicles New residents are unaware of new cultures - risk dying out Rising house prices in area - historic families are being priced out
63
Cycle of rural decline
Young leave — hard to recruit — less investment/businesses shut — less people = services declining — lower quality of life
64
What is better south of the north-south divide
Higher employment levels Faster pop. growth Higher house prices Deindustrialisation is less of an issue
65
What strategies can be used to reduce differences between the north and the south
Assisted areas — provide money in areas that need extra help Improving transport infrastructure— HS2 links cities to the north Giving more power to individual cities
66
What are 4 reasons why we should continually improve infrastructure
Population growth Economic growth Changed industries Global trade
67
What historic links does the uk have
Former British empire —- Connection is now seen via migration cultures and trade
68
Name the 6 ways the uk is connected to the wider world
Culture Trade EU (political & economic) Transport Electronic connections Commonwealth (political & economic)