Economic transition

Question 1

Primary sector

Answer 1

Produces raw materials from the land and sea.

Question 2

Secondary sector

Answer 2

Manufacturers primary products into finished products

Question 3

Tertiary sector

Answer 3

Provides services to businesses and people

Question 4

Quaternary sector

Answer 4

Uses high-tech to provide information and expertise

Question 5

What percentage of employment was in the primary sector in the USA in 1900

Answer 5

40%

Question 6

Employment structure in LIC

Answer 6

• heavily dependent on primary sector -> most in agriculture and subsistence farming
• underemployment in densely populated areas
• working conditions generally difficult
• prone to shocks from fluctuating commodity prices

Question 7

Process of outsourcing

Answer 7

Japanese and western TNCs seeking locations in second-generation NICs where improvements in physical and human infrastructure now satisfied their demands but where wages were still low

Question 8

Causal factors of deindustrialisation

Answer 8

Technological change enabling manufacturing to become more capital intensive and mobile
Filter down of manufacturing industry from HICs to lower wage economies
Increasing importance of the service sector in the HICs

Question 9

Positive vs negative deindustrialisation

Answer 9

Where employment in manufacturing falls due to rapid productivity growth and labour is/isn’t absorbed into the non-manufacturing sector

Question 10

Gini coefficient of Finland and SA

Answer 10

Finland = 26, SA = 65

Question 11

China ratio of urban vs rural average income

Answer 11

3 to 1

Question 12

What has happened to the gap between rich and poor over the last two decades (OECD)

Answer 12

This gap has grown in more than three quarters of OECD countries

Question 13

Cumulative causation

Answer 13

• pre-industrial stage, regional differences are minimal
• a period of rapid economic growth, characterised by increasing regional economic divergence
• a stage of regional economic convergence, when the significant wealth generated in the most affluent region(s) spreads to other parts of the country
  Establishment of large manufacturing plant > expansion of local job opportunities and population > inflow of business and capital to satisfy increase in local demand (secondary and tertiary development > substantial rise in average income > higher tax base increases gov. spending power > improvements of physical and cultural infrastructure

Question 14

Core-periphery

Answer 14

Growth of the economic core region labelled as polarisation
Periphery impeded by downward spiral
Term ‘trickle down’ was used to describe the spread of growth from core to periphery

Question 15

Difference between cumulative causation and core-periphery

Answer 15

The core-periphery stressed to a far greater extent the effect of counterbalancing forces overcoming polarisation, eventually leading to economic equilibrium being established

Question 16

What proportion of white income was black income in SA

Answer 16

1/6

Question 17

What did a report in Brazil say about the correlation between educational attainment and income inequality

Answer 17

Educational attainment explains 35-40% of income inequality

Question 18

How much of arable land in Brazil is owned by just 1% of the nation’s farmers

Answer 18

44%