The Changing Economic World

Question 1

What is Economy?

Answer 1

the generation of wealth

Question 2

1. What are primary jobs?
2. What are secondary jobs?
3. What are tertiary jobs?
4. What are quaternary jobs?

Answer 2

1. getting raw materials
   e.g. farming, mining, fishing
2. manufacturing (factories)
3. services
4. research + development

Question 3

What does development mean?

Answer 3

How a country becomes more economically and technologically advanced so its people’s quality of life improves
e.g. educational opportunities

Question 4

What are two different ways that we can classify the world?

Answer 4

1. economy + level of technological advancement
   e.g. commercial agriculture, tertiary + quartenary sector and modern industrial hi-tech industry
2. quality of life
   e.g. housing, clean water + food and access to healthcare

Question 5

What is an economic measure of development?

Answer 5

GNI (Gross National Income) = total value of goods + services + investment / by the number of people in the population

The world bank uses GNI/capita to classify countries

Question 6

What are the limitations of GNI?

Answer 6

• It accounts only for income in terms of economic development and offers no insight into quality of life
• It is also an average so it doesn’t show the inequalities in the division of money of a country and so hides information about people who are very rich or very poor

Question 7

What are features of an LIC?

and examples of one

Answer 7

• lots of primary jobs
• low quality of life
• inadequate services
• few opportunities
• roughly 30 countries

e.g. Chad, Niger, Somalia

Question 8

What are features of an NEE?

and examples of one

Answer 8

• rapid economic growth
• mainly based around the growth factories
• incomes are growing
• q of l is growing

e.g. Russia, Mexico, China

Question 9

What are features of an HIC?

and examples of one

Answer 9

• large service sector
• most people have a high standard of living
• efficient modern industry

e.g. Canada, Australia, UK

Question 10

What are the 7 social measures of development?

Answer 10

• birth rate
• death rate
• infant mortality rate
• life expectancy
• people/doctor
• literacy rate
• access to clean water

Question 11

How is birth rate measured?

Answer 11

number of births / 1000 of population / year

Question 12

How is death rate measured?

Answer 12

number of deaths / 1000 of population / year

Question 13

How is infant mortality rate measured?

Answer 13

no. of babies under 1 / 1000 live births / year

Question 14

How is life expectancy measured?

Answer 14

average age the people can expect to live to

Question 15

How is no. of people/doctor measured?

Answer 15

number of doctors / number of people

Question 16

How is literacy rate measured?

Answer 16

% of adults who can read + write

Question 17

How is access to clean water measured?

Answer 17

% of people with access to clean water

Question 18

What are the limitations of the social measures of development?

Question 22

What are the 7 development strategies?

Answer 22

• foreign investment
• industrial development
• aid
• fair trade
• intermediate (appropriate technology)
• microfinance loans
• debt relief

Question 23

How does foreign investment help a country develop?

Answer 23

it is the multiplier effect
e.g.
- a TNC is opened in an LIC/NEE
- creates employment opportunity/jobs
- local businesses that supply the TNC will have more work so will need more staff + become wealthier
- more money is spent in the area in local businesses e.g. shops/cafes
- even more jobs created
- as businesses expand, they pay more tax
- the government have more money which they can invest
- new infrastructure - makes area more attractive to overseas firms
- more TNCs open here

Question 24

What problems are there with foreign investment?

Answer 24

• a lot of profit is likely to go back to the investers so a lot of the money doesn’t end up going to the country
• some TNCs set up businesses to access ‘cheap labour pools’ - e.g. no minimum wage/regulations on working conditions so don’t have to pay or treat their workers well

Question 25

fact for foreign investment

Answer 25

In 2020 Shell awarded contracts worth more than $0.8 billion to Nigerian registered businesses

Question 26

How does industrial development help a country develop?

Question 27

What problems are there with industrial development?

Question 28

fact for industrial development