The Changing Economic World Flashcards
(180 cards)
1
Q
What is development?
A
Development is the progress in economic growth, use of technology, and improving quality of life in a country.
2
Q
What is the global development gap?
A
The global development gap refers to the difference in development levels between more developed countries and less developed countries.
3
Q
What are some measures of development?
A
Measures of development include Gross National Income (GNI), GNI per capita, birth rate, death rate, infant mortality rate, people per doctor, literacy rate, access to safe water, and life expectancy.
4
Q
What is Gross National Income (GNI)?
A
GNI is the total value of goods and services produced by a country in a year, including income from overseas.
5
Q
What is GNI per capita?
A
GNI per capita is the GNI divided by the population of a country, often given in US$.
6
Q
What does a higher literacy rate indicate?
A
A higher literacy rate indicates better education levels among adults.
7
Q
What is the significance of life expectancy?
A
Life expectancy is the average age a person can expect to live, indicating health standards in a country.
8
Q
What is a limitation of GNI per head?
A
GNI per head can be misleading as it is an average and does not reflect variations within the country.
9
Q
Why can social indicators be misleading?
A
Social indicators can be misleading if used on their own because some aspects of development may improve before others.
10
Q
Give an example of misleading development indicators.
A
Cuba has a low birth rate suggesting higher development, but a relatively high death rate suggesting lower development.
11
Q
How are countries classified based on wealth?
A
Countries are classified by looking at their wealth, often using terms like Higher Income Countries (HICs), Lower Income Countries (LICs), and Newly Emerging Economies (NEEs).
12
Q
What are Higher Income Countries (HICs)?
A
HICs are the wealthiest countries in the world, where the GNI per head is high.
Examples: UK, USA, Canada, France.
13
Q
What are Lower Income Countries (LICs)?
A
LICs are the poorest countries in the world, where the GNI per head is very low.
Examples: Afghanistan, Somalia, Uganda.
14
Q
What are Newly Emerging Economies (NEEs)?
A
NEEs are countries that are rapidly getting richer as their economy shifts from primary industry to secondary industry.
Examples: BRICS (Brazil, Russia, India, China, South Africa) and MINT (Mexico, Indonesia, Nigeria, Turkey).
15
Q
What is the Human Development Index (HDI)?
A
The HDI combines measures of income (GNI per head), life expectancy, and education level to assess development. Every country has an HDI value between 0 (least developed) and 1 (most developed).
16
Q
What does the HDI value indicate?
A
The HDI value indicates a country’s level of economic development and the quality of life for its residents.
17
Q
How does the classification of countries by HDI compare to GNI per head?
A
The classification by HDI mostly resembles that of GNI per head, but there are differences; for example, Nigeria is an NEE by wealth but has a low HDI.
18
Q
What are the HDI classifications?
A
HDI classifications are: Very high (>0.8), Medium-High (0.55-0.8), and No data.
19
Q
What is natural increase?
A
Natural increase occurs when the birth rate is higher than the death rate.
20
Q
What is natural decrease?
A
Natural decrease occurs when the death rate is higher than the birth rate.
21
Q
How do birth rates and death rates vary?
A
Birth rates and death rates differ from country to country, depending on the level of development.
22
Q
What is the demographic transition model (DTM)?
A
The DTM shows how birth rates and death rates affect population growth.
23
Q
What characterizes Stage 1 of the DTM?
A
Stage 1 has high and fluctuating birth and death rates, with no countries currently at this stage.
24
Q
Why is the birth rate high in Stage 1?
A
The birth rate is high due to no use of contraception and high infant mortality rates.
25
What is the population growth rate in Stage 1?
The population growth rate is zero.
26
What characterizes Stage 2 of the DTM?
Stage 2 has high birth rates and falling death rates, with many low-income countries (LICs) in this stage.
27
Why do people have many children in Stage 2?
People have many children because the economy is based on agriculture.
28
What characterizes Stage 3 of the DTM?
Stage 3 has rapidly falling birth rates and low, fluctuating death rates, with most newly emerging economies (NEEs) at this stage.
29
What causes the birth rate to fall in Stage 3?
The birth rate falls due to increased use of contraception and more women working.
30
What characterizes Stage 4 of the DTM?
Stage 4 has low and fluctuating birth and death rates, with most high-income countries (HICs) at this stage.
31
What is the population growth rate in Stage 4?
The population growth rate is zero.
32
What characterizes Stage 5 of the DTM?
Stage 5 has very low birth rates and a negative population growth rate, with some HICs at this stage.
33
Why are birth rates low in Stage 5?
Birth rates are low because people expect a high standard of living and may have dependent elderly relatives.
34
What is natural increase?
Natural increase occurs when the birth rate is higher than the death rate.
35
What is natural decrease?
Natural decrease occurs when the death rate is higher than the birth rate.
36
How do birth rates and death rates vary?
Birth rates and death rates differ from country to country, depending on the level of development.
37
What is the demographic transition model (DTM)?
The DTM shows how birth rates and death rates affect population growth.
38
What characterizes Stage 1 of the DTM?
Stage 1 has high and fluctuating birth and death rates, with no countries currently at this stage.
39
Why is the birth rate high in Stage 1?
The birth rate is high due to no use of contraception and high infant mortality rates.
40
What is the population growth rate in Stage 1?
The population growth rate is zero.
41
What characterizes Stage 2 of the DTM?
Stage 2 has high birth rates and falling death rates, with many low-income countries (LICs) in this stage.
42
Why do people have many children in Stage 2?
People have many children because the economy is based on agriculture.
43
What characterizes Stage 3 of the DTM?
Stage 3 has rapidly falling birth rates and low, fluctuating death rates, with most newly emerging economies (NEEs) at this stage.
44
What causes the birth rate to fall in Stage 3?
The birth rate falls due to increased use of contraception and more women working.
45
What characterizes Stage 4 of the DTM?
Stage 4 has low and fluctuating birth and death rates, with most high-income countries (HICs) at this stage.
46
What is the population growth rate in Stage 4?
The population growth rate is zero.
47
What characterizes Stage 5 of the DTM?
Stage 5 has very low birth rates and a negative population growth rate, with some HICs at this stage.
48
Why are birth rates low in Stage 5?
Birth rates are low because people expect a high standard of living and may have dependent elderly relatives.
49
What factors contribute to a country being less developed?
Colonisation, poor climate, poor farming land, few raw materials, lots of natural disasters, poor trade links, an economy based on primary products, and lots of debt.
50
How does a poor climate affect a country's development?
A poor climate leads to low food production, which can cause malnutrition and a low quality of life.
## Footnote
Example: Chad and Ethiopia experience malnutrition due to harsh climates.
51
What is the impact of poor farming land on development?
Poor farming land makes it difficult to grow crops or graze animals, leading to similar effects as a poor climate.
52
How do natural disasters affect a country's development?
Natural disasters require significant funds for rebuilding, reducing the government's ability to invest in development projects.
## Footnote
Example: Bangladesh frequently faces floods.
53
What role do raw materials play in a country's development?
Countries with few raw materials have less to export, limiting their income and ability to invest in development.
54
How does trade influence a country's level of development?
Poor trade links result in low income from trade, which means less money available for development.
55
Why are countries that export primary products often less developed?
Primary products are sold for lower profits than manufactured goods, and their prices can fluctuate significantly.
56
What is the impact of debt on a country's development?
Countries with high debt levels have to allocate funds to repayment, leaving less available for development.
57
What is uneven development?
Uneven development refers to the disparities in economic growth and wealth between different countries and regions.
58
What are historical causes of uneven development?
Colonisation is a major historical cause of uneven development.
59
How does colonisation affect development?
Countries that were colonised often have lower development levels upon gaining independence than they would have had without colonisation.
60
What was the impact of European colonisation?
European countries colonised many regions, extracting raw materials and selling manufactured goods back, which increased inequality.
61
What are some consequences of uneven development?
1) Higher income in developed countries compared to less developed ones. 2) Inequalities in wealth within countries. 3) Wealth impacts standard of living.
62
What is an example of income disparity due to uneven development?
GNI per head in the UK is over 40 times higher than in Chad.
63
What is an example of wealth inequality within a country?
In 2017, the richest 10% of Kenya's population earned, on average, 23 times more than the poorest 10%.
64
How does wealth impact standard of living?
Wealth allows access to goods and services that enhance comfort and convenience, such as cars.
65
What role does conflict play in uneven development?
War can slow or reduce development, diverting resources from development to military spending.
66
What are the effects of war on development?
War damages infrastructure, disrupts essential services, and can lead to increased mortality and decreased literacy rates.
67
What was Syria's HDI value change due to war?
Syria's HDI value dropped from 0.65 in 2008 to 0.54 in 2016 due to the war.
68
How does uneven development affect health?
Healthcare is usually better in developed countries, leading to longer life expectancies and lower infant mortality rates.
69
What is the life expectancy in the UK compared to Chad?
The UK's life expectancy is 81 years, while Chad's is only 53 years.
70
What is the infant mortality rate in Chad compared to the UK?
Chad's infant mortality rate is 73 per 1000 births, compared to 3.7 per 1000 births in the UK.
71
What diseases can lead to high mortality in LICs and NEEs?
Diseases that are easily treatable in HICs can lead to high mortality rates in LICs and NEEs.
72
What is an example of a disease causing high mortality in LICs?
In 2016, diarrhoea was estimated to have killed over 1.4 million people in South Asia and sub-Saharan Africa.
73
Why do many people migrate from LICs and NEEs to HICs?
Many migrate to escape conflict or improve their quality of life.
74
What is an example of migration from an NEE to an HIC?
Over 130,000 people move from Mexico (an NEE) to the USA (an HIC) legally each year.
75
How do migrant workers affect HIC economies?
Migrant workers contribute to the economies of HICs, increasing the development gap with their home countries.
76
What is foreign-direct investment (FDI)?
FDI is when people or companies in one country buy property or invest in infrastructure in another country.
77
What are the benefits of FDI?
FDI leads to better access to finance, technology and expertise, improved infrastructure and industry, and an increase in services.
78
What was the amount of FDI received by Vietnam between 1987 and 2018?
Vietnam received FDI worth more than US $182 billion, which helped to develop many industries, such as motorbike manufacturing and telecommunications.
## Footnote
Example of FDI impact in Vietnam.
79
What is aid in the context of development?
Money or resources (e.g. food, medicine) are given to a country by a charity or foreign government.
80
How is aid typically used?
The money is used for development projects, such as constructing schools, building dams and wells, and providing farming knowledge and equipment.
81
What was the UK's aid contribution to South Sudan in 2018-2019?
The UK provided over £180 million in aid to South Sudan, funding 17 projects that included improving access to water, healthcare, and education.
## Footnote
Example of UK aid impact in South Sudan.
82
What are some challenges associated with aid?
Aid can be wasted by corrupt governments, and projects can stop working if there isn't enough local knowledge and support once the money runs out.
83
What is the fair trade movement?
The fair trade movement aims for farmers in LICs to get a fair price for the goods they produce, allowing them to provide for their families.
84
What do companies have to do to sell fair trade products?
Companies must pay producers a fair price for their goods.
85
What is the purpose of the premium paid by buyers in fair trade?
Buyers pay extra so that farmers receive a premium to help develop their local area.
86
What did Fairtrade tea farmers in Malawi do with their premium in 2016?
They used some of their premium to expand their local hospital, build a new school, and install a pipeline for clean water.
## Footnote
Example of fair trade impact in Malawi.
87
What are some problems with the fair trade system?
In some cases, only a tiny proportion of the extra money reaches the producers, while the rest boosts retailers' profits.
88
What is intermediate technology?
Intermediate technology includes tools, machines, and systems that improve quality of life but are simple to use, affordable to buy or build, and cheap to maintain.
89
What is an example of intermediate technology used in Nepal?
Solar-powered LED lightbulbs are used in parts of Nepal, allowing people to work and children to study after dark.
## Footnote
Example of intermediate technology in Nepal.
90
What is microfinance?
Microfinance is when small loans are given to people in LICs who may not be able to get loans from banks.
91
What is a benefit of microfinance in Ethiopia?
People who joined a microfinance organization in the Amhara region of Ethiopia benefited from higher incomes and were able to invest in more livestock.
## Footnote
Example of microfinance impact in Ethiopia.
92
What are some potential problems with microfinance?
Microfinance can encourage people to get into debt, and it is unclear if it can reduce poverty on a large scale.
93
What type of economy is India classified as?
India is classified as a Newly Emerging Economy (NEE) in Southern Asia.
94
What is India's population?
India has the second largest population in the world, around 1.3 billion, and it is still growing.
95
What role does India play in South Asia?
India has the biggest population and economy in South Asia, playing a major role in trade and politics in the region.
96
How does India's location benefit its trade?
India's position in the Indian Ocean has allowed it to establish trade links with Southeast Asia and the Middle East.
97
What are some of India's global contributions?
India exports services (e.g. IT support) and manufactured goods (e.g. medicines) globally and is a member of the World Trade Organisation and the G20.
98
What is the Human Development Index (HDI) of India?
India has a medium level of development with an HDI of 0.64.
99
What are some social inequalities in India?
There are large inequalities in India; some people are very wealthy, while over 20% of the population live in poverty.
100
What is the adult literacy rate in India?
The adult literacy rate in India is still less than 75%.
101
What cultural aspects are prominent in India?
India has over 22 officially recognized languages, major religions, and is known for 'Bollywood' films and distinctive music and dance styles like Bhangra.
102
What is the significance of India's landscape?
India has a varied landscape, including the Himalayas, the Thar Desert, and fertile floodplains, which support agriculture and tourism.
103
What percentage of the workforce is employed in primary industry in India?
Primary industry employs 42% of the working population but only makes up 15% of GDP.
104
How has secondary industry changed in India from 1999 to 2018?
In 1999, secondary industry employed 16% of the workforce; by 2018, it employed 24%.
105
What is the impact of employment growth in manufacturing?
Employment in manufacturing provides reliable jobs, stimulating economic growth as workers spend their income locally.
106
What has the government done in Hyderabad to attract industry?
The government has constructed new business districts and townships in Hyderabad to attract industry.
107
What percentage of the workforce is employed in tertiary and quaternary industries?
Tertiary and quaternary industries employ 34% of the workforce.
108
What contributes the most to India's GDP?
Tertiary and quaternary industries contribute the most to India's GDP, accounting for 62%.
109
What is the future outlook for India's manufacturing and service industries?
India's manufacturing and service industries are still growing quickly, likely increasing their proportion of GDP and workforce employment in the future.
110
What are Transnational Corporations (TNCs)?
TNCs are companies that operate in more than one country.
111
Where are TNC factories usually located?
TNC factories are usually located in lower income countries because labor is cheaper and there are fewer environmental and labor regulations.
112
Where are TNC offices and headquarters typically located?
TNC offices and headquarters are usually located in higher income countries due to better education and administrative skills.
113
What is an example of a TNC operating in India?
Unilever is one of the world's biggest food and consumer goods manufacturers operating in India.
## Footnote
Hindustan Unilever Limited is its Indian division.
114
What is one advantage of TNCs in India?
TNCs provide employment; for example, Unilever employs over 16,000 people in India.
115
How much tax do TNCs pay to the Indian government?
TNCs pay about 40% of their income as tax to the Indian government.
116
What is Project Shakti?
Project Shakti helps poor women in rural areas become entrepreneurs by providing loans and products for them to sell.
## Footnote
There are now about 75,000 women in the scheme.
117
What is a disadvantage of TNCs in India?
Some profits from TNCs leave India; for instance, Unilever is a Dutch-British company.
118
What environmental problems can TNCs cause?
TNCs can contribute to air and water pollution or deplete water supplies.
119
What criticism do some TNCs face regarding their employees?
Some TNCs are criticized for low pay and poor working conditions for their employees.
120
How is India's relationship with the wider world changing?
India is playing a larger role in regional and global politics and trade as it develops.
121
What tension exists between India, Pakistan, and China?
India, Pakistan, and China disagree over land ownership on the border, leading to increased risk of conflict.
122
What is the Act East policy?
The Act East policy aims to increase India's influence in Southeast Asia and provide security for the region.
123
What is the TAPI pipeline?
The TAPI pipeline carries natural gas from Turkmenistan, through Afghanistan and Pakistan to India.
124
How has India's trade policy changed since 1991?
India has reduced barriers to trade by lowering tariffs and forming free trade agreements.
125
What was the increase in foreign direct investment in India from 2005 to 2015?
Foreign direct investment in India increased from US $7.3 billion to US $44 billion.
126
How many foreign companies were operating in India in 2014?
In 2014, over 3,000 foreign companies were operating in India.
127
What types of aid does India receive?
India receives short-term and long-term aid from individual countries and international organisations.
128
How does short-term aid work?
Money and supplies are given to help countries cope with emergencies.
129
How does long-term aid work?
Money is invested in longer-term projects to help countries become more developed.
130
What is top-down aid?
An organisation or the government decides how aid should be used.
131
What is bottom-up aid?
Money or supplies are given directly to local communities so they can decide how to use aid themselves.
132
What improvements in quality of life have occurred in India?
There are more jobs, and daily wages have increased by about 42 Rupees since 2010.
133
What percentage of the population had access to clean water in 2008?
Access to clean water increased from 68% in 1990 to 88% in 2008.
134
What has happened to India's HDI since 2000?
Since 2000, HDI has increased from 0.49 to 0.64.
135
What are some negative aspects of jobs in industry?
Some jobs, like coal mining, can be dangerous or have poor working conditions.
136
What is a positive impact of aid during disasters?
It helps people survive disasters, but doesn't help long-term recovery.
## Footnote
EXAMPLE: In 2010, floods affected over 1.7 million people in northern India. UNICEF provided emergency supplies, including water purifying tablets and mosquito nets.
137
How can aid help India's long-term development?
Aid can improve infrastructure or education, but there are issues with corrupt officials misusing aid.
## Footnote
EXAMPLE: Until 2015, the UK sent £200 million a year to India to improve education, healthcare, and sanitation in the poorest areas.
138
What is a potential downside of development projects?
Projects can improve the economy but may not help the poorest people or be supported by local communities.
## Footnote
EXAMPLE: The Sardar Sarovar dam in Gujarat displaced over 300,000 people.
139
What is a benefit of targeted projects?
Projects provide help where it is needed most, improving health, skills, and income in poor communities.
## Footnote
EXAMPLE: The Self-Employed Women's Association (SEWA) trained local women to maintain and repair water pumps in Gujarat.
140
What are some environmental impacts of economic development in India?
India's energy consumption has increased, leading to pollution and habitat destruction.
141
What fuels are primarily used in India?
Fossil fuels like coal and oil are the most readily available and affordable, but they release pollution and greenhouse gases.
142
What is the state of air pollution in Delhi?
Delhi has the worst air pollution in the world.
143
How has economic development affected forest cover in India?
Since 1990, India's forest cover has stopped decreasing and started to grow.
144
What are the negative environmental impacts of industry?
Industry can release pollutants or greenhouse gases, and consumes significant energy and water. Extracting raw materials can damage habitats and release toxic chemicals into water.
145
How are modern industrial developments more sustainable?
They are more sustainable due to increasing energy and waste disposal costs, stricter environmental regulations, and better awareness.
146
What sustainable practices has the Unicom Group implemented?
Unicom Group has installed solar panels and biomass boilers, sourcing 100% of its electricity from renewable sources and recycling leftover steel and plastic.
147
How is the UK improving its transport network?
The UK is upgrading roads to smart motorways, increasing rail capacity, and expanding airport and port facilities.
148
What is the purpose of the proposed HS2 line?
The HS2 line aims to increase rail capacity and allow faster journeys between major English cities.
149
What is the significance of the new runway proposal at Heathrow?
It would allow an extra 200 planes a day, but would also increase noise, air pollution, and greenhouse gas emissions.
150
What is the London Gateway port?
Opened in 2013, it can handle the world's largest container ships and aims to become a hub for global trade.
151
What are the UK's global trade statistics?
The UK trades globally, with overseas exports worth over £160 billion per year.
152
How does culture contribute to the UK's international links?
The UK's strong creative industries export culture worldwide, such as the Shaun the Sheep™ TV series shown in 170 countries.
153
What role does immigration play in the UK's culture?
Immigration has shaped the UK's culture, leading to diversity in food, art, and music.
154
What is the function of the Channel Tunnel?
The Channel Tunnel links the UK to France, providing a route to mainland Europe.
155
How do large airports like Heathrow contribute to the UK?
They act as international hubs, linking the UK to the rest of the world.
156
What is the role of electronic communications in the UK?
Telephones and the internet facilitate communication with other countries, strengthening overseas links.
157
What is the European Union (EU)?
The EU is an economic and political partnership of 27 countries, allowing free movement of goods and people.
158
What is the Commonwealth?
The Commonwealth is an association of 54 states, promoting cooperation between member countries through trade, aid, and sport.
159
What are the economic and social effects of changes in the UK economy on rural areas?
Changes in the UK economy can cause population growth or decline in rural areas, leading to various economic and social effects.
160
What was the population change in South Lakeland, Cumbria from 2005 to 2015?
The population of South Lakeland decreased by 0.8% from 2005 to 2015, with some places seeing a higher drop, such as 4.3% in Barrow.
161
What industries are in decline in Cumbria?
Agriculture and manufacturing are significant industries in Cumbria that are both in decline.
162
What are the economic impacts of population decline in Barrow?
Shops like Gamestation have closed, and others, including Marks and Spencer, are at risk of closure, affecting employment and the local economy.
163
What are the social impacts of population decline in rural areas?
Population decline can lead to a higher proportion of older people, putting strain on medical services and social care, and may result in the closure of schools and other services.
164
What was the population growth in North Somerset from 2005 to 2015?
North Somerset's population increased by about 7.8% between 2005 and 2015.
165
What are the economic impacts of population growth in North Somerset?
House prices rose by 6.7% in 2017-18, pricing out some locals, but employment and wages are above the national average.
166
What are the social impacts of population growth in North Somerset?
Roads are congested with commuters to Bristol, and some services, like schools, are oversubscribed, while an increasing elderly population puts pressure on healthcare.
167
What is the North-South divide in the UK?
The North-South divide refers to the economic and social indicators being more positive in the south than in the north, with the decline of heavy industry affecting the north more negatively.
168
How do wages differ between the north and south of the UK?
Wages are generally lower in the north than in the south; for example, the 2014 average weekly wage in Huddersfield was 40% lower than in London.
169
How does health compare between the north and south of the UK?
Health is generally worse in the north; for instance, life expectancy for male babies born in Glasgow in 2012 was 72.6 years, compared to 82.9 years in East Dorset.
170
How does education compare between the north and south of the UK?
GCSE results are generally better in the south of England than in the Midlands or the north.
171
Are there exceptions to the North-South divide?
Yes, there are wealthy areas in the north, like parts of Cheshire, and areas of high deprivation in the south, such as some parts of Cornwall.
172
What is the UK government's aim regarding regional differences?
The UK government is trying to reduce the north-south divide.
173
How is the UK government devolving more powers?
Scotland, Wales, and Northern Ireland have their own devolved governments, and some powers are being devolved to local councils in England.
174
What benefits do devolved governments have?
They can use money on schemes that benefit the local community, such as better public transport or regeneration projects.
175
What are Enterprise Zones?
Around 50 Enterprise Zones have been created across England, Scotland, and Wales to encourage companies to locate in areas of high unemployment.
176
What benefits do companies receive in Enterprise Zones?
Companies get reduced taxes, simpler planning rules, financial benefits, and improved infrastructure.
177
What is an example of an Enterprise Zone?
The Sheffield City Region Enterprise Zone was approved in 2011, leading to significant local economic benefits.
178
What projects were established in the Sheffield City Region Enterprise Zone?
Projects include the McLaren Composites Technology Centre and the Great Yorkshire Way road construction.
179
What is the Northern Powerhouse?
The Northern Powerhouse is the government's plan to reduce inequality between the north and south by attracting investment and improving transport links.
180
What criticisms exist regarding the Northern Powerhouse?
It has been criticized for being more of a concept than a plan, focusing on major cities rather than smaller towns.
