The Changing Economic World (Paper 2) Flashcards
(118 cards)
<p>How can we measure development?</p>
<p>Through a range of different indicators:</p>
<ul> <li>GNI per capita</li> <li>birth rate/death rate</li> <li>infant mortality rate</li> <li>life expectancy</li> <li>people per doctor</li> <li>literacy rate</li> <li>access to safe water</li> <li>human development index (HDI)</li> </ul>
<p>What is Gross National Income (<strong>GNI</strong>)?</p>
<p>GNI is the total value of goods and services produced by a country plus money earned from overseas</p>
<p>What is the<strong>problem</strong>with using GNI?</p>
<p>Some countries may seem to have a high GNI as they are relatively wealthy and have a small population but it doesn't always mean that the population have a good quality of life</p>
<p>What are the limitations of using<strong>economic</strong>and<strong>social</strong>indicators to measure development?</p>
<ul>
<li>Data might be outdated</li>
<li>Some data is difficult to collect</li>
<li>Some information is unreliable</li>
<li>Informal work isn't included in data</li>
<li>Government may be corrupt</li>
</ul>
<p>What is the<strong>demographic transition model</strong>?</p>
<p>A geographical model that shows how a country's population changes over time</p>
<p>How is the demographic transition model linked to development?</p>
<p>As a country develops (becomes richer) the population of the country also changes. Typically, the birth rate and death rate lower as a country develops</p>
<p>What is happening at stage 1 of the demographic transition model?<em>(comment on births ,deaths and overall population)</em></p>
<ul> <li>High birth rate</li> <li>High death rate</li> <li>Population is stable and low</li> </ul>
<p>What is happening at stage 2 of the demographic transition model?<em>(comment on births, deaths and overall population)</em></p>
<ul> <li>Birth rate high</li> <li>Death rate starts to decline</li> <li>Population begins to increase</li> </ul>
<p>What is happening at stage 3 of the demographic transition model?<em>(comment on births, deaths and overall population)</em></p>
<ul>
<li>Birth rate drops rapidly</li>
<li>Death rate continues to slowly decrease</li>
<li>Population increasing at a slow rate</li>
</ul>
<p>What is happening at stage 4 of the demographic transition model?<em>(comment on births, deaths and overall population)</em></p>
<ul> <li>Low birth rate</li> <li>Low death rate</li> <li>Population is high</li> </ul>
<p>What is happening at stage 5 of the demographic transition model?<em>(comment on births, deaths and overall population)</em></p>
<ul> <li>Extremely low birth rate</li> <li>Death rate increases slightly (due to ageing population)</li> <li>Population decreases</li> </ul>
<p>What does the Demographic Transition Model look like?</p>
<p>What is '<strong>uneven development</strong>'?</p>
<p>Uneven development within a country is when some places develop, whilst others do not progress</p>
<p>On a global scale, some countries are experiencing development whilst many are not</p>
<p>List the<strong>factors</strong>that cause uneven development</p>
<ul>
<li><strong>Physical</strong>causes: Landlocked countries, climate, extreme weather, lack of water</li>
<li><strong>Economic</strong>causes: trade</li>
<li><strong>Historical</strong>causes: Colonialism</li>
</ul>
<p>How can<strong>physical</strong>factors cause uneven development?</p>
<ul>
<li>Landlocked countries do not have a coastline so find it difficult to trade</li>
<li>Tropical climates: pests and diseases spread easily</li>
<li>Extreme weather e.g. drought hinders development</li>
</ul>
<p>How<strong>economic</strong>factors such as trade can cause uneven development?</p>
<p>Rich countries often buy raw materials from poor countries at a low cost. They then make these into higher priced manufactured goods and sell them on. Rich get richer, poorer remain poor</p>
<p>How can<strong>historical</strong>factors such as colonialism can cause uneven development?</p>
<p>Many richer nations such as North America and Europe had powerful colonies in Asia, Africa and South America. When the colonies gained independence, they had limited governance and order in society which destabilized these area and hindered development</p>
<p>Name some problems caused by uneven development</p>
<ul> <li>Big differences in health</li> <li>Big differences in wealth</li> <li>Migration (people move away from hardship)</li> </ul>
<p>Give some examples of<strong>health</strong>differences that result from uneven development</p>
<p><strong>LICs</strong>- most deaths are children under 15. Common causes of death are HIV/AIDS or diarrhoea related diseases and malaria</p>
<p><strong>HICs</strong>- most deaths are amongst people over 70. Common causes of death are heart disease, diabetes</p>
<p>Give some evidence to prove global disparities (differences) in<strong>wealth</strong></p>
<ul>
<li>Fastest growth in wealth was North America (2014)</li>
<li>Qatar is the wealthiest country</li>
<li>China has had the highest growth in wealth of all NEEs</li>
<li>Africa has the smallest share of global wealth at 1%</li>
</ul>
<p>Why does uneven development lead to<strong>migration</strong>?</p>
<p>People suffering from the negatives of uneven development (e.g poverty, poor health) want to move away in search of an improved quality of life</p>
<p>What is the name given to people who move in search of work?</p>
<p>An economic migrant e.g. Europeanmigrants moving to the UK</p>
<p>Name the<strong>8</strong>strategies that can be used to<strong>close the development gap</strong></p>
<ul> <li>Investment</li> <li>Industrial development</li> <li>Tourism</li> <li>Aid</li> <li>Intermediate technology</li> <li>Fairtrade</li> <li>Debt Relief</li> <li>Micro finance loans</li> </ul>
<p>How can<strong>investment</strong>close the development gap?</p>
<p>Investment means spending money in a business of location. This is usually done by big companies (TNCs) in order for them to increase their profit, but it can improve the facilities for people in LICs and create jobs (multiplier effect)</p>
How can industrial development close the development gap?
Developing an industry in an LIC triggers the multiplier effect. It creates jobs, which then increases spending and more facilities and services will then open, creating more jobs. More local people working means more tax is paid meaning the government can improve services for local people e.g. education
How can tourism close the development gap?
Some countries have amazing environments which make them an attractive location for tourists. This has led to the development of hotels and tourist attractions which create jobs and spending in the LIC. More local people get employed in the tourism industry which leads to more tax paid to the government
How can aid close the development gap?
Aid is a donation of money or needed resources (e.g. food, water). This money can then be spent on improving infrastructure or facilities such as education which then benefits the local people
How can intermediate technology close the development gap?
Intermediate technology is technology that is appropriate to a country. This could include building a well which then can be used to improve the quality of life for people i.e. not having to walk hours for water. It must not replace local peoples' jobs
How can fairtrade close the development gap?
Fairtrade aims to improve the standards for poor farmers. As a result of fairtrade, the farmer will gain a more fair share of the earnings, which they can reinvest in improving their farm
How can debt relief close the development gap?
Debt relief means to cancel the debt of a country that is struggling to meet its repayments. The debt can be cancelled in exchange for the LIC spending more money on hospitals and schools
How can micro finance loans close the development gap?
Micro finance loans are small loans given to communities in LICs to help them start their own business. This is often because they don't have the initial money to begin the business
Give a named example of a place that has used tourism to close the development gap
Jamaica
What evidence is there that Jamaica needs development?
- It has slow economic growth
- It has high debts
- High unemployment
Give some evidence that proves tourism has closed the development gap in Jamaica
- Tourism contributes 24% to Jamaica's GDP
- Tourism provides jobs for 200,000 people
- Development of new ports
- Improved quality of life for people in the North (Ocho Rios)
- Natural environment has been improved by landscaping
Give some evidence that suggests tourism has NOT been successful in closing the development gap in Jamaica
- Tourists don't spend very much in Jamaica (average $70)
- Not all parts of the island have been improved which leaves some parts more isolated
- Not everyone in Jamaica has benefited from tourism, meaning they still live in poor housing with inadequate services
What does NEE stand for?
Newly Emerging Economy
What is an Newly Emerging Economy?
A country that is going through a period of rapid economic growth
Give an example of the NEE you have studied
Nigeria
Where is Nigeria located?
Nigeria is a country located in Western Africa
Why is Nigeria an important country globally?
- It is the world's 21st largest economy
- It supplies 2.7% of the world's oil (12th larger producer)
- It has a diverse economy offering a range of jobs in the tertiary and quaternary sector
- It is a big player in UN global peace keeping missions
Why is Nigeria an important city nationally?
- It has one of the fastest growing economies in Africa
- High GDP
- High farm output
- Location of TNC, Shell
Describe the political context of Nigeria
- Gained independence from the UK in 1960
- Has a history of civil war
- Many companies now investing in Nigeria
- It has links with OPEC (Organisation of Petroleum Exporting Countries), UN and the African Union
Describe the social context of Nigeria
- Diverse religious beliefs
- Increasing levels of conflict between different groups
- Rise of extremist groups e.g. Boko Harem
Describe the cultural context of Nigeria
- Diverse and varied culture
- Popular Nigerian cinema: Nollywood
- Range of music and sports events
Describe the environment of Nigeria
Northern Nigeria is semi-desert
Southern Nigeria: high temperatures and high rainfall
What does Nigeria export?
Crude oil, refined petroleum, natural gas, rubber, cocoa and cotton
What are Nigeria's main imports?
Cars, refined petroleum, rice, wheat and telephones (due to its rising wealth)
How has Nigeria's industrial structure changed over time?
- Decrease in agriculture
- Increase in industry
- Increase in services
- Overall more balanced economy
Why has Nigeria's industrial sector changed?
- Less agriculture due to increase in machinery
- Increase in industry due to industrialisation
- Growth of communications and retail
What products does Nigeria manufacture?
Processed foods, leather items, textiles, soaps and detergents
What impact is the growing manufacturing sector having on Nigeria's economy?
More formal work = more population paying tax
More regular paid work = more employed
Lots of manufacturing industries are connected so they create work for each other - TNCs are attracted to Nigeria
What does TNC stand for?
Transnational Corporation
Describe the characteristics of a TNC
Headquarters are located in one country
Production plantations in several others
What might a TNC choose to locate in a country?
- Access to cheaper labour
- Access to new markets (to sell their product)
- Less environmental laws to adhere
- Tax breaks
Name some advantages of TNCs for the host country
- New skills learned by people
- Creates more jobs
- TNCs often invest in infrastructure of the country
- Can reduce poverty
Name some disadvantages of TNCs for the host country
- Poor working conditions for workers
- Low pay
- Higher skilled / higher paid jobs often given to foreign workers
- Profits drains from the area
- The financial incentives offered to attract TNCs can often be better spent investing in healthcare etc.
Name the case study of a TNC that invested in Nigeria
Shell
What type of company is Shell?
An oil company
What are the advantages of Shell to Nigeria?
- Generating a lot of wealth for Nigeria
- Directly employing 65,000 people and 250,000 indirectly
- 91% of all of Shell's work contracts are given to Nigerian companies rather than foreign companies
What are the disadvantages of Shell to Nigeria?
Extracting oil creates problems for the natural environment:
- Oil spills cause water pollution and are difficult to clean up
- Ecosystems are killed off if oil enters water systems; affecting fishing industries
- Oil flares give off harmful fumes into the air
- Theft of oil is becoming a big problem
Name the two different types of aid
Emergency aid and development aid
What is emergency aid?
Aid that is given directly after a natural disaster e.g. an earthquake. Aid may take the form of water, food, medical supplies
What is development aid?
Aid that happens over a longer term. It may be provided by governments or charities and may include providing education or access to safe water wells in order to improve quality of life
What impact can aid have on the receiving country? (+ and -)
+ Aid can immediately improve a situation e.g. providing medical aid after a disaster
+ Aid can provide people with the means of helping themselves i.e. tools / knowledge
+ Aid can be the trigger to start development i.e. financial support to start a businesses
- Receiving countries can become reliant upon donor countries
- Some forms of aid aren't suitable i.e. some technologies
Why is Nigeria in need of aid?
- It has large amounts of people living in poverty (60+% of the population live on less than US$1 per day
- Infant mortality rate is high
- Life expectancy is low
What aid does Nigeria receive?
Some money from HICs - UK and USA World Bank funded business start ups Charity work in communities
What impact has aid had in Nigeria?
+ Most successful aid has been in small communities
+ World Bank donations helped start up new businesses which reduced over reliance on oil industry
+ Education projects from the USA aim to educate population about HIV/AIDS prevention
+ 'Nets for Life' provide mosquito nets to households
Why is aid sometimes difficult to implement?
- Sometimes governments are corrupt which means aid isn't spent on what it is meant to be spent on
- Aid may come with conditions
- Aid is sometimes used to promote interests of the donor country
Summarise the Aduwan Health Centre (Nigeria) example
- Previously no health clinic
- High levels of HIV/AIDS in the community
- High infant mortality rate
- ActionAid helped to fund build health clinic
- Trained local people about immunisations
- Tested for HIV and other illnesses
How has industrial development impacted the environment of Nigeria?
- Lots of illegal industries have developed
- In Lagos, many chemicals enter water systems
- Ecosystems damaged by industrial waste
- Dumping industrial waste on land means some chemicals pollute groundwater
- High levels of deforestation to make room for developments
- Land is becoming drier due to large scale dam developments
What are the impacts of urban growth in Nigeria?
- High proportions of squatter settlements
- Lack of adequate provisions of services
- Difficulty removing waste
- High levels of traffic congestion and pollution
What has been the impact of farming on the environment of Nigeria?
- Lots of water pollution as a result of illegal farming practices
- Building of roads to access farms has led to high levels of deforestation
- Increased CO2 emissions
- Loss of habitats (500+ plants destroyed)
What has been the impact of mining on the environment of Nigeria?
- Digging up the ground in search of minerals can cause soil to erode
- Eroded soil can be irreversible
- Oil spills can cause fires
How has economic development affected the quality of life in Nigeria?
- Better paid jobs available in manufacturing or services
- Higher disposable income
- Improved access to clean water
- Improved infrastructure
Has all of Nigeria benefited from economic development?
- Nigeria has seen one of the world's biggest improvements in HDI
- Many Nigerian's still lack access to clean water Nigeria still depends heavily on oil.
- Nigeria hasn't fully diversified its economy
Define 'primary sector'
Extracting a raw material e.g. mining or farming
Define 'secondary sector'
Manufacturing e.g. ship building, car making
Define 'tertiary sector'
Providing a service e.g. teacher, shop keeper
Define 'quaternary sector'
High tech, knowledge and skills based jobs e.g. IT, research and development
How has the UKs economic structure changed?
- Increasing numbers employed in tertiary (Services)
- Less employed in primary and secondary
- Increasing number employed in quaternary
What has caused the UKs change of economic structure?
- The Industrial Revolution of the 19th century led to the increase in manufacturing
- Deindustrialization led to the decline of manufacturing as it shifted to Asia
- Globalisation - led to the increase in quaternary sector and decline in manufacturing in some HICs
Define globalisation
The increasing interconnections between places around the world, made possible by developments in transport, technology. It leads to the increased movement of goods, services and people around the world
Define deindustrialisation
The loss of a country's manufacturing industry caused by overseas competition or loss of raw materials.
What government policies have shaped the UK's economy?
1945-79: Government supported failing industries. A period of strikes and power cuts
1979-2010: Government privatised businesses to create more competition. Old industrial land was changed into new retail parks
2010+ : Government aimed to rebalance the economy. They did this by encouraging new businesses through investment in manufacturing and improving infrastructure
What is the post industrial economy?
The growth in the tertiary and quaternary sectors that followed the decline of manufacturing industries
How has IT led to the development of a post-industrial economy?
- Lots of data and information can be stored and shared
- Instant communication around the world
- Broadband in more remote areas connects more places
- Smart phones allow people to work from home
Name some jobs in the service sector in the UK
Finance, banking, insurance, security
Name some of the UKs research industries
- Universities
- Ministry of Defence
- NHS
- Charities e.g. Cancer Research
Why is the research industry important to the UK economy?
- Lots of highly skilled workers
- Contributes large amount to the economy
- Growing industry
What is a science park?
A group of scientific and technical knowledge-based businesses located on one site
Why are science parks important to the UK?
- They support tertiary industries such as finance
- Employ large amount of people (75,000 across 100 sites)
- Employs skilled graduates
What is a business park?
An area of land comprising of a selection of businesses usually located on the edges of towns
Why are businesses parks located on the outskirts of towns/cities?
- Close to transport links
- Land is often cheaper to build on
- More land available to expand the business park later
- Businesses can collaborate
What impact does the car industry have on the physical environment?
- Creates air pollution contributing to climate change and breathing problems
- Large amounts of plastic waste created
- Manufacturing cars uses a lot of energy
- Most cars use petrol to run which increases demand for oil drilling
What has the car industry done to be more sustainable?
- Move towards electric cars e.g. Nissan Leaf
- Reduce the waste going to landfill
- Use less water and energy in production has reduced Nissan, Sunderland now only produces electric cars
Name the case study example of a place experiencing rural population decline
Outer Hebrides
Name the case study example of a place experiencing rural population growth
South Cambridgeshire
Why is South Cambridgeshire's population growing?
Lots of migrants from Eastern Europe
What are the social impacts of population growth in South Cambridgeshire?
- Increased car ownership is causing more traffic congestion
- Decline in use of services as commuters use facilities in the city
- loss of community spirit in the rural areas
- young people driven out due to high cost of living
What are the economic impacts of population growth in South Cambridgeshire?
- Loss of employment in farming
- Lack of affordable housing
- Increasing numbers of poor migrants which puts strain on services
Why is the Outer Hebrides population declining?
Isolated location, lack of job opportunities for young
What are the social impacts of population decline in the Outer Hebrides?
- Number of school children will fall
- Fewer people of working age left
- Increasing ageing population puts strain on area
What are the economic impacts of population decline in the Outer Hebrides?
- Loss of fishing industry
- Farming jobs don't offer full time employment
- Increasing levels of tourism has meant the area can't cope with the high levels of visitors
How have the UK's roads been improved?
- South-west super highway
- Extra lanes added to motorways
- Development of smart motorways
How have the UK's railways been improved?
- Making railways electric
- Development of High Speed 2 (HS2) - connecting South with Northern cities
- London's Crossrail
What is the purpose of the road and rail improvements in the UK?
- Boost regional growth in declining areas Increase employment (better infrastructure attracts businesses)
- Reduces congestion and pollution
- Reduce travel time
- Connects Southern and Northern Cities
How have the UK's ports been improved?
Liverpool2 - doubling the ports capacity to trade
How have the UK's airports been improved?
Expanding Heathrow - building extra terminal and increase runways
What is the purpose of the port improvements in the UK?
- Increase trading opportunities
- Reduce the amount of freight on the roads
- Create jobs
What is the purpose of the airport improvements in the UK?
- Creates jobs
- Boosts the economy
- Supports local businesses
What is the North-South divide?
The divide between the North and the South of England. Generally, the South earn higher incomes, have a better of standard of living compared with the North
What is the evidence for the North - South divide?
- Wages are generally lower in the North
- Health is generally worse in the North
- Exam results are generally worse in the North
Why is there a North - South divide?
- North was prosperous during Industrial Revolution
- The North was impacted heavily after heavy industries, such as ship building and mining, declined after 1970s
- The South adapted and developed a strong service industry due to its proximity to the capital
How is the government trying to reduce the North - South divide?
- Devolving power
- Creating Enterprise Zones
- Northern Powerhouse - a government plan to attract investment to the North
- Improving infrastructure (HS2, improving motorways)
How does 'devolving power' to local councils help to close the North - South divide?
Giving councils the power to choose how they spend money to best suit the needs of the area. e.g. transport or regeneration
How does the creation of 'enterprise zones' help to close north - south divide?
Enterprise zones offer incentives to businesses that locate there, e.g. reduced taxes, access to good infrastructure, less planning restrictions - this encourages more businesses to the area, reducing unemployment
What is the Northern Powerhouse? How does it close the North - South divide?
It is a government plan to focus on improving the north of England. It includes specific plans to encourage more investment in the North and improved transport to connect it to the South
In what ways is the UK connected to other countries?
Trade - the UK trades with the USA, Asia and Europe
Culture - British TV shows are shown worldwide
Transport - the UK is well connected by the Channel tunnel, rail and airports
Electronic communications - most internet and phone cables connect USA to Europe via UK
EU - being a member of the EU allows the UK to freely trade with other EU countries
Commonwealth - the UK is part of the commonwealth with aims to improve the well being of other Commonwealth countries
