Economic Development Flashcards

Question

how does land ownership affect the inequalities between countries?

Answer 1

the distribution of this (tenure) has a major impact as the ownership of even a small bit of land provides the security that those in the countryside without land do not have

Answer 2

— in developing countries, those with the least amount of education tend to have the largest families. also, those with more education have better employment. maintaining a large family means saving is impossible and debt likely — standard of education varies as areas with more factories have more tax base, so more money is available to spend on education

Answer 3

there is an inequality between formal and informal work within a country

Answer 4

— provide better pay and security than in the informal sector — fringe benefits such as holiday and sick pay may be available

Answer 5

— generally low paid and temporary and or part time — outside the tax system

Answer 6

physical geography and human geography

Answer 7

— climate: extreme climates may make food production, building infrastructure and travel difficult — natural hazards: floods, hurricanes, volcanic eruptions etc. hinder development due to the costs of prevention and cure — availability of resources: resources including oil, coal, rich soil mean less resources to sell — placement: if a country is landlocked, transport is difficult

Answer 8

— population: high population growth hinders development since resources such as food, water, jobs and housing must be spread more thinly. The government must spend more money providing for the population — economy: open economies which welcome and encourage foreign investment develop faster. high rates of saving with low rates of spending (relative to GDP) increase rate of development. lack of corruption of government increases development

Answer 9

* High primary as there is little mechanisation on farms * Little secondary * Informal tertiary sector in the cities is quite strong

Answer 10

• Strong secondary sector as many transnationals move to NICs to take advantage of cheap labour and land

Answer 11

* Low primary as Farming mechanised * Lower secondary as Automation of manufacturing or transfer of manufacturing to NICs * Very strong tertiary sector with large numbers employed in health, education and tourism * Growth of jobs in the quaternary sector based on the processing of knowledge and information using telecommunications

Answer 12

1. Pre-industrial: primary decreases • Mechanisation of farms reduces need for farm workers. Rural workers migrate to the urban areas • Raw materials become exhausted leading to loss of mining jobs • Rural depopulation of farmers in MEDCs. Workers prefer the better paid and less physically demanding jobs in the tertiary sector

Answer 13

2. Industrial period: secondary increases, then decreases • Industrialisation initially requires a large secondary workforce • Factory jobs eventually replaced by automation • Manufacturing industries increasingly move from MEDCs to NICs where land and labour are cheaper

Answer 14

2. Post industrial: tertiary (and quaternary) increases • Large and growing informal tertiary sector in urban areas of LEDCs as workers migrate from the countryside • As a country develops, demand grows for services such as health, education and tourism • Strong growth in MEDCs of jobs in the knowledge economy based on the processing of knowledge and information using telecommunications • Increase in producer services for manufacturing industry, e.g. market research

Answer 15

the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange.

Answer 16

* Improvements in international transport by air and sea in the second half of the twentieth century which helped to move people and goods around the world more quickly and cheaply. * Development of technology, particularly the internet allowed information and ideas to spread across the world instantly. * The growth of TNCs encouraged the development of Newly Industrialised Countries (NICs) with large and growing markets. * Reduced labour costs in LEDCs / NICs. TNCs moved production into selected less economically developed countries to reduce costs. * Removal of trade barriers in many countries which allowed the free movement of goods, services and money around the world.

Answer 17

Large pool of labour, low wages and taxes and fewer restrictions (environmentally, socially)

Answer 18

- helps to create jobs for local people. - TNCs usually pay higher wages than local businesses which means employees have a higher income and a better standard of living. - bring wealth to the economy which has a positive multiplier effect on other local businesses - Local people learn new skills and how to make use of new technologies. - Most of the products manufactured by TNCs are exported which benefits the economy of the country. - TNCs pay tax to the government of the host country. This money can be invested in health, education and infrastructure.

Answer 19

- sometimes make employees work long hours in poor working conditions - Often profits made by the TNC are sent back to the MEDC where the company has it’s headquarters rather than benefiting the local community. - TNCs can close factories and transfer production to other low cost locations overseas with little warning. Local people are made redundant which brings a negative multiplier effect to a local area. - There are fewer laws about pollution in many LEDCs so TNCs may pollute the environment without danger of prosecution - TNCs become too important in the economy of the host country which becomes too dependent on the TNC. So the TNC may be able to influence decisions made by the government - Manufacturing jobs in MEDCs have reduced and many people are unemployed as TNCs move their factories abroad.

Answer 20

- established in 1972. - over the course of the last 40 years has become linked to many different parts of the world and is a good example of globalisation. - Its headquarters are at Beaverton in the USA, where much research and development takes place. - Much of the manufacturing for Nike, however, is done in factories across the world, factories to whom Nike subcontracts work. - In 2013 Nike had factories 765 factories in 43 countries employing over 1 million workers. - Most of the factories are in South-east Asia. - In China Nike uses 206 factories with 260,000 workers making products for Nike. - The reasons why Nike uses factories in these countries is because labour is cheap, the governments have offered incentives to company’s who locate there, raw materials are produced locally and cheap to obtain and there was an expanding market as countries like China have developed economically. - At first Nike sold its products in North America and Europe. - Its global links expanded in the 1980s, when Japan became the first major market in the Far East where Nike has set up a regional headquarters and opened some countries. - China has now become the second largest market for Nike products after the USA. - As China’s economy has continued to grow, some of its workers have become more affluent and can afford to buy Nike Products. As a result, Nike has shops in several cities in China

Answer 21

POSITIVE IMPACTS -has allowed 260,000 workers to be employed in 206 families, this means that lots of people get jobs easily. -This has also enabled economic development and industrialisation to take place in China and for China to develop as an NIC. -The increased per capita income has led to a rise in living standards and increased the government’s tax base. -This has enabled the government to develop and invest in the hard and soft infrastructure in the country NEGATIVE IMPACTS - China does not have strong environmental laws which has enabled Nike factories, in Guangzhou, to dump waste material from the dying and printing process into China’s rivers. One of China’s rivers has been so polluted it is no longer drinkable - The factories that produce products for Nike expect people to work for long hours and low pay. -China’s one child policy together with an ageing population has led to a decline in the workforce. This has led to a shortage of workers in some factories with factory owners having to increase wages in order to attract workers. -The increase in wages has meant that Nike may decide to relocate some of its production to Indonesia and other countries in SE Asia. This could increase unemployment in China.

Answer 22

- GNP per capita - HDI - adult literacy - life expectancy - infant mortality

Answer 23

- low wages - long hours, bad conditions - doesn’t provide sufficient training - poor + unsafe working conditions - allows supervisors to abuse workers - Nike stopped production in factories in Indonesia and relocated - negative impact on local companies which relied on Nike to buy their goods

Answer 24

- in 1992, took a code of conduct for all factories to protect workers rights and monitor environmental impacts + fire safety + air quality + minimum wage - in 2001, introduced the corporate responsibility report which set + monitored workers skills and set environmental targets to reduce greenhouse gas emissions - from 2012, Nike has inspected + monitored the performance of all its companies

Economic Development Flashcards

(49 cards)