Topic 2: the changing economic world

What is the human development index

Measure of development which takes account of all economic and social factors

What does the demographic transition model show

Shows how birth and death rate affect population growth

What happens in stage one of the DTM

. High birth rate due to low access to contraception but high rates of infant mortality

. High death rates due to famine and poor healthcare

What happens in stage 2 of the DTM

. High birth rate

. Better healthcare means lower death rate and higher life expectancy

What happens in stage 3 of the DTM

. Birth rate falls due to access to contraception and women working

. Improved healthcare leads to higher life expectancy and lower death rates

What happens in stage 4/5 of the DTM

• low birth rates

• Better healthcare means lower death rates and higher life expectancy

• Population size decreases

Physical reasons for uneven development

• poor climate so nothing can grow

• Poor farming land so no crops

• Few raw materials so les to export

• Lots of natural disasters

Economic factors of uneven development

• poor trade links

• Debt

• Economy based on primary products

Historial causes of uneven development

• colonialism

• Conflict

What are the consequences of uneven development

• poorer countries

• Worse healthcare

• International migration

How does foreign direct investment help reduce the gap

Investment in infrastructure which leads to the economic multiplier effect

How does aid reduce the gap

It is used for development but it can be used improperly by corrupt government

How does fair trade reduce the gap

• farmers get a fair wage on their produce and buyers pay extra high goes towards development

How does appropriate technology reduce the gap

It improves quality of life as its simple enough to use and is cheap to buy and maintain

How does microfinance loans help reduce the gap

• small loans given to LICs to start businesses so they can be financially independent

How does industrial development help reduce the gap

• it helps boost GNI and skills whilst improving infrastructure

How does debt relief reduce the gap

Some or all of a country’s debt is cancelled to allow more money for development

Why is nigeria a good place for work

• youthful workforce

• NEE so it has trade and investment

• Rapidly expanding economy: 4-5% growth a year

What is nigerias regional importance

• it has the highest farm output in Nigeria

• Diverse economy

What is nigerias global economy

• one of the worlds biggest oil exporter

• Nollywood is the second largest film industry

How much of the GDP does oí account for

14%

What does oil being part of the economy lead to

Dependency on:

• fluctuating oil prices

• Rise in renewable energy

How much does manufacturing contribute to nigerias economy

10%

What developement has the manufacturing industry brought

• secure income so more employed

• Higher tax revenue providing infrastructure

• Attracts FDI

• Causes multiplier effect

Why has shell invested in Nigeria

• tax incentives

• Cheap and laxer labour laws

• Access to a wider market

• Lots of natural resources

What are the benefits of shell in Nigeria

• 6000 direct jobs and 20000 indirect jobs created

• GP is raised by oil investment and tax

• Economic multiplier effect which attracts more foreign direct investment

• Tax spent on infrastructure development

• Supports growth of nigerias energy sector

What are the negatives of shell oil

• oil spills reduce biodiversity and harms fish yields

• Soil degradation

• Frequent oil flares release toxic fumes

• Oil theft and sabotage cost TNCs billions

What effects does shell have on QoL

• reliable and better paid jobs

• Improved living conditions

• Better healthcare and sanitation

• Reliable electricity

How has the UK economy changed

They have moved away from manufacturing towards tertiary and quartenary sector

What is the important industry in the Uk (4)

• services

• Finances

• IT

• Research

What are science and business parks

Clusters of quartenary businesses together

Where are science and business parks found

Near outskirts of towns for good transport links and near universities to work with professors and graduates

Why have science and business parks grown

• demand for high tech products

• Lots of research universities to form links with

• Clusters of businesses boost each other

How has deindustrialisation caused economic change

• automation caused a loss of jobs in manufacturing

  • Other countries can produce goods quicker

How has globalisation caused economic change

• Manufacturing moved overseas due to cheaper labour laws

• Business set up tertiary and quartenary sectors in UK

• Trade is 62% of UK GDP

How has government policies caused economic change

• government decides on support for businesses

  • In 1980s, the government privatised businesses causing job losses

    • Deregulation attracted tertiary and quartenary sectors

How has industry affected the environment

• factories release greenhouse gases

• Extracting materials destroys habitats and leaks chemicals

How is environmental damage via industry limited

Modern industry has stricter environmental regulations

How have roads been improved

• new road built on te A30 which increase transport links to Cornwall

• Smart motorways

How have railways been improved

Proposed HS2 providing links between major cities allowing easier commute but was shut down due to protests

How have airports been improved

Proposed 3rd runway at Heathrow airport allowing more planes but would emit lots of greenhouse gases

How have ports been improved

London gateway at the Thames which will be a hub for global trade and can handle huge ships

What is the area of population decline

South lakes Cumbria which is a rural area in the north west

Why has the south lakes Cumbria population declined

Due to decline in jobs, especially in agriculture and manufacturing

What are the economic effects of population decline

• closure of businesses reducing employment And local economy

What are the social effects of population decline

• young people leave so there is an aging population which pressurise healthcare

• Services may close

What is the area of population growth And why

North Somerset as it has easy access to the centre of Bristol

What are the economic impacts of population growth

• house prices rise

• Employment and wages are higher than national average

What are the social impacts of population growth

• roads congested with commuters

• Services oversubscribed

• Elderly migrants pressuring healthcare

What is north south divide

Cultural and economic divide between the north and south

Why is there a north south divide

• lack of government spending in the north

• North relied on factories which led to unemployment during deindustrialisation

How is devolving powers a solution to the north south divide

Gives more power to local government which allows more money to be spent on schemes beneficial to locals

How is the northern powerhouse a solution to the north south divide

• it would extend coverage os super fast broadband

• It would improve schools

• This would attract investment and improve transport links

What is the sustainable economical development case study

Torr quarry

What are the environmental impacts of the torr quarry

• visual scar

• Contamination of water and soil

• Noise pollution from heavy machinery

• Big wagons cause congestion or RTAs

What are the benefits of the torr quarry

• £15 million to local economy

• Employs 100 people

• Provides sand, gravel and aggregate to construction industries

How have they made torr quarry more sustainable

• 60 acres of land blended into environment which reduces eyesore and encourages biodiversity

• Limestone transported by rail which reduces congestion and reduces less CO2 and it provides jobs in railway sectors

• Strict environment regulations reducing pollutions effects