topic 2 : tncs

capitalism

the government allows individuals and businesses to make money in the most efficient way

socialism

a social orgaisation in which the main sectors of the economy are owned by the government

capitalist countries

America, Singapore, Australia

socialist countries

North Korea, Norway, Poland

colonialism

developing countries remained in poverty as the ruling, while developed countries exploited their resources

five steps of Rostow’s Modernisation Theory

1. the traditional society

2. pre-conditions for take off

3. take off

4. drive to maturity

5. high mass consumption

the traditional society

based on subsistence: farming, fishing, forestry and some mining

pre conditions for take off

building infrastructure needed before development can take place: communication, power supplies and transport network

take off

• introduction and rapid growth of manufacturing industries

• better infrastructure and financial investment

drive to maturity

• new ideas and technology improve and replace older industries

• economic growth throughout the country

high mass consumption

• people have more wealth so buy services and goods

• trade expands

when was UK at the traditional society?

in the Middle Ages

when was UK at pre conditions for take off?

in the 1750s

when was UK at take off?

in the 1820s

when was UK at drive to maturity?

in the 1850s

when was UK at high mass consumption?

by 1940

Frank’s Dependency Theory

• made in 1960s

• this benefitted the developed countries more than the developing

economic core

the developed world which exploits the economic periphery

economic periphery

countries that have low levels of economic development: usually in Africa and Asia

top-down development

• development where decisions are made by governments or large companies

• often involve large-scale projects

bottom-up development

• development where decisions are made by local people

• often involve small-scale projects aimed at local communities or small areas

sustainable development

development that meets the needs of the present without compromising future generations to meet their own needs

difference between large-scale technology and intermediate technoogy

• large-scale technology is expensive and not sustainable

• intermediate technology doesn’t have a high cost and are sustainable

globalisation

the process in which the world is becoming more connected economically and politically

positives of the Three Gorges Dam

• flood risk is reduced

• atracts lots of tourists

• provides enough energy and electricity required for middle China

negatives of the Three Gorges Dam

• to build the dam, many people were displaced and huge areas of land were flooded

• critisms include fear of dam collapse and the pollution of the reservoir from the building work

TNCs short for?

Transnational Corportations

TNCs

businesses that have a global reach

examples of TNCs in India

• BT invests in India

• outsourcing its call centres to India could save money

• Indian call centre workers are cheaper than in the UK

positive social impacts of TNCs in India

• employment access improved

• more training/education

• increased literacy rate

• increased urbanisation leads to more people moving to cities

negative social impacts of TNCs in India

• poor working conditions

• overcrowding due to increased urbanisation

positive economic impacts of TNCs in India

• increasing amount of trade

• boosted economy → more trade and more employment

negative economic impacts of TNCs in India

• low minimum wage

• incentives →no paying tax and lack of money for local government

environmental impacts of TNCs in India

• loss of land to factories

• strain on natrual resources

• pollution

• deforestation → loss of habitat

• increased waste

• relax environmental laws