global interdependence

A2 geography

GDP (gross domestic product)

amount of money a country physically makes

GNP (gross national product)

how much money the people of that country make (residents and citizens)

LIC (low income country)

eg: ghana, armenia, zambia, bangladesh

MIC (medium income country)

eg: india, china, brazil, south africa

HIC (high income country)

eg: germany, japan, usa, new zealand!!

NIC (newly-industrialised country)

1980s: hong kong, south korea, singapore, taiwan — 2000s: china, thailand, turkey, malaysia, the philippines, mexico etc

HDI (human development index)

long and healthy life, a decent standard of living, knowledge

colonialism

the taking over of a country by a more developed country

primary sector

the economic activities that extract and harvest natural resources from the earth — eg: farming, harvesting fish, timber, tar for concrete

secondary sector

the part of the economy that transforms raw materials into finished goods through manufacturing, construction, and utilities

tertiary sector

involves providing services rather than producing goods, encompassing areas like retail, hospitality, healthcare, finance, and entertainment.

cash crops

crops farmed solely for selling (eg: strawberry fields)

visible trade

items that have a physical existence and can be seen (eg: raw sugar, a drink bottle, socks)

invisible trade

trade in services that can't be physically seen (eg: travel and tourism, business, financial services)

imports

goods or services brought into a country from another country (eg: we buy clothing made in china)

exports

goods or services that are produced in one country and then shipped to another country for sale or use (eg: we sell dairy and timber to other countries)

balance of trade

difference between the value of a country's imports and exports

trade deficit

when the value of imports exceeds the value of exports

trade surplus

when the value of exports exceeds the value of imports

WTO (world trade organisation)

the only global international organisation that deals with the rules of trade between nations. primary purpose is to ensure trade flows as predictably and freely as possible, promoting economic growth and development

resource endowment

the stock of natural resources that a country possesses (abundance in a particular resource can lead to domination in exports/trade)

comparative advantage

different countries specialise in producing the goods/services that they are best endowed (eg: german cars, japanese technology, belgian chocolate, swiss watches, scotch whisky)

locational advantage

being close to a market for its product is an advantage as it reduces transport costs (eg: france and tourism due to being close to many european countries or canada benefitting from the US market)

investment

key to increasing a country's trade — countries like china, brazil, india and mexico have attracted foreign investment which boosts their development

primary product dependent

an economic situation in which a country heavily relies on the export of primary products or commodities — eg: the republic of congo which is almost entirely dependent on crude oil exports

terms of trade

the price of a nation's exports relative to the price of a nation's imports

emerging markets

countries undergoing economic growth and development — characterised by a growing middle class, a shift from reliance on agriculture/natural resources to manufacturing and service industries (transitioning into a developed market)

trade bloc

an agreement between two or more countries to reduce or eliminate trade barriers, such as tariffs and quotas (free trade between members increases economic globalisation) — eg: NAFTA aka USMCA

free trade areas

a system where countries exchange goods and services with minimal government interference, like tariffs or quotas. aims to make international trade as smooth as possible

customs unions

a group of countries that adopt a common trade and tariff policy towards non-member countries (no internal tariffs, only external) — eg: the EU

common markets

a more advanced form of a customs union — eg: EU, EEA (european economic area), and SACU (south african customs union)

economic unions

a place or system where goods, services, and resources are exchanged between buyers and sellers — driven by supply and demand, which influences production and pricing

protectionism

an economic policy where a country implements tariffs, quotas, and subsidies to shield its domestic industries from foreign competition — supports local businesses and preserves jobs (eg: steel in the US or apples in france)

debt

the total amount of money owed by a country — can be internal and/or external

external debt

money a government borrows from foreign creditors (eg: banks, multi-lateral organisations such as the IMF or WB, and other governments) — involves borrowing from outside the country's borders

internal debt

money borrowed from within the country — involves borrowing from domestic sources

unpayable debt

extrernal debt that a country can no longer pay

debt service ratio

a financial metric that measures a country's ability to repay its debts (DSR is calculated as the total amount of debt repayments divided by the country's total national income)

debt relief

the reduction or forgiveness of the debt owed by developing countries to external creditors such as governments, international organisations, and private lenders (eg: HIPC or MDRI)

odious debt

when money is lent to dictatorships that waste it on glorifying their regimes…

privatisation

where state-owned businesses or infrastructure is sold to private TNCs (trans-national companies that operate in multiple countries)

HIPC (heavily indebted poor country)

benin, ghana, cameroon, bolivia, ethiopia — the poorest nations get financial help from the IMF to spend on programs to combat poverty

MDRI (multi-lateral debt relief initiative)

an initiative designed to help HIPCs by canceling their debt owed to the IMF and WB (launched in 2006)

international aid

aid given to a country by an overseas nation — types include: official government aid, voluntary (run by ngos), bilateral, multilateral (organised by the UN), and both short and long term emergency aid.

NGOs (non-governmental organisations)

eg: oxfam, amnesty international, greenpeace, world wildlife fund, unicef, world vision etc

DFID (department for international development)

focuses on: poverty reduction, education, health, and environmental sustainability (replaced by the foreign, commonwealth and development office aka FCDO, in 2020)

multilateral aid

when a country sends help to another country with help from a third party (eg: red cross, unicef, world vision)

bilateral aid

when one country sends aid to another (bi = involving two parties)

top-down approach

conventional 'service delivery' approach — large-scale and centralised planning

bottom-up approach

the hunger project's empowerment model — small-scale and community based (eg: water aid in mali)

tourism

encompasses the activities of visitors, including spending and interaction with a destination that isn't their usual environment. can be domestic or international — a significant social, cultural, and economic phenomenon.

external shocks

unexpected events occurring outside a country or region that significantly impacts its economy, environment, or society — can be natural disasters, global economic crises, or political instability etc

carrying capacity

the maximum number of people a tourist destination can sustain/population a country can support without causing damage to the environment, economy, or social-cultural aspects, or a decline in the quality of living/ tourism for either side

multiplier effect

describes how tourism-related spending creates a ripple effect, boosting economic activity beyond the initial tourist expenditure

economic leakages

outflow of money from a tourist destination (not all tourist spending remains within the local economy) this happens when goods and services needed for tourism are purchased from outside the region or when profits from tourism businesses are repatriated elsewhere.

destination footprint

the environmental and social impacts of tourism activities within a specific location

community tourism

refers to tourism activities that are planned and managed by, and benefit, a local community. it's a type of tourism where the local community plays a key role in both organizing and profiting from tourism, often with a focus on sustainability and culture