economic world

Define development.

Progress of a country.

Define the following terms and give an example if needed: HIC, NEE, LIC, BRIC, MINT.

HIC - High Income Country (UK)

NEE - Newly Emerging Economy (Nigeria)

LIC - Low Income Country (Ethiopia)

BRIC - Brazil, Russia, India, China (fast-growing economies)

MINT - Mexico, Indonesia, Nigeria, Turkey (economies expected to follow BRICs footsteps)

What is GDP?

Gross Domestic Product - total value of goods and services produced within a country in a year.

What is GNI?

Gross National Income - the total income earned by a country's people and businesses,

What is HDI?

Human Development Index - A development measure, which uses life expectancy, literacy rates, and GNI. 1 is the highest and 0 is the lowest.

Describe the DTM (3 points)

Demographic Transition Model:

• Shows how the population, BR, and DR fluctuate at each stage of development.

• UK is around stage 4, while LICs would be stage 1.

• Fluctuation at stage 1 shows poor health.

What are the four categories of causes of uneven development?

• Historical (colonisation)

• Physical (location or lack of resources)

• Economic (global trade policies)

• Political (corruption or conflict)

What are the four effects of uneven development?

• Economic (income) - this usually kickstarts the others.

• Physical (food and nutrition)

• Social (family)

• Happiness (wellbeing, social life)

Define development gap.

The disparity of wealth between the world’s richest (HICs) and poorest countries (LICs).

What are the strategies to reduce the development gap? (3 points)

• Sustainable Development Goals (SDGs) - 17 separate goals made in ‘15 by the UN to end global poverty.

• FairTrade - Ensures farmers receive a fair wage and good working conditions. FairTrade premium also supports the entire community.

• Microfinance - People donate to farmers to invest in themselves and their business and pay it back over-time. Empowers individuals.

What are TNCs?

Transnational Corporation - e.g. Apple or Microsoft.

What are the positives and negatives of TNCs in lowly-developed countries?

• P - Job opportunities, FDI, improvement of services and roads.

• N - Exploitation of workforce, environmental pollution, leakage of income.

What is FDI?

Foreign Direct Investment

Case Study: Where in Nigeria is an example of a TNC causing advantages and disadvantages? (7 points)

Shell: Bodo Village, Nigeria

• invested billions in oil extractions and infrastructure

• Supports over 65,000 Nigerian people directly and even more indirectly

• Large oil leak in 2008

• Caused water and soil contamination - which affected the local area’s drinking water

• Massive loss of fish population

• Lack of accountability for many months

• 500,000 barrels approx spilt, but they claimed it was only 4000 initially.

What are some consequences of uneven development? (2 points).

• Migration - Young people seek a better quality of life elsewhere.

• Brain Drain - When highly skilled people are attracted to work somewhere else, causing the country’s economic development to decrease.

Describe the employment structure graph. (6 points)

• Shows the percentage of jobs across the four work sectors.

• Primary sector is agriculture.

• Secondary sector is manufacturing.

• Tertiary sector provides services for people (retail)

• Quaternary sector is subject-specific jobs (IT)

• LICs are heavily pre-industrial, while HICs like London are heavily post-industrial.

Where is Nigeria located?

West Africa, bordering countries such as Cameroon.

How is Nigeria regionally important? (5 points)

• One of the fastest-growing economies in Africa

• The variety of rainy and dry seasons allows it to have the highest farm output in Africa

• Nigeria is the most populous African nation (over 230mill people)

• Diverse economy

• Imports telephones

How is Nigeria globally important? (4 points)

• GDP of $440 billion in 2021

• One of the world’s biggest oil exporters - around 2 million barrels exported each day

• Nigerian film industry Nollywood has overtaken Hollywood to become the world's second-largest film industry

• Main exports are rubber, cocoa, cotton and oil

Oil accounts for // % of Nigeria’s GDP.

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What is ‘tied aid’?

When the country giving aid expects something in return, for example trade in the future.

What are the four types of aid?

• Development Aid - Long-term aid to promote progress, e.g. from the World Bank and the EU.

• Emergency Aid - Short-term aid during an emergency, usually after a disaster.

• Bilateral Aid - Direct aid from one country to another, e.g. from the UK to Nigeria, but often tied aid.

• Multilateral Aid - Richer countries giving money to international organisations (like the World Bank) to distribute to lower income countries.

Name some disadvantages of international aid.

• May not reach the people who need it due to corruption.

• Countries may become over-dependent on aid.

• Food and water can become more expensive.

What is a key project that was started in Nigeria thanks to aid?

Anti-mosquito nets, provided by ‘Nets for Life’.

Why is aid needed in Nigeria?

60% of the population live on $1/day, and there are high wealth disparities within the country.

What effects has aid had on Nigeria?

• Increased years of schooling for children.

• Life expectancy increased from 45 to 55 in 2020.

• Higher access to safe drinking water in rural areas.

• Over 70% of Nigeria now own a mobile phone.

What Asian county has invested into and made a trade relationship with Nigeria?

China.

Case Study: Where can we see growth in tourism reducing development gap?

Tunisia, N Africa

Factors affecting tourism:

• French language - attracts Europeans

• Eight famous UNESCO Heritage sites incl. City of Carthage

• Star wars set in tunisian sahara

• Hot climates

Cons:

• Leakage of profits (e.g. foreign advertisement keeps many profits)

• Terrorist attacks - unattractive

Reducing dev gap:

• Local demand for services e.g. accomodation

• More job demand - employment of 525,000 people

• Boosts econ growth

What factors in London have caused a shift in industry? (3 developed points)

Globalisation:

• The process that creates a more interconnected world

• UK firms have moved to NEEs

Deindustrialisation:

• Mechanisation has replaced workers in agriculture - more reliable and cheaper to operate

• Industries polluted the environment

Government Policies:

• Laws can limit factory work

• Privatisation: the turning of primary/secondary industries into companies - job loss

What four ways does industry damage our environment?

• Air pollution (co2)

• Wastewater (can pollute underground reservoirs)

• Land pollution (hazardous byproducts leaking into soil)

• Noise pollution

Case Study: Where can we see deindustrialisation?

NE England

• Mines in Easington closed, 1000+ men unemployed

• Shipyards closed as industry moved to China

• 7.5% unemployed

• 42% of people in coalfield neighbourhoods are part of the most deprived 30% in Britain

• Investment of TNCs e.g. Nissan in Sunerland aims to improve the region

Define a growth corridor.

When an economy grows alongside a major transport route.

Case Study: Where is a growth corridor in the UK?

The M4 Corridor

• Runs from W London (Heathrow) to Swansea in S Wales

• Goes through areas such as Oxford and Cardiff

• 189 miles long

• Key location for business - cheaper than central London, Heathrow’s presence

• Railway follows this route

• Close infamous universities (Oxford, Bristol, Bath)

What is a science park?

An area devoted to scientific research or the development of science-based industries.

What are some pros and cons of science parks?

Pros:

• Employment of skilled graduates from local universities

• Attractive locations (greenery, woodland)

• Fast broadband

• Nurseries and gyms

• Good physical transport links

Cons:

• Congestion

• House and land prices may rise

• Railways need to be improved to maximise speed and connectivity to other cities

Case Study: Where is a science park in the UK?

Cambridge Science Park

• International connections

• Situated 3km N of Cambridge City centre

• Oldest science park in the UK - founded in 1970

• Many facilities on site - gym, club, nursery

• Car parks concealed by greenery

• Cambridge economy pumps out £37B per year

What is counter urbanisation?

Movement of people out into the country.

What are some pros and cons of commuter settlements?

Pros:

• Connected

• Attractive greenery

• Quieter way of life

• Dynamic younger population

Cons:

• House prices may increase

• Quiet Mon-Fri (working hours) - isolated

Case Study: Where are two villages in rural decline and increase?

Alnwick - Northumberland. Attractive: schools, bus routes, A1, fast broadband

Millfield - N of Alnwick, Northumberland National Park. Unattractive: closing of primary school, migration of young people, pressure on services to serve elderly.

Case Study: Name an industry becoming more sustainable.

Nissan, Sunderland:

• Energy consump, water consump, and Co2 emissions have decreased

• Waste of landfill per car has decreased from 40 to 3 kg/car

• Nissan electric car (LEAF

Case Study: Name a quarry becoming more sustainable.

Torr Quarry, Somerset:

• Employs 100 people and contributes £15m a year to UK economy

• Produces rock chippings for road construction

• Limestone extraction site

• 200 acres landscaped with grassland and trees

• Chippings transported via rail

• Noise, water quality, and dust is monitored

• Quarry is deepened and not expanded to allow site to work till 2040

Define North-South divide.

The socio-economic and cultural inequalities between the N and S of England.

What are some impacts of the NS divide?

• Higher life expectancy in SE by 3 years

• Highest disposable income in London

• Higher unemployment in the N

• Higher percentage of people are overweight in North - impacts life expectancy

• Less globalisation in the N - less attraction

What are the three solutions to the divide?

Northern Powerhouse:

• A branding concept to match the economy of the SE

• Investment in science-tech e.g. Newcastle Science Central - 1200 jobs

• More mayors in northern cities

• Improvement of transport - very unsuccessful

HS2:

• Cancelled - Only reaches Birmingham

• Estimated cost of £43bill

• Meets travel demands

• Destruction of habitats

Devolution of power:

• The spreading of government power

• Manchester has its own mayor - £1b funds to improve their area

• BBC built MediaCityUK in Salford, 142% increase in employment

• Multiplier effect - other companies move nearby

How many destinations does LHR link to?

171

How do rail improvements support economic growth?

• Example: HS2 to Birmingham

• Connects the country

• Network Rail - invests £25b into upgrading network in 2019

• Partially effective - cancellation

How do road improvements support economic growth?

• Example: Smart Motorways

• Open up hard shoulder at constant speed

• Cameras and road surfacing

• Less congestion - less people late to work

• £15b spent on improving roads in 2014

• Has caused accidents - no new smart motorways have been built

How do airport improvements support economic growth?

• Example; Heathrow

• New runway - 40 more flight destinations

• Concerns of noise pollution

• Can cause reduction in house prices

• Generates £4.65b to UK economy 2025

• Cost £18.6b

• Only helps people in south

How do port improvements support economic growth?

• Example: London Gateway

• Automatic loadings, quay cranes, and a logistics site

• Supports national trade

• Generates £1.9b to the economy

• 12000 local jobs

• Very effective locally and nationally

What are some examples of the UK’s links with the world?

British Empire - Trade links

EU - Currency, laws, and political influence

Commonwealth - Trade links

Internet - Connectivity through deep sea cables

Language/culture - Remittances and sharing of culture in EU