What is development?

Benefits of HDI

Factors influencing development What is GDP?

What is an indicator of
What is GNP?
development?

What is HDI (Human Development

What is life expectancy?
Index)?

HDI What is literacy rate?

1a
 Composite
3 factors (life expectancy / GDP /
education)
Compare countries
Look for change over time
total value of goods/services of a
country in a year
total value of goods/services of
people of a nationality in a year
Average age a person can expect to
live to
Percent of people in a country who
can read and write
the improvement of quality of life as
a country changes
-Climate (fertility)
-Location (trade route/landlocked)
-Raw materials/fuels/energy supply
-Natural hazard
-Trade (tariffs)
-Corruption
-War
-Discrimination (fewer workers)
-Over/Underpopulation
a factor to measure the
development of a country
It is a composite index/combines different
indicators;
Life expectancy at birth;
Expected/mean years of schooling;
GDP/GNI;
An overall score is calculated between 0 and 1;
The higher the score the more developed they
are;
1b
 Why are there inequalities WITHIN a
What does per capita mean?
country?

absolute poverty Multiplier Effect

What is a TNC? Economic leakage

What is an inequality? Agglomeration

Why are there inequalities BETWEEN

TNC definition?
countries?

2a
Some areas have more natural resources; (coal)
Soil fertility varies within the country;
Climate variations result in variation in food production;
some areas are more accessible than others;
Coastal or inland location (ports and trade)
Investment/development (cities)
Overpopulation in migration (poverty)
Terrain
Variations in healthcare and education;
per person/population
Civil war/conflict;
Natural disasters;
Industry and TNCs;
More employment opportunities;
Tourism;
Government policy/corruption

'snowballing of economy'
Investment from on business has a
unable to afford absolute needs (e.g
knock-on effect on others: economy
food)
benefits; other business open up in
area to provide services

profits go abroad rather than

benefitting locals where transnational corporation
production/service occurs

when a number of producers in the

same or related industries group Variation in wealth/standard of
themselves together (to benefit living/development
from similar labour)

-Climate (farming)
-Location (landlocked)
global company with HQ and -Soil fertility
research in one country (HIC), -Water supply
-Government policies
factories and production in other -Education/disease/healthcare
countries (LIC) -Wealth (pay tariffs?)
-Hazards/disasters
(operate in multiple countries) -Conflict/war
-Natural resources
2b
 Why do TNCs locate in foreign
TNC multiplier effect - Adv/Dis adv
countries?

Impacts of TNCs on host developing TNC transport/infrastructure -

countries Adv/Dis adv

TNC investment - Adv/Dis adv TNC technology - Adv/Dis adv

How have TNCs accelerated

TNC environment - Adv/Dis adv
globalisation?

TNC workers - Adv/Dis adv What is globalisation?

3a
Adv: profitable:
other companies move there - world market access
local tertiary industry/services grow for - cheap labour/land/production
workers
- raw material availability
more money circulating economy
- outsourcing
Dis Adv:
pressure on local services - agglomeration
tax evasion - government policies

Adv:
safer/faster/improved
link to expand own industry
Dis Adv:
pollution/erosion/habitat
only for industry
- investment
- environment damage/sustainability
- workers (economic leakage)
- economy (multiplier effect)
- infrastructure (technology/transport)
- technology

Adv:
Adv:
money to country = development =
accelerate development infrastructure
improve knowledge/more MULTIPLIER EFFECT
sustainable Dis adv:
Dis Adv: ECONOMIC LEAKAGE
low wages + money goes to HIC
TNC may not share technology 'race to the bottom'/tax evasion

- outsourcing Adv:
education/tech to reduce/prevent pollution
- different parts of product in different
build more sustainably
areas regulations?
- need close contact to different sectors Dis Adv:
no monitoring/regulations?
of TNC
cut corners with cost
- introduce infrastructure/technology larger scale pollution
which closes gap ugly buildings/loss of land/expand buildings

Adv:
employment (money etc.)
learn new skills
World's economies becoming more Dis Adv:
ECONOMIC LEAKAGE
integrated, interdependent and child/cheap labour
interconnected sweat shop
lack regulation/trade union
dangerous work
only highly skilled/foreign get employed/outsourcing
3b
Why has globalisation come about? Why are TNCs (Nike) in LICs?

Effects of globalisation TNC - Adv

Employment structure TNC - Dis adv

Case study: TNC Primary

Nike facts Secondry

4a
- cheap labour
- government policies
- raw materials
- trade/route centre
- tech/transport connections
- site (coast/countries)
- flat land
- energy resources
- employment (multiplier effect)
- local economy benefits
- infrastructure benefits
- developing countries improve
working condition
- tax evasion
- exploitation (cheap labour)
- economic leakage
- ues countries raw materials for
own benefit
Extract raw materials (farm, fish,
quarry)
Process and manufacture (cars,
battery)
- TNCs
- transport (faster/easier trade)
- containerisation (cheaper shipping)
- technology (communicate/send/media)
- labour costs (cheaper in LIC)
- trading blocks (EU)
- 'shrinking world'
- organisation (UN/WTO)
'global shift':
LICs main production area
TNCs grow
how the workforce is divided
percentage/proportion of workers in
each sector
Nike
HQ: Beaverton, Oregon US
Employees: 1m
Factories: 700
Countries: 40
4b
 Tertiary What are labour costs?

Why are there differences in labour

Quaternary
costs?

Formal sector Benefits of economic activity?

Problems with economic activity on

Informal sector
environment?

How has employment structure Problems with economic activity on

changed? people?

5a
 Cost of/wages for/payment for
Provision of service-selling
workers/cost of the work done/cost
(hairdresser, education, transport,
to pay the
food)
employees/staff

• some less mechanised

• not completely automated Development and research
• hand/physical/labour intensive industries (high-tech)
• some jobs machine cannot do (apple)
• higher paid/skilled jobs

Employment:
• can buy better food/send their children to
school/better housing
• improved service provision (healthcare; education)
• more money circulating in area/multiplier effect
• development of transport network 'official' jobs, taxed
• development of infrastructure/electricity/water supply
• can use products from primary industry
• can export/sell products/services
• learn new skills

Pollution:
• atmospheric/water/sight/noise (litter)
• GHGs
• acid rain/global warming
• loss of habitat/fauna/flora
...
• biodiversity/ecosystem
• loss of land
• deforestation

• economic leakage Development:

• rising prices - infrastructure/healthcare/technology
• overcrowding - education/skill
- mechanism to replace primary labour
• use resources up
- more facilities/skills for high industries
• lose culture/land LIC:
• traffic - subsistence
• pollution/asthma/smog - raw materials
5b
 Process (what is done to the inputs
Manufacturing to turn them into outputs/create a
product)

Outputs ( the products which are

Processing
produced/what they sell)

Assembly Feedback

Hi-Tech Waste

Inputs (resources needed for

production materials used in the
Types of Industry
factory/raw materials/primary
goods)

6a
 - process (raw materials)
- print
Make (something) on a large scale
- weave
using machinery
- assemble
etc.

- product (car, clothes, book) Performing a series of mechanical or

- profit chemical operations on (something)
- waste (disposable/reusable) in order to change or preserve it

profit to be used as an input Putting manufactured parts together

recycled as raw materials or energy Using, requiring, or involved in high

supply to be used as an input technology

manufacturing: convert raw material into the Physical:

- raw materials
finished product (iron ore to steel) - energy supply
processing: raw materials into other - transport route
- site and land
materials Human:
- capital
assembly: put together and combine - labour
components - transport
- markets
high tech: research and - gov policies
development/component assembly - tech/machinery

6b
 Footloose industry

Factors influencing high tech

industry location

Factors influencing manufacturing

industry location

Industries fail/relocate

7a
 not dependent on location for raw
materials

• labour costs/availability of workers/skills

• location of universities/research establishments/science park
• government policy
• location of markets
• close to motorway network
• near to/access to airports/ports/good access for imports/exports
• near to energy
• near to component manufacturers
• near to other high tech industries/agglomeration
• near to pleasant environment
• large area of flat/cheap land/greenfield

• close to motorway network

• near to/access to airports/ports/good access for
imports/exports
• near to water/energy
• labour costs/availability of workers/skills
• location of universities
• large area of flat/cheap land/greenfield
• near to other manu industries/agglomeration
• government policy

- raw materials exhausted/finite/expensive

- mechanism replaces manual workers
- fall in demand could result in closure
- production cost increase (labour/material)
- competition (cheaper production wins out)
- cannot invest

7b