reducing the development gap P2

• What is the focus of the strategies discussed in the context of CSE geography?

  Reducing the development gap
• What does FDI stand for?

  Foreign direct investment
• What is foreign direct investment?

  Investment in infrastructure in another country
• What benefits does FDI bring to a country?

  Better access to finance, technology, and expertise
• What are the typical uses for aid money in developing countries?

  Constructing schools, building dams and wells
• What is a potential drawback of aid?

  It can be wasted by corrupt governments
• What is the primary goal of the fair trade movement?

  Farmers get a fair price for goods
• What issue can arise with fair trade practices?

  Tiny proportion reach producers, boosts retailer profits
• How can solar-powered LED bulbs improve quality of life?

  Allow people to work later, save money
• What is microfinance?

  Small loans to people in low-income countries
• What is the main purpose of microfinance loans?

  To enable people to start businesses
• What is a potential negative consequence of microfinance?

  Encouraging people to get into debt
• Why is industrial development important for countries with low development?

  Boosts GNI and overall development
• How does debt relief assist developing countries?

  More money to spend on development
• Which country had debt canceled in 2005, as mentioned in the text?

  Zambia
• What characterizes intermediate technology?

  Simple to use and affordable to buy
• What did Zambia do after debt relief in 2006?

  Started a free health care scheme
• What are companies obligated to do, if they want to label products 'fair trade'?

  Pay producers a fair price
• What happens to GNI and development as industrial productivity increases?

  Both GNI and development increase
• Besides debt cancellation, what is another form of debt relief?

  Lowered interest rates