EQ3

• Is the development gap closening or widening?

  In many cases, globalisation has caused the development gap to close between developing economies and rich world counterparts due to communication being cheaper and transport getting faster. However, within many developing countries, the gap has seen to widen as in poorer countries unskilled work is in high demand, in comparison to higher skilled jobs which would pay more.
• what is outsourcing?


  when rich countries shift parts of their production process to poorer countries for cheaper labour.
• is it always the case that TNC's exploit workers in LICs and NEEs


  TNCs in poor countries often employ skilled workers and pay high wages. Average wages paid by foreign multinationals are 40% higher than wages paid by local firms, and they often get to work with managers from rich countries or meet deadlines of efficient rich world countries, and their higher productivity means higher wages.
• what is absolute poverty?

  When a person's income is too low for basic human needs to be met, potentially resulting in hunger and homelessness.
• what is relative poverty?

  When a person's income is too low to maintain the average standard of living in a particular society. Asset growth for very rich people can lead to more people being in relative poverty.
• what is development?


  changes that link to an improving society, enabling people to achieve aspirations. Includes the provision of social services, acquisition of economic assets, improved productivity and reducing vulnerability to natural disasters.
• What are the two indicators of measuring development?

  single or composite
• what are the two single indicators in measuring development?

  - income per capita and GDP

  - economic sector balance
• What is GDP?


  the final value of the outputs of goods and services inside a nation's border.
• what are issues with measuring using GDP per capita?

  - informal sector work is hard to keep track of.

  - some GDP data is unreliable due to changes in currency rates.

  - each country's GDP data is manipulated to factor in the real cost of living, this is known as purchasing power parity.

  - per capita means that inequalities are hidden.
• what is the economic sector balance?

  every few years, countries change the formula that estimates how each sector of the economy contributes to the overall GDP.
• what is an issue with the economic sector balance?

  it can completely change the value of the economy overnight.
• What are the three composite indicators of development?

  - HDI

  - gender inequality index (GII)

  - environmental quality
• What is HDI?


  measures GDP per capita, life expectancy and years in education. Countries are given a score of 0-1 with 1 being the best score.
• what is the GII?

  measures gender inequalities related to three aspects of social and economic development.

  - reproductive health ( maternal mortality and adolescent birth rates.)

  - empowerment ( women in parliament and proportion of 25 + with some secondary education.)

  - labor force participation ( rate of male and female 15+)
• what does environmental quality indices measure?

  air quality deteriorating as economic development increases.

  UN - environmental performance index.
• What are the 8 goals of the UN Millennium Development Resolution?

  1) eradicate extreme poverty and hunger

  2) achieve universal primary education

  3) promote gender equality and empower women.

  4) reduce child mortality

  5) improve maternal health

  6) combat HIV/AIDS, malaria and other diseases.

  7) ensure environmental sustainability

  8) develop a global partnership for development.
• what are open borders?

  a situation in which goods and people can enter and leave a country easily.
• what is post-accession migration?


  The flow of economic migrants after a country has joined the EU. The movement of people from the eight post-communist central and Eastern European countries that came into the EU in 2004.
• what is diaspora?


  the dispersion or spread of a people from their original homeland.
• what is foreign direct investment?

  the financial capital flow from one country to another for the purpose of constructing physical capital, i.e. building a factory in another country.
• what is deregulation?


  removing government legislations and laws in a particular market.
• what is the Schengen zone?

  where 27 European countries have abolished their internal borders, for free and unrestricted movement of people, in harmony with common rules for controlling external borders and fighting criminality by strengthening the common judicial system and police cooperation.
• What makes London a melting pot city?

  - 2021 census data show that 46.2% of London's residents identified with Asian, Black, Mixed or 'other' ethnic groups and a further 17% with white ethnic minorities.

  - 37% of all international migrants in the UK live in London.

  - Over 300 languages are spoken in London (more than any other city in the world.)
• what are the three main causes of London becoming a melting pot city?

  - Open border policy (EU)

  - freedom to invest in businesses of transfer capital

  - FDI
• How have open borders causes London to become a melting pot city?

  EU citizens are free to move around the EU as a right. In 2015, there were 250,000 French people living in London.
• How has the freedom to invest in businesses or transfer capital caused London to become a melting pot city?

  Any bank or individual can trade in shares without having to use the London stock exchange. Individuals are free to invest without barriers. There are no restrictions for financial institutions in setting up offices and no government approval is required.
• How has FDI caused London to become a melting pot city?

  - In 2015, the UK attracted over 32,000 jobs mostly to London from overseas owned companies investing in software, and financial services.

  - London attracted 35% of all the countries who moved their headquarters into the UK.

  - UK led the rest of Europe in attracting Europena research and development projects, being the first choice by US companies.

  - was a reading recipient of FDI investment from Japan, France, Australia, Canada, India and Ireland.
• what are social challenges of migration?

  - pressure on housing, school, health services.

  - increase in birth rates.

  - assimilation and integration in local communities.

  - speed of change and perceptions

  - political agendas and media coverage
• what are social positives of migration?

  - benefits the economy

  - can make a country more culturally diverse

  - high skill migrants

  - low skill migrants can fill essential occupations that are in short supply.
• what are the three key ways globalisation can be reduced?

  - limiting immigration

  - trade protectionism

  - censorship
• what are migration controls like in the UK?

  - since 2010, a five tier point system has been in place, by checking that economic migrants possess skills that the UK economy needs.
• why has the target of cutting net migration to 100,000 people a year not been met?

  - fewer british citizens have left the UK to live overseas since the 2008 global fincnail crisis. pound - euro exchange rate has also weakened, so cost of living in the eurozone has risen for UK citizens.
• what are the tiers in the 5 tier visa system?

  tier 1 : high value migrants outside EEA.

  Tier 2 : skilled workers outside EEA.

  Tier 3 : low skilled, temporary labour shortage ( can not be applied for at the moment.

  Tier 4 : student 16+ outside EEA with a place at a UK educational establishment.

  tier 5: 6 sub tiers of temporary workers.
• what is trade protectionism?

  the use of government regulations to limit the import of goods and services.

  protects local businesses and industries.

  can lead to trade disputes.

  other industries may be negatively impacted.
• what happened to chinese steel in 2016?

  cheap chinese steel was being 'dumped' onto global markets at prices heavily subsidised by the Chinese government in order to protect its own manufacturers.
• how did the Chinese steel problem affect other countries?

  Huge consequences in the UK.

  Indian owners of Tata steel put all of its UK steel plants such as Port Talbort up for sale and threatened to close them if a deal could not be arranged. Tariffs on imported steel could not be raised as it was against the WTO rules.
• What are the two types of censorship ( a gov that restricts flow of knowledge and information ) used in China?


  state controlled and state monitored.
• what is state controlled censorship?

  e.g. chinese news, where print publishing or broadcasting via tv or radio is run by office state media.
• what is state monitored censorship?

  where overseas contacts or media are monitored and censored including tv, print media, radio, theatre, text messaging, video games, literature and in travel.