Development and Globalisation notes

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  • Created on: 10-06-12 10:04
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Development and Globalisation
Development
Development is a term that can be used in many different contexts whether it is social, economical, political
etc. However generally development refers to an improvement in certain areas:
Economic
o An increase in the country's economy with a shift from secondary to tertiary industry which
becomes less dependent on FDI.
Demographic
o An increase in population and a more ageing population as standard of living increases. Birth
rates and death rates drop as life expectancy increases.
Social
o An increase in the range of services, increased land prices and a more multicultural society.
Greater access to education, health care and communication
Political
Rank Country
1 Norway
2 Australia
3 Netherlands
4 USA
5 New Zealand
6 Canada
7 Ireland
8 Liechtenstei
n
9 Germany
10 Sweden
o More democratic and more influence on the `global stage'. Stable government, no
dictatorship.
Measuring Development
GDP- Gross Domestic Product ­ The total amount of goods produced by a country across the world
GNP- The total value of goods produced by one country in that country
HDI- Human Development Index ­ Measured using three statistics:
Rank Country
178 Guinea
179 Central African
Republic
180 Sierra Leone
181 Burkina Faso
182 Liberia
183 Chad
184 Mozambique
185 Burundi
186 Niger
187 DRC
Life Expectancy
Literacy Rate
1

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Standard of Living (measured in GDP per capita)
Development Continuum
Originally there were three groupings that made up the development continuum, they were:
FIRST WORLD (those developed countries that had a democratic government and a strong economy)
SECOND WORLD (communist countries)
THIRD WORLD (UN developed countries)
However as time has gone on newer economies have started to develop
caused by different development patterns and speeds.…read more

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The emergence of trade blocs
5. The establishment of the IMF and the World Bank
6. Development of global marketing and the continuing rise of TNCs.
Flows
Capital
o ICT allows cheap, reliable and almost instantaneous communication
o Allows sharing information
o Allows transfer of capital
o Allows Marketing around the world
Labour
o Improved transport for people
o Size of air craft
o Low cost airlines
o High speed rail links
o Specialised workers- doctors, ICT etc.…read more

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Help to reduce inflation
Positives for LEDC's and NIC's Negatives for LEDC's
Development of new industries Rapid urbanisation and rural-urban migration
Increased employment Westernised approach to economy
Helps to reduce development gap Increased environmental damage die to
Increased FDI and investment which can lead to polluting industries
improved services such as infrastructure, health Exploitation of labour
care and education Disruptive social impacts
Increased exports helps BoPs, and increases Over-dependant on one industry
income and GDP Destabilises food supplies, less agriculture
New technologies Health and safety…read more

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Positives of India Constraints of India
Large English speaking population Other countries are beginning to compete
Costs 37% lower than China Negative reaction in MEDCs
Costs 17% lower than Malaysia Rising wage rates
Professional salaries ¼ of UK and USA High cost of training
Low telecommunication costs Negative impacts on quality
24 hour working to fit with time differences Corruption and bankruptcy
Huge labor force for labor intensive jobs e.g.…read more

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Quality of Life
Most of the population cannot afford basic immunities
Resources of such countries are not evenly distributed.
Attempts to reduce poverty
High population growth rate means that numbers living in
extreme poverty are increasing.
Many of these countries depend on FDI
Debt
From the 1970's onwards some countries found themselves in
a debt crisis because the borrowed large amounts from the
developed world.
For many countries at low levels of economic development that
breaking free of poverty can only ever be a vision.…read more

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Global, Social and Economic Groupings
Made for a variety of reasons:
To further socio-economic development
To increase alliances and trade
To allow free movement
To prevent war
Types of groupings include:-
Free trade areas- tariffs and quotas are reduced on goods between members and restrictions are
put in place for goods coming in to the area e.g. NAFTA
Customs unions- tariff on imports from outside the group e.g. Mercosur
Common Markets- like customs unions but with greater freedom of movement of labour and
capital, e.g.…read more

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If countries become indebted member states can
help bail out, Greece, Ireland.
Aspects of globalisation
TNCs
Transnational Corporations are companies that operate in over two countries ­ usually having their research
and headquarters in the country of origin and locating the manufacturing plants overseas. As an organisation
becomes more global, regional R&D and headquarters will develop.…read more

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Many of these are assembly industries
Ford, General Motors, BMW, Sony
o Mass produced consumer goods
Cigarettes, drinks, breakfast cereals, cosmetics and toiletries
Coca-Cola, Kelloggs, Unilever, Heinz
Service operations
o Banking/insurance, advertising, freight transport, hotel chains, fast food outlets, retailers
o Barclays, AXA, McDonalds and Tesco
Growth of TNCs
Why do TNCs expand to different countries?
Larger populations with cheaper Labour Costs
Better government policies such as grants, lower taxes and subsidies
Less stringent rules on employment and pollution
Fewer restrictions due to trade barriers…read more

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JIT developed o
Plans effecting the development of plants are made in
host country to boost profitability
o Little consiereation for local people
Dependancy on TNC
More westerniese approach to life
Development Issues within the world
Trade vs Aid
Trade is deemed as the more sustainable path out of the two to economic development as it helps to
promote the growth in the volume and value of goods, leading to jobs and greater incomes, some of this
income will help to generate domestic demand leading…read more

Comments

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Mr A Gibson

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Courtney

This is a great set of notes! Has literally everything you need to know on it!

mariam hamaida

Thanks from Greenford High School 6th form :)

livs988

Thank you so much, needed this! 

Clare Mulligan

Superb set of notes - very helpful Thank you

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