Geography - Dynamic Development - no syria/zambia

LIDCs: Poorest countries in the world. GNI per capita very low and people have a low standard of living. The economy is often based on primary industry and doesn't export many goods. Levels of development remain low as they can't fund into it. Examples: Nepal, Somalia

EDCs: Getting richer as the economy is moving from primary industries to secondary industries. Exports and increasing wages mean that there's money to spend on development so health care, education, and transport are improving. Examples: Brazil, China

ACs: Are the wealthiest countries in the world. GNI per capita is high and most people have a very high standard of living. The economy is based on Tertiary and Quaternary industry. ACs have a lot of money to spend on improving education, transport, and health care, so people tend to be better educated. Examples: UK, USA

Physical Factors:

• Poor Climate: (Too hot or too cold) not much will grow. This reduces the amount of food grown. This could lead to malnutrition = low quality of life
• Few Natural resources: Countries without may raw materials e.g. coal have fewer products to sell.
• Poor location: Some countries are landlocked (not surrounded by coastline) so can't export goods easily without it being expensive. Also harder to import goods which may help a country develop e.g. machinery.
• Natural Hazards: Leads to death, injury or disruption to humans or destructive properties. Countries that have a lot of disasters have to spend a lot of money after on repairs.

Human factors:

• Conflict: War can slow or reduce levels of development E.g. Healthcare. Money is spent on arms and fighting instead of development. Country has to spend money on destruction
• Debt: LIDCs often borrow money. This has to be paid back so any money country makes can't be spent on development.

• Politics: Corrupt government - take money that's intended to build new houses or improve facilities. Unstable government - Companies unlikely to invest or want to trade
• Education: Educating people to produce a more skilled workforce meaning that the country can produce more goods and offer more services. This brings more money into the country. Educated people also earn more, so taxed more, gaining money for the government.
• Disease and Healthcare: Lack of clean water and healthcare means that a large number of people suffer from diseases such as malaria. People who ill can't work, so they're not contributing to the economy. Lack of contribution means country cant invest in facilities.
• Tourism: Can provide increased income as there will be more money entering the country. 
• Aid: Aid is help given by one country to another. Some countries receive more than others, so they can develop faster. Aid can be spent on development projects. However, if countries come to rely on aid it might stop them from developing trade links that could be a better way of developing

Rostow's Model shows Five Stages of Economic Development:

Stage 1: Traditional Society: Subsistence based. Mostly Farming, fishing and forestry and participates in little trade.

Stage 2: Preconditions for take-off: Manufacturing starts to develop, infrastructure is built e.g. roads. International trading begins

Stage 3: Take Off: Rapid intensive growth, large-scale industrialization and increasing wealth.

Stage 4: Drive to Maturity: Economy grows so people get wealthier. Standards of living rises and widespread use of technology

Stage 5: Mass Consumption: Lots of trade, goods are mass produced and people are wealthy so there are high levels of consumption.

Aimed to help LIDCs develop by 2015 and set in 2000:

1) Halve the number of people living in extreme poverty or suffering from hunger.

2) Make sure all children had primary education

3) increase the number of girls and women in education and in paid employment

4) Reduce death rates in children under 5 years old by two-thirds

5) Reduce death rates amongst women caused by pregnancy or childbirth by three-quarters

6) Stop the spread of major diseases, including HIV/AIDS and Malaria

7) Protect the environment and make sure development is sustainable while improving quality of life

8) make sure the countries around the world worked together to help LIDCs develop

success was variable in different parts of the world. UN has set SDGs to achieve by 2030

Types of Aid:

• Top-down - Government receives the aid and decides how it should be spent. Advantages: Can solve large-scale problems and improve the lives of lots of people. Projects can improve the country's economy, helping with long-term development. Disadvantages: Country may have to pay back the money, may not benefit everyone, if government is corrupt, they could use money for their own purposes
• Bottom-up: Money is given directly to local people Advantages: Local people have a say in how the money is used, projects often employ local people, so they earn money and learn new skills. Disadvantages: Projects maybe small scale, so don't benefit everyone.
• Short-term: Aid sent in times of emergencies e.g. natural disasters Advantages: gives immediate relief so country recovers faster, money allocated for development doesn't have to be used to cope with the emergency Disadvantages: often doesn't help long-term and may restrict further development, food aid may limit the price which farmers can charge for their crops
• Long-term: Aid being given over a long period to help countries develop Advantages: Projects can improve life for lots of people in long-term, may help build trade links between the countries. Disadvantages: ma make country dependent on aid

Trade:

• Advantages: creates jobs and brings in money for the families, improves quality of life, increase in amount of money country has, so they have more money to invest in development
• Disadvantages: Some LIDCs can't afford the equipment needed to produce goods quickly, so might not be able to match the prices of other countries.LIDCs often export primary products. These don't create much profit, so doesn't provide a lot of money for developing trade. Countries only really trade the thing they have the most of, if demand for that falls, the country's income can decrease sharply.

TNCs: Factories normally in poorer countries because labor is cheaper and fewer regulations, making more money for them. 

• Advantages: Create jobs for the country they are in. Employees in poorer countries get a more reliable income compared to jobs like farming, TNCs spend money on local infrastructure.
• Disadvantages: Employees in poorer countries may be paid lower wages than employees in richer countries and may have to work long hours in poor conditions. Jobs created in poorer countries aren't secure - The TNC could relocate the job to another country at any time if labour prices are cheaper

What Kind of Company is Nike?

• American Multinational corporation in the field of designing, manufacturing and selling footwear, equipment, and accessories.
• HQ is in Oregon and is the largest supplier of athletic shoes and sports equipment
• Revenue in 2017 was £35,35 billion and has over 700,000 employees over 700 factories: 124 in China, 73 in Thailand and 35 in South Korea.
  
• more than 25% of the workforce is based in Asia, this is because in LIDCs labour costs are lower. 

Why does Nike get most of its products made in factories in Asia?

Costs: 

• Employees are paid an average $18 a shoe, so very cheap for Nike to produce the shoes.
• Nike sells the shoes to retailers for $36. This is double what they paid the laborers, so makes a 100% profit.
• Retailers then add another 100% = $72, showing a great profit from the laborers make.
• Overall, cost wise it is very beneficial because...

How do countries benefit from having factories which make Nike products?

• Indonesia is an example of how Nike factories benefit their country. For many workers, it means they have found a steady job.
• Nike factories have been set up in rural towns and in poorer regions, so have helped thousands of families from poverty (Such as malnutrition)
• Those employed receive steady incomes so overtime they can improve quality of life but investing in their health care and make sure their children can go to school
• So overall it has improved Indonesian people's lives because it now means they don't have to rely on handouts and charities to help them through tough times.

Negatives in Indonesia:

• Workers found to suffer from sexual abuse and verbal abuse, lack of medical attention and overtime
• Use of child labour

Overall Benefits to Host country:

• Nike pays slightly higher wages than local companies
• Improves skills of local population
• Contribution to local tax helps pay for newly improved infrastructure

Business decisions unsustainable?:

• Economical: 1) Wages and working hours - In host city, workers are only paid $10 a week and forced to work 65 hours a week. The average cost of three meals is $2, so some workers would have to skip the food. The workers barely survive to work for one day, making it unsustainable. 2) Child Labour - Nike admits to child labour in countries such as Pakistan as young as 4 years old and they frequently slapped and beaten. Evidence of overtime could lead to tiredness making it unsustainable. 3) Working environment - No freedom of speech and high risk of being fired if do so. Burning shoe rubber emits harmful toxins, so workers may get ill.
• Social: 1) Supervisors abusive behavior may cause severe injury to workers so unable to work properly. 2) low pay creates a feeling of unfairness, leading to social conflict. 3) Workers and families stuck in low standard of living due to low pay so there is no power to move forward or progress. lack of progress could mean they leave.