Gross Domestic Product- value of goods and services produced in a country each year- it can then be divided by the entire population of that country to work out the per capita (converted into US$ for comparisons)
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What are the advantages of GDP?
It benefits those who have a large manufacturing industry e.g. China as it considers the value of the goods they produce
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What are the disadvantages of GDP?
It ignores quality of life and human development- doesn't acknowledge improvements in healthcare, education etc. and ignores any money made outside the home country
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What is GNI?
Gross National Income- measures the same as GDP but also considers any income from overseas investment and income from TNCs etc. usually shown as per capita
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What are the advantages of GNI?
Better displays a countries wealth, includes more forms of income making it a better measurement
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What are the disadvantages of GNI?
Benefits the wealthy countries mainly because they gain a large amount of their income from overseas e.g. US TNCs across the world e.g. Coca-Cola
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What is PPP?
Purchasing Power Parity- shows the per capita income when the cost of living is taken into account e.g. the cost of living in China is less than in the USA so $100 will go a lot further
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What are the advantages of PPP?
Only measurement that considers the cost of living- therefore it is a lot more representative of a countries wealth and the impact the wealth has on the people
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What are the disadvantages of PPP?
Bias towards the BRICs who have very low costs of living but are experiencing rapid economic development
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What is HDI?
Human Development Index- measurement of living standards using life expectancy, GDP per capita, length of schooling and literacy rates. An average figure is produced between 0 (worst) and 1 (best)
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What are the advantages of using HDI?
Measures how people benefit from the GDP- it measures the commitment of the governments in improving the quality of life for the population
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What are the disadvantages of HDI?
Benefits those who are politically stable e.g. Sweden, many developing countries (BRICs) score low because the people are't reaping the benefits of the economic development yet
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What are the Millennium Development Goals?
A set of 8 goals determined by the UN in 2000 to improve the quality of life and promote development in all countries
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Name 3 examples of the MDGs.
Eradicate extreme poverty and hunger, promoting gender equality and ensuing environmental sustainability
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Name 2 other ways of measuring human development.
PQLI- Physical Quality of Life Index & GDI- Gender-related Development Index
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Other cards in this set
Card 2
Front
What are the advantages of GDP?
Back
It benefits those who have a large manufacturing industry e.g. China as it considers the value of the goods they produce
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