Key Issue 1: Development

Key Issue 1: Development

memorize.aimemorize.ai (lvl 286)
Section 1

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Consumer Goods

Front

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Last updated

6 years ago

Date created

Mar 1, 2020

Cards (23)

Section 1

(23 cards)

Consumer Goods

Front

- Part of wealth in developed countries is used to buy goods and services - Important goods and services include: - Motor vehicles: Provide access to jobs, services, and allow businesses to distribute their product - Telephones: Enhance interaction with providers of raw materials and customers for goods and services - Computers: Facilitate the sharing of info with other buyers and suppliers - Products that promote better transportation and communications are accessible to almost all residents of developed countries and are vital to growth and function - In developing countries: - Do not rely on transportation or technology because of clustering, lack of development, and practice of agriculture - The minority of people who own "developed" goods are usually high tier officials or owners living in urban areas - The diffusion of technology usually is from urban to rural - Is more necessary for urban areas because of the spread population - Technological change is helping to reduce the gap between developed and developing countries (Ex: Cell phone ownership is expanding in developing countries because no costly investment is needed of connecting to each individual building, and more individuals can obtain service from one tower or satellite)

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Productivity (explain)

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- Workers in developed countries are more productive than workers in developing: - Developed countries: Access to/reliance on machines, tools, and equipment to perform much of the work - Developing countries: Access to/reliance on animals and human power (animate power) - Productivity can be measured by value added per capita (Ex: The large per capita GNI in developed countries in part pays for machinery for more productive work which makes more wealth)

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Pupil/teacher ratio

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The number of enrolled students divided by the number of teachers (Ex: The fewer pupils a teacher has, the more likely that each student will receive effective instruction)

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Economic Structure

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- Average per capita income is higher in developed countries because of different jobs are offered there, compared to developing countries - Jobs are classified into 3 categories: - Primary sector: Agriculture, mining, fishing, and forestry - Secondary sector: Includes industries that fabricate manufactured goods into finished consumer goods as well - Tertiary sector: Retailing, banking, law, education, and government - Contribution to GNI in each sector varies between developed and developing countries: - Primary sector: - Developing countries: Decreasing - Developed countries: Lower than developing (Farmers are producing enough food for the rest of society) - Secondary sector: - Developing countries: Higher than developed - Developed countries: Decreased - Tertiary sector: - Developing countries: Increasing - Developed countries: High

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Literacy rate

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The percentage of a country's people who can read and write (Ex: More people in developed countries can read and write; demonstrated by developed countries dominance in scientific and nonfiction publishing worldwide)

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Development Regions

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Geographers have divided the world into 2 developed regions and 7 developing (9 total regions): -DEVELOPED: 1. North America = US and Canada are high developed 2. Europe = High developed except for a few -DEVELOPING: 3. Latin America = High developing 4. East Asia = Medium developing 5. Southwest Asia and North Africa = Medium developing on average, but large variety between high (Saudi Arabia) and low developing (Yemen) 6 (tie). Southeast Asia = Medium developing 6 (tie). Central Asia = Medium developing on average, but large variety between high (Iran) and low developing (Afghanistan) 8. South Asia = Medium developing 9. Sub-Saharan Africa = Low developing - In addition to the 9 main regions: - East Asia- JAPAN and SOUTH KOREA: Separated because of their high development compared to neighbors - South Pacific (less populous than the other 9 regions)- AUSTRALIA and NEW ZEALAND: Separated because of their high development compared to neighbors (Ex: Russia had once been considered a developed country, however, because of its lack of development and progress both during and after communism it is now classified as a high developing country)

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Purchasing power parity (PPP)

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The amount of money needed in one country to purchase the same goods and services in another country (Ex: If a resident of country A has the same income as a resident of country B but must pay more for a Big Mac or a Starbucks latte, the resident of country B is better off)

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Development

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A process of improvement in the conditions of people through diffusion of knowledge and technology (Ex: Countries cluster at both high and low ends of the continuum of development)

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Human Development Index (HDI) (explain)

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- Measures the development of each country - Created by the UN - Overall HDI score is based on 3 factors: 1. A decent standard of living 2. A long and healthy life 3. Access to knowledge - With access to the 3 factors people: - Have greater opportunities to be creative and productive - Are able to enjoy personal self respect and guaranteed human rights (Ex: The UN has computed HDIs for countries every year since 1980, however, it has occasionally modified the method of computation. The highest HDI possible is 1.0 or 100%)

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Gross national income (GNI)

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The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country (Ex: Few people may be starving in a developing country with a per capita GNI of only a few thousand dollars AND Not everyone is wealthy in a developed country with a per capita GNI of $40,000)

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A Long and Healthy Life

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- Life expectancy varies in each country: - Worldwide: 71 - Developed countries: 80 - SSA: 57 - People in developed countries live longer than in developing countries because: - Part of the wealth goes to protecting citizens who cannot work (through public assistance) - They have the available resources - They have better health and welfare - Developed countries have nearly the same # of older people as young people - Developing countries have 6x the # of young people than older people - Better health and welfare help babies survive infancy: - Developing countries: 94% survive, 6% die - Developed countries: 99.5% survive, 0.5% die (Ex: Babies die more in developing countries due to malnutrition, lack of medicine, or poor medical practices that arise from poor education)

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Productivity (define)

Front

The value of a particular product compared to the amount of labor needed to make it (Ex: The large per capita GNI in developed countries in part pays for machinery for more productive work which makes more wealth)

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Developed country

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A country that has progressed relatively far along a continuum of development (Ex: The 2 main developed regions in the world, identified by geographers are North America, which includes the US and Canada as high developed countries, and Europe, which is mostly high developed except for a few)

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Access to Knowledge

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- Years of schooling = Most critical measure of the ability of an individual to gain access to knowledge needed for development - No matter how poor the school is, if pupil keep attending they are more likely to learn something - Access to knowledge is the combined measures of: - Years of schooling for today's adults = # of years that an average person 25yrs+ have spent in school (in a country) - Developed: 11.5yrs (12yrs) - South Asia and SSA: 4.7yrs (5yrs) - Expected years of schooling for today's youth = # of years that the UN forecasts a 5 year old will spend in school - Developed: 16.3yrs (16yrs) (half will graduate from college) - South Asia: 9.3yrs (9yrs) - SSA: 10.2yrs (10yrs) - Other indicators can measure regional variations in access to knowledge: - Pupil/teacher ratio - Literacy rate - Improved education is a major goal in developing countries, however, because GNI is so low less funds are spent per pupil than in developed countries - In developing countries most literature (newspapers, books, magazines, etc...) are published in developed countries because more citizens can read, write, and afford them - Developed countries dominate in scientific and nonfiction publishing worldwide (Ex: Students in developing countries must learn technical information from books that usually are not in their native language)

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Secondary sector

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The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials (Ex: Includes industries that fabricate manufactured goods into finished consumer goods as well)

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Gross domestic product (GDP)

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The value of the total output of goods and services produced in a country in a year, not accounting for money that leaves and enter the country

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Human Development Index (HDI) (define)

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An indicator constructed by the UN to measure the level of development for a country through a combination of income, education, and life expectancy (Ex: The UN has computed HDIs for countries every year since 1980, however, it has occasionally modified the method of computation. The highest HDI possible is 1.0 or 100%)

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Introducing Development

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- Countries cluster at both high and low ends of the continuum of development: - Developed countries - Developing countries - The UN divides developing countries into high, medium, and low development because of varying progress in developing countries

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Income

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- The UN measures the standard of living through annual gross national income per capita at purchasing power (PPP is an adjustment made to GNI) - GNI/Total Pop. = Contribution made by the average individual toward generating a country's wealth in a year - Per capita GNI cannot measure perfectly the level of development in a country - Per capita GNI measures the average (mean) wealth, no the distribution of wealth - If only a few people receive much of the GNI, then the standard of living for the majority may be lower than the average figure implies - Higher GNI = Greater potential for all citizens to enjoy a comfortable life - Lower GNI = Greater potential for all citizens to not have a comfortable life (Ex: Few people may be starving in a developing country with a per capita GNI of only a few thousand dollars AND Not everyone is wealthy in a developed country with a per capita GNI of $40,000)

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Tertiary sector

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The portion of the economy concerned with transportation, communications, and utilities , sometimes extended to the provision of all goods and services to people in exchange for payment (Ex: Includes jobs such as retailing, banking, law, education, and government)

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Primary sector

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The portion of the economy concerned with the direct extraction of materials from Earth, generally through agriculture (Ex: Includes jobs such as, agriculture, mining, fishing, and forestry)

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Value added

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The gross value of a product minus the costs of raw materials and energy (Ex: The value added per capita is around $67 per hour in the US compared to around $16 in Mexico)

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Developing country

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A country that is at a relatively early stage in the process of development (Ex: One of the most prominent developing countries in the world is Sub-Saharan Africa which consists mostly of high developing areas)

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