0% found this document useful (0 votes)
18 views

Development IGCSE

Here are the key points about TNCs: - A TNC (transnational corporation) is a company that operates in more than one country. Well known examples include Coca-Cola, McDonald's, Apple, and Toyota. - TNCs can benefit home countries by creating jobs and tax revenue. They also benefit host countries through foreign direct investment which brings jobs, skills, and technology transfers. However, they are also criticized for outsourcing jobs from home countries. - Host countries may gain economically from TNC investment but can also face issues like environmental damage, exploitation of workers, and cultural imperialism if local customs are replaced. They may also face loss of control over resources. - The impact

Uploaded by

Hadad Lwaze
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
18 views

Development IGCSE

Here are the key points about TNCs: - A TNC (transnational corporation) is a company that operates in more than one country. Well known examples include Coca-Cola, McDonald's, Apple, and Toyota. - TNCs can benefit home countries by creating jobs and tax revenue. They also benefit host countries through foreign direct investment which brings jobs, skills, and technology transfers. However, they are also criticized for outsourcing jobs from home countries. - Host countries may gain economically from TNC investment but can also face issues like environmental damage, exploitation of workers, and cultural imperialism if local customs are replaced. They may also face loss of control over resources. - The impact

Uploaded by

Hadad Lwaze
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 44

Development

Starter!
Learning Objectives
All – identify the difference between a
developed country and a developing
country
Most – explain the different ways
development is measured around the
world
Some – define all development
terminology
Extension – research the development of
the UAE what stage of the DTM is the UAE
Measuring Development
• When a country develops, the quality of life improves for the people
living there
• Quality of life is based on their wealth, health and safety
• All countries are at different stages of development around the world.
The Demographic Transition Model
Measuring development is difficult as there are
many different measures of development!
Measures of Development
• GDP (Gross Domestic Product) : is a total value of goods and services
a country produces in a year (US$). GDP is a Measure of wealth and
as a country develops it gets higher.
• GNI (Gross National Income) : is the total value of goods and
services people of that nationality produce in a year (e.g. GDP +
money from people living abroad) (US$). It is also called the GNP
(Gross National Product). It is a measure of wealth and as a country
develops it gets higher.
• GNI per head : this is the GNI divided by the population of a country
and is often referred to as GNI per capita. It is a measure of wealth
and as a country develops it gets higher.
Measures of Development
• Birth Rate: The number of live births per thousand of the population
per year. It is a measure of women's rights. As a country develops it
gets lower.
• Death Rate : the number of deaths per thousand of the population
per year. It is a measure of health. As a country develops it gets
lower.
• Infant Mortality Rate: the number of babies born who die under the
age of 1 year per thousand of babies born. It is a measure of health.
As a country develops it gets lower.
• People Per Doctor: the average number of people for each doctor in
a country. It is a measure of health. As a country develops it gets
lower.
Measures of Development
• Literacy Rate: the % of adults who can read and write. It is a
measure of education. As a country develops it gets higher.
• Access to safe water: the % of people who can get clean drinking
water. It is a measure of health. As a country develops it gets higher.
• Life Expectancy: the average a person can expect to live to. It is a
measure of health. As a country develops it gets higher.
• HDI (Human Development Index) : this is the number that’s
calculated using life expectancy, literacy rate, education level and
income per head. It is a measure of lots of things. As a country
develops it gets higher.
How to use the different Measures of
Development?
• Many of the measures of development are linked to each other.
For example –
countries with high GNI tend to have low death rates and high
life expectancy due to the fact that they have more money to
spend on health care.
Limitations
• Measures of development can be misleading if used on their own
due to the fact that they don’t show minority groups or variations in
populations.
• Another reason they shouldn’t be used on there own - as a country
develops, some parts develop before others. So it might seem that a
country is more developed than it actually is.
• Using more than one measure or the HDI is the best options as it
avoids confusion!
The North /South Divide
• Countries were once classified into 2 categories based on how
economically developed they were MEDCs and LEDCs (The Rich
North and the Poor South)
• The problem with this simple approach was that you couldn’t tell
which country was developing slow or fast or in some cases not at
all!

M Ralph O'Mahony
Starter!
Learning Objectives
All – can identify the different stages of
development
Most – can explain the different between quality
of life and standard of living
Some – can discuss how the environment
influence a persons quality of life
Extension – Development can be influenced by
Historical, Geographical and culture/religious
reason, research the underlined words to help
explain why development is influenced by three
things
Stages of Development
(categories)
• Rich Industrial Countries – the most developed countries (UK,
Norway, USA etc.)
• Newly Industrialising Countries – rapidly getting richer as their
economy moves from being based on agriculture to manufacturing
(China, India, Brazil, South Africa etc.)
• Former Communist Countries – countries aren’t really poor but
aren’t really rich either. They are developing. (Czech Republic,
Bulgaria, Poland)
• Oil-exporting Countries – quit rich but the wealth often belongs to a
few people and the rest of the people can have quite low incomes.
(Qatar, Saudi Arabia etc.)
• Heavily Indebted Poor Countries – These countries are the poorest
and least developed in the world. (Ethiopia, Chad, Angola)
Quality of Life Vs Standard of Living
• Quality of life and standard of living are not the same thing
For Example
A person may have a high standard of living by earning a good
wage and having access to health care, but their quality of life
may be poor due to the fact that they might live in a poor socio
economic area.
Environmental Factors of Global Inequalities
here you will be given the start each point and you must expand on this in a class discussion

• A Poor Climate – (really hot or really cold) this reduces food


production, This can lead to…
• Poor Farming Land – steep land with poor soil can’t produce as
much food, this can lead to…
• Natural Hazards – such as earthquakes, tsunamis, volcanic eruptions
etc.. can cause a huge loss of life and structural damage...
• Few Raw Materials – such as oil, coal make less money as they have
less to sell this means they have less to spend on…
Political Factors of Global Inequalities
• If a country has an unstable govt. It may not
invest in services such as education and
healthcare which leads to very slow
development.
• Some Govt. are corrupt, which means that
some people get rich by breaking the law
while others stay poor and have a very low
quality of life.
• Wars mean countries lose money that could
be spent on development, war also reduces
the quality of life.
Economic Factors of Global Inequalities
• Poor Trade Links – trade is the exchange of goods and services
between countries, when a country has poor trade links it wont
make a lot of money and will therefore have less to spend on
development.
• Lots of Debt - when countries borrow lots of money, they must
repay the loans, usually with very high interest rates, which means
there is less to spend on development.
• Primary as Main Industry – primary industry such as farming,
fishing and forestry produce raw materials that are at the first
stage of production and cost the least amount of money so there
is less to spend on development.
Social Factors of Global Inequalities
• Drinking Water – if people are drinking dirty water they get ill (typhoid and
cholera) if people are ill it means that they need medication which is
expensive considering they can’t work to earn money!!
• The Place of Women in Society – a country will be more developed if
women have an equal place with men in society, if women are equal they
are more likely to be educated and work. The economy is now making
more money as both men and women are working.
• Child Education – if children get a better education, they will be able to get
better jobs. This improves a persons quality of life and increases the
money the country has to spend on development.
Starter!
Learning Objectives
All – can list the various types of jobs that
people can have
Most – can categorise jobs into the different
sectors of employment
Some – will explain how globalisation is having
a major role in the jobs available in different
countries.
Extension – Write an article with the following
heading “Globalisation and the UAE”
The 4 Sectors of Employment
1. Primary

2. Secondary

3. Tertiary

4. Quaternary
The Primary Sector
Where people take raw materials from the land
and sea
The Secondary Sector
Where people make or build things using raw
materials where were got from the primary
sector
The Tertiary Sector
where people are provided with a service by
other people with certain skills e.g.. Teachers,
chef, bankers etc..
The Quaternary Sector
Where people provide high level specialised
skills to help people in other sectors
Employment Structures in Different Countries
Match the correct statement to the Graph
1. Farming is very important because people often grow the food they eat
2. Machinery has taken over jobs in the primary sector, Primary resources have
become exhausted. The number of people employed in the secondary sector
is falling because fewer people are needed to work in factories.
3. While it is developing its economic base there are all still a large number of
people employed in primary industries such as farming. Tourism provides a
growing number of tertiary jobs.

M Ralph O'Mahony
Globalisation
• The speed at which goods, services, information and
people can move around the world
Globalisation
Communication
What do you think this shows?
Starter!
Learning Objectives
All – identify what a TNC is and can list
some well known ones
Most – describe positive and negative
factors of TNC’s for home and host countries
Some – explain the impact of TNC’s in
relation to a countries Development
Extension – as a society do we have a moral
obligation to avoid products made in sweat
shops
A TNC Case Study
just don’t do it…
Some of the facts!
• Nike’s global headquarters is located in Beaverton,
Oregon, USA
• Nike employs more than 700,000 contract workers in
over 700 factories worldwide.
• The list includes 124 plants in China, 73 in Thailand, 35 in
South Korea and 34 in Vietnam.
• More than 75% of the workforce is based in Asia.
How the TNC works...
• Like many TNCs, Nike subcontracts or uses independently
owned factories in different countries to produce its
products.
• Often this takes place in less economically developed
countries (LEDCs) where labour costs are lower than in
MEDCs.
• Nike say they are in the business of "marketing" their
products, not making them.
The Costs
The figures supplied by Nike for its cost/price chain are
as follows:
• Contractors are paid an average of $18 a shoe by Nike.
• This is made up of $11 for materials, $2 for labour, $4 for other costs, and $1
for profit.
• Nike sells the shoes to retailers for $36. The mark up of 100%
accounts for the costs of design, research and development,
marketing, advertising, shipping, production management, other
sales and business costs, taxes and of course a profit.
• Retailers mark up another 100% to $72 (on average) to cover wages,
shrinkage, insurance, advertising, supplies and services,
depreciation, taxes and profit.
Expansion
• In mid-2003 Nike paid $305 million to acquire retro
shoemaker Converse. Most large TNCs grow by
acquiring other businesses as well as generating their
own growth.
Impacts on host country
Positive Negative
• Outsourcing creates substantial • Workers at nine Nike plants in Indonesia
employment in Vietnam. (including Jakarta) have been found to
• Nike pays (slightly) higher wages than suffer from sexual and verbal abuse, lack
local companies. of medical attention and compulsory
overtime.
• Improves the skills base of the local
population. • Suspicions have been raised over the use
of child labour.
• The success of the global brand may
attract other TNCs setting off • Company image and advertising may
cumulative causation. help to undermine national culture.
• Exports are a positive contribution to • Huge demand on water resources & use
the balance of payments. of fossil fuels.
• Contribution to local tax helps pay for • In the late 1980s labour costs in South
new and improved infrastructure. Korea rose, so Nike decided to move
production to Indonesia where costs
were lower.
Impacts on country of origin
Positive Impacts Negative Impacts
• Positive employment impact • Nike does not manufacture
and stimulus to the in the US which leads to
development to high level indirect loss of jobs and
skills in design marketing and negative impacts on balance
development in Beaverton of payments as footwear is
Oregon. imported.
• Direct and indirect • Trade unions complain over
contribution to local and an uneven playing field
national tax base. because of the big contrast
in working conditions
What does the Future hold?
• In 1993, Nike setup a Reuse-a-shoe program to encourage people to
recycle their old shoes.
• Benefits both the environment and community
• Old shoes recycled to make material that can be used for sports surfaces
such as basketball courts, running tracks and playgrounds.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy