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What is one of the drawbacks of protectionism?
It limits access to innovative and efficient technology, leading to increased production costs and prices for consumers.
What is the purpose of export incentives implemented by the government?
To provide domestic producers with assistance to penetrate global markets or expand their market share.
What is an indicator?
Something used to measure something.
How does the Aid for Trade program assist developing countries in overcoming structural difficulties that limit their ability to successfully trade?
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What is the estimated number of people living in extreme poverty (less than US$2.15 per day) in 2022?
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How can technology help improve living standards, and what are the limitations?
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How has the percentage of people living in extreme poverty changed between 1981 and 2019?
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What percentage of the global population did not have access to electricity in 2020, according to the World Bank?
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What percentage of the world's population did not use the internet in 2022, according to the International Telecommunications Union?
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What is one way a country can achieve economic growth?
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Why do economies with an abundant and reliable supply of natural resources have an advantage in generating income?
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What does income measure in terms of living standards?
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What is a major difficulty economies face in acquiring and maintaining sufficient resources for the production process?
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What has been the increase in life expectancy for people born in low human development countries between 1990 and 2021?
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How do economies use the income generated from natural resources to improve their standard of living?
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What is the consequence of developing economies being isolated from the global economy due to limited access to technology?
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What can be a consequence of an economy heavily relying on industries that produce abundant natural resources?
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How does a highly educated and skilled labour force contribute to economic growth in high-income countries?
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What are the negative consequences of low educational attainment and poor health standards on labour productivity?
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Why do economies with larger populations have a greater potential for economic growth?
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How does limited access to capital hinder economic development in low-income countries?
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What is a result of the difference in labour quality and supply between developed and developing economies?
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How does a lack of education impact the workforce's ability to perform jobs efficiently?
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What is a consequence of poor health standards on labour productivity?
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Study Notes
Global Technology Flows
- Technology can help improve living standards but also create other inequalities in the economy.
- Economies with better infrastructure and higher education adapt to new technologies faster, improving their living standards.
- Developing nations have difficulty accessing new technologies due to high costs, further increasing inequality between economies.
- In 2020, 10% of the global population didn't have access to electricity.
- In 2022, around 1/3 of the world's population didn't use the internet, with 95% of those without access living in developing economies.
Domestic Factors
Economic Resources
- Economies face difficulties in acquiring and maintaining sufficient resources for production.
- Natural resources, such as oil and minerals, can be used to generate income through exports, improving living standards.
- However, relying on natural resources can increase production costs, limit access to innovative technology, and increase prices for consumers.
Export Incentives
- Export incentives are government programs that provide assistance to domestic producers to penetrate global markets or expand their market share.
- Examples include grants, loans, or technical assistance.
- Incentives encourage businesses to invest in technology, R&D, efficiency, and competitiveness, providing more job opportunities and increasing GDP.
Globalisation and Economic Development
- Indicators of global inequalities include:
- 685 million people living in extreme poverty (less than US$2.15 per day) in 2022.
- Over 1.7 billion people without access to basic sanitation.
- Around 750 million people without access to electricity.
- However, there have been efforts to overcome these inequalities:
- Extreme poverty rates declined from 43.6% in 1981 to 9% in 2019.
- Life expectancy in low human development countries increased from 50 to 61 years between 1990 and 2021.
Economic Growth
- A country can achieve economic growth by increasing resource use through new technology and increasing productivity.
- Differences in economic growth are influenced by income and labour supply.
- Income is a way to compare living standards between economies, measuring the ability to satisfy material wants.
Labour Supply and Quality
- Labour is an input to the production process, influencing development levels.
- High-income countries have highly educated and skilled labour resources, allowing for economic growth.
- Low-income countries have high population growth, lower educational attainment, and low health standards, reducing workforce participation and productivity.
Access to Capital and Indebtedness
- Low levels of income make it difficult to access capital for investment and development, as well as reduce savings used for investment.
- Poor financial systems make it difficult for businesses to access loans for investment, preventing economic growth.
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Description
This quiz explores how technology affects living standards and exacerbates economic inequalities between developed and developing nations. Topics include access to technology, infrastructure, and education.
