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CUEGIS RESOURCES:
https://docs.google.com/document/d/10PCGn7cpHUEVdmCXv0-
JwVMH18eFJKvvRbhCDP36jNg/edit?usp=shhttpsaring
Notes for business management (It’s completely finished now) Formatted: Font: Bold
https://drive.google.com/drive/u/0/folders/0B9-CPpGUCcKYLXh3UXBkdWZsLU0 Formatted: Font: (Default) Arial, 11 pt, Not Bold
Formatted: Font: (Default) Arial, 11 pt
I made this last year for CUEGIS (Starbucks, McDonald’s, and Apple) Formatted: Font: (Default) Arial, 11 pt
https://docs.google.com/document/d/1QRgXL-0fwFT0Ez4OWRkXFtDovjodk3u-
Formatted: Font: (Default) Arial, 11 pt
IAEsPCmel3c/edit?usp=sharingFeel free to contribute to this!
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/u/bunnysanni HSBC CUEGIS (PDF): Formatted: Font: (Default) Arial, 11 pt, Not Italic
https://drive.google.com/file/d/0B4QhfQDAOmZab1ZlRUg2UUk1M1U/view Formatted: Font: (Default) Arial, 11 pt
Formatted: Font: (Default) Arial, 11 pt
This thread has some really good stuff for the Utopia case study
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https://www.reddit.com/r/IBO/comments/65ieq1/group_3_business_exam/
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https://www.reddit.com/r/IBO/comments/65ieq1/group_3_business_exam/
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color: Custom Color(RGB(17,85,204))
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Economics Formatted: Left
Market: A set of arrangements where buyers and sellers of goods and services come in contact in with each
other to carry out exchange. A market can be as small as a local shop and can be as large as a global stock
exchange.
Competitive Markets: They are composed of largely large number of buyers and sellers which act
independently.
Demand: The ability and willingness of a consumer to buy a commodity, good or a service at a particular price
and point of time, ceteris paribus.
Individual Demand: Amount of commodity an individual is ready to buy at a particular price level and point of
time, ceteris paribus.
Market Demand Curve: A locus of combination of points where a single point shows the amount all buyers are
willing to buy at alternative prices and point of time, ceteris paribus.
The Law of Demand : The law of demand states that there is a negative relationship between price of a good
and its quantity demanded, ceteris paribus.
Market Demand: Amount of commodity all buyers are ready to buy at a particular price level and point of time,
ceteris paribus.
Market Supply: Amount of commodity all producers are ready to supply at a particular price level and point of
time, ceteris paribus.
Supply: Amount or quantity an individual or a firm is ready to supply at various quantities of a good at various
price levels, ceteris paribus.
Law of Supply: The supply of an individual or a firm indicates a direct positive relationship between the price
and quantity supplied. As price increases, the quantity supplied of a product also increases.
Joint Supply: Joint supply of two or more goods refers to the production of goods that are derived from a single
product. Therefore, it is not possible to produce more without producing both. Example: Butter and Skimmed
Milk; Petrol and Diesel Oil.
Allocative Efficiency (Core Definition): When a society is producing a combination of goods where it isn’t
possible to make anybody better off without anyone worse off. A situation where resources are efficiently
allocated in a market. The Marginal Benefit = Marginal Cost.
Formatted: Widow/Orphan control
Productive Efficiency (Core Definition): When the economy is using least amount of scarce resources to
produce a commodity. Here, The Average Cost = Total Cost or Total Output.
Producer Surplus: The price received
by firms for selling their good minus the lowest price that they are Formatted: Space After: 0 pt, Widow/Orphan control
willing to accept to produce the good.
Social Surplus: The sum of consumer and producer surplus is known as Social Surplus (Community Surplus)
Basic Economic Problem and Choice: The condition of scarcity forces societies to make choices about the
what to produce economic question, which is a resource allocation question. Choices involve an opportunity
cost because of foregone (or sacrificed) alternatives that could have been chosen instead.
Equilibrium: State of balance between different forces, such that there is no tendency to change.
Consumer Surplus: The price received by consumers for buying their good minus the maximum price that they
are willing to accept to buy the good.
Market Failure and Government Intervention
Market Failure : Refers to failure of the market to allocate resources efficiently in the market. MF results in
allocative inefficiency where too much or too little of a good is being produced.
Negative Externality in Production : Takes place by the creation of external costs by producers.
Example : Environmental Pollution
Total Product : The total quantity of output produced by a firm is termed as the total product.
Marginal Product : The extra or additional output resulting from one additional unit of variable input, labour, it
tells us by how much the output increases when one more unit of output is employed
Average Product : The average product is the total quantity of output per unit of variable input or labour.
Law of Diminishing Returns : As more and more units of a variable input are added to one or more fixed inputs
(labour and land respectively); the marginal product of the variable at first increases, but there comes a point
where it starts to decrease.
KEY TERMS
Market : A market is a place where buyers and sellers come in contact with each other for the purchase and Formatted: Space After: 0 pt, Widow/Orphan control
the sale of a commodity at a particular price level and point of time.
Profit : The excess of total revenue over the total costs is defined as profits.
Normal Profit : Normal profit is defined as the minimum profit which a firm should make to remain in business.
It is the amount of revenue which covers all implicit and explicit costs.
Allocative Efficiency: When a firm produces a particular combination of goods and services which consumers
mostly prefer. The condition exists when AR = MC or P = MC Formatted: Space After: 0 pt, Outline numbered +
Level: 1 + Numbering Style: Bullet + Aligned at: 0.25"
FOR ALLOCATIVE EFFICIENCY : P = MC
+ Indent at: 0.5", Widow/Orphan control
Productive Efficiency: It means when the firm is producing at the optimum
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level which is being produced at minimum AC.
PE = PRODUCTION AT MINIMUM AC Formatted: Font: (Default) Arial
3) Freedom of entry and exit Formatted: Space After: 0 pt, Outline numbered +
- In the short run the industry makes abnormal profits (Profit = TR - TC) Level: 1 + Numbering Style: Bullet + Aligned at: 0.25"
+ Indent at: 0.5", Widow/Orphan control
- More and more firms join the market. Hence, the share of each significant firm decreases and the
perfectly competitive market starts earning normal profits in the long run. Formatted: Font: (Default) Arial
- If the industry bears a loss, firm starts leaving the market and the PCM earns normal nprofits in the long Formatted: Font: (Default) Arial
run Formatted: Font: (Default) Arial
- Same implication Formatted: Font: (Default) Arial
4) Perfect mobility of goods
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- Goods and services are perfectly mobile from the area of surplus to area of shortage.
- There will be no variation in prices of a commodity and income of factors of production Formatted ...
5) Perfect knowledge among buyers and sellers Formatted: Font: (Default) Arial
- Each buyer is completely aware of the product sold and the price charged by the seller. Formatted: Font: (Default) Arial
- Completely aware of all technologies and production methods. Formatted: Space After: 0 pt, Widow/Orphan control
B. PROPERTIES - EFFICIENCY and OTHER
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- AE in ALL cases, PE in long run when making normal profits
- Industry is the price maker and firm is the price taker Formatted: Font: (Default) Arial
- A PCM is productively efficient in the long run and only productively efficient in the short run provided it Formatted: Font: (Default) Arial
earns normal profits. However, it is allocatively efficient both in the long and the short run which means Formatted: Font: (Default) Arial
that there is optimum allocation of resources without any wastage since production takes place at Formatted: Space After: 0 pt, Widow/Orphan control
minimum AC, consumers tend to be better off because they are provided with an overall lower cost of
Formatted ...
production leading to a lower cost offered to the consumers.
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- A PCM sells homogenous products which means that the inefficient firms will close down which takes
place due to complete freedom of entry and exit Formatted: Font: (Default) Arial
- A PCM responds quickly to change in consumer’s demand Formatted: Font: (Default) Arial
- Market responds quickly to changes in technology Formatted: Font: (Default) Arial
Disadvantages
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- A PCM is based on unrealistic assumptions.
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- Since the share of each firm is insignificant in the total output so small firms cannot reap the benefit of Formatted: Font: (Default) Arial
economies of scale like a monopoly does which gives them the inability to invest in research and
development and hence provide a lower cost to the consumers by decreasing costs of production in the
long run.
- There is no product variety since all firms are selling homogeneous products Formatted: Font: (Default) Arial
- Complete freedom of entry and exits leads to entry of inefficient firms into the market. Formatted: Font: (Default) Arial
- IMPORTANT : Even in the SR and LR the firms are AE and PE in the LR implies that community
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surplus is MAXIMUM where implies that there still exist possibilities for market failure. This is so as the
firm can face externalities, public goods, CARes and asymmetric info.
Market Two : A Monopoly Formatted: Font: (Default) Arial
A. CHARACTERISTICS Formatted: Space After: 0 pt, Widow/Orphan control
- A monopoly is a market system with only one dominant seller
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- Selling products having close substitutes. Level: 1 + Numbering Style: Bullet + Aligned at: 0.25"
- High barriers to entry and exit. + Indent at: 0.5", Widow/Orphan control
- Implies that the firm is the price maker and can influence either the price or the output not the two Formatted: Font: (Default) Arial
together.
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B. PROPERTIES - EFFICIENCY and OTHER
Real Life Examples : Formatted: Font: (Default) Arial
- DeBeers : Controls the maximum market share. DeBeers are the diamond guys who mine world’s Formatted: Font: (Default) Arial
mines 50 percent of diamonds and trades too. Formatted: Space After: 0 pt, Widow/Orphan control
- ALCOA [Aluminium Company of Aluminium] : For alocoa patents expired in 1909 but despite of that Formatted: Widow/Orphan control
ALCOA remained to be the aluminium monopoly of America since it controlled bauxite resources there.
Formatted: Outline numbered + Level: 1 + Numbering
Style: Bullet + Aligned at: 0.25" + Indent at: 0.5",
- AR and MR are downward sloping can more can be sold by lowering the price. AR is HIGHLY inelastic. Widow/Orphan control
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High Barriers to Entry (Reasons)
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- Economics of scale : LRAC falls.
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A monopoly being a single dominant firm can exploit a consumer. Hence, the government needs to intervene
and impose legislations.
Market Three : Monopolistic Competition Formatted: Space After: 0 pt, Widow/Orphan control
A. CHARACTERISTICS
- Large numbers of buyers and sellers. Formatted: Space After: 0 pt, Outline numbered +
- Selling an insignificant proportion of output Level: 1 + Numbering Style: Bullet + Aligned at: 0.25"
- Differentiated products. + Indent at: 0.5", Widow/Orphan control
- Freedom of Entry and Exit Formatted: Font: (Default) Arial
- Selling Cost Formatted: Font: (Default) Arial
- Based on unrealistic assumptions Formatted: Font: (Default) Arial
B. PROPERTIES - EFFICIENCY and OTHER
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AE : P = MC or AR = MC
PE : P = Minimum AC Formatted: Font: (Default) Arial
Therefore, a monopolistically competitive market is neither AE nor PE. Formatted: Font: (Default) Arial
Excess Capacity : Excess capacity is the basic feature which exists in a monopolistically competitive market Formatted: Space After: 0 pt, Widow/Orphan control
which means that firms are producing at LESS than OPTIMUM LEVEL. This leads to a wastage of resources
because there are many firms producing similar products and hence even they want to reach the optimum
level.
Selling Cost : The selling cost is the cost incurred to increase the sale of a commodity. In a monopolistically
competitive market, firms cannot compete on the basis of PRICES. As a result, they engage into NON - PRICE
COMPETITION and PROMOTIONAL TECHNIQUES.
decision taken by one will have a huge impact on others with respect to output and prices. Hence, firms tend to Formatted: Font: (Default) Arial
be mutually interdependent, work together and come to a common price and output. Formatted: Font: (Default) Arial
Strategic Behaviour (An IMPLICATION of MI) : Based on plans of action which take into account the rival’s Formatted: Space After: 0 pt, Widow/Orphan control
possible course of action. STB leads to MIDP. In OP, firms plan their strategy by guessing the action and
reaction of the rival by anticipating more of the rival.
CONFLICTING INCENTIVES
1) Incentive to Collude : Means when firms enter into an argument with each other and fix the price and the
quantity in order to reduce uncertainties as action of the rival is unknown. Hence, through collusion they are
able to maximize their profits.
2) Incentive to Compete : Even if firms collude, they will still have an incentive to cheat with a hope of gaining
and capturing their RIVAL’s market share.
Collusion : An agreement whether formal or informal between competitive parties to limit competition and raise
profits.
Types of Oligopolies
1. Collusive Oligopoly : Means when firms enter into a mutual agreement regarding PRICE in order to
DECREASE competition.
Formal Collusion or Cartel : A cartel is a formal agreement between two firms in the industry to take actions to Formatted: Space After: 0 pt, Outline numbered +
Level: 1 + Numbering Style: 1, 2, 3, … + Start at: 1 +
the rival competition in order to decrease competition. Cartel members behave like a monopoly to earn AB
Alignment: Left + Aligned at: 0.25" + Indent at: 0.5",
Profits. Widow/Orphan control
Ex : OPEC - The world’s only legal cartel.
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Obstacles to Form Cartels
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1. Firms might have an incentive to cheat (Price Wars)
2. Cost differences between firms. Extremely difficult to arrive at PMax level of output. Formatted: Font: (Default) Arial
3. Different demand curves and different market share and PD. Formatted: Font: (Default) Arial
4. Large number of firms = More difficulty regarding managing the cartel. Formatted: Space After: 0 pt, Widow/Orphan control
INFORMAL COLLUSION or TACIT COLLUSION Formatted: Space After: 0 pt, Outline numbered +
- TACIT collusion means when there is no formal agreement between firms and there is STILL some Level: 1 + Numbering Style: Bullet + Aligned at: 0.25"
cooperation that can still be seen. + Indent at: 0.5", Widow/Orphan control
Types of informal collusion includes price leadership and limit pricing. Formatted: Font: (Default) Arial
1. Price Leadership : It means when a domestic firm in the industry sets a price and also initiates a price
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charge. The rest of the firms follow.
Formatted: Space After: 0 pt, Outline numbered +
Example : Kellogg's in Cereals
Level: 1 + Numbering Style: 1, 2, 3, … + Start at: 1 +
Obstacles to Price Leadership Alignment: Left + Aligned at: 0.25" + Indent at: 0.5",
- Cost might differ among firms if there is significant product differentiation. Widow/Orphan control
- Some follow while some might now follow Formatted: Font: (Default) Arial
- Always an incentive to cheat
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- Maybe illegal depending on HOW and WHEN practised.
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Non Collusive Oligopoly (EXTREMELY IMPORTANT)
Level: 1 + Numbering Style: Bullet + Aligned at: 0.25"
In a collusive oligopoly, firms might collude and enter together to form a formal or an informal agreement so + Indent at: 0.5", Widow/Orphan control
that prices remain stable.
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However, price stability can still exist in an oligopolistic market where there is no collusion. This can be
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explained using the kinked demand curve theory which shows existing price stability among firms which do not
collude either formally or informally. Formatted: Font: (Default) Arial
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- In a non collusive oligopoly, market demand is kinked in nature, implying that the MR curve gets broken at the Formatted: Space After: 0 pt, Widow/Orphan control
point of the kink showing an abrupt drop in MARGINAL REVENUE.
Formatted: Space After: 0 pt, Outline numbered +
- Reaction of the firm is unpredictable and hence firms prefer producing at the point of the kink Level: 1 + Numbering Style: Bullet + Aligned at: 0.25"
- Happens since if a firm tries to increase the price, rivals might not follow and he might be the ONLY + Indent at: 0.5", Widow/Orphan control
loser in the market. Formatted: Font: (Default) Arial
- If firms produce below P, rivals follow and firms do not gain much market share.
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Thus in the KDCT, firms perceive that the demand curve falls highly elastic ABOVE P and highly inelastic
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BELOW P.
Advantages of the KDC Theory Formatted: Space After: 0 pt, Widow/Orphan control
- Prices are rigid and stable which is good for the consumers Formatted: Space After: 0 pt, Outline numbered +
Level: 1 + Numbering Style: Bullet + Aligned at: 0.25"
+ Indent at: 0.5", Widow/Orphan control
- Different firms with different marginal costs can co-exist in the market by selling the same quantity at Formatted: Font: (Default) Arial
the same price. Hence, firms with higher MC in spite of earning LOW PROFITS can still get same
revenue in the market and can undertake steps to reduce costs over a period of time.
Implications of the KDC Theory. Formatted: Font: (Default) Arial
- Even if firms do not collude, prices will be still STABLE Formatted: Space After: 0 pt, Widow/Orphan control
- Even if firms do not take collude, they take into account the reaction of the RIVALS.
Formatted: Space After: 0 pt, Outline numbered +
- Firms do not enter into price competition. Level: 1 + Numbering Style: Bullet + Aligned at: 0.25"
MACROECONOMICS + Indent at: 0.5", Widow/Orphan control
Chapter 9 : Aggregate Demand and Supply Formatted: Font: (Default) Arial
Aggregate Demand : AD is defined as the total amount of goods and services consumers, firms and the
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government want to buy at a particular price level and point of time.
AD Curve : Illustrates the relationship between the total amount of output demanded over a fixed period of Formatted: Font: (Default) Arial
Explain population trends and patterns in births, natural increase and mortality, fertility and life expectancy in
contrasting regions of the world Formatted: Outline numbered + Level: 1 + Numbering
Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
Population Trends Formatted: Font: (Default) Arial, 11 pt, Font color:
● Global Population Change 1930-2020 Auto, Not Highlight
● There are more people living today than any other time in history Formatted: Font: (Default) Arial, 11 pt, Font color:
● There has been a population explosion since World War 2 Auto, Not Highlight
● There is an inverse relationship between population growth and resources — too many people with not Formatted: Font: (Default) Arial, 11 pt, Font color:
Auto, Not Highlight
enough resources, too little people with too much resources
● Population increase mainly due to better economy, but many other reasons related to LEDC Formatted: Font: (Default) Arial, 11 pt, Font color:
Auto, Not Highlight
Overpopulation: When the population is greater than the resources available in the country e.g. Bangladesh Formatted: Font: (Default) Arial, 11 pt, Font color:
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(Include reasons for e.g. Cultures permit large families))
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Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
Underpopulation: When the population is not big enough to fully exploit the economic potential of a country e.g.
Canada and Australia Formatted: Font: (Default) Arial, 11 pt, Font color:
Auto, Not Highlight
Optimum Population: When the population and resources are perfectly matched. In reality this never really Formatted: Outline numbered + Level: 1 + Numbering
Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
happens.
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● Natural Increase is very low Formatted: Font: (Default) Arial, 11 pt, Font color:
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World’s population is growing very rapidly. Formatted: Font: (Default) Arial, 11 pt, Font color:
Global population doubled between 1650-1850, 1850-1920 and 1920-1970 Auto, Not Highlight
= taking less time for population to double Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Up top 95% of population growth takes place in LICs
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Exponential Growth = Increasing or accelerating rate of growth
Formatted: Outline numbered + Level: 1 + Numbering
Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
Effects of Population Growth:
● Great pressures on governments to provide for their people Formatted: Font: (Default) Arial, 11 pt, Font color:
Auto, Not Highlight
● Increased pressure on the environment
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● Increase risk of famine and malnutrition due to not enough resources
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● Greater differences between the richer and poorer countries
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Highest growth rates found in Africa
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Lowest growth rates found in North America and Europe
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Case Study: Population Growth in Africa
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● Africa has the fastest-growing population in the world; 1850 = 110mil, 2009 = 1bil
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● Africa has 20% of the world'sworlds landmass but 13% of total population Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
● Bulge in young people = youthful population
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● Sub-saharan Africa has the world'sworlds most youthful population Auto, Not Highlight
● Niger has world highest fertility rate of average 7.4 children Formatted: Font: (Default) Arial, 11 pt, Font color:
● Population rise due to low life expectancy, limited education and contraceptives, primary sector (farms) Auto, Not Highlight
therefore more children more labour more money Formatted: Font: (Default) Arial, 11 pt, Font color:
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Birth Rates Formatted: Font: (Default) Arial, 11 pt, Font color:
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Annual Growth Rate = (Crude Birth Rate - Crude Death Rate)x100 Formatted: Font: (Default) Arial, 11 pt, Font color:
Crude Birth Rate (CBR) = Number of live births per 1000 people in a population per year = Natality Auto, Not Highlight
Crude Death Rate (CDR) = Number of deaths per 1000 people in a population per year = Mortality Formatted: Font: (Default) Arial, 11 pt, Font color:
General Fertility Rate (GFR) = Number of births per 1000 women aged 15-49 Auto, Not Highlight
Age-Specific Birth Rate (ASBR) = Number of births per 1000 women of any age
Standardised Birth Rate (SBR) = Birth rate for a region on the basis that its age composition is the same for
the whole country
Total Fertility Rate (TFR) = Average number of births per 1000 women of childbearing age
Infant Mortality Rate (IMR) = Number of deaths of children less than age of 1 per 1000 live births
Child Mortality Rate = Number of deaths in children under the age of 5 per 1000 children
● saving mothers from the complication of childbirth Formatted: Font: (Default) Arial, 11 pt, Font color:
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Explain population momentum and its impact on population Formatted: Font: (Default) Arial, 11 pt, Font color:
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● shows detail about the age and sex structure of a population Formatted: Outline numbered + Level: 1 + Numbering
● also tell us about population growth Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
● Countries goes through 5 stages, following the Demographic Transition Model Formatted: Font: (Default) Arial, 11 pt, Font color:
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Wide base = high birth rate Formatted: Font: (Default) Arial, 11 pt, Font color:
Narrowing base = falling birth rate Auto, Not Highlight
Straight = low death rate Formatted: Font: (Default) Arial, 11 pt, Font color:
Concave slope = high death rate Auto, Not Highlight
Bulges in the slope = high rates of in-migration
Deficits in slope = high rates of out-migration or age/sex specific deaths (epidemics or war)
Population Momentum = Population growth or decline that continues despite declining or rising birth rate
respectively
Population Projection = Estimate of future population
Doubling Time = Length of time it takes for a population to double in size (assuming natural increase is
constant)
LO:
Analyse population pyramid
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Explain population momentum and its impact on population Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
Formatted: Font: (Default) Arial, 11 pt, Font color:
Dependency Ratios Auto, Not Highlight
● Measures the working population and the dependent population
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- Crude measurement = standardised = does not take in account of age structure Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
Formatted: Font: (Default) Arial, 11 pt, Font color:
Economically Active = Whether they work or not, they have the potential to work, to pay tax and contribute to Auto, Not Highlight
economy
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- 18 - 64 years old Auto, Not Highlight
Formatted: Outline numbered + Level: 1 + Numbering
Economically Dependant = Can’t work, does not have the potential to work, can’t contribute to economy Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
● Young Dependant = 1-17 years old Formatted: Font: (Default) Arial, 11 pt, Font color:
● Old Dependant = 65 years old and above Auto, Not Highlight
Formatted: Font: (Default) Arial, 11 pt, Font color:
● HIC = high proportion of elderly = stage 4 of DTM = High dependency ratio Auto, Not Highlight
● LIC = high proportion of youth = stage 2/3 of DTM = Low dependency ratio Formatted: Outline numbered + Level: 1 + Numbering
Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
Dependency Ratio Increase due to; Formatted: Font: (Default) Arial, 11 pt, Font color:
● Increasing life expectancy Auto, Not Highlight
● Falling death rate Formatted: Font: (Default) Arial, 11 pt, Font color:
● Growth in birth rates Auto, Not Highlight
● Immigration of economically dependant Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Emigration of economically active Formatted: Font: (Default) Arial, 11 pt, Font color:
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Triangular Graphs Formatted: Font: (Default) Arial, 11 pt, Font color:
● Can be used to show dependency ratio Auto, Not Highlight
Useful; Formatted ...
● Can show a large amount of data Formatted ...
● Groupings can be recognised easily Formatted ...
● Dominant characteristics can be shown
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● Classifications can be made
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● Cost of providing healthcare and care homes for the elderly Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Migration of Japanese industries to overseas
● Falling demand for schools and teachers Formatted: Font: (Default) Arial, 11 pt, Font color:
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● New facilities needed for elderly
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Solutions to an Ageing Population
● Pro-natalist policies Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Increased immigration of economically active
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● Increase retirement age
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● Increased taxes of economically active
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LO:
Formatted ...
Evaluate examples of a pro-natalist policy and an anti-natalist policy
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Managing population change: Formatted ...
Pro-natalist or Anti-natalist Formatted ...
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Pro-natalist: Aims to increase its population size
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● Ageing population (increased dependency ratio
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● Shortage of economically active (low birth rates and total fertility level)
● Can’t force people to have babies, so usually incentives are offered in pro-natalist policies Formatted ...
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Anti-natalist: Aims to limit its population size Formatted ...
● Overpopulated (the population is higher than the resources available) Formatted ...
● Has a young population (high birth rates and total fertility level) Formatted: Font: (Default) Arial, 11 pt, Font color:
● Done through family planning, education, provision of contraceptives or more forced restriction such as Auto, Not Highlight
China’s One Child Policy Formatted: Font: (Default) Arial, 11 pt, Font color:
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Case Study: Pro-Natalist Country — Singapore Formatted: Font: (Default) Arial, 11 pt, Font color:
● Before 1980s, anti-natalist policy implemented to combat high birth rate and fertility rate, but as a result Auto, Not Highlight
decline in birthrate occurred and Singapore face a shrinking young dependant population thus ageing Formatted: Outline numbered + Level: 1 + Numbering
society. Massive bulge in economically active, future dependency ratio high Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
● Mid-1980’s pro-natalist policy implemented; mostly incentives involving money. Formatted: Font: (Default) Arial, 11 pt, Font color:
● Advertisements such as “have three or more children if you can afford it” was promoted by government Auto, Not Highlight
● Financial benefits were given to encourage female graduates to have more than three children Formatted: Font: (Default) Arial, 11 pt, Font color:
● Baby bonus scheme was introduced which gave cash to new mothers Auto, Not Highlight
● Carers’ leave for fathers Formatted: Font: (Default) Arial, 11 pt, Font color:
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Slow progress as fertility rate as of 2011 was 1.2, but is increasing year by year thus somewhat successful.
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Case Study: Anti-Natalist Country — China Auto, Not Highlight
● Late 1970s, Chinese government introduced the “One-Child Policy” in order to reduce the country’s Formatted: Font: (Default) Arial, 11 pt, Font color:
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birth rate and slow population growth.
● 1950 = rate of population change was 1.9% and rising, if 3% doubling time will be 24 years. Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Encouraged people to have lots of children to increase the country’s workforce in 1950s, but in 1970s
they realised that current population growth rate will become unsustainable Formatted: Outline numbered + Level: 1 + Numbering
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● Established in 1979, you get benefits for following rules; access to education, childcare and healthcare
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offered to families
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Problems:
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● Family with more than one child didn’t receive ANY benefits and were fined
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● Policy was resisted in rural areas, traditional to have large families, hard to control
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● Forced abortion and sterilisation, hurting the woman Auto, Not Highlight
Impacts:
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● Birth rate has fallen since 1979 and rate of population growth is now 0.7% underline, Font color: Auto, Not Highlight
● Traditional preferences for boys (because labour, girls get married off) meant that large numbers of Formatted ...
female babies ended up homeless, in orphanages or even killed.
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● 90% of foetuses aborted in China were female in 2000
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● Contributed to gender imbalance;unbalancedness, men outnumber women by more than 60mil
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● One-child policy has been relaxed to a two-child policy to combat an ageing population (1st of jJanuary Formatted ...
2016) Formatted ...
● Successful in terms of lowering birth rate and rate of population growth, but now face a falling birthrate Formatted ...
and an ageing population thus a higher dependency ratio
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Intervening obstacles: These are problems that a migrant may face on his journey. They are represented on
the Lee's Model by the wiggly line in between country of origin and destination country. Intervening obstacles
may include:
• Shortage of money Formatted: Indent: Left: 0"
• Language barriers
• Passport or visa issues
• Bad weather
• Transport delays
• Problems with housing
● Help create jobs due to good supply of labour Formatted: Font: (Default) Arial, 11 pt, Font color:
● Many LIC are losing skilled professionals from their already shallow pool of skilled workers, therefore Auto, Not Highlight
hindering their ability to escape the poverty cycle. Formatted: Font: (Default) Arial, 11 pt, Font color:
E.g. 65% of graduate doctors in Bangladesh seek jobs abroad Auto, Not Highlight
● This is made worset by HIC as they actively seek economic migrants to make up for labour shortages Formatted: Outline numbered + Level: 1 + Numbering
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Brain Drain = Donor country is losing skilled workers, loss in intelligent people Formatted: Font: (Default) Arial, 11 pt, Font color:
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Brain Gain = Receiving contour is receiving skilled workers, fain in intelligent people
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● Migrants to rich countries are often better educated than the native population
● Immigrants find it harder to match their skills to a job than locals do Formatted: Font: (Default) Arial, 11 pt, Font color:
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● The more educated migrants are, the more likely they are overqualified for the work
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Case Study: Immigration in Singapore Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Ageing population and low fertility rate, dependented on foreign immigrants to fill in its working force-
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gap
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● 1990s, 86% of population is native Singaporean; 2010s, 64% of population in native Singaporean.
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● High immigration has widened the income gap (higher than China and UK) Auto, Not Highlight
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Migrant Workers
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● Vital for economic development
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Main Trends are; Auto, Not Highlight
● Globalisation of migration
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● Acceleration of migration Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
● Differentiation of migration into different types Formatted ...
● Feminisation of migration (Higher percentage of female workers among voluntary migrants)
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Donor Countries / Countries of Origin / Source
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Advantages Formatted ...
Individual Formatted ...
● Increased earning and employment opportunity Formatted ...
● Exposure to new culture, more educated
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● Different training system
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Country Formatted ...
● Migrant remittances encourages foreign exchange for investment Formatted ...
● Reduce unemployment rates Formatted ...
● Reduce pressure on supporting its citizens Formatted ...
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Economic Benefits: Auto, Not Highlight
● Reduced unemployment and underemployment Formatted: Outline numbered + Level: 1 + Numbering
● Returning migrants bring back new skills and knowledge Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
● Remittances Formatted: Font: (Default) Arial, 11 pt, Font color:
● Less pressure on resources such as land Auto, Not Highlight
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Social Benefit: Auto, Not Highlight
● Lower birth rates and reduced population pressure as economically active emigrates Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Remittances may improve welfare, education, supports economy and infrastructure
● Retiring population may build new homes Formatted: Font: (Default) Arial, 11 pt, Font color:
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● May develop new activities such as recreation, leisure and tourism
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Cost
Individual Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Transport cost
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● Cost of living abroad
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● Separated from friends and family
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● Social tension between concentration of migrants in urban area Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Social tension between migrants and locals
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Economic Cost:
● Cost of education children Formatted: Outline numbered + Level: 1 + Numbering
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● Displaced local labour force
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● Money sent to country of origin, leakage in economy
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● Increased pressure on resources
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Social Cost: Formatted ...
● Racism, discrimination and conflict Formatted ...
● Male dominated states Formatted ...
● Loss of cultural identity, especially amount second generation Formatted ...
● Creation of ghettos and ghettoised schools Formatted ...
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Refugee = A person fleeing their home country in order to escape danger (forced migration) Formatted ...
Asylum Seekers = People who seek refugee status in another country Formatted ...
Illegal Immigrants = People who enter another country without permission and plans to remain there Formatted ...
Economic Migrants = A person seeking job opportunities Formatted ...
Internally Displaced Persons = Those who have fled their homes but remains in their own country
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permit marriage at an earlier age Formatted: Font: (Default) Arial, 11 pt, Font color:
● Arranged marriage can be solved by educating girls Auto, Not Highlight
● Family-driven business encourages passing business from father to son and repeat Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Dowry in India where the bride's family has to pay gifts to groom family = great financial burden =
devaluing women Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Family Laws reinforce women as submissive and men as dominance, this is then replicated in society Formatted: Font: (Default) Arial, 11 pt, Font color:
and the economy Auto, Not Highlight
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2) Disparities in Wealth and Development Formatted ...
LO: Formatted ...
Define indices of infant mortality, education, nutrition, income, marginalisation, human development index
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(HDI)
Explain the value of the indices in measuring disparities across the globe Formatted ...
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Human Development Index (HDI) Formatted ...
● UN encouraged usage of HDI as measure of development Formatted ...
● more reliable than single indicators such as Gross National Income (GNI)
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● A composite measure of development = takes into account more than one variable
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1. Life Expectancy (Longevity)
2. Adult literacy rate Formatted ...
3. Standard of Living — PPP = Purchasing Power Parity Formatted ...
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Advantages: Formatted ...
● More variable taken into account, well-rounded information Formatted ...
● Allows comparison between different regions
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● Allow analysis of individual components
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● Based on the adult literacy rate and the combined enrolment for primary, secondary and tertiary Formatted: Font: (Default) Arial, 11 pt, Font color:
schools Auto, Not Highlight
● Adult literacy = proportion of the adult population aged 15< that can read and write Formatted: Font: (Default) Arial, 11 pt, Font color:
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● They have limited alternative sources of income or employment as they are severely dependant on Formatted: Indent: Left: 0"
agriculture for food Formatted: Outline numbered + Level: 1 + Numbering
● Extremely vulnerable to crises Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
● 815 million hungry Formatted: Font: (Default) Arial, 11 pt, Font color:
● 50% are farming families, surviving off marginal lands prone to natural disaster Auto, Not Highlight
● 1/5 belongs to landless families dependant on farming Formatted: Font: (Default) Arial, 11 pt, Font color:
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● 10% living in communities whose livelihood depends on primary sector jobs
● 25% live in shanty town on the periphery of large cities Formatted ...
● Number of poor and hungry are rising rapidly along with the worlds total urban population Formatted ...
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Child Hunger Formatted ...
● Child hunger is inherited, as their mothers are undernourished thus causing babies to be born
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underweight
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● Malnutrition contributes 53% of the 10.6 million deaths of CMR in LIC
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Women and Hunger Formatted: Indent: Left: 0"
● Women are the world’s primary food producers Formatted ...
● Yet due to traditions and social structures women are much more affected by hunger and poverty than Formatted ...
men
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● 7/10 hungry people are women and girls
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● Undernourished pregnant mothers gives birth to underweight babies with possible development issues
that gets passed on via a knock-on effect Formatted ...
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Inequalities in Development Formatted ...
● The world is more unequal than it was a decade ago Formatted ...
● Some areas in the world has experienced rapid growth and urbanisation, and improvement in living Formatted ...
standards (for example Hong Kong)
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● Many countries such as Sub-saharan Africa are locked and trapped in the poverty cycle
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Inequalities in Living Conditions in Slums Formatted ...
● 2/3 of world population is now in Africa, Asia, Latin America and the Caribbean Formatted ...
● Fast growth in developing countries, slow growth in developed countries Formatted: Font: (Default) Arial, 11 pt, Font color:
● 2001, total number of slum dwellers represent 32% of total world population Auto, Not Highlight
● 78.2% of LIC population are slum dwellers Formatted: Font: (Default) Arial, 11 pt, Font color:
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Positive Formatted: Font: (Default) Arial, 11 pt, Font color:
● First stopping point for immigrants Auto, Not Highlight
● Provide low cost and affordable housing Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Place of residence for low-income employees that contribute to city in many ways
● Often strong social community, almost like “a city within a city” (MANILA SLUM VIDEO) Formatted: Outline numbered + Level: 1 + Numbering
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● Many informal jobs operating within slums to provide services
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● Diverse mix of cultures
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Negative
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● Slums have high concentration of poverty, social and economic deprivation
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● Broken families, high unemployment rate, economical and physical and social exclusion from outside Auto, Not Highlight
areas
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● Limited access to credit and formal jobs due to; social stigmatisation, discrimination, geographic
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isolation and not enough education / not qualified
● Slums often seen as a nuisances in the city (e.g Manila slums and how they tried to remove it) Formatted ...
● Slums are often subjected to city wastes as it is located on marginal land (factory waste or Formatted ...
contaminated water sewage) Formatted ...
● If clean water not provided, possible widespread of waterborne diseases such as cholera and typhoid Formatted ...
● Terrible housing conditions; Overcrowding, insecurity of tenure, lack of basic needs (water, sanitation),
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unsafe buildings / build on fragile land / polluted land
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● High crime rate (women are the greatest victims)
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Parental Education and Inequality Formatted ...
● Link between investment in education and poverty affects poverty Formatted ...
● Education may increase income and also promote growth in the economy Formatted ...
● But higher education graduates tend to have fewer children Formatted ...
Dependancy Theory
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● Countries become more dependant upon more powerful, frequently colonial powers, as a result of
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interaction and “development”
● Powerful country exploits resources in weaker country, weaker country will become dependant on Formatted ...
powerful country Formatted ...
● The problem is that poor countries is not that they lack resources, technology, but that they are being Formatted ...
exploited by capitalist countries Formatted ...
● Incorporates politics and economics in its explanation
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● Takes into account historical processes
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● It sees development as a revolution break; class of interests between ruling class and working classes
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● To be developed, is to be self-reliant and to control national resources
● Modernisation does not necessarily mean westernisation Formatted ...
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World System Analysis Formatted ...
● Developed by Immanuel Wallerstein in 1974 Formatted ...
● A way of looking at economic, social and political development
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● Treats whole world as a single unit
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● Wallerstein argued that looking at individual countries was too simplistic and suffered from Formatted: Font: (Default) Arial, 11 pt, Font color:
developmentalism Auto, Not Highlight
Developmentalism = Assumes that each country is economically and politically free (autonomous) and that all Formatted: Font: (Default) Arial, 11 pt, Font color:
countries follow the same route to development. Auto, Not Highlight
Example: Leads to ethnocentrism , for example in US and Europe = The belief of superiority is one's personal
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ethnic group Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
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Capitalist World Systems Auto, Not Highlight
● A global market Formatted: Font: (Default) Arial, 11 pt, Font color:
● Has many countries, allowing political and economic competition Auto, Not Highlight
● Three tiers of countries Formatted: Font: (Default) Arial, 11 pt, Not Italic, Font
Core = Rich, developed, HICs color: Auto, Not Highlight
Semi-Periphery = Undergoing class struggles and social change Formatted: Outline numbered + Level: 1 + Numbering
Periphery = Poor, undeveloped, LICs Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
● This leads to cycles of growth and stagnations Formatted: Font: (Default) Arial, 11 pt, Font color:
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Trends in Global Inequality Formatted: Outline numbered + Level: 1 + Numbering
Income Inequality Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
● Despite strong economic growth, income inequality grow dramatically, and is expected to increase due Formatted: Font: (Default) Arial, 11 pt, Font color:
to the financial crisis in 2008 Auto, Not Highlight
● The gap between the rich and poor has widened due to financial globalisation and the weak ability of Formatted: Font: (Default) Arial, 11 pt, Font color:
domestic policies to enhance the income position of the middle class and low-income groups Auto, Not Highlight
● Employment growth has occurred along side a redistribution of income away from labour Formatted: Font: (Default) Arial, 11 pt, Font color:
● Bette 1990-2005 about 2/3s of countries experienced an increase in income inequality Auto, Not Highlight
● The gap between high and low income are increasing, could be associated with higher crime rates, Formatted: Font: (Default) Arial, 11 pt, Font color:
lower life expectancy and lower quality standard of living Auto, Not Highlight
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Gini Coefficients Auto, Not Highlight
● Income inequality measure by the Gini Coefficient Formatted: Outline numbered + Level: 1 + Numbering
1 = Perfect Inequality Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
● Asia’s based on expenditure due to unreliable income data or N/A Formatted: Outline numbered + Level: 1 + Numbering
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Main cause of increased inequality
● The differing fortunes of rural and urban households Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Productivity = Income, is growing slowly in rural areas (agriculture)
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● The widening gap between those with and without skills
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● Shift from socialism to a market economy has increased the financial benefits of an education,
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disadvantaging the poor
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Widening inequality can threaten growth of country if it results in social unrest!
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Case Study: Income Inequality in Emerging Asia
● “Growth with equity” was the aim of the Asian Tigers Formatted ...
● Combination of speedy economic growth with low (or falling) income equality, thereby spreading the Formatted ...
economic gains widely. Formatted ...
● Asian economies have continued to enjoy the worlds fastest growth, but the rich are now growing richer Formatted ...
must faster than the poor, leading to income inequality.
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Trends in Life Expectancy Auto, Not Highlight
● By 2025, WHO expects 26 countries will have life expectancy at birth of over 80 years Formatted: Outline numbered + Level: 1 + Numbering
● In developed countries, not only do more people survive to old age and expect to live longer than their Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
predecessors Formatted: Font: (Default) Arial, 11 pt, Font color:
● The oldest old (80+) are the fastest growing segment of many nations populations; 4% of total Auto, Not Highlight
population in France and Switzerland Formatted: Font: (Default) Arial, 11 pt, Font color:
● More people now have access to minimum health care, safe water and sanitation Auto, Not Highlight
● Most of the world’s children are now immunised against the 6 major diseases of childhood Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Spectacular progress in reducing CMR; 21 mil in 1955, 10 mil in 1997, (prediction) 5 mil in 2025
● Gap between richest and poorest remains huge, but is closing in terms of premature deaths Formatted: Font: (Default) Arial, 11 pt, Font color:
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● Progress far from universal, some countries poverty gap remain the same
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● Some countries life expectancy decreasing due to epidemics such as HIV/AIDS
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Trends in Education
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● Number of children not attending school has fallen by 33 million since 1999
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● More children are completing a full cycle of primary education Auto, Not Highlight
● Sub-saharan African enrolment rate has increased 5 times its last measure
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● Being born into a poor household significantly raises the risk of deprivation; 4 years education gap Auto, Not Highlight
between richest and poorest in Philippines, gap in India is 7 years
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● Gender interacts with wealth and location Auto, Not Highlight
● Disparities within countries are often better than disparities between countries Formatted: Outline numbered + Level: 1 + Numbering
● Some groups face acute disadvantages due to social or ethnic discrimination / traditions Style: Bullet + Aligned at: 0.25" + Indent at: 0.5"
● Language and ethnicity often reinforce marginalisation Formatted: Font: (Default) Arial, 11 pt, Font color:
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LO: Auto, Not Highlight
Identify and explain the changing patterns and trends of regional and global disparities of life expectancy, Formatted: Font: (Default) Arial, 11 pt, Font color:
education and income Auto, Not Highlight
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Examine the progress made in meeting the Millennium Development Goals (MDGs) in poverty reduction, Formatted: Font: (Default) Arial, 11 pt, Font color:
education and health Auto, Not Highlight
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Millennium Development Goals (MDGs) Formatted: Font: (Default) Arial, 11 pt, Font color:
Goal 1 = Eradicate Extreme Hunger and Poverty Auto, Not Highlight
Target I: Between 1990 and 2015, halve the number of people whose income is less than $1USD per day Formatted: Font: (Default) Arial, 11 pt, Font color:
Target II: Between 1990 and 2015, halve the number of people who suffer from hunger Auto, Not Highlight
B) Oceans and Their Coastal Margin Formatted: Font: (Default) Arial, 11 pt, Font color:
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C) Extreme Environments
D) Hazards and Disasters Formatted: Font: (Default) Arial, 11 pt, Font color:
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E) Leisure, Sports, Tourism
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F) Geography of Food and Health
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G) Urban Environments
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HL Extension:
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1) Measuring Global Interactions Auto, Not Highlight
2) Changing Space - The Shrinking World
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3) Economic Interactions and Flow Auto, Not Highlight
4) Environmental Change Formatted: Font: (Default) Arial, 11 pt, Font color:
5) Sociocultural Exchange Auto, Not Highlight
6) Political Outcomes Formatted: Outline numbered + Level: 1 + Numbering
7) Global Interactions At The Local Level Style: 1, 2, 3, … + Start at: 1 + Alignment: Left +
Aligned at: 0.25" + Indent at: 0.5"
Geography Bible (s) : Formatted: Font: (Default) Arial, 11 pt, Font color:
Core: http://greenfieldgeography.wikispaces.com/IB+Core+Themes+-+Patterns+and+Change Auto, Not Highlight
Options: http://greenfieldgeography.wikispaces.com/IB+Optional+Topics Formatted: Font: (Default) Arial, 11 pt, Font color:
HL : http://greenfieldgeography.wikispaces.com/IB+Global+Interactions+-+HL+extension Auto, Not Highlight
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Formatted: Left
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History
/r/IBO’s barebones history notes: https://docs.google.com/document/d/1blLrd8Wdp5TyHICDhrc5pGGNykd- Formatted: Font: (Default) Arial, 11 pt, Font color:
0XDXu047ECETXhc/edit#heading=h.mso132qr0hgz Auto, Not Highlight
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/r/IBO Past paper questions in paper 2 by hakim_the_dream Formatted: Font: (Default) Arial, 11 pt, Font color:
https://docs.google.com/document/d/1jQ3TlqWYgcFzH67-BNZVM_nrc0d4PYPEcYjd4llvAsI/edit Auto, Not Highlight
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/r/IBO S-ratkovic- simplified & in-depth history notes:
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https://docs.google.com/document/d/1wEjOM5SNTQS0m9RXT/1wEjOM5SNTQS0m_BJqivW6rMHvii6NrTxzu Custom Color(RGB(17,85,204)), Not Highlight
Qkbmw/edit?usp=sharing Formatted: Font: (Default) Arial, 11 pt, No underline,
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Anyone got some notes for this? Some free notes? Formatted: Font: (Default) Arial, 11 pt, Not Highlight
Paper 1 history? Formatted: Font: (Default) Arial, 11 pt, No underline,
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Commented [1]: Who is going to pay for notes
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Formatted: Font: (Default) Arial, 11 pt, Not Highlight
Formatted: Font: (Default) Arial, 11 pt, No underline,
Font color: Auto, Not Highlight
Formatted: Font: (Default) Arial, Font color: Auto, Not
Highlight
Formatted: Font: (Default) Arial, 11 pt, Font color:
Auto, Not Highlight
Formatted: Left
Formatted: Font: (Default) Arial, 11 pt, Font color:
Auto, Not Highlight
Formatted: Font: (Default) Arial
ITGS