ACJC H1 GEOd

© ACJC 2016 H1/8812/01 1 ACJC JC 2 Preliminary Examinations 2016 GEOGRAPHY H1 8812/01 ANSWERS The Globalisation of Economic Activity 2 Fig. 1A shows the predicted global projection based on GDP adjusted for purchasing power parity (PPP) for the year 2020. Fig. 1B shows the normal global projection. (a) With reference to Fig. 1A, describe the predicted GDP (adjusted for PPP) for the year 2020. 1m for each relevant description (Accept either “North/South” or “DC and LDC/NIE”) For no or incomplete data, collectively minus 1m Ans:  General pattern (max 2m) – Evident divide between the more developed North and the less developed South with the North having higher GDP relative to their own land areas than the South (1 m) o Evidence – more developed North America as well as Europe have higher GDP as represented by the larger projection than their actual size under normal global projection; some countries include USA and Canada in the former and UK, France and Germany in the latter. Japan in East Asia is another country in the North with higher GDP (1/2m ~ at least 2 regions with countries should be mentioned) o In contrast, less developed South has lower GDP as represented by the smaller projection than their actual size under normal global projection – most obvious for South American and African continents; some countries include Chile, Argentina in the former and Somalia, Botswana in the latter (1/2m ~ at least 2 regions with countries should be mentioned)  Exceptions (anyone; max 1m) o Even though most of the less developed South has lower GDP, a group of NIEs in the South show a contrasting situation with a higher GDP; seen by their inflated sizes in Fig. 1A – most obvious examples are the rising economic giants; China and India as well as most countries in SEA o Similarly, in the more developed North – some have lower GDP – seen by the deflated sizes of Russia in Europe and Australia [3] (b) Explain why GDP is not an accurate indicator of development. 1m for each relevant explanation Max 3 ideas to achieve full marks Ans:  Idea of devt is seen as beyond the economic sense. It refers to the process of improving the quality of human life through various ways such as enhancing economic opportunities, better education, improved health and nutrition [3]

© ACJC 2016 H1/8812/01 2 standards, more equality of opportunities, richer cultural life and environmental protection (Definition) o GDP however only measure economic wealth; in terms of the total value of goods and services produced by all factors of production (e.g. labour and land) located within a country in a specified period. Total GDP is used as an indicator of the “size” of a country’s economy.  Development should be seen across the entire country (Disparity) o However, GDP per capita gives average income of people in the country. Disparities between groups of people and areas are not revealed by GDP figures alone.  Limitations in calculating GDP (Measuring the indicator) o Does not include non-marketed activities, illegal or informal activities and government services o A quantitative value (c) To what exten t does the global shift of manufacturing (GSM) explain the GDP projection as shown in Fig. 1A? 2m for each relevant explanation Max 3 ideas; including GSM to achieve full marks Minus 1m if answer does not blatantly provide a stand Ans:  Stand: GSM is de finitely an important explanation of the GDP projection where some of the NIEs have inflated sizes relative to normal projection. However, we need to consider other reasons in understanding the N-S divide Reason Explanation GSM  Define GSM  Led to the r apid econ devt for many NIEs – as seen by the high GDP of NIEs like China, SEA  Comp adv of lower production costs in terms of labour coupled with govt incentives led to the r e-location of many manufacturing activities to these NIEs. Hence bring in more FDI , employment and export earnings which in turn increased GDP values for these countries GS of services  Aka internationalisation of services – explains the high GDP for India  Labour-incentive services such as call centres moved towards locations like In dia which had comparative advtange in terms of providing cheap and skilled labour with language and IT literacy NIDL  While GSM explains the situation for NIEs, NIDL provides a broader explanation that can explain the inflated sizes of the DCs as well  Higher value added activities requiring very skilled and specialised labour are located within DCs – such as concentration of HQ and R&D in USA, UK and Japan [6]

© ACJC 2016 H1/8812/01 3  While the lower value added activities in LDCs/NIEs as explained by GSM  Thus the differing sizes of DC and NIE/LDCs Historical development  DCs had a head -start to industrial development over the NIEs/LDCs.  Colonial relationship also explains the existing N -S divide Urban Issues and Challenges 3 OR Fig. 3 shows the differing residential population densities of Mexico City (a LDC city) and New York City (a DC city). (a) Using evidence from Fig. 3, explain the urban processes that can account for the differing population densities of Mexico City and New York City. Max 3m for each relevant process For no or incomplete data, collectively minus 1m Max 4m if explanation looks at general population density rather than residential density (unless appropriately explained) Ans:  Differing densities – with evidence o Mexico City – LDC city with high residential population density throughout the city; clustering around the peak population density o New York City –DC city with high residential population density only around the peak density and declines steeply beyond it  Mexico City  U Process: Rapid Urbanisation  Explanation: o Define process o With more people living in the city, there is development of high-rise residential apartments and/or squatter settlements. People live near the CBD as transport developments remain concentrated within the main city centre and have little convenient extension beyond o For the lower income R-U migrants, living within crowded, lower cost squatter settlements maybe the only viable option. Such migration in LDC cities are of larger volumes due to push-pull factors encouraging the growth of the city  NYC  U Process: Decentralisation/Suburbanisation and  Explanation: o Higher densities nearer city centre – inner city locations – usually have high rise developments to maximise the land areas and manage the higher rents of the IC – these developments include both lower income slums and gentrified higher income residential apartments o ICD: Define  Lower income slums - residential paradox according to BRT  to manage the higher rents, most units have a large number of [6]

© ACJC 2016 H1/8812/01 4 people living within it o Gentrification and re-urbanisation : Define  High-income gentrified areas  apartment style building development still dominate even with re-development of these older buildings o Lower densities away from city centre – suburban development allows for bigger homes and more land area per person; hence the lower densities per land areas; supported by transport developments and other push-pull factors (explain briefly) (b) Explain how you would