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Economic Geography Economic Activities • Primary: – Uses natural resources directly – Usually located at the site of natural resources • Secondary: – Manufacturing – Usually located close to the resource or close to market Economic Activities • Tertiary: – Services – Located near the customer • Quaternary: – Process and distribute information – Located anywhere Economic Systems • Subsistence Economy: –Also called Traditional economy –Good made for personal use, little surplus, or exchange of goods –Usually found in rural or poor areas Economic Systems • Market Economy: – Specialization of production – free enterprise – competition in market drives price and production – capitalism – businesses, industries, resources privately owned – Located in the United States and Western Nations Economic Systems • Command Economy: –Govt. determines production and price –Communist system – Govt. controls means of production –Located in Soviet Union 1917 – 1991; Today – Cuba, North Korea Developed v. Developing Countries • Developed – Good infrastructure*, global market economies – U.S., Canada, most of Europe, Japan, Australia, New Zealand • Developing – Poor infrastructure*, local market and subsistence economies – Africa, some of Asia, some of Latin America Political Geography • National Boundaries – Natural Boundaries • Mountains, rivers, etc. – Cultural Boundaries • Border based on cultural traits • Ireland/Northern Ireland – Geometric Boundaries • Straight lines • U.S./ Canada Political Geography • International Cooperation – Political and military cooperation • United Nations (U.N.) • North Atlantic Treaty Organization (NATO) Political Geography –Economic cooperation • World Trade Organization • European Union • North American Free Trade Agreement (NAFTA)