Download Economic Geography

Bell Ringer
• Answer the following questions in a short
paragraph:
1. What is the condition of the US economy right now?
2. Why is it in this condition?
3. How does this affect you or your family?
Economic Geography
Objective:
Students will be
able to identify and
distinguish b/w
different types of
economic systems
from various
regions.
What is an Economy?
Production or exchange of goods and services by a group
What are goods and services?
Goods – things to be traded, bought, or sold
Services – things people do for others in exchange for payment
Labor – work force, the workers
What is Supply and Demand?
•Supply – how much is available from market
•Demand – how much is wanted by consumers
What is the “Law of Supply and Demand”?
• As supply increases,
price goes down.
• As demand increases,
price goes up.
• How much something
costs is mainly a
function of these two
factors.
What are GNP and GDP?
GNP – “Gross National Product”
Total value of all goods and services by a
country over one year. Includes
facilities overseas owned by domestic
companies.
GDP – “Gross Domestic Product”
Total value of all goods and services
within a country’s borders over one
year. This is a good indicator of the size
of a country’s economy.
Examples (2010 est.)
USA – $14.5 trillion
Mexico – $1.0 trillion
Japan – $5.4 trillion
China - $5.8 trillion
Sudan - $0.07 trillion
What is Per Capita GDP?
• GDP per 1000 people, how “wealthy” the country is.
• Roughly the amount of $$$ earned per person in a political unit per
year. Similar to “Per Capita Income”, but not exactly the same.
• Examples? U.S. = $47,000 Mexico = $14,000 Japan = $33,000 China = $7,500
Sudan = $2300
What is Infrastructure?
Basic support system to keep or start an economy going
•
•
•
•
•
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Roads
Electricity
Water
Airports
Ports
Trains
What are the 4 Economic Employment Sectors?
Different levels of employment (jobs) based on variety of factors
1. Education level required to perform task
2. Location (geographic – available resources)
3. Location (to appropriate market)
Primary Employment Sector
• Gathering raw materials
– natural resources taken
from the earth
• Example: Mining,
Fishing, Farming
Secondary Employment Sector
• Manufacturing / Industry - Adding value to raw materials by
changing their form
• Example: Iron changed into an automobiles
Tertiary Employment Sector
• Business or professional services
• Example: teachers, retail salespeople, doctors
Quaternary Employment Sector
• Provide info, research,
management, etc. by highly trained
personnel
• Managers, scientists, software
designers
What are the 4 basic types of
economic systems?
•
•
•
•
Traditional
Command
Market
Mixed
•Traditional
Economy
- Goods and services are
exchanged without money
-Also called “Barter”
-Example: Primitive
societies
Market Economy
• Goods and services are determined through Supply and Demand
• Also called “Free Market Economy” or “Capitalism”.
• Example: United States, in theory
Command Economy
• Production of goods and services determined by the government.
• Also called “Planned Economy”
• Example: Communist countries
Mixed Economy
• Combination of
command and
market economies
• Goods and
services for
benefit of all
• Example: Japan,
Peoples’ Republic
of China
Economic Stages of
Development
Least Developed Country
• GDP: Nearly none – collaped.
• Per Capita Income: Very Low (less
than $1000/yr)
• Employment Sectors: “Primary” if any
at all
• Infrastructure: Very little to none
– Lack of electricity
– Lack of clean water
– Lack of roads, Airports, Ports
• Quality of Life: In crisis, collapsed
infrastructure and economy.
• Examples: Afghanistan, Somalia, Haiti
Developing
Country
• GDP: Low
• Per Capita Income: Low
• Employment Sectors: Mostly
“Primary”
• Infrastructure: Relatively little
– Lack of electricity
– Lack of clean water
– Lack of roads, Airports, Ports
• Quality of Life: Low, little literacy,
nutrition, or medical care
• Examples: Burma, Jamaica, El
Salvador
Newly Industrialized Country (NIC)
• GDP: Low/Medium but increasing
• Per Capita Income: Low/Medium but increasing
• Employment Sectors: “Primary” shifting to “Secondary” to
varying degrees
• Infrastructure: Increasing
– Things are being built as wealth increases
– Long process, very expensive
• Quality of Life: Still low in most places, but improving in many ways
Examples:
India
Mexico
Developed Country
• GDP: High
• Per Capita Income: High
• Employment Sectors: Mostly
“Tertiary” and “Quaternary”
• Infrastructure: Strong
– High amount of roads, Airports,
Ports
– Clean water systems
– Electricity available to all
• Quality of Life: High, with
good nutrition, medical care,
education
Picture A
Picture C
Which
picture best
fits each
economic
level?
Picture B
Picture D