Download Economic Geography

ECONOMIC GEOGRAPHY
For this section of
your notes, fill in your
vocabulary items.
That will save you
some homework.
WHAT IS AN ECONOMY?
Production or exchange of goods and services by a group
What are goods, services, and labor?
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 THE “LAW OF SUPPLY AND
DEMAND”?
 Supply – how much is available
from market
 Demand – how much is wanted
by consumers
 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.
WHAT IS INFRASTRUCTURE?
Basic support system to keep or start an economy going.
 Roads
 Electricity
 Water
 Airports
 Ports
 Trains
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
For the next
section, use the
pyramid diagram on
your practice sheet
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
 GET STUFF
 Gathering raw materials –
natural resources taken from
the earth
 Example: Mining, Fishing,
Farming
Secondary Employment Sector
 MAKE STUFF
 Manufacturing / Industry - Adding value to raw materials by
changing their form
 Example: Iron changed into an automobile
Tertiary Employment Sector
 DO STUFF
 Business or professional services
 Example: teachers, retail salespeople, doctors
Quaternary Employment Sector
 THINK STUFF
 Provide info, research, management,
etc. by highly trained personnel
 Engineers, researchers, scientists,
software designers
For the next section,
use the “Stages of
Development” chart
on your practice
sheet.
ECONOMIC STAGES OF
DEVELOPMENT
LEAST DEVELOPED COUNTRY
 GDP: Nearly none – collapSed.
 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