Economic Development

The Wealth of Nations 1. Location and Resources are import factors in determining the potential wealth of nations. 2. Natural resources are materials on or in the earth that have economic value. There are three basic types of natural resources: renewable, nonrenewable, and inexhaustible energy sources. 3. Natural resources are NOT evenly distributed among countries. Some countries have oil deposits, some have natural forests, some have an abundance of solar power. Because of this unequal distribution, countries trade with each other.

Resources! Top of 44 Renewable resources include… trees, animals (like cows), soil Non renewable resources include… coal , minerals, petroleum Inexhaustible resources include… solar, wind and water

Sustainable Development… Sustainable development means using resources in a way that can meet future as well as present human needs. To achieve sustainable development means using renewable resources at a slower rate, so that nature is able to replenish itself. In other words, nations must find ways to achieve economic growth without the reckless, wasteful, and harmful use of natural resources.

What are the levels of economic activities? Primary, Secondary, Tertiary, Quaternary Secondary Converts the raw material into new products. Ex Food processing Ex Manufacturing Ex refining Tertiary Economic activities are service industries. Variety of services performed by people and businesses. Ex. manufacturing Quaternary Activities that involve information processing and management. Ex. Computer programmer Ex. Manager of a company Primary Makes direct use of natural resources Ex.Agriculture Ex Forestry Ex Mining

Primary Forestry Myanmar agriculture rice field Skorpion Zinc Mine, Namibia

Food processing Secondary

Tertiary Car manufacturing in India Toy manufacturing in China Engand Furniture Manufacturing Plant, USA

Quaternary Bill Gates, CEO Microsoft Computer programmer General Manager of a company

More Developed Country – MDC A developed country, industrialized country, has a highly developed economy and advanced technological infrastructure relative to other countries.

Least Developed Country– LDC Least developed countries (LDCs) are low-income countries confronting severe structural impediments to sustainable development. They are highly vulnerable to economic and environmental shocks and have low levels of human assets.

Newly Industrialized Country– NIC Newly industrialized country (NIC) is a term used to describe a country whose level of economic development ranks it somewhere between the developing and the developed classifications. These countries have moved away from an agriculture-based economy and into a more industrialized, urban economy.

In 1990, the United Nations developed the Human Development Index (HDI) for ranking countries based on their level of economic development – they look at demographic, economic, social, and political indicators.

Economic Indicators What is GNP? → The total value of all goods and services produced by a nation’s residents despite where they live (here or abroad) GNP = gross national product. What is GDP? → It is the total value of all goods and services produced within a nation in a year, resident or foreign.GDP = gross domestic product.

Other Economic Indicators llhammon Fall 2010 Economic Geography Other Economic Indicators Average number of automobiles Telephones Televisions Or computers per person Map of North and South Korea showing economic development, or lack of.

NAFTA (North American Free Trade Agreement) was created to facilitate trade between Canada, The United States, and Mexico.

World Geography Political Geography llhammon Fall 2010 European Union The European Union is a political and economic union of 28 member states that are located primarily in Europe. It has an area of 4,475,757 km², and an estimated population of over 510 million. The EU has developed an internal single market through a standardized system of laws that apply in all member states. EU policies aim to ensure the free movement of people, goods, services, and capital within the internal market, enact legislation in justice and home affairs, and maintain common policies on trade, agriculture, fisheries, and regional development. Picture on top of picture

World Geography Political Geography llhammon Fall 2010 European Union The European Union is a political and economic union of 28 member states. Has a standardized system of laws that apply in all member states. Aim to ensure the free movement of people, and trade of goods and services within the “states” Maintain common policies on trade, agriculture, fisheries, and regional development. Picture on top of picture

NAFTA and the EU What do they have in common? There is no direct connection between NAFTA and the European Union. …lots of trade agreement between the countries encouraged by trade deficits or even a free trade agreement.