Unit 1: Introduction to Geographic Studies Economic Development Unit 1: Introduction to Geographic Studies

Levels of Development More Developed Countries More technology Average manufacturing Many service industries High standards of living Less farmers

More Developed Countries

Newly Industrialized Countries Recently changed from mostly agricultural to more manufacturing/industry Recently improved societies

Less Developed Countries Much less developed Mostly agricultural More subsistence farming than commercial Light industry Higher rates of poverty

Less Developed Countries

A major way to compare the wealth of nations is to look at their Gross Domestic Product (GDP): The total value of the goods and services they produce in a year

Wealth is also figured using per capita GDP: The GDP of a country divided by its entire population GDP "refers to production taking place in the United States. It is, therefore, the appropriate measure for much of the short-term monitoring and analysis of the U.S. economy In 1991, the average per capita GNP in developing countries was $870 Developed $15,420 To explain further: GDP (gross domestic product) is, as we say on our FactCheckED.org site, "the total market value of goods and services produced within the borders of a country,” regardless of the nationality of those who produce them. GNP (gross national product) is the total market value of goods and services produced by the residents of a country, even if they’re living abroad. So if a U.S. resident earns money from an investment overseas, that value would be included in GNP (but not GDP). And the value of goods produced by foreign-owned businesses on U.S. land would be part of GDP (but not the other measure).