Human Geography: Economy, Government, & Globalization ©2012, TESCCC

Discuss and Share What is the idea of economic globalization and interdependence ? ©2012, TESCCC

What is economics? A social science concerned with description and analysis of the production, distribution and consumption of goods and services. Goods: things you use or consume (food, books, cars, cell phones, etc.) these are things you can touch Services: something someone does for you; a service provided for you (haircut, someone fixes your car, someone tutors you, etc.) these are things you cannot touch ProductionDistributionConsumption Goods and Services ©2012, TESCCC

Factors of Production ©2012, TESCCC A product is any good produced for exchange on a market. A commodity refers to any good exchanged in a market, but more solely products such as raw materials. There are two types of products: capital goods consumer goods Capital goods (i.e., raw materials, tools, industrial machines, vehicles and factories) are used to produce consumer goods (e.g., televisions, cars, computers, houses) to be sold to others.

©2012, TESCCC

Economic activities REVIEW Economic activities include primary, secondary, tertiary, and quaternary sectors. The primary sector may include production of raw materials, and activities associated with this sector include farming, hunting or grazing. The secondary sector manufactures goods and activities associated with this sector include the automobile industry, energy utilities and construction, etc. The tertiary sector is the service industry and activities related to this sector include retail sales, restaurants, healthcare, etc. The quaternary sector is the sector that is associated with research, education, libraries, etc. For example: Paper. First, the tree must be harvested (primary). Second, the tree is manufactured or processed into paper (secondary). Third, the paper is sold at Walmart, Target, etc. (tertiary). Research involving the best type of trees, manufacturing process, region of the world for trees, etc. is used to develop a plan to harvest trees and manufacture paper (quaternary). Also, data is collected and disseminated about the best way to harvest, replant, and take care of the land (quaternary).

Economic Activities Determine which “sector” each picture/activity belongs in: PRIMARY SECONDARY TERTIARY QUATERNARY

Discuss and Share “The economy today is interdependent, interconnected, and global. With a partner or groups of three: Discuss the possible meaning of this statement, keeping in mind that you are the CEO (chief executive officer) of an automaker. ©2012, TESCCC

A Level Playing Field in Global Economics Interdependence and technology between countries and/or corporations provide a level “playing field” to where everyone is able to participate in a global economy. ©2012, TESCCC

TYPES OF ECONOMIES COUNTRIES HAVE DIFFERENT WAYS OF MANAGING LABOR, PRODUCTION, AND CONSUMPTION ©2012, TESCCC

Communism Capitalism Socialism Controlled Economy Government Control Free Market Free Enterprise Low degree of government control Subsistence Agriculture (Farmers grow enough for their family Public Ownership (land and/or natural resources ©2012, TESCCC Economic Systems

Communism (command economy) Socialism Capitalism (Free-Market Economy; Free Enterprise How much control over the means of production (how much to produce/what to produce, to whom/how it is distributed and the overall decision making process Economic Systems ©2012, TESCCC ProductionDistributionConsumption Goods and Services Subsistence Agriculture (Farmers grow enough for their family

Economic Systems Traditional: This economic system is based on hunter-gather or subsistence agriculture Free Enterprise: This economic system is based on private ownership of business and individual decisions on what to buy or sell. Command Economy: This economic system is based government control of businesses and decisions regarding types and locations of economic activity and production. Citizens can be assigned or strongly encouraged into various employment. There is little or no private ownership of businesses. Mixed Economy: This economic system forms the array between free enterprise (capitalism) and command economies (communism) with some private ownership and some government control of businesses. ©2012, TESCCC

PRIMARY Subsistence Agriculture Commercial Agriculture ©2012, TESCCC

SECONDARY Cottage Industries Commercial Industries ©2012, TESCCC

Final Assignment Create an “Economic Spectrum” line and place each type of economy on the line from most controlled to least controlled For each type of economy, add a country that has that economy Economic System Type of Government