Economic Geography Question: How are economic activity and level of development interrelated?

Levels of Economic Activity Primary – involve gathering raw materials (ex. cutting lumber) Secondary – involve adding value to materials by changing their form (ex. manufacturing cars) Tertiary – involve providing business or professional services (ex. accountant) Quaternary – involve providing information, management, and research services by highly trained persons (ex. physicist)

–Traditional Economy : Goods and serviced traded without money bartering

–Communistic Economy : Production of goods and services are determined by a central governmentProduction of goods and services are determined by a central government You will only make blue chairs! We will sell them for $20 each.

We want rolling chairs! We will make rolling chairs! And make $$$$ Market Economy: determined by supply and demand

Levels of Development More developed –Post industrial US Western Europe Newly industrialized –Mostly industrial or manufacturing Latin America Less developed –Mainly agricultural India Africa

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Economic support system Infrastructure: –Basic support system to keep an economy running. –Includes power, communication, transportation, water, sanitation, and education systems Per capita income: –Average amount of money earned by each person in a political unit GNP Gross National ProductGross National Product Total value of all good and services produced by a country (per year) –Example: an American company which makes its product in India GDP Gross Domestic ProductGross Domestic Product Total value of all goods and services produced within a country (per year) –Example: an American country that makes is product IN America

Natural Resources and the Economy Levels of activity also depend on resources available. Natural resources may be divided into: –Renewable –Renewable – Can be replaced through natural processes (ex. trees) –Non-renewable –Non-renewable – Cannot be replaced (ex. metal) –Inexhaustible –Inexhaustible – Cannot be used up (ex. solar energy)