Unit 4

Economic Geography Economy-consists of the production and exchange of goods and services. Economic system-is the way people produce and exchange goods and services. Traditional economy (barter)-goods and services are traded without money. Command economy (planned)-production of goods and services are determined by the central government.

Market economy (capitalism)-production is determined by demand. Mixed economy-a combination of command and market economy.

Farming Today Half of the world’s people make their living through agriculture. Traditional farming or subsistence farming- growing only enough food for your family Commercial farming- raising farm products to sell fertilizers and pesticides have helped produce large quantities of food.

Industry Small industry (cottage industry) often involve a family of craft persons who produce goods to be sold locally. Commercial industry designed to meet the needs of people over a large area.

Changes in Energy resources over time Kerosene Lamp oil Wood

Deforestation

Coal Pollution Mining issues such as labor unions and mine safety Competition with oil and gas.

Petroleum Transportation Environmental considerations

Nuclear Contamination Waste

Solar, Wind Cost Aesthetics

Natural Resources Soil, Water, Forests Renewable Fossil Fuels (oil, coal, natural gas Metals (gold, iron copper, bauxite) Nonrenewable

Human Resources What is an example of a human resource? Teachers Workers Level of education Skilled or unskilled laborers Entrepreneurial and managerial abilities

Capital Resources Are goods produced and used to make other goods and services. Availability of money for investment Availability and use of tools, machines, and technology Level of Infrastructure

Economic support systems Infrastructure-consists of basic support systems needed to keep the economy going: power, communications, transportation, water, sanitation and education.

Levels of Economic Activity Primary – dealing directly with resources (fishing, farming, forestry, mining) Secondary - Manufacturing and processing (steel Mils, automobile assembly, sawmills) Tertiary – Services (transportation, retail trade, information technology services)

Lets follow one product through the different levels of economic activity We will focus on Fish.

Unequal Distribution of Resources Interdependence of Nations - Trading in goods, services, and capital resources The United States – would trade (Coal wheat and corn)

Uneven Economic Development Not all Countries are developed and require the same resources

Imperialism Imperialism: Gaining control over nations in order to gain their resources Great Britain – Claimed the new world (America)

Conflict over control of resources Iraq and Kuwait Conflict over what natural resource? Oil

Proximity of Economic Activity to Natural Resources Steel manufacturing – Pittsburgh Coal – In our area Fishing Industry – Ocean

Non-Proximity of Economic Activity and Natural Resources Japan – Is a major manufacturer but has limited resources. UAE (United Arab Emirates) – Little industry but abundant oil.

Resource Use and Culture The Culture of an area dictates how resources are used. Example: Cows in India

Social and Economic Priorities What is a priority?

Economic Development Priorities Example Brazil - The rain forest is being deforested in order for more cattle farming. This gives people jobs cutting down trees

Environmental Conservation Priorities This means maintaining the environment Alaska - Saving the land. Parts where a lot of oil can be tapped into is untouched. Trans-Alaskan Pipeline

Priorities of Indigenous Minorities Indigenous - are people or ethnic groups who are native to a land or region. People who are indigenous to a region might use different resources because of their beliefs.

Resource Use and Technologies Automobile Demand for resources to produce automobiles. Metal Glass

Examples Steam Engine Coal

Internal Combustion Engine Demand for Gasoline What is another name for gasoline? Petroleum

Computer Chips Demand for Skilled Labor

Cost and Benefits of Resource Use Cost - Negative Benefit - Positive

Cost Resource Depletion – If you use all of a nonrenewable resource there will be no more resources to replace it. Environmental Degradation - 1. Pollution (Oil) 2. Strip mining 3. Nuclear meltdown Health Problems – Black Lung Disease How do you get black lung?

Benefits Production of goods and services Coal used for Electricity. Employment opportunities Jobs created by using resources. Development of technology We can become more advanced in society.

Levels of Economic Development Differences in developed and developing nations: Access to natural resources Access to capital resources (investment in infrastructure) Numbers and skills of human resources Levels of economic activity Standards of living and quality of life Relationship between economic development and quality of life.

Levels of Economic Development A countries level of economic development is measured by the following indicators Urban – Rural ratio Labor Force characteristics (primary, secondary, tertiary) Gross Domestic Product (GDP) Educational Achievement

Measuring Economic Developement Per capita income- average amount of money earned by each person in a political group. Gross National Product-total value of all goods and services produced by a country over a time period. Gross Domestic Product-all goods and services produced in a country.

Developed or developing

Factors that Influence Economic Activity Access to Human, Natural, and Capital Resources. Skills of the workforce New technologies Transportation and Communication networks Investment Capital

Location and Ability to Exchange Goods Landlocked Countries Coastal and Island Countries Proximity to shipping lanes Access to communication networks

Comparative Advantage A country will produce and export goods and services that they can produce at a lower cost.

International Trade Japan – Highly industrialized limited resources. Russia - Numerous resources, many are not profitable to develop. United States - Diversified economy, abundant natural resources. Cote d’Ivorie – (Ivory Coast) Limited natural resources; cash crops exchanged for manufactured goods.

Switzerland - Limited natural resources, but have production of services on a global scale.

How trade has changed Technology Federal Express United Parcel Service U. S. Postal Service

Economic Unions EU European Union NAFTA North American Free Trade Agreement ASEAN Association of Southeast Asian Nations OPEC Organization of Petroleum Exporting Countries