1. C H A P T E R Innisfree McKinnon University of Oregon © 2013 Pearson Education, Inc. Lecture Outline 4 Political Economy

2. © 2013 Pearson Education, Inc. Chapter Sections The Contemporary North American Economy –Economic Base and Economic Sectors –The Primary Sector –The Secondary Sector –The Tertiary Sector –The Quaternary Sector The Changing Urban System of N. America North American and the World Economy Political Institutions in N. America

3. © 2013 Pearson Education, Inc. Learning Objectives The economic sectors A city's economic base The meaning of political economy The economic interconnections between places Farming & the technological treadmill Canadian & U.S. systems of government Globalization & local economic development Deindustrialization and the Rust Belt NAFTA – benefits & drawbacks

4. © 2013 Pearson Education, Inc. Economic Sectors Primary sector – extraction of raw materials Secondary sector – manufacturing/industrial Tertiary sector – distribution and service Quaternary – management, planning, technology, R&D

5. © 2013 Pearson Education, Inc. Political Economy Economic and political institutions governing the production, distribution, and consumption of goods and services

6. © 2013 Pearson Education, Inc. Basic employment Nonbasic employment Economic Base

7. © 2013 Pearson Education, Inc. % of labor force in ag. Declining <1% employment in US Production increasing Primary Sector - Agriculture

8. © 2013 Pearson Education, Inc. Technological Treadmill New technology = > production or lower cost/acre >production = lower prices Lower prices = need to further increase production or lower costs

9. © 2013 Pearson Education, Inc. Cash-grain farming Dairy farming Ranching Mixed farming Truck farming Primary Sector – Types of Agriculture

10. © 2013 Pearson Education, Inc. Other Primary Sector Activities Mining Fishing Logging

11. © 2013 Pearson Education, Inc. Declining in N. America Secondary Sector

12. © 2013 Pearson Education, Inc. < labor costs outside N. America leads manufacturing to relocate Deindustrialization Secondary Sector

13. © 2013 Pearson Education, Inc. Generally nonbasic employment Growing in N. America Ex. = healthcare, tourism Tertiary Sector

14. © 2013 Pearson Education, Inc. Tourism

15. © 2013 Pearson Education, Inc. Government, financial services, R&D, education, journalism, military Quaternary Sector

16. © 2013 Pearson Education, Inc. Not dependent on raw materials, transport. Need for highly educated employees Generally located for attractiveness to employees Tertiary Sector - Footloose Activities

17. © 2013 Pearson Education, Inc. Cities & Transportation

18. © 2013 Pearson Education, Inc. 20 th century – urbanization of N. America's pop. Cities expanded –Suburbs –Exurbs –Edge cities Urban expansion

19. © 2013 Pearson Education, Inc. Ethnic enclaves near city centers Ethnoburbs Immigrants & Cities

20. © 2013 Pearson Education, Inc. 10 Largest Cities in the U.S.1850-2010

21. © 2013 Pearson Education, Inc. Growth 2000-2010 (The Sunbelt) Cities that gained the most residents –Houston –Dallas-Fort Worth –Atlanta –Riverside-San Bernardino –Phoenix Fastest Growing Cities Charlotte Las Vegas Raleigh-Durham Austin Riverside-San Bernardino

22. © 2013 Pearson Education, Inc. Declining Population 2000-2010 (The Rustbelt) Deindustrialization –Detroit –Pittsburgh –Cleveland –Buffalo New Orleans (Hurricane Katrina)

23. © 2013 Pearson Education, Inc. N. America in the global economy 20 th century = growing economy power WWI & WWII led to economic gains for N. America Globalization – decline of secondary sector 21 st century = postindustrial N. America?

24. © 2013 Pearson Education, Inc. Geopolitics Relationship between geography & international relations "introvert" vs. "extrovert" periods in foreign policy Regional support for foreign policy generally tied to economic base Canada generally allied to U.S. in foreign policy –Many Canadians oppose "extrovert" U.S. policies

25. © 2013 Pearson Education, Inc. North American Free Trade Agreement (NAFTA) 1993 agreement between Canada – U.S. – Mexico Free movement of goods –i.e. eliminated tariffs Politically controversial –Jobs moved to Mexico for low wages

26. © 2013 Pearson Education, Inc. Political Institutions U.S. & Canada = federal states Power shared between federal & state/provincial govs. Defined legislative, executive, & judicial branches of gov.

27. © 2013 Pearson Education, Inc. U.S. Separation of powers President –Elected separately –Not part of legislative branch –Electoral College Legislative branch –House of Representatives Based on pop. –Senate = 2/state Canada Based on U.K. model Prime Minister –Also legislator & member of the House of Commons –Leader of the majority party

28. © 2013 Pearson Education, Inc. End of Chapter 4