2. GNP AND GDP GNP – “Gross National Product” Total value of all goods and services by a country over one year. Includes facilities overseas owned by domestic companies. GDP – “Gross Domestic Product” Total value of all goods and services within a country’s borders over one year. This is a good indicator of the size of a country’s economy. Examples (2010 est.) USA – $14.5 trillion Mexico – $1.0 trillion Japan – $5.4 trillion China - $5.8 trillion Sudan - $0.07 trillion

3. PER CAPITA GDP  GDP per 1000 people, how “wealthy” the country is.  Roughly the amount of $$$ earned per person in a political unit per year.  Examples? U.S. = $47,000 Mexico = $14,000 Japan = $33,000 China = $7,500 Sudan = $2300

4. 4 ECONOMIC EMPLOYMENT SECTORS 1) Primary 2) Secondary 3) Tertiary 4) Quaternary

5.  GET STUFF  Gathering raw materials – natural resources taken from the earth  Example: Mining, Fishing, Farming PRIMARY EMPLOYMENT SECTOR

6.  MAKE STUFF  Manufacturing / Industry - Adding value to raw materials by changing their form  Example: Iron changed into an automobile Secondary Employment Sector

7.  DO STUFF  Business or professional services  Example: teachers, retail salespeople, doctors Tertiary Employment Sector

8.  THINK STUFF  Provide info, research, management, etc. by highly trained personnel  Engineers, researchers, scientists, software designers Quaternary Employment Sector

9. ECONOMIC STAGES OF DEVELOPMENT

10. LEAST DEVELOPED COUNTRY  GDP: Nearly none – collap S ed.  Per Capita Income: Very Low (less than $1000/yr)  Employment Sectors: “Primary” if any at all  Infrastructure: Very little to none  Lack of electricity  Lack of clean water  Lack of roads, Airports, Ports  Quality of Life: In crisis, collapsed infrastructure and economy.  Examples: Afghanistan, Somalia, Haiti

11. DEVELOPING COUNTRY  GDP: Low  Per Capita Income: Low  Employment Sectors: Mostly “Primary”  Infrastructure: Relatively little  Lack of electricity  Lack of clean water  Lack of roads, Airports, Ports  Quality of Life: Low, little literacy, nutrition, or medical care  Examples: Burma, Jamaica, El Salvador

12. NEWLY INDUSTRIALIZED COUNTRY (NIC)  GDP: Low/Medium but increasing  Per Capita Income: Low/Medium but increasing  Employment Sectors: “Primary” shifting to “Secondary” to varying degrees  Infrastructure: Increasing  Things are being built as wealth increases  Long process, very expensive  Quality of Life: Still low in most places, but improving in many ways Examples: India Mexico

13. DEVELOPED COUNTRY  GDP: High  Per Capita Income: High  Employment Sectors: Mostly “Tertiary” and “Quaternary”  Infrastructure: Strong  High amount of roads, Airports, Ports  Clean water systems  Electricity available to all  Quality of Life: High, with good nutrition, medical care, education

14. WHICH PICTURE BEST FITS EACH ECONOMIC LEVEL? Picture A Picture B Picture C Picture D