chapter 6. i. economic geography a.economic activities

Chapter 6

I. Economic GeographyA. Economic Activities

Economic ActivitiesPrimary Secondary Tertiary Quaternary

Natural Resource Connection

Location

Developing:

Developed:

Examples

Direct use

At site of NR being used

Subsistence

Commercial

FarmingMiningFishingTimber

Use NR to produce or manufacture something new

Close to NR or market, source of labor for finished product

Cottage Industry

Commercial Ind.

Wheat - flourGold-jewelryFish – oilsTimber – lumber

No direct use – provide services to people & biz

Near market or customers

Small sector

Largest sector

Fireman/policesalesCar dealerbakerydoctorSpa/salon

No direct use – process & distribute info

Anywhere -close to skilled labor, good comm. & transp.

Smaller sector

Larger sector

researchengineeringeducationGov’tInfo processing

Subsistence Farm

Commercial Farm

Primary Economic Activities

Commercial Industry

Cottage Industry

Secondary Economic Activities

Industry!

The US Economy

Best Location for a factory?Where all of the following are present:

• Low labor costs• Skilled workers• Low energy costs• Access to easy

transportation

Tertiary Economic Activities

We live to

SERVE

Quaternary Economic Activities

Information

Processing

Morocco

B. Types of Economic Systems

- 3 basic economic questions

What to make?How much to

make?Who to make it for?

1. Traditional Economy (subsistence economy)

a. all goods & svc produced & consumed by

the family/for family

b. Very little surplus or exchange of goods

c. Found in poor countries,

mostly in rural areas

2. Market Economya. People freely choose what to buy & sell

according to the laws of supply & demandb. Individuals or companies make decisions

about production & distribution – competitionc. Capitalism – biz, industries, resources are

privately ownedd. In US, govt provides some svc & imposes

some govt regulationse. Pure capitalism: gov’t plays NO part in

economy

3. Command Economy

a. Central Govt makes decisions about production/distribution - decides what to make, where to make it, how much to make, what price to charge, what to pay workers

b. Production doesn’t necessarily reflect consumer demand

c. Communist economy – govt owns, operates all major farms, factories, utilities, stores

D. Mixed Economya. Combo of command & market economiesb. Socialism: state owns/operates some basic

industries while allowing pvt enterprise in other parts of economy

c. Belief that wealth should be distributed more equally – all entitled to certain goods/svcs

d. “welfare states” characterized by HIGH TAXES to pay for the many social svcs like housing, health care, child care, pensions

Mixed Economy (Socialism)

Government Private Enterprise

Operates some businesses

Owns some businesses

Laws of Supply & Demand

Determine price & production

Determine price & production

C. Level of Development (Standard of Living?)

1. Measures of Development - determines economic progress and quality of life

a. GNPb. GDPc. industrialization

2. Standard of Living a. Measured by many factors

- personal income- levels of education- food consumption- literacy rate- quality of health care- technology level- life expectancy

3. Developed vs. Developing Statistics Developed Developing

Infant Mortality Rate

Literacy Rate

Life Expectancy

GDP/GNP/GNIPPP

% Urban

RNI

Dependency <15

Transportation/Communication Network

Energy ProductionEnergy Consumption

LOW HIGH

HIGH LOW

HIGH LOW

HIGH LOW

HIGH LOW

LOW HIGH

LOW HIGH

HIGH LOW

HIGH LOW

4. Middle – Income Countries – those btwn the world’s riches/pooresta. Have features of both

- cities may be modern, rural areas poor- urbanization increasing

b. Examples: Mexico, Brazil, Argentina, South Africa

Mexico CityRural Mexico

Developed or Developing?

Developed or Developing?

3. How to improve Development?

a. Wealthy nations can invest $ in developing nations (capital resources)

b. Exchange goods & svcs, ideas, info

D. Global Trade Patterns

1. Diff. countries have diff types & quantities of resources

2. Options for obtaining needed resources:a. War?b. Trade Network – sell abundant items,

buy items in short supply - imports: goods that are brought

into a country - exports: goods that are sent out of a

country

3. Trade Balance

a. Trade Deficit occurs when a country imports more than it exports

- domestic biz lose profits, fail

- unemployment rises

- national debt increases

** Can reduce imports by imposing tariffs (tax on imports) or by imposing quotas

- but what’s the problem with these?

b. Favorable balance of trade occurs when a country exports more than it imports – or

50/50

Trade Balance – favorable or not?

1. Which country imported the most goods in 1998?

2. Which country exported the fewest goods in 1998?

3. Roughly how much did Portugal import and how much did it export in 1998?

4. Which country shows the greatest difference between the amount it imported and the amount it exported?

4. Trade Routes – determined by geography, transportation technology and int’l relations

a. 1500s – ocean travel – avoided geographical obstacles & unfriendly nations

b. Today – advances in communications & computers allow for electronic trading

II. Political GeographyA. What is a country?

B. Types of Gov’t

C. Conflict & Cooperation

A. What is a country? 4 characteristics: territory, population, sovereignty, gov’t

1. Clearly defined territory

a. Includes land, water, natural resources (NR)

b. NR more important than size

c. Unequal distribution of NR has led to conflict

d. Natural division can serve as boundaries

e. Boundaries can shrink/expand due to war or

negotiation

f. Geog. Factors influence nation’s pwr to control territory (ex. Great Britain: easy access to travel & trade

There are 3 primary types of boundaries – geometric, natural and cultural.

Geometric boundaries follow lines of latitude, longitude, or certain compass direction between points. In the US, they were established to divide territories before settlers entered areas.

Natural boundaries are usually curvy b/c they follow the crests of mts or the center of rivers.

Cultural boundaries are borders based on cultural traits, such as religion, language

49N

Geometric Boundary

Natural Boundary

Cultural Boundaries

2. Population

a. Vary in size (China,1.3B vs. Canada, 33M)

b. Vary in population density (Mongolia, 4.3/sq. mi vs. Bangladesh,

2,200 + /sq. mi)

c. Vary in cultural diversity (USA vs.

Japan

3. Sovereignty (freedom from outside control)

a. Country is sovereign if it can rule itself or act independently -free to

make own laws & have own leaders

b. Can deal equally w/ other countries and protect its territory & citizens -

can negotiate/deal w/ other countries in peace (diplomacy) – make trade agreements, deal with int’l orgs.

c. Geog. Factors can help nation defend/maintain sovereignty (UK vs Poland)

4. Governmenta. Good gov’ts protect lives, property,freedoms, & rights of their citizens

- ensures conditions needed for economies to develop & for people to

prosperb. Unstable gov’ts don’t last long or have little authority

- gov’t corruption – political leaders use

public office to enrich themselves or their friends

A more comprehensive list of requirements

• Has space or territory which has internationally recognized boundaries (boundary disputes are OK).

• Has people who live there on an ongoing basis. • Has economic activity and an organized economy. A country

regulates foreign and domestic trade and issues money. • Has the power of social engineering, such as education. • Has a transportation system for moving goods and people. • Has a government which provides public services and police

power. • Has sovereignty. No other State should have power over the

country's territory. • Has external recognition. A country has been "voted into the

club" by other countries

B. Structure of Government• Government structure – how gov’ts are

classified based on relationship btwn smaller units (states) & the central govt1. Unitary: central govt rules entire

nation2. Federation: Nat’l govt shares pwr w/ state govts3. Confederation: smaller levels of govt keep most of the pwr & give central govt very limited pwrs

C. Government Authority• Govt Authority – who has the power?

Authoritarian (govt has the power) vs Democracy (people have the power)

• Worldwide trend shows gradual shift from authoritarian towards democracy

Authoritarian

Gov’t

Citizens

Democratic

Citizens

Gov’t

1. Authoritarian Gov’tsa.Dictatorship – most common form of

authoritarian govt. - an individual or small grp holds complete or absolute political pwr

- the leader has not been elected and often uses military/political terror to stay in pwr- people not free to voice opinions- dictator’s power usually not restricted

by constitution or laws- in a military dictatorship, the army is in control

Some of the world’s most

notorious Dictators

Omar al-Bashir of Sudan

Kim Jong-il of North Korea

Hu Jintao of China

The 2008 Parade Magazine's "World's Worst Dictators" list

b.Totalitarian: a gov’t that seeks to subordinate the individual to the state by controlling not only all political & economic matters, but also the attitudes, values, and beliefs of its population

c. Communist State- Govt & an economic system- The state plans & controls the economy

and a single-often authoritarian-party holds power

- state controls are imposed with the elimination of private ownership of property or capital while claiming to make progress toward a higher social order in which all goods are equally shared by the people (i.e., a classless society)

d. Monarchy – hereditary rulers

- ruling family headed by king or queen holds political power - past: ruled w/ dictatorial

pwrs – absolute monarchs

- present: most are now Constitutional Monarchies – share pwr w/ citizen bodies

- pwr rests w/ elected lawmaking body, monarch ceremonial or represents nat’l unity Queen Elizabeth

Monarchy TodayJapan

Great Britain Spain

Netherlands Sweden

Belgium Norway

Saudi Arabia Malaysia

Kuwait UAE

Morocco Luxemburg

Oman Jordan Qatar

Nepal Brunei

Lesotho Swaziland

Liechtenstein Monaco Bhutan Samoa Tonga

- Empire Kingdom Kingdom Kingdom Kingdom Kingdom Kingdom Kingdom Kingdom Emirate Emirates Kingdom Grand Duchy Sultanate Kingdom Emirate Kingdom Sultanate Kingdom Kingdom Principality Principality Kingdom Chiefdom Kingdom

Ceremonial Head of State vs. Absolute

MonarchNetherlands

Japan

Belgium

Swaziland

Saudi Arabia

Brunei

• Most European nations are Constitutional Monarchies

– Sys of gov where monarch guided by constitution – rights & responsibilities are spelled out in written law or by custom

• How a constitutional monarchy differs from U.S. Government?

– Parliament: Elect a party. Party leader becomes Prime minister. (determine elections)

• Nationalized healthcare, housing, and industry.

• Royal Family figure heads to unify nation have no political power. (Wealthy and help with tourism.)

Misc. info about European Monarchies

2. Gov’ts where people have the power!

a. Democracy citizens hold political pwr- direct democracy- representative democracy (most common) – adult citizens vote for people who make the laws- leaders chosen by voting in

free elections- value individual freedoms &

human rights

3. Miscellaneous forms of gov’t. - theocracy: religious leaders control the

govt (Tibet – Dalai Lama)- rely on religious law- consultation w/ religious scholars

- aristocracy: govt by the best or privileged class

- Plutocracy: gov’t by the wealthy- Kleptocracy: govt by those seeking

personal gain at the expense of the governed

D. Conflict & Cooperation

1. Political Conflicts

a. Competing feelings of nationalism (pride & loyalty for one’s country)

b. Differing culture traits (religion, ethnicity, etc)

c. Type of gov’t

d. Economic issues – trade disputes, tariffs & quotas

2. Terrorism – the use of violence & fear as a political force.

a. some terrorists want independence for homelands that may be under

control of another country

b. some terrorists have political goals – to change policies

c. don’t usually act under direct authority of govt but may be protected or supported financially

3. Int’l Cooperation

a. United Nations (UN): most countries are members

- goals to settle int’l disputes, to prevent wars, humanitarian aid (disease, hunger, illiteracy)

b. Economic cooperation/free trade

- helps countries produce goods at lower costs & reach larger

markets. People can then buy these goods at lower prices

- reduce tariffs & quotas