Political and Economical Systems

What types of human systems provide the power for groups of people to control Earth’s surface? 

• unitary system

Political and Economical Systems

• democracy• traditional economy• market economy• mixed economy• command economy

• federal system• autocracy• monarchy• oligarchy

A. United States

Political and Economical Systems

B. Saudi ArabiaC. United

KingdomD. ChinaE. Vietnam

Territory, population, and sovereignty influence levels and types of governments in countries around the world.

Features of Government

• Levels of government

– Most countries have several levels of government, ranging from the national level to the village level.

Features of Government (cont.)

• Two types of government systems are:

– Unitary—the United Kingdom and France use this system.

– Federal—the United States, Canada and Switzerland are three of many countries that use this system.

Features of Government (cont.)

• All governments belong to one of three major groups:

– Autocracy—rule by one person

– A monarchy is another form of autocratic government.

– Oligarchy—rule by a few people

– Democracy—rule by many people

The three major economic systems are traditional economy, market economy, and command economy.

Economic Systems

• All economic systems must make three basic economic decisions:

– What and how many goods and services should be produced

Economic Systems (cont.)

– Who gets the goods and services that are produced

– How should they be produced

– Traditional—habit and custom determine the rules.

– Market—this economy is based on free enterprise, the idea that private individuals or groups have the right to own property or businesses and make a profit with only limited government interference.

• These decisions are made differently in the three major economic systems:

Economic Systems (cont.)

– Most market economies are actually mixed economies.

– Command—the government controls the economy is this system.

Economic Systems (cont.)

• Two types of command economies:

– Communist—strict government control of the entire society

– Socialist—three main goals of this type of economy:• An equitable distribution of wealth and economic

opportunity

• Society’s control, through its government, makes decisions about public goods.

• Public ownership of services and factories that are essential.

Resources, Trade, and the Environment

How does the availability and use of natural resources affect economic activities and the environment?

• natural resource

Resources, Trade, and the Environment

• developing country • free trade• pollution

• industrialization• developed country• newly industrialized

country

A. Malaysia

Resources, Trade, and the Environment

B. European Union

Natural resources must be managed to ensure future needs.

Resource Management

• Because fossil fuels, such as coal and oil, and other nonrenewable resources cannot be replaced, they must be conserved.

Resource Management (cont.)

• Alternative energy sources:

– Hydroelectric power

– Solar energy

– Nuclear energy

The Global Economy

Countries with varying levels of economic development have become increasingly interdependent through world trade.

Economies and World Trade

• Geographers and economists classify all of the world’s economic activities into four types:

– Primary economic activities—taking or using natural resources directly from the Earth

Economies and World Trade (cont.)

– Secondary economic activities—raw materials are used to produce something new and more valuable.

– Tertiary economic activities—provide services to people and businesses

– Quaternary economic activities—the processing, management, and distribution of information

The Global Economy

Economies and World Trade (cont.)

• Factors affecting trade:

– The unequal distribution of natural resources

– Differences in labor costs

– Differences in education levels

Economies and World Trade (cont.)

• Barriers to trade:

– Tariffs

– Embargos

– A quota on the quantity of a product that can be imported from a country

• Many governments around the world have moved toward free trade.

World Economic Trends

Economic activities have led to environmental pollution.

People and the Environment

• The water, land, and air have all been polluted due to human activity.

• When humans harm natural ecosystems, they are also hurting themselves.