Economic Implications of Foreign Exchange Rationing in Ethiopia
Unit 4. Economic Geography Economy-consists of the production and exchange of goods and services....
-
Upload
morgan-thornton -
Category
Documents
-
view
218 -
download
0
Transcript of Unit 4. Economic Geography Economy-consists of the production and exchange of goods and services....
Unit 4
Economic GeographyEconomy-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 TodayHalf 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.
IndustrySmall 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
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 gasMetals (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 ResourcesAre goods produced and used to make other
goods and services.
Availability of money for investmentAvailability and use of tools, machines, and
technologyLevel of Infrastructure
Economic support systemsInfrastructure-consists of basic support systems
needed to keep the economy going: power, communications, transportation, water, sanitation and education.
Levels of Economic ActivityPrimary – 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 ResourcesInterdependence 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 resourcesIraq 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 MinoritiesIndigenous - 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
CostResource 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 DiseaseHow do you get black lung?
BenefitsProduction of goods and services
Coal used for Electricity.
Employment opportunitiesJobs created by using resources.
Development of technologyWe 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 activityStandards 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 DevelopementPer 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 networksInvestment Capital
Location and Ability to Exchange Goods
Landlocked Countries
Coastal and Island Countries
Proximity to shipping lanes
Access to communication networks
Comparative AdvantageA 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 changedTechnology
Federal ExpressUnited Parcel Service U. S. Postal Service
Economic Unions EU
European Union
NAFTANorth American Free Trade Agreement
ASEANAssociation of Southeast Asian Nations
OPECOrganization of Petroleum Exporting Countries