1. Economic Geography Economic Indicators and Systems llhammon http://www.youtube.com/watch?v=rkRIbUT6u7Q http://www.youtube.com/watch?v=c8A5GmrrwG0&f eature=related

2. Development Indicators Warm-Up : Copy this diagram in your notes and see if you can come up with some of the key indicators of development for countries.

3. Development Indicators Economic Activity Crime Levels Political Stability GDP/GNPWomen employment Average Income % of Higher Education graduates Age Range of Pop Standard of Water pipes Water Access Telephone Communication # of TVs per person # of computers per person Electricity consumption Health Care Calories per person per day Death/Birth Ratio Life expectancy Ratio of doctors per person

4. What is Economic Geography? It is concerned with how people use the earth’s resources, How they earn a living, and How products are distributed. What are the levels of economic activities? What is the first level? Primary, Secondary, Tertiary, Quaternary Primary Makes direct use of natural resources Agriculture Forestry Mining

5. Myanmar agriculture rice field Forestry Skorpion Zinc Mine, Namibia In the U.S. only 3% of the labor force.

6. What controls the availability of these resources? Climate Soil Proximity to water Mineral deposits What is the second level? Secondary Converts the raw material into new products. Food processing Manufacturing refining

7. Food processing

8. Car manufacturing in India Toy manufacturing in China England Furniture Manufacturing Plant, USA Manufacturing

9. Petroleum Refining Gold Refining Refining

10. Where are the locations of secondary economic activities? Near markets to serve customers better and to lesson spoilage. Where special manufacturing needs can be met. (workforce) Sometimes located by chance. Governments have influence over where some important industries are located. Examples: ??? What is the third level? Tertiary The economic activities are service industries. Variety of services performed by people and businesses. Examples:???

11. Service Industry In the U.S. – 80% of labor force

12. What is the fourth level? Quaternary These are activities that involve information processing and management. Examples:??? Computer programmer General Manager of a company Bill Gates, CEO Microsoft

13. Wealth and Poverty What is economic development? Refers to how advanced an economy is- Advanced economies are more developed countries (MDCs) Lower standards of living and less advanced technologies are less developed countries (LDCs) Countries moving from less to more developed economies are “newly industrialized” or “emerging economies” or “more developed” What are indicators of development? In 1990, the United Nations developed the Human Development Index (HDI) for ranking countries based on their level of economic development – they look at demographic, economic, social, and political indicators.

14. Demographic Indicators, what are they? What does demographic relate to? Demographic relates to population Demographic relates to population Life expectancy Life expectancy Birth and death rates (BR/DR) Birth and death rates (BR/DR) Infant Mortality Rate (IMR) Infant Mortality Rate (IMR) What is Life expectancy? It is the average number of years an individual in a country is expected to live. Related to the country’s level of poverty. It is the average number of years an individual in a country is expected to live. Related to the country’s level of poverty.

15. What are birth and death rates? They are a measurement of how many people are born or die for every thousand people in a country in a given year. (remember population?) What is the infant mortality rate? It is the number of infants who die for every thousand births. Closely related to the level of medical care available when an infant is born. How do these indicators apply to MDCs and LDCs? MDCs have low DR, low MR, low IMR, long life expectancy. LDCs have high BR, high MR, high IMR, and a short life expectancy.

16. Economic Indicators, what are they? They tell how well an economy is performing. What is GDP? It is the total value of all goods and services produced by a nation in a year. (GDP = gross domestic product.) It is the total value of all goods and services produced by a nation in a year. (GDP = gross domestic product.) What is GDP per capita? It reflects the value of goods and services produced in a year in a country by an average person. It reflects the value of goods and services produced in a year in a country by an average person. What are some other economic indicators? Average number of automobiles, Average number of automobiles, Telephones, Telephones, Televisions, Televisions, Or computers per person Or computers per person

17. How do these indicators apply to MDCs and LDCs? MDCs will have a high GDP per capita. Greater number of automobiles, doctors, and telephones. This reflects a higher standard of living (SOL) Workers are productive because they use machinery, computers, and other high-tech tools. LDCs will have a low GDP per capita income. They often concentrate on agriculture – many will remain in subsistence farming, using primitive tools. This will reflect a low SOL. They lack investment so their workers tend to be less productive and less competitive.

18. Social indicators, what are they? Social services provided by countries for their citizens. Some of the indicators that are considered are Some of the indicators that are considered are Literacy rates (percentage of people who can read and write) Literacy rates (percentage of people who can read and write) Percentage of people attending colleges and universities Percentage of people attending colleges and universities Number of professional people, Number of professional people, Housing, Housing, Water supplies and, Water supplies and, sanitation sanitation How do these indicators apply to MDCs and LDCs? MDCs have a high literacy rate. Large number of doctors and hospitals serving the populations MDCs have a high literacy rate. Large number of doctors and hospitals serving the populations LDCs have a lower literacy rate. Small number of doctors and hospitals that serve the population. LDCs have a lower literacy rate. Small number of doctors and hospitals that serve the population.

19. Political indicators, what are they? Political indicators include: Political indicators include: Freedoms people enjoy Freedoms people enjoy The degree of democracy and voting rights The degree of democracy and voting rights The level of human rights, The level of human rights, The degree of government oppression and, The degree of government oppression and, Tolerance for different points of view. Tolerance for different points of view. There is no direct relationship between economic development and a nation’s system of government. There is no direct relationship between economic development and a nation’s system of government. Some more-developed economies have been ruled by dictators while, Some more-developed economies have been ruled by dictators while, Some democracies are less developed countries. Some democracies are less developed countries.

20. The Brandt Line is a visual depiction of the North-South divide, proposed by German Chancellor Willy Brandt in the 1980s. It approximately encircles the world at a latitude of 30 ° N, passing between North and Middle America, north of Africa and India, but dipping south so as to include Australia and New Zealand in the “Rich North.”

21. The map above showing the north-south divide as been updated recently to include countries like South Africa, Singapore and Taiwan. It was based upon the Brandt line and shows the more economically developed countries in blue and the less economically developed countries in red. Positives of Map: Simplifies data so that it's easy to understand. GDP is used which is an easy to access data source. Negatives of Map: Doesn't include some countries which are more economically developed. Generalized patterns with some countries above the Brandt line less developed less than some below.

22. Economic Systems – 4 Types Communist – China Free Enterprise – United States Socialist - Syria Traditional – Java, Indonesia

23. What are the three fundamental economic questions? What should be produced? How should it be produced? Who should get it? Remember: Every society has limited resources No society has enough goods and services to meet the unlimited needs and wants of all its people. This problem of scarcity forces every society to answer these questions.

24. What is a traditional economy? The three basic questions are answered according to tradition. People do what their ancestors did. What are the main points of a traditional economy? Economic Decisions: Custom and tradition determine what should be produced, how it should be produced, and for whom. Production: The production of goods is based on custom and time-honored methods. New ideas are discouraged. Change and growth proceed very slowly. Private Property: Often there is no private property: things are owned by the family or village in common. Trade: Goods and services are produced to meet the needs of the members of the family or tribe. Since they are produced and consumed locally, there is very little trade with outsiders.

25. What are the two main production methods in traditional economies? Subsistence agriculture – growing only enough to feed the farmer and his family. There is rarely a surplus so very little is sold or traded. Economic growth is slow. Cottage industries – people use their spare time to weave cloth, make furniture and clothes. Producing goods by hand. Help farmers and their families meet their needs and may give them extra income during the winter months. The entire family works together. Where are these traditional economies found today? Many are found in rural, non-industrial areas. Examples:???

26. Bushmen of Kalahari - Africa Berbers of Algeria Village in Bhutan – South Asia Traditional Economies

27. Subsistence Agriculture

28. Terrace Farming (subsistence agriculture) – Southern China

29. Cottage Industries

30. What is a Free Enterprise System? Economic system in which people own their own goods and property. (aka – capitalism or free market system) People invest their money in different ways (factories, machines, and land) They may gain a profit. The three basic economic questions are answered by the interplay between consumers (buyers) and producers (sellers). How are prices determined? Prices are established by the interaction of supply and demand. Supply refers to how much of a good producers are will to make and sell Demand refers to how much of a good consumers are willing to pay.

31. What is the role of the government? There is limited government interference. The government does provide and enforce a set of common rules Maintains a monetary system Provides for the nation’s defense Protects people’s right to own property. Sometimes will break up or regulate companies that could defy market forces.

32. What are the main points of the Free Enterprise System? Private Property: People have a right to own private property (personal possessions, factories, farms, businesses) and to use this property as they see fit with limited governmental interference. Free Enterprise: People are free to take part in any business, buy any product, or sell a legal product. Businesses are also free to do anything they wish in order to attract customers – such as lower prices, provide better quality goods, advertise, etc. Profit Motive: The ability to make profits is what drives people to risk their money in starting a new business. Supply and Demand: The interaction of supply and demand determines prices in a free market economy. When demand is high, the price goes up. It the supply is high but demand is low, the price goes down. *importance of competition in free enterprise. Better quality products and lower prices.

33. What are the two main production methods in free enterprise economies? Commercial agriculture – farmers grow food not just for themselves, but in order to sell it to others for cash. Crop production is intended for distribution to wholesalers and retailers, such as supermarkets and grocery stores. Large scale makes production cheaper. Mechanized equipment is used over large tracts of land. Commercial industries – goods are manufactured in factories for sale throughout the country or overseas.

34. Commercial Agriculture

35. Commercial Industries

36. What is the Communist system? Karl Marx 1818-1883 Is an economic system in which all important economic decisions are made by government leaders. The leaders decide what, how, and for whom goods and services will be produced. Government officials develop national plans, often for five-year periods, that specify which goods will be produced. In theory, there are no social classes in a communist system. Cooperation is supposed to replace competition, allowing everyone’s needs to be met.

37. What are the main points of the Communist System? Role of Government: All major decisions on production, distribution and the use of resources are made by government planners. Private Property: Private property ownership is abolished and replaced by national ownership of all land, factories, farms, and major resources. Cooperation: Communism is based on cooperation, in which all workers should labor together and share equality. The economy is supposed to be run for the benefit of all members. In practice, government leaders run things to prepare for true communism. Major Goal: The goal is to achieve a classless society – equality among all workers. Countries with communism today: China, North Korea, Vietnam, and Cuba. China has kept its communist political system but has taken rapid steps towards creating a free enterprise economy. Where is the Communist system today?

38. What is the Socialist system? It is an economic system in which the most important businesses producing goods (mines, factories, businesses) are owned by the government rather than by individuals. the difference between socialism and communism is that socialism encourages private ownership of small businesses (such as shops and small manufacturers). Referred to as “free market socialism” at times because they do not involve state planning. What does Socialism provide for the people? Socialists believe that workers can improve their own conditions by voting for sympathetic government leaders. The government can provide essential services, such as Free schooling Low-cost housing Public transportation National health program

39. What are the main points of the Socialist system? Role of Government: Government should use its power to bring an end to poverty by taking control of the major resources of the nation (railroads, airlines, radio stations) and by providing public services. Economic Decisions: Many decisions about production, distribution and the use of resources are made by the government. Other decisions are made privately. Private Poverty: Major industries are owned by the government. Other property is held privately. Major Goal: Socialism seeks a fairer distribution of income among all members of society. People’s basic needs (health care, transportation, education, housing) are met for free or at very low cost. Where are the countries ? After WWII many countries in Europe became Socialist. But privatization has taken over as in India and countries in Africa. *Sweden and Israel model their economies on the ideas of socialism.

40. Types of Production? Commercial Industries Cottage Industries Subsistence Agriculture Commercial Agriculture

42. GDP

43. http://www.youtube.com/watch?v=WCkOmcIl79s&feature=relatedHDI http://hdr.undp.org/en/data/map/