Focus Which of the following is petroleum used in? Plastics Fuel for machines Insect Repellent Soap

Focus Uneven distribution of resources is caused by all of the following, except – Renewable supplies Conflict over control of resources Imperialism Uneven economic development

Resources & Economic Activities World Geography SOL 9 Resources & Economic Activities

Resources are NOT equally distributed. Economic activities are influenced by: availability of resources cultural values economic philosophies levels of supply demand for goods & services.

Cultural Values Trade for what a country’s culture prizes Ex: Importation of coffee in the USA; China imports soy from the USA

Economic Philosophies How much power does the government have over trade? Laissez-Faire : the economy will fix itself and the government should not get involved. OR: The gov’t needs to help break up monopolies and stop the economy from collapsing

No country has all the resources that it needs to survive & grow. Nations participate in those economic activities compatible with their human, natural & capital resources. International trade fosters interdependence.

Factors that influence economic activity Access to human, natural & capital resources such as: - skills of the work force - natural resources - new technologies - transportation & communication networks - investment capital

Skills of the work force More skilled (& educated) workers mean more $ Developed countries have higher levels of education This is why many countries moving towards being developed send their brightest to American universities

Natural Resources Efficiently using resources helps countries develop Some countries are rich in resources but poor in wealth This can be due to exploitation from other countries (i.e. imperialism)

Transportation & communication networks Movement affects the ability to trade Includes access to water routes, airplanes, etc.

Investment capital Money placed into a company (Japan) If a country has a lot of investment capital, it has a lot of options to do what it wants

Factors that influence economic activity (cont.) Location & ability to exchange goods Landlocked countries Coastal & island countries Proximity to shipping lanes Access to communication networks

Landlocked countries Hard to trade with other countries Less important today due to air and quick land travel

Which countries are landlocked? 1 2 3 6 4 5

Where are these cities located?

Coastal and Island countries Easy access to trade by water Many major cities have access to a coast Is this site or situation?

Proximity to shipping lanes Close to trade routes Is this site or situation?

Access to communication networks Communicate what to trade

Check Based on the graphic, which is correct? They all have access to similar resources They have similar access to technology Coastal countries have limited access to resources Landlocked countries have limited access to trade

Factors that influence economic activity (cont.) Membership in political & economic alliances that provide access to markets European Union (EU), North American Free Trade Agreement (NAFTA)

Some countries’ use of resources Japan: Highly industrialized nation despite limited natural resources Asia

Some countries’ use of resources (cont.) United States: diversified economy, abundant natural resources, specialized industries North America

Some countries’ use of resources (cont.) Russia: numerous resources, many of which are not economically profitable to develop Eurasia

Some countries’ use of resources (cont.) Cote d’Ivoire: limited natural resources; cash crops exchanged for manufactured goods (developing) Africa

Some countries’ use of resources (cont.) Switzerland: Limited natural resources, production of services on a global scale Banks Europe

Reasons why countries engage in trade To import goods & services that they need To export goods & services that they can market for profit

Effects of comparative advantage on international trade Enables nations to produce goods & services that they can market for profit Influences development of industries (e.g. steel, aircraft, automobile, clothing) Supports specialization & efficient use of human resources Exchange of goods and services (GDP)

Check What can be inferred from the chart? The US economy depends on imports The US economy is based on agriculture The US economy is based on manufacturing The US economy is diverse

Economic, social, & therefore, spatial relationships change over time. Improvements in transportation & communication have promoted globalization.

Changes over time Industrial labor system (e.g. cottage industry, factory, office, telecommunications) Migration from rural to urban areas (urbanization) Developed/Industrialized countries export labor intensive work to developing nations Growth of trade alliances Growth of service (tertiary) industries Growth of financial services networks and international banks

Check Which economic activity is the best example of a cottage industry that has declined due to industrialization? Weaving Deep-Sea fishing Dairy Farming Teaching

Changes over time (cont.) Internationalization of product assembly (e.g. vehicles, electronic equipment) Technology that allows instant communication among people in different countries Modern transportation networks that allow rapid & efficient exchange of goods & materials (e.g. Federal Express, United Parcel Service, US Postal Service) Widespread marketing of products (e.g. Fuji film, Nike, United Colors of Benetton)

As a global society, the world is increasingly interdependent. Economic interdependence fosters the formation of economic unions. Economic interdependence can be depicted through trade, resource or transportation maps.

Examples of Economic Unions EU: European Union NAFTA: North American Free Trade Agreement ASEAN: Association of Southeast Asian Nations OPEC: Organization of Petroleum Exporting Countries

Economic Unions European Union – established after World War II and made up of 20 European countries; created to reduce trade barriers and promote cooperation North American Free Trade Agreement – created in 1960 that reduced trade barriers between Canada, Mexico, and the US.

Economic Unions Association of South East Asian Nations – established in 1976 to reduce trade barriers between member countries in SE Asia. Organization of Petroleum Exporting Countries – created in 1960; dedicated to the policy of controlling the production and sale of oil among member countries.

Advantages of Economic Unions More efficient industries Access to larger markets Access to natural, human & capital resources without restrictions Greater influence on world market

More efficient industries Because they are in cooperation with each other and have better access to trade

Access to larger markets Because they are working together

To natural, human, & capital resources Without competition from other members

Greater influence on the world market Because they are more powerful in groups than trying to trade separately

Disadvantages of Economic Unions Closing of some industries Concentration of some industries in certain countries, leaving peripheral areas behind Agribusiness replacing family farms Difficulty in agreeing on common economic policies

Disadvantages Economic unions can concentrate some industries in certain countries, leaving peripheral (outside) countries behind

Disadvantages Large agricultural companies called agribusinesses replace family farms

Disadvantages Difficulty in agreeing on common economic policies, like setting prices, etc.

Economic Unions of the World Key European Union NAFTA ASEAN OPEC

Which of the following is a disadvantage of Economic Unions? Creation of more efficient industries Replacement of family farms with agribusinesses More of an influence on the world market Have greater access to resources with fewer trade restrictions

Check One of the factors that contributed to Japan’s industrial growth during much of the 20th century was that it benefited from having – Supplies of fossil fuels Deposits of iron ore Areas of fertile farmland Sources of investment capital

Brunei, Malaysia, Indonesia, and Thailand are some of the most developed countries in their region. Which economic union promoted their success? NAFTA ASEAN OPEC EU

Which is not an economic union? NAFTA NATO ASEAN OPEC

Which of the following is NOT a modern transportation network? Federal Express United Parcel Service United States Postal Service World Wide Web

A recent news story stated that Japanese car company is expected to build five auto factories in the US. What does this trend indicate? Widespread marketing of products Internationalization of product assembly Modern transportation networks allow rapid and efficient exchange of goods and services Industrialized countries export labor-intensive work to developing nations

Decreased growth of trade alliances Decreased internationalization of product assembly Increased migration to rural areas Promoted an increase in globalization

Which example best demonstrates the internationalization of product assembly? Vehicles Commercial fishing Financial services Textiles

Which of the following has NOT been a result of improvements in transportation and communication promoting globalization? Widespread marketing of products Resulted in a lack of cottage industry growth Rapid and efficient exchange of goods and materials Technology that allows instant communication among people in different countries

How do spatial patterns reflect economic and social change over time? People move in order to gain access to freedom. This movement is reflected in vast immigration practices. College education determine spatial patterns within a country. People emigrate and immigrate in search of a better quality of life and standard of living. Children choose to move away from home as a result of conflicts within the family.

Moodle Go to the World Geography Moodle Page Go to SOL 9 (it is highlighted blue) Work on the “Economic Geography Review” This is your review for next class’ test on unit 5. Make sure to see the correct answers and to complete the quiz multiple times, including at home.

Economic Unions of the World Key European Union NAFTA ASEAN OPEC