GNP AND GDP GNP – “Gross National Product” Total value of all goods and services by a country over one year. Includes facilities overseas owned by domestic companies. GDP – “Gross Domestic Product” Total value of all goods and services within a country’s borders over one year. This is a good indicator of the size of a country’s economy. Examples (2010 est.) USA – $14.5 trillion Mexico – $1.0 trillion Japan – $5.4 trillion China - $5.8 trillion Sudan - $0.07 trillion
PER CAPITA GDP GDP per 1000 people, how “wealthy” the country is. Roughly the amount of $$$ earned per person in a political unit per year. Examples? U.S. = $47,000 Mexico = $14,000 Japan = $33,000 China = $7,500 Sudan = $2300
4 ECONOMIC EMPLOYMENT SECTORS 1) Primary 2) Secondary 3) Tertiary 4) Quaternary
GET STUFF Gathering raw materials – natural resources taken from the earth Example: Mining, Fishing, Farming PRIMARY EMPLOYMENT SECTOR
MAKE STUFF Manufacturing / Industry - Adding value to raw materials by changing their form Example: Iron changed into an automobile Secondary Employment Sector
DO STUFF Business or professional services Example: teachers, retail salespeople, doctors Tertiary Employment Sector
THINK STUFF Provide info, research, management, etc. by highly trained personnel Engineers, researchers, scientists, software designers Quaternary Employment Sector
ECONOMIC STAGES OF DEVELOPMENT
LEAST DEVELOPED COUNTRY GDP: Nearly none – collap S ed. Per Capita Income: Very Low (less than $1000/yr) Employment Sectors: “Primary” if any at all Infrastructure: Very little to none Lack of electricity Lack of clean water Lack of roads, Airports, Ports Quality of Life: In crisis, collapsed infrastructure and economy. Examples: Afghanistan, Somalia, Haiti
DEVELOPING COUNTRY GDP: Low Per Capita Income: Low Employment Sectors: Mostly “Primary” Infrastructure: Relatively little Lack of electricity Lack of clean water Lack of roads, Airports, Ports Quality of Life: Low, little literacy, nutrition, or medical care Examples: Burma, Jamaica, El Salvador
NEWLY INDUSTRIALIZED COUNTRY (NIC) GDP: Low/Medium but increasing Per Capita Income: Low/Medium but increasing Employment Sectors: “Primary” shifting to “Secondary” to varying degrees Infrastructure: Increasing Things are being built as wealth increases Long process, very expensive Quality of Life: Still low in most places, but improving in many ways Examples: India Mexico
DEVELOPED COUNTRY GDP: High Per Capita Income: High Employment Sectors: Mostly “Tertiary” and “Quaternary” Infrastructure: Strong High amount of roads, Airports, Ports Clean water systems Electricity available to all Quality of Life: High, with good nutrition, medical care, education
WHICH PICTURE BEST FITS EACH ECONOMIC LEVEL? Picture A Picture B Picture C Picture D