1. Level of Development One common measurement of development is a country’s gross domestic product, or its GDP The GDP is the total value of all goods and services produced in a given year

2. Level of Development The GDP is more useful when it is divided by the number of people living in a country This gives us the per capita GDP, which can be used to compare income levels in different countries

3. Level of Development Another measure of a country’s development is the level of industrialization Industrialization is the process by which manufacturing based on machine power becomes widespread

4. Level of Development Additional measures of development include the average amount of energy a country uses, and the size and quality of a country’s transportation and communication system A country’s level of development also determines their standard of living

5. Developed and Developing Countries The world’s countries can be organized into two main groups The richest countries are called developed countries The poorest are developing countries

6. Developed and Developing Countries Developed countries share many of the same features High levels of education Good health care Literacy rates are high Both birth and death rates are low

7. More About Developed Countries Developed countries have a great deal of technology and manufacturing. Most people in developed countries work in manufacturing or service industries and enjoy a high standard of living. Farmers in developed countries engage in commercial farming, raising crops and livestock to sell in the market. Because of modern techniques, only a small percentage of workers are needed to grow food.

8. Developed and Developing Countries Developing countries are less productive economically and have lower standards of living These countries have low per capita GDPs Birthrates are high and life expectancy is low

9. More About Developing Countries Most people farm and few have electricity Most farmers in developing countries engage in subsistence farming, growing only enough food for family needs.

10. Developed and Developing Countries Between the world’s richest and poorest countries are what some call middle- income countries (newly industrialized)

11. Developed and Developing Countries Many of these countries have new industries and many people are switching from rural to city life Examples include Mexico, Brazil, Thailand, and Malaysia Their cities may be modern but rural areas are still very poor

12. Economic Activities Economic geography deals with how people earn a living and use resources Economists group money-making activities into four categories: 1. primary 2. secondary 3. tertiary 4. quaternary

13. Economic Activities Economic activities that involve taking or using natural resources are called primary activities Primary economic activities take place near the natural resources that are being gathered or used (coal mining occurs at the site of a coal deposit) Primary activities provide the basic raw materials for industry They include farming, grazing, fishing, forestry, and mining

14. Economic Activities Secondary activities use raw materials to produce or manufacture something new and more valuable Examples include steelmaking, manufacturing automobiles, assembling electronic goods, producing electric power, or making pottery. Secondary activities are usually located close to the resource being used or to the market for the finished product

15. Economic Activities Tertiary activities do not involve directly acquiring and remaking natural resources. Instead, tertiary activities provide services to people and businesses For example, doctors, lawyers, store clerks, and teachers provide wholesale, retail, personal and professional services Tertiary activities are usually located near customers to serve them better

16. Economic Activities In advanced countries, workers process, manage and distribute information— these jobs are called quaternary economic activities These jobs require workers with specialized skills and knowledge—research scientists and programmers People performing these activities could work in education, government, business, information processing, or research.