1. Primary Activities - economic activities that rely upon natural resources - examples: fishing, farming, mining, forestry - also located near natural resources - example: coal mine located near coal deposits. *hunting, gathering, and herding are ancient forms of primary activities
Farming is the most important primary activity around the world. - subsistence farming - people grow only enough food for their family or village needs - tools, techniques are very basic - family, farm animals are main source of labor *much of the agriculture in developing countries have this type of farming
- commercial farming - the production of food and other agricultural products for sale in markets - modern tools, techniques *some commercial farming can take place in developing countries (plantations) * What geographic and economic factors can affect the location of different types of commercial farms?
2. Secondary Activities - people use raw materials to produce or manufacture new products of greater value - examples: processing wheat into flour, lumber into plywood
- cottage industries - involves the production of something by hand - usually exists in a subsistence economy - commercial industries - large factories located in or near major cities - produce large quantities of manufactured goods - examples: clothing, automobiles, machinery, appliances. *What can affect the location of secondary activities?
3. Tertiary Activities - service industries - activities that serve others - examples: lawyers, doctors, firefighters, police officers *located where services are required.
4. Quaternary Activities - focus on acquisition, processing, and sharing of information - examples: education, government, research *located almost anywhere
Trade networks are established when nations do not have all the resources and goods that they want - exports- goods that are sent out of the country - imports- goods that are brought into the country
Trade Balance - domestic businesses may lose profits and fail - unemployment could rise - nation’s debt could increase Trade Routes - determined by geography, transportation technology, and international relations
Developed Countries - modern industrial societies - examples: United States, Japan, France Underdeveloped Countries - lack industries, modern technology, and depend on developed countries for manufactured goods *Gross Domestic Product (GDP)- total value of goods and services produced in a country in a year divided by the total population