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Chapter 4, Section 5 Economic Geography.

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Presentation on theme: "Chapter 4, Section 5 Economic Geography."— Presentation transcript:

1 Chapter 4, Section 5 Economic Geography

2 Economic Geography 4.5 An economy consists of the production and exchange of goods and services among a group of people The way people choose to produce and exchange goods is called as economic system Traditional Economy - trade without money, or “barter” Command Economy – production determined by government, who also owns the means of production, and does not necessarily reflect the consumer demand: communism Market Economy – Production of goods and services follows consumer demand: capitalism, free enterprise Socialism – where government may own major means of production, but market consumer demand is followed

3 Economic Activities Subsistence Agriculture – just enough to feed the family Commercial Agriculture – producing a surplus for the market Cottage Industry – on a small scale, often family-owned and operating out of the home Commercial Industry – serving the needs of people in a large area Primary Activities – taking raw materials from the environment: forestry, fisheries, mining Secondary Activities – changing the form of the raw materials: manufacturing, food processing and packing Tertiary Activities - providing business or personal services: education, healthcare, lawyers, retailers Quaternary Activities – providing information, management and research services by highly-trained persons: web services, think-tanks, research universities The more developed the economy, the greater the number and variety of activities

4 Natural Resources are materials on or near the earth
These materials only become resources when society has a use for them: cultural definition of resources Like everything, they are unevenly distributed around the earth Usually divided into three groups Renewable – can be replaced through nature: trees, seafood Non-renewable – cannot be replaced once they are removed from the earth: iron and other ores, fossil fuels (oil, natural gas, coal) Inexhaustible Energy Sources – unlimited in quantity: sunlight, geothermal heat, winds, tides

5 Developed economies require basic support systems called infrastructure
Transportation: roads, railways, ports and airports Communications systems: Strong economies are linked internally and externally by Internet and satellite communications Water, sanitation, electricity and gas networks, and education systems

6 Geographers compare economies using a variety of statistics
Per-capita Income – the average amount of money earned by each person in a political unit Gross National Product(GNP) – the total of goods and services divided by the number of citizens Gross Domestic Product(GDP) – the total of goods and services divided by the number of people within the boundaries

7 Development Levels Developing Nations – have low GDP, lack an industrial base and struggle to meet their people’s basic needs Developed Nations – have high GDPs, a varied economy, especially with quaternary activities

8 Mali

9 India

10 China

11 Japan

12 USA

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