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