What Do I Need to Know About Economic Geography?

What do I need to know about economic geography?

Use of Energy Resources Resources  Wood – deforestation Natural substances become resources if and  Coal – pollution, mining when they become useful to humans. problems, competition with oil and gas Natural Resources  Petroleum – transportation  Renewable – soil, water, forests  Nuclear – contamination/waste  Nonrenewable – Fossil fuels (oil, coal, natural gas) and metals (gold,  Solar, wind – coast/aesthetics iron, copper, bauxite)

Levels of Economic Activity Human Resources  Primary – Dealing directly with  Level of education resources (fishing, farming, forestry,  Skilled and unskilled workers mining)  Entrepreneurial and managerial  Secondary – Manufacturing and abilities processing (steel mills, automobile assembly, sawmills) Capital Resources  Tertiary – Services (transportation,  Availability of money for investment retail trade, informational technology services  Level of infrastructure  Availability and use of tools, Resources are not distributed equally. machines, and technologies

Effects of Unequal Distribution of Costs of Using Resources Resources  Resource depletion  Interdependence of nations/trade in  Environmental degradation goods, services, and capital  Health problems resources  Uneven economic development – Benefits of Using Resources Some countries are rich and some  Production of goods and services are poor  Employment opportunities  Energy produces and consumers –  Development of technologies Some countries have oil and coal and some must buy it Patterns of Land Use  Conflict over control of resources –  Proximity of economic activity and Countries will fight for resources natural resources such as fresh water, gold, oil, etc… o Steel mills are located next to coal deposits o Cattle ranches are located near sources of grain o Fishing is located near the ocean o Aluminum smelting is located near hydroelectric power plants because it takes a lot of electricity to extract aluminum from The use of a resource depends on a nation’s bauxite ore culture, values, access to technology, and  Non-proximity of economic activity governmental priorities as they change over and natural resources time o Japan – limited natural resources; major Social and economic priorities that manufacturing region influence a culture’s perspective on o United Arab Emirates – oil; resources lack of industry  Economic development priorities (China values economic Technologies that have created a demand development over saving the for particular resources environment)  Steam engine – demand for coal  Environmental conservation  Internal combustion engine – priorities petroleum  Priorities of indigenous minorities  Computer chips – demand for skilled labor Indicators of Economic Development  Urban/rural ratio – developed Differences between developed and countries have more people living in developing nations cities  Access to natural resources  Labor force characteristics – in  Access to capital resources developing countries more people  Numbers and skills of human work in primary and secondary resources activity  Levels of economic development  GDP per capita – developed countries have a high GDP  Standards of living and quality of life  Educational achievement  Relationship between economic development and quality of life Indicators of Standards of Living Comparative Advantage  Population growth rate – developing countries have a higher growth rate  Comparative advantage: countries will export goods and services that  Population age distribution – they can produce at lower relative developing countries have younger costs than other countries populations  Specialization of goods and services  Literacy rate (who can read and that a country can market for a profit write)  Life expectancy Some Countries’ Use of Resources  Infant mortality  Japan – Highly industrialized nation  Percentage of urban population despite limited natural resources  Russia – Numerous resources many of which are not economically profitable to develop  United States – Diversified economy, abundant natural resources, specialized industries  Cote D’Ivoire – Limited natural resources, cash crops in exchange for manufactured goods  Switzerland – Limited natural Changes Over Time resources  Industrial labor systems (factories replaced cottage industries) Examples of Economic Unions  Migration from rural to urban areas  EU – European Union  Industrialized countries export labor  NAFTA – North American Free Trade intensive work to developing nations Agreement  Growth of trade alliances  ASEAN – Association of Southeast  Growth of service industry Asian Nations  Growth of financial services  OPEC – Organization of Petroleum networks and international banks Exporting Countries  Internationalization of product assembly Advantages of Economic Unions  Technology that allows instant  More efficient industries communication among people in  Access to larger markets different countries  Access to natural, human, and capital  Modern transportation networks resources without restrictions that allow rapid and efficient  Greater influence on the world exchange of goods and materials market  Widespread marketing of products (Nike, Coke) Disadvantages of Economic Unions  Closing of some industries  Concentration of some industries in certain countries  Agribusiness replacing family farms  Difficulty in agreeing on common economic policies