UNIT 3 Economic Geography
WG.7a-b, 8, 9a-d
Natural Resources
►Renewable
resources will replace themselves over time. Examples would be soil, water, and forests
►Nonrenewable
resources are resources that will not replace themselves. Once they are used, they are gone. Examples--fossil fuels (oil, coal, natural gas), and metals (gold, iron, copper, and bauxite)
Human Resources
resources are man and his mind ►Human resources depend on level of education, whether it is skilled or unskilled labor, and are entrepreneurial or managerial abilities needed.
►Human
Capital Resources ►Capital resources are resources that
can be used to make more, like money or tools ►key features of capital are the availability of money for lending, the level of infrastructure, the availability and use of tools, machines, and technologies
Three levels of economic activity ►Primary Activities--dealing directly
with natural resources (ex.--fishing, farming, mining, and forestry)
►Secondary
manufacturing and processing of natural resources (ex.--steel mills, automobile assembly, sawmills
Activities--are
►Tertiary
Activities--are service industries (ex.--transportation, retail trade, informational technology services)
Energy resources and technology as it has changed over time
►Wood--deforestation
mining problems, competition with oil and gas ►Petroleum--transportation, environmental considerations
►coal--pollution,
Energy resources and technology as it has changed over time cont.
waste ►solar or wind--cost, aesthetics
►Nuclear--contamination,
Patterns of land use
►Most
economic activities are relatively close to the natural resources they use; ex.coal/steel, grain/cattle, fishing/ocean, hydroelectric power/aluminum smelting
Patterns of land use cont.
►Not
all nations are close to the resources they use: ex.--Japan has limited natural resources, but they are a major industrial power and the United Arab Emirates (UAE) have lots of oil, but no major industries
Examples of technology creating demand
►Some
new technologies have created a demand for a particular natural resource-steam engine and coal, internal combustion engine and gas, computer chips and skilled labor
Costs and benefits from using natural resources
►Costs
Resource depletion. ► 2. Environmental destruction ► 3. Health problems
►1.
Costs and benefits from using natural resources
►Benefits
Helps us produce goods and services. ►2. It creates employment opportunities ► 3. It helps develop new technologies
►1.
The effects of unequal distribution of resources
resources are distributed unequally around the world, it causes several things to happen ►1. Interdependence of nations -they must trade with each other to acquire the goods they do not possess
►Because
The effects of unequal distribution of resources cont.
Uneven economic development (rich and poor countries) ►3. Energy producers and consumers ►4. Imperialism (one country dominating another) ►5. conflicts over control of resources
►2.
Differences between developing and developed nations
nations have better access to natural and capital resources ►Developed nations have more investment in technology and have created a better infrastructure
►Developed
Differences between developing and developed nations cont.
►Developed
labor ►Developed nations have a higher level of economic development ►Developed nations have a higher standard of living and a higher quality of life
nations have more skilled
What are the indicators of economic development
the country more urban or more rural? Developed nations are generally urban. ►At what labor level do most people work? Most people in developed nations work in secondary and tertiary areas.
►Is
What are the indicators of economic development cont.
the Gross Domestic Product for the nation high or low? Most developed nations have a high GDP. ►What is the level of the educational achievement? Most developed nations have a highly educated population
►Is
Indicators of standard of living and quality of life
►A
nation has a high standard of living and a high quality of life if… the population growth rate is low the population age distribution is even
The literacy rate, life expectancy rate and percentage of urban people is high the infant mortality is low
Why do countries trade?
import goods and services they need ►to export goods and services they can sell for profit
►To
What influences economic activity?
►A
country’s access to human, natural and capital resources. Do they have a skilled workforce? Do they have natural resources? Are their transportation and communication networks modern, outdated or nonexistent? Do they have access to new technology?
What influences economic activity? cont.
►A
country’s location and ability to exchange goods.
Are they landlocked? Are they an island or coastal nation? How close are they to shipping lanes? What is their access to communications
What influences economic activity? cont.
►They
are members of a political or economic alliance that provides access to markets.
Examples would be, the European Union (EU), North American Free Trade Agreement(NAFTA)
What is comparative advantage?
►Comparative
advantage means a country will export goods and services that they can produce at lower relative costs than other countries.
What are the effects of comparative advantage?
nations to produce goods and services they can sell for profit ►influences the development of industries (ex. steel, aircraft, automobile, clothing) ►supports specialization and efficient use of human resources
►Enables
Examples of countries and their use of resources
industrialized despite limited natural resources ►Russia--has numerous resources but many are not economically profitable to actually develop
►Japan--highly
Examples of countries and their use of resources cont.
States--diversified economy , specialized industry, abundant resources ►Cote d’Ivorie--limited natural resources, but they use cash crops to buy manufactured goods
►United
Examples of countries and their use of resources cont.
►Switzerland--has
limited natural resources, but produces goods on a global scale
What are the effects of unequal distribution of resources?
►Unequal
distribution of resources causes countries to specialize in the goods and services they produce. It also encourages countries to trade with one another for the goods they can not produce themselves. It allows some to make a profit
How has economic interaction changed over time?
has moved from individual homes (cottage industry) to factories to offices to telecommunications ►there has been a large migration from rural to urban areas
►Labor
How has economic interaction changed over time? cont.
countries now export labor intensive work to developing nations ►trade alliances have grown in number ►service industries (tertiary) have grown in number
►Industrialized
How has economic interaction changed over time? cont.
service networks and international banks have increased ►products have become internationally assembled instead of everything being made in one location. (ex. Vehicles, electronics)
►Financial
How has economic interaction changed over time? cont.
transportation networks that allow for rapid and efficient exchange of goods and services (ex. Federal Express, UPS, US Postal Service) have grown ►Widespread marketing of products has increased (ex. Fuji, Nike, etc)
►Modern
Examples of Economic Unions
Union ►NAFTA--North American Free Trade Agreement ►OPEC--Organization of Petroleum Exporting Countries ►ASEAN--Association of Southeast Asian Nations
►EU--European
Advantages of Economic Unions
allow for more efficient industries ►They have access to larger markets ►They have access to more human, natural, and capital resources without restrictions ►They have a greater influence on world markets
►They
Disadvantages to economic unions
cause some industries to close ►Certain industries become concentrated in particular countries while forgetting the smaller ones. ►Agribusiness is replacing the family farm. ►There is often difficulty in agreeing on common economic policies.
►They