UNIT 3UNIT 3Economic GeographyEconomic Geography

WG.7a-b, 8, 9a-dWG.7a-b, 8, 9a-d

Natural ResourcesNatural Resources

►Renewable resources will Renewable resources will replace themselves over replace themselves over time.time.Examples would be soil, Examples would be soil, water, and forestswater, and forests

►Nonrenewable resources are Nonrenewable resources are resources that will not resources that will not replace themselves. Once replace themselves. Once they are used, they are gone.they are used, they are gone.Examples--fossil fuels (oil, Examples--fossil fuels (oil, coal, natural gas), and coal, natural gas), and metals (gold, iron, copper, metals (gold, iron, copper, and bauxite)and bauxite)

Human ResourcesHuman Resources►Human resources are man Human resources are man and his mind and his mind

►Human resources depend on Human resources depend on level of education, whether it level of education, whether it is skilled or unskilled labor, is skilled or unskilled labor, and are entrepreneurial or and are entrepreneurial or managerial abilities needed.managerial abilities needed.

Capital ResourcesCapital Resources►Capital resourcesCapital resources are resources are resources

that can be used to make more, that can be used to make more, like money or toolslike money or tools

►key features of capital are the key features of capital are the availability of money for lending, availability of money for lending, the level of infrastructure, the the level of infrastructure, the availability and use of tools, availability and use of tools, machines, and technologiesmachines, and technologies

Three levels of economic Three levels of economic activityactivity

►Primary Activities-Primary Activities--dealing -dealing directly with natural resources directly with natural resources (ex.--fishing, farming, mining, (ex.--fishing, farming, mining, and forestry)and forestry)

►Secondary Activities-Secondary Activities--are -are manufacturing and processing of manufacturing and processing of natural resources (ex.--steel natural resources (ex.--steel mills, automobile assembly, mills, automobile assembly, sawmillssawmills

►Tertiary Activities--are Tertiary Activities--are service industries (ex.--service industries (ex.--transportation, retail trade, transportation, retail trade, informational technology informational technology services)services)

Energy resources and Energy resources and technology as it has changed technology as it has changed

over timeover time►Wood--deforestationWood--deforestation►coal--pollution, mining coal--pollution, mining problems, competition with problems, competition with oil and gasoil and gas

►Petroleum--transportation, Petroleum--transportation, environmental environmental considerationsconsiderations

Energy resources and Energy resources and technology as it has changed technology as it has changed

over time cont.over time cont.►Nuclear--contamination, Nuclear--contamination, wastewaste

►solar or wind--cost, solar or wind--cost, aestheticsaesthetics

Patterns of land usePatterns of land use►Most economic activities Most economic activities are relatively close to the are relatively close to the natural resources they use; natural resources they use; ex.-coal/steel, grain/cattle, ex.-coal/steel, grain/cattle, fishing/ocean, hydroelectric fishing/ocean, hydroelectric power/aluminum smeltingpower/aluminum smelting

Patterns of land use cont.Patterns of land use cont.

►Not all nations are close to Not all nations are close to the resources they use: the resources they use: ex.--Japan has limited ex.--Japan has limited natural resources, but they natural resources, but they are a major industrial are a major industrial power and the United Arab power and the United Arab Emirates (UAE) have lots of Emirates (UAE) have lots of oil, but no major industriesoil, but no major industries

Examples of technology Examples of technology creating demandcreating demand

►Some new technologies Some new technologies have created a demand for have created a demand for a particular natural a particular natural resource--steam engine and resource--steam engine and coal, internal combustion coal, internal combustion engine and gas, computer engine and gas, computer chips and skilled laborchips and skilled labor

Costs and benefits from using Costs and benefits from using natural resourcesnatural resources

►CostsCosts►1. Resource depletion. 1. Resource depletion. ► 2. Environmental 2. Environmental destruction destruction

► 3. Health problems3. Health problems

Costs and benefits from Costs and benefits from using natural resourcesusing natural resources

►BenefitsBenefits►1. Helps us produce goods 1. Helps us produce goods

and services.and services.►2. It creates employment 2. It creates employment

opportunities opportunities ► 3. It helps develop new 3. It helps develop new

technologiestechnologies

The effects of unequal The effects of unequal distribution of resourcesdistribution of resources

►Because resources are Because resources are distributed unequally around the distributed unequally around the world, it causes several things to world, it causes several things to happenhappen

►1. Interdependence of nations -- 1. Interdependence of nations -- they must trade with each other they must trade with each other to acquire the goods they do not to acquire the goods they do not possesspossess

The effects of unequal The effects of unequal distribution of resources cont.distribution of resources cont.

►2. Uneven economic 2. Uneven economic development (rich and poor development (rich and poor countries)countries)

►3. Energy producers and 3. Energy producers and consumers consumers

►4. Imperialism (one country 4. Imperialism (one country dominating another)dominating another)

►5. conflicts over control of 5. conflicts over control of resourcesresources

Differences between Differences between developing and developed developing and developed

nationsnations►Developed nations have Developed nations have better access to natural and better access to natural and capital resourcescapital resources

►Developed nations have Developed nations have more investment in more investment in technology and have created technology and have created a better infrastructurea better infrastructure

Differences between Differences between developing and developed developing and developed

nations cont.nations cont.►Developed nations have more Developed nations have more

skilled laborskilled labor►Developed nations have a higher Developed nations have a higher

level of economic developmentlevel of economic development►Developed nations have a higher Developed nations have a higher

standard of living and a higher standard of living and a higher quality of lifequality of life

What are the indicators of What are the indicators of economic developmenteconomic development

►Is the country more urban or Is the country more urban or more rural? Developed more rural? Developed nations are generally urban.nations are generally urban.

►At what labor level do most At what labor level do most people work? Most people in people work? Most people in developed nations work in developed nations work in secondary and tertiary areas.secondary and tertiary areas.

What are the indicators of What are the indicators of economic development cont.economic development cont.

►Is the Gross Domestic Product Is the Gross Domestic Product for the nation high or low? for the nation high or low? Most developed nations have a Most developed nations have a high GDP.high GDP.

►What is the level of the What is the level of the educational achievement? Most educational achievement? Most developed nations have a highly developed nations have a highly educated populationeducated population

Indicators of standard of living Indicators of standard of living and quality of lifeand quality of life

►A nation has a high standard of A nation has a high standard of living and a high quality of life living and a high quality of life if…if… the population growth rate is the population growth rate is lowlow

the population age distribution the population age distribution is evenis even

The literacy rate, life The literacy rate, life expectancy rate and expectancy rate and percentage of urban people percentage of urban people is highis high

the infant mortality is lowthe infant mortality is low

Why do countries trade?Why do countries trade?►To import goods and To import goods and services they needservices they need

►to export goods and to export goods and services they can sell for services they can sell for profitprofit

What influences economic What influences economic activity?activity?

►A country’s access to human, A country’s access to human, natural and capital resources.natural and capital resources.Do they have a skilled Do they have a skilled workforce? Do they have natural workforce? Do they have natural resources? Are their resources? Are their transportation and transportation and communication networks communication networks modern, outdated or modern, outdated or nonexistent? Do they have nonexistent? Do they have access to new technology?access to new technology?

What influences economic What influences economic activity? cont.activity? cont.

►A country’s location and A country’s location and ability to exchange goods.ability to exchange goods.Are they landlocked? Are Are they landlocked? Are they an island or coastal they an island or coastal nation? How close are they nation? How close are they to shipping lanes? What is to shipping lanes? What is their access to their access to communicationscommunications

What influences economic What influences economic activity? cont.activity? cont.

►They are members of a They are members of a political or economic political or economic alliance that provides alliance that provides access to markets.access to markets.Examples would be, the Examples would be, the European Union (EU), North European Union (EU), North American Free Trade American Free Trade Agreement(NAFTA)Agreement(NAFTA)

What is comparative What is comparative advantage?advantage?

►Comparative advantageComparative advantage means a country will export means a country will export goods and services that goods and services that they can produce at lower they can produce at lower relative costs than other relative costs than other countries.countries.

What are the effects of What are the effects of comparative advantage?comparative advantage?

►Enables nations to produce Enables nations to produce goods and services they can sell goods and services they can sell for profitfor profit

►influences the development of influences the development of industries (ex. steel, aircraft, industries (ex. steel, aircraft, automobile, clothing)automobile, clothing)

►supports specialization and supports specialization and efficient use of human resourcesefficient use of human resources

Examples of countries and their Examples of countries and their use of resourcesuse of resources

►Japan--highly industrialized Japan--highly industrialized despite limited natural despite limited natural resourcesresources

►Russia--has numerous Russia--has numerous resources but many are not resources but many are not economically profitable to economically profitable to actually developactually develop

Examples of countries and their Examples of countries and their use of resources cont.use of resources cont.

►United States--diversified United States--diversified economy , specialized economy , specialized industry, abundant resourcesindustry, abundant resources

►Cote d’Ivorie--limited natural Cote d’Ivorie--limited natural resources, but they use cash resources, but they use cash crops to buy manufactured crops to buy manufactured goods goods

Examples of countries and their Examples of countries and their use of resources cont.use of resources cont.

►Switzerland--has limited Switzerland--has limited natural resources, but natural resources, but produces goods on a global produces goods on a global scalescale

What are the effects of unequal What are the effects of unequal distribution of resources?distribution of resources?

►Unequal distribution of resources Unequal distribution of resources causes countries to specialize in causes countries to specialize in the goods and services they the goods and services they produce. It also encourages produce. It also encourages countries to trade with one countries to trade with one another for the goods they can another for the goods they can not produce themselves. It not produce themselves. It allows some to make a profitallows some to make a profit

How has economic interaction How has economic interaction changed over time?changed over time?

►Labor has moved from Labor has moved from individual homes (cottage individual homes (cottage industry) to factories to industry) to factories to offices to offices to telecommunicationstelecommunications

►there has been a large there has been a large migration from rural to migration from rural to urban areasurban areas

How has economic interaction How has economic interaction changed over time? cont.changed over time? cont.

►Industrialized countries Industrialized countries now export labor intensive now export labor intensive work to developing nationswork to developing nations

►trade alliances have grown trade alliances have grown in numberin number

►service industries (tertiary) service industries (tertiary) have grown in numberhave grown in number

How has economic interaction How has economic interaction changed over time? cont.changed over time? cont.

►Financial service networks and Financial service networks and international banks have international banks have increasedincreased

►products have become products have become internationally assembled internationally assembled instead of everything being made instead of everything being made in one location. (ex. Vehicles, in one location. (ex. Vehicles, electronics)electronics)

How has economic interaction How has economic interaction changed over time? cont.changed over time? cont.

►Modern transportation networks Modern transportation networks that allow for rapid and efficient that allow for rapid and efficient exchange of goods and services exchange of goods and services (ex. Federal Express, UPS, US (ex. Federal Express, UPS, US Postal Service) have grownPostal Service) have grown

►Widespread marketing of Widespread marketing of products has increased (ex. Fuji, products has increased (ex. Fuji, Nike, etc)Nike, etc)

Examples of Economic UnionsExamples of Economic Unions►EUEU--European Union--European Union►NAFTANAFTA--North American --North American Free Trade AgreementFree Trade Agreement

►OPECOPEC--Organization of --Organization of Petroleum Exporting Petroleum Exporting CountriesCountries

►ASEANASEAN--Association of --Association of Southeast Asian NationsSoutheast Asian Nations

Advantages of Economic Advantages of Economic UnionsUnions

►They allow for more efficient They allow for more efficient industriesindustries

►They have access to larger They have access to larger marketsmarkets

►They have access to more They have access to more human, natural, and capital human, natural, and capital resources without restrictionsresources without restrictions

►They have a greater influence on They have a greater influence on world marketsworld markets

Disadvantages to economic Disadvantages to economic unionsunions

►They cause some industries to closeThey cause some industries to close►Certain industries become Certain industries become

concentrated in particular countries concentrated in particular countries while forgetting the smaller ones.while forgetting the smaller ones.

►Agribusiness is replacing the family Agribusiness is replacing the family farm.farm.

►There is often difficulty in agreeing There is often difficulty in agreeing on common economic policies.on common economic policies.