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Chapter 6

Government & Economic Systems. Chapter 6. I. Economic Geography. Economic Activities. Economic Activities. Use NR to produce or manufacture something new. No direct use – provide services to people & biz. No direct use – process & distribute info. Direct use.

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Chapter 6

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  1. Government & EconomicSystems Chapter 6

  2. I. Economic Geography • Economic Activities

  3. Economic Activities Use NR to produce or manufacture something new No direct use – provide services to people & biz No direct use – process & distribute info Direct use Close to NR or market, source of labor for finished product Anywhere -close to skilled labor, good comm. & transp. At site of NR being used Near market or customers Subsistence Commercial Cottage Industry Commercial Ind. Small sector Largest sector Smaller sector Larger sector Fireman/police sales Car dealer bakery doctor Spa/salon research engineering education Gov’t Info processing Farming Mining Fishing Timber Wheat - flour Gold-jewelry Fish – oils Timber – lumber

  4. Primary Economic Activities Subsistence Farm Commercial Farm

  5. Secondary Economic Activities Industry! Commercial Industry Cottage Industry

  6. The US Economy

  7. Best Location for a factory?Where all of the following are present: • Low labor costs • Skilled workers • Low energy costs • Access to easy transportation

  8. Tertiary Economic Activities We live to SERVE

  9. Quaternary Economic Activities Information Processing

  10. Morocco

  11. B. Types of Economic Systems • 3 basic economic questions What to make? How much to make? Who to make it for?

  12. Traditional Economy (subsistence economy) a. all goods & svc produced & consumed by the family/for family b. Very little surplus or exchange of goods c. Found in poor countries, mostly in rural areas

  13. Market Economy • People freely choose what to buy & sell according to the laws of supply & demand • Individuals or companies make decisions about production & distribution – competition • Capitalism – biz, industries, resources are privately owned • In US, govt provides some svc & imposes some govt regulations • Pure capitalism: gov’t plays NO part in economy

  14. 3. Command Economy • Central Govt makes decisions about production/distribution - decides what to make, where to make it, how much to make, what price to charge, what to pay workers • Production doesn’t necessarily reflect consumer demand c. Communist economy – govt owns, operates all major farms, factories, utilities, stores

  15. D. Mixed Economy • Combo of command & market economies • Socialism: state owns/operates somebasic industries while allowing pvt enterprise in other parts of economy • Belief that wealth should be distributed more equally – all entitled to certain goods/svcs • “welfare states” characterized by HIGH TAXES to pay for the many social svcs like housing, health care, child care, pensions

  16. Mixed Economy (Socialism) Government Private Enterprise Laws of Supply & Demand Determine price & production Determine price & production Operates some businesses Owns somebusinesses

  17. C. Level of Development (Standard of Living?) 1. Measures of Development - determines economic progress and quality of life a. GNP b. GDP c. industrialization 2. Standard of Living a. Measured by many factors - personal income - levels of education - food consumption - literacy rate - quality of health care - technology level - life expectancy

  18. LOW HIGH 3. Developed vs. Developing HIGH LOW HIGH LOW HIGH LOW HIGH LOW LOW HIGH LOW HIGH LOW HIGH HIGH LOW

  19. Middle – Income Countries – those btwn the world’s riches/poorest a. Have features of both - cities may be modern, rural areas poor - urbanization increasing b. Examples: Mexico, Brazil, Argentina, South Africa Rural Mexico Mexico City

  20. Developed or Developing?

  21. Developed or Developing?

  22. 3. How to improve Development? • Wealthy nations can invest $ in developing nations (capital resources) • Exchange goods & svcs, ideas, info

  23. D. Global Trade Patterns • Diff. countries have diff types & quantities of resources • Options for obtaining needed resources: a. War? b. Trade Network – sell abundant items, buy items in short supply - imports: goods that are brought into a country - exports: goods that are sent out of a country

  24. Trade Balance a. Trade Deficit occurs when a country imports more than it exports - domestic biz lose profits, fail - unemployment rises - national debt increases ** Can reduce imports by imposing tariffs (tax on imports) or by imposing quotas - but what’s the problem with these? b. Favorable balance of trade occurs when a country exports more than it imports – or 50/50

  25. Trade Balance – favorable or not? 1. Which country imported the most goods in 1998? 2. Which country exported the fewest goods in 1998? 3. Roughly how much did Portugal import and how much did it export in 1998? 4. Which country shows the greatest difference between the amount it imported and the amount it exported?

  26. Trade Routes – determined by geography, transportation technology and int’l relations a. 1500s – ocean travel – avoided geographical obstacles & unfriendly nations b. Today – advances in communications & computers allow for electronic trading

  27. II. Political Geography • What is a country? • Types of Gov’t • Conflict & Cooperation

  28. A. What is a country? 4 characteristics: territory, population, sovereignty, gov’t • Clearly defined territory a. Includes land, water, natural resources (NR) b. NR more important than size c. Unequal distribution of NR has led to conflict d. Natural division can serve as boundaries e. Boundaries can shrink/expand due to war or negotiation f. Geog. Factors influence nation’s pwr to control territory (ex. Great Britain: easy access to travel & trade

  29. There are 3 primary types of boundaries – geometric, natural and cultural. Geometric boundaries follow lines of latitude, longitude, or certain compass direction between points. In the US, they were established to divide territories before settlers entered areas. Natural boundaries are usually curvy b/c they follow the crests of mts or the center of rivers. Cultural boundaries are borders based on cultural traits, such as religion, language

  30. Geometric Boundary 49N Natural Boundary

  31. Cultural Boundaries

  32. Population a. Vary in size (China,1.3B vs. Canada, 33M) b. Vary in population density (Mongolia, 4.3/sq. mi vs. Bangladesh, 2,200 + /sq. mi) c. Vary in cultural diversity (USA vs. Japan

  33. Sovereignty (freedom from outside control) a. Country is sovereign if it can rule itself or act independently -free to make own laws & have own leaders b. Can deal equally w/ other countries and protect its territory & citizens - can negotiate/deal w/ other countries in peace (diplomacy) – make trade agreements, deal with int’l orgs. c. Geog. Factors can help nation defend/maintain sovereignty (UK vs Poland)

  34. Government a. Good gov’ts protect lives, property,freedoms, & rights of their citizens - ensures conditions needed for economies to develop & for people to prosper b. Unstable gov’ts don’t last long or have little authority - gov’t corruption – political leaders use public office to enrich themselves or their friends

  35. A more comprehensive list of requirements • Has space or territory which has internationally recognized boundaries (boundary disputes are OK). • Has people who live there on an ongoing basis. • Has economic activity and an organized economy. A country regulates foreign and domestic trade and issues money. • Has the power of social engineering, such as education. • Has a transportation system for moving goods and people. • Has a government which provides public services and police power. • Has sovereignty. No other State should have power over the country's territory. • Has external recognition. A country has been "voted into the club" by other countries

  36. B. Structure of Government • Government structure – how gov’ts are classified based on relationship btwn smaller units (states) & the central govt 1. Unitary: central govt rules entire nation 2. Federation: Nat’l govt shares pwr w/ state govts 3. Confederation: smaller levels of govt keep most of the pwr & give central govt very limited pwrs

  37. C. Government Authority • Govt Authority – who has the power? Authoritarian (govt has the power) vs Democracy (people have the power) • Worldwide trend shows gradual shift from authoritarian towards democracy Citizens Gov’t Gov’t Citizens Authoritarian Democratic

  38. 1. Authoritarian Gov’ts • Dictatorship – most common form of authoritarian govt. - an individual or small grp holds complete or absolute political pwr - the leader has not been elected and often uses military/political terror to stay in pwr - people not free to voice opinions - dictator’s power usually not restricted by constitution or laws - in a military dictatorship, the army is in control

  39. Some of the world’s most notorious Dictators Hu Jintao of China Kim Jong-il of North Korea Omar al-Bashir of Sudan The 2008 Parade Magazine's "World's Worst Dictators" list

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