Transcript Haves vs. Have-nots: Core vs. Periphery Model

Economic Geography
Question: How are economic
activity and level of development
interrelated?
Levels of Economic Activity
• Primary – involve gathering raw materials (ex.
cutting lumber)
• Secondary – involve adding value to materials
by changing their form (ex. manufacturing cars)
• Tertiary – involve providing business or
professional services (ex. accountant)
• Quaternary – involve providing information,
management, and research services by highly
trained persons (ex. physicist)
–Traditional Economy:
• Goods and serviced traded without money
• bartering
–Communistic Economy:
• Production of goods and services are
determined by a central government
You will only make
blue chairs! We will sell
them for $20 each.
Market Economy:
determined by supply
and demand
We want
rolling chairs!
We will
make rolling
chairs! And
make $$$$
Levels of Development
• More developed
– Post industrial
• US
• Western Europe
• Newly industrialized
– Mostly industrial or manufacturing
• Latin America
• Less developed
– Mainly agricultural
• India
• Africa
Economic support system
• Infrastructure:
– Basic support system to keep an economy running.
– Includes power, communication, transportation, water,
sanitation, and education systems
• Per capita income:
– Average amount of money earned by each person in a political
unit
• GNP
• Gross National Product
• Total value of all good and services produced by a country
(per year)
– Example: an American company which makes its product
in India
• GDP
• Gross Domestic Product
• Total value of all goods and services produced within a
country (per year)
– Example: an American country that makes is product IN
America
Natural Resources and the
Economy
• Levels of activity also depend on
resources available. Natural
resources may be divided into:
– Renewable – Can be replaced through
natural processes (ex. trees)
– Non-renewable – Cannot be replaced
(ex. metal)
– Inexhaustible – Cannot be used up (ex.
solar energy)