Transcript ECONOMIC GEOGRAPHY

ECONOMIC
GEOGRAPHY
WHAT DO YOU MEAN BY
ECONOMY?
 Making
and
exchanging goods
and services
-like Nike shoes
-or, hiring a lawn
service
BUT HOLD ON; IT’S NOT THAT
SIMPLE
 There
are different types of
“economic systems”
TRADITIONAL ECONOMY
 Making
enough for self and family,
little surplus to sell
• $ rarely used, just trade stuff
-“bartering”
MARKET ECONOMY
 Production
of goods is based on
making a profit
-determined by consumer demand
(supply and demand)
-little government involvement (like in USA)
COMMAND ECONOMY
 The
government
decides what is
made, how much
is made, & the
price
-not based on
consumer demand
• Found in communist
countries like Cuba
LEVELS OF ECONOMIC
DEVELOPMENT
 Developing-
mainly farming,
few factories,
weak economy,
poor countries
• Developedfarming & industry,
strong economy,
high literacy
and education
MEASURING ECONOMIC
DEVELOPMENT
• GDP
-total value of all goods
made in a country

Per capita income
-average amount of $
per person in a country
MEASURES, CON’T.

Natural resources
-type, amount,
accessibility
• Standard of living
-literacy rate, life expectancy,
#of doctors, etc.
THE GLOBAL ECONOMY
 Interdependent
-countries are closely connected and
dependent on one another