Transcript cottage industries

World Economic Activity
Millions of people ride trains, cars,
buses or bicycles for transportation
daily.
Economic Activities
• People acquire their wants and needs through
different activities:
– Primary Activities
– Secondary Activities
– Tertiary Activities
– Quaternary Activities
Primary Activities
• Rely directly upon natural resources.
– Ex. Fishing, mining, farming.
• Primary economic activities are located near
the natural resources that are being exploited.
– Ex. Tin mine located at site of tin deposit.
• Oldest forms primary activity.
– Ex. Hunting, gathering and herding.
Lapps Herding
Nomadic style. They travel from place to place in different seasons. During
the Winter they keep their reindeer in protected valleys. During the
summer they move them to high alpine meadows to graze.
Primary Activity Continued…
• Most important economic activity in world?
– Farming
• Developing countries - high # of farmers,
developed countries do not. (US = 10%)
• People use a variety of farming methods.
– Subsistence Farming
– Commercial Farming
Subsistence Farming
• Agriculture type in developing countries.
• People only grow enough food for their own
family or village.
• They grow food to eat not sell.
• Very basic tools, very time consuming.
• Animals and family provide main source of
labor.
Commercial Farming
• Advanced economy = farmers raise crops and
livestock to sell.
• Modern techniques and equipment make
farming more productive.
– (Takes less people to do work, Japan 7%)
• Some commerical farming takes place in
developing countries (ex. Bananas, coffee,
sugar).
Secondary Activity
• Use of raw materials to produce or
manufacture new products of greater value.
– Processing wheat into flour, lumber into plywood
and the production of electricity.
• Secondary activities in a subsistence economy
are called cottage industries.
– Use little advanced tech.
– Take place in or near people’s home.
Secondary Activity Continued…
• Commercial industries
– Hundreds or thousands of people work in large
factories
– Turn out large quantities of manufactured goods
– Ex. Clothes, cars, appliances, heavy machinery
Commercial Industries continued…
• Considerations affect location of secondary
activities.
– Factories built near needed raw materials
– Location depends on raw material or finished
good shipping costs
– Ideal location consists of skilled workers, low labor
costs, low energy costs and access to easy
transportation.
Tertiary Activities
• Service industry (They serve others).
– Lawyers, doctors, salespersons, firefighters,
officers.
• People engaged in this work do not directly
gather or process raw materials.
• These activities are located wherever people
live and work.
Quaternary Activities
• Jobs that include focus on acquiring,
processing and sharing information.
– Education, government, information processing
and research.
• Because of advanced technology can be
located anywhere.
– Clustered in regions of highly educated workers
and excellent communication networks.
Global Trade Patterns
• American farmers do not plant what they desire,
instead they plant what the soil allows.
• Because of this, they establish trade network.
• Items in abundance are sold to other countries
and vice versa.
• Goods that are sent out of the country are
exports.
• Goods that are brought into the country are
imports.
Trade Balance
• Government seeks a favorable balance between
imports and exports.
– Sometimes they limit imports by imposing taxes on
foreign goods
• Excessive imports can damage nation’s economy.
– Purchasing too many foreign goods can cause domestic
businesses to lose profits and fail.
– Rise in unemployment
– Increase of nation’s debt to other countries
Trade Routes
• Determined by geography, technology, and
international relations.
– Ex. Spice Trade of the 1500s
• European merchants sailed around Africa to trade
for spices in East Asia.
• Had to go by boat because of natural divisions
and unfriendly territories.
• Today, electronic trading is possible.
– Business deals and payment happens via computer
and satellite networks.
Levels of Development
• Economic activities and trade patterns
influence a country’s level of development.
– Developed = Modern industrial societies.
• France, U.S. and Japan
– Underdeveloped = Lack industries and technology.
• Depend upon developed countries.
– Developing = showing evidence of political,
economic and social progress
Stats used to Measure Development
• Comparing wealth by GDP (Gross Domestic
Product) …
• GDP = the total value of goods and services
produced in a country in a year divided by the
total population.
– Greater in developed countries
Developed countries
• Developed countries enjoy a high standard of
living due to higher levels of education and
health care.
• Also have more transportation and
communication facilities per person.
• More cars, airports and highways.
• Telephones, newspapers, tvs and computers.
• Higher food consumption