exam 3 review - EXAM III REVIEW Economic geography...

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EXAM III REVIEW Economic geography neo-classical economics o the free market system Adam Smith- o (1776) – inquiry into the nature and causes of the wealth of nations o Decisions are made in the market place without government influence—laissez faire o All buyers and sellers have equal access to the market and are fully informed full-cost pricing o Prices reflect all harmful costs to society and the environment Marxist economics o Karl Marx and Friedrich Engels (and later Vladimir Lenin) o Radical dissent o Human labor=value o Class consciousness Exploitation o Profit vs. human needs o Competition monopolies ecological economics o Incorporates laws derived from the natural sciences o Energy availability and environmental implications of energy use are central o Economic valuation is imperfect carrying capacity o Finite economic growth. The amount of resources it takes to sustain a population price, supply, and demand—equilibrium point, where the supply graph meets the demand graph economic growth and development, GNP, GDP, and per capita GNP o GNP—gross national profit- profit from products within the country +input from other global economies, imports, exports o GDP- gross domestic profit- products produced within the country o Per Capita GNP developed vs. developing countries in terms of economics o developed countries have higher GNP, GDP than developing countries –10,000— per capita GDP criticism of GNP and GDP as measures of economic growth and development o Hide harmful environmental and social effects of producing goods and services o Do not include the depletion and degradation of natural resources o Fail to include many non-monetized benefits that meet basic needs o Hide enormous waste of natural resources and human resources o Tell us nothing about income distribution and economic justice. benefit-cost analysis
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o Historically, the building block of environmental protection and exploitation o Some sort of price must be placed on all factors in the resource decision; therefore, a value is placed on the expected costs and benefits o Problems? common property resources (tragedy of the commons) and Garrett Hardin o Everybody wants to use the commons for their personal use. Not everyone has the resources to use it. environmental externalities, residuals, and social costs diversification and multinational corporations o Trend since the 1970s and 1980s o Diversification = protection from unfavorable market conditions in particular sectors of the economy—many businesses, if one plummets, others can be leaned on. o Multinational = operates in several countries; have the ability to shift resources, production, and market activities from country to country agglomeration effects o benefits of location within an economic cluster—cost savings—(firms clustering in an area—competition with each other, benefits the consumer) o localized economies-- specific locations. External economies
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This note was uploaded on 03/22/2008 for the course GEOG 1101 taught by Professor Connor during the Fall '08 term at University of Georgia Athens.

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exam 3 review - EXAM III REVIEW Economic geography...

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