Economic (1) - Economic Geography Economic the study of how...

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Unformatted text preview: Economic Geography Economic the study of how people earn their living, how livelihood systems vary by area, and how economic activities are spatially interrelated and linked Controlling Factors of Human Economic Activities Activities Physical Environment Cultural Considerations Technological Development Political Decisions Economic Factors Classification of Economic Activities Classification Primary Activities • those that harvest or extract something from the earth Secondary Activities • those that add value to materials by changing their form or combining them into more useful and more valuable commodities These logs entering a lumber mill are products of primary production. Processing them into boards, plywood, or prefabricated houses is a secondary activity that increases their value by altering their form. form. Classification of Economic Activities Classification Tertiary Activities • Quaternary Activities • those that provide services to the primary and secondary sectors and goods and services to the general community and to the individual services rendered by white collar professionals working in education, government, management, information processing, and research Quinary Activities • high­level decision­making roles in all types of large organizations, public or private Categories of Economic Activity Economic Types of Economic Systems Types Subsistence Economies • • • • goods and services are created for the use of the producers there is little exchange of goods and limited need for markets producers freely market their goods and services supply and demand determine price and quantity, and market competition is the primary force shaping production decisions and distributions Commercial Economies Planned Economies • • producers dispose of goods and services through government agencies that control both supply and price the quantities produced and the location of production are tightly programmed by central planning departments Very few people in the world are members of only one type of economic system. economic Independent street merchants, shop owners, and most farmers in modern China are members of both a planned and market system. No matter what economic system prevails, in all systems transportation is a key variable. variable. Patterns of Access and Isolation Patterns isolated areas of countries with advanced economies suffer a price disadvantage because of high transportation costs lack of accessibility in subsistence economic areas slows their modernization and hinders participation in the world market Primary Activities: Agriculture Primary Agriculture • the growing of crops and the tending of livestock Subsistence Agriculture • production of food primarily for consumption by the farmer’s family • found in less developed countries Commercial Agriculture • production of food primarily for sale off the farm • found in more developed countries Percent of National Population That Is Undernourished, 2001 Undernourished, Areas With Naturally Fertile Soils Areas Share of Agriculture in Gross Domestic Product Gross Subsistence Agriculture Subsistence Extensive subsistence agriculture involves large areas of land and minimal labor input per hectare • Nomadic herding • the wandering but controlled movement of livestock solely dependent on natural forage Shifting cultivation a.k.a. swidden or slash­and­burn rotate fields to maintain productivity Subsistence Agricultural Areas of the World Subsistence Subsistence Agriculture Subsistence Intensive subsistence agriculture involves the cultivation of small landholdings through the expenditure of great amounts of labor per acre • • • Rice farming Urban farming Green Revolution Subsistence Agricultural Areas of the World Subsistence Green Revolution great increases in food production, primarily in subtropical areas, accomplished through the introduction of very high­yielding grain crops, particularly wheat, maize, and rice Green Revolution Green Green Revolution • Improve productivity High yield crops Machinery Irrigation Fertilizers Pesticides Problems: • Increased irrigation caused salinization • Caused economic dependency • Only helped the wealthy • Environmental degradation • Loss of genetic diversity Second revolution • Biotech • Nontraditional Agricultural Exports ­ NTAEs Monocropping Vs. Polycropping Chief Beneficiaries of the Green Revolution Chief Nature and Society Nature and Society Transgenic crops • Genetically­ modified crops • Artificially­ inserted gene Not through pollination Engineered crops: • Less water • Disease and Pest resistant • Greater yields • More food Nature and Society Nature and Society Southern Africa • 2002 draught 14 million faced food shortage • United States sent transgenic corn • Zambia rejected it • Malawi spent $20 million to mill it US would not mill it Nature and Society Nature and Society Problems with transgenics: • Resistance Pests and diseases become resistant to natural insecticides • “Superbugs” • Gene transfer Crop to weed • “Superweeds” Wheat Jointed Goatgrass Nature and Society Nature and Society Intellectual property • Terminator seeds Technology Protection System • Kills developing plant embryos • Seeds cannot be saved and replanted • Traitor seeds Trait­specific Genetic Use Restriction Technology • Applications of a proprietary chemical activate desirable traits • Benefits More money for R&D Better crops Nature and Society Nature and Society Problems: • Small farmers Little money to buy new seeds • Sub­Saharan Africa • Cross­pollination Kill off other crops • Force people to buy new seeds Kill off wild species • Ecosystem damage Nature and Society Nature and Society Why did southern Africa refuse US food? U.S. opportunism: • Introduce a crop Force open a closed market • Possible impacts Damage to environment Decreased production Loss of sales to Europe • GM foods banned or don’t sell well • Short term food shortage > long term poverty Commercial Agriculture Commercial Production Controls • supply, demand, market price and production costs • a descriptive model of intensity of land use von Thünen Model von Thünen’s Model von intensively produced and perishable crops with high market price and high transport costs are found close to the market less intensively produced and nonperishable crops with lower production and transportation costs are located at more distant points Transport Gradients and Agricultural Zones Transport land rent for any commodity decreases with increasing distance from the market, and the rate of decline is determined by the transport gradient Commercial Agriculture Commercial Intensive commercial agriculture involves large amounts of capital and/or labor per unit of land • • • • dairy & truck farms livestock­grain farming large­scale wheat farming livestock ranching • • Mediterranean Plantations Extensive commercial agriculture involves small amounts of capital and/or labor per unit if land Special Crops Generalized Agricultural Regions of North America America Livestock Ranching and Special Crop Agriculture Special Other Primary Activities Other Fishing Forestry Mining & Quarrying Officially Recorded Annual Fish Harvests, 1970-2001 Fish The Major Commercial Marine Fisheries of the World the Major Commercial Forest Regions Major Trade in Primary Products Trade much of the developing world depends on exports of mineral and agricultural products to the developed countries fluctuations in market demand and the price of can have serious and unexpected consequences on their economies Secondary Activities: Manufacturing Secondary What and How Much to Manufacture • to maximize profit, production and marketing costs and political, competitive, and other factors may be considered • decisions are determined by the market mechanism and the equilibrium between supply and demand Supply, Demand, and Market Equilibrium Supply, (a) as the price of a good increases, more of that good will be made available for sale (b) as prices drop and the good becomes more affordable and attractive to more customers (c) the point of intersection of the supply and demand curves determines the price of the good, the total demand, and the quantity bought and sold Secondary Activities: Manufacturing Secondary Industrial Location Models • goal is to maximize profits by locating manufacturing activities at sites of lowest total input costs (and high revenue yields) • Alfred Weber concluded that transport costs were the major consideration determining location Plane Table Solution to a Plant Location Problem Location optimum location would be found where the costs of transporting raw materials to the factory and finished goods to the market were at their lowest Spatial Orientation Tendencies Tendencies optimum location may be either material­ oriented or market­ oriented material orientation reflects a weight loss during production market orientation indicates a weight gain The Spatial Margin of Profitability The location anywhere within the margin assures profit and tolerates both imperfect knowledge and personal considerations World Industrial Regions World Importance of Industrialized Countries in High-Tech Manufacturing and Exports in 2001 and Mass Production Mass Fordism • Assembly line production • Focused on large­batch production • Workers generally well paid • High level of unionization Post­Fordism • Flexible • Smaller production runs with greater variety • Lower levels of unionization • Just­in­Time Production Tertiary Activities Tertiary consist of those business and labor specializations that provide services • to the primary and secondary sectors, • to the general community, • and to individuals U.S. Progression From Agricultural to Postindustrial Status Postindustrial Contribution of the Service Sector to Gross Domestic Product Product the service share of economies has grown over time among most regions and all national income categories because all economies have shared to some degree in world development growth The Relative Importance of Services The The Hierarchy of International Financial Centers Financial (a) highest­order quaternary activities tend to be concentrated in a few world and national centers (b) offshore banking havens have emerged to exploit gaps in regulatory controls and tax laws ...
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This note was uploaded on 10/03/2011 for the course GEOG 103 taught by Professor Cook during the Fall '10 term at South Carolina.

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