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GEO Chapt 10

Terms in this set (115)

primary, secondary, tertiary, quaternary; quinary
categories of economic activities or sectors (Sectors of Economic Activity)
jobs
sectors are ?
Primary activities
involve direct extraction from the earth
Secondary activities
creates "value added" products from raw materials gained by Primary pursuits
Tertiary activities
activities are created mostly in support of secondary activities and markets
manufacturing jobs
what types of jobs create other jobs in the economy
transportation and communication
Connects all the Economic Sectors
Agriculture (farming, fishing, forest, mining); Gathering industries; Extractive industries
Primary Activities
Manufacturing; Processing; Construction; Power Production
Secondary Activities
Retail and Wholesale Trade; Personal and professional SERVICES
Tertiary Activities
Information; Research; Upper Management
Quaternary Activities
Executive Decision Makers: President
Quinary Activities
profit
Secondary Activities are concerned with ?
China
Whos economy has quadrupled in 20 years
importance
What about sectors of jobs have changed over time
service jobs
Our economy is greatly dependant on which type of job
Mfg. and Service Jobs
Which jobs make more money than Primary Activities
Primary
Secondary and Tertiary make more money than
GDP
Gross Domestic Product
% of labor force vs how much money their making
Difference between numbers of workers in a sector and the contribution (monies) of that sector to total GDP equals ?
China
takes products regardless of the human treatment or conditions of labor
volitile commodities
Primary
What happened in the Colonial economic times
Primary activities (volitile commodities)
Yes
Do sectors matter?
subsistence; commercial; planned
types of economies
subsistence economies
means production for direct consumption by the producer; producing for your own consumption
commercial economies (also called Market)
is production for the market which in turn provides for consumers; uses principle of supply and demand determine prices
capitalists or market economy
commercial
planned economies
are directed by a central authority; usually the state, which serves as the "market" and determines supplies and therefore prices; controlled and planned by the government
planned economies
which type of economy does not make a lot of money
What type of economy does N. Korea have now
planned economy
S. Korea
Who is incredibly economically strong
planned economy
5 year plan: decide what will be produced and who would produce it; referencing the previous years production figures
petroleum, natural gas, diamonds, oil
Russia's resources
Soviet time period
When did people have guaranteed jobs, housing, and food but after 1990 it broke up
the capitalist democratic countries (U.S., British, France)
After WWII, who formed the "Western Block" or the First World (think NATO)
The communist countries (Italy)
Who formed the "Eastern Bloc" or the Second World (Warsaw Pact)
everyone else (Brazil, India, China)
other countries grouped into the Third World
curve starts at bottom left and curves up to the right
Market forces of supply and demand: scale with the supply curve
curve starts at top left and curves down to the right
Market forces of supply and demand: scale with the demand curve
2 curves: going top down and bottom up
Market forces of supply and demand: scale with the market equilibrium curve
pre-industrial; industrial; post-industrial
Sector influence on economy and society
pre-industrial; jobs are farming, fishing, agriculture
if an economy or society is dominated by primary sector pursuits
post-industrial; most jobs are service jobs
if the primary sector in an economy are tertiary jobs, then the economy and society are known as
industrial; most jobs are mfg.
if the majority of jobs in an economy or society are in the secondary sector
U.S. and E.U.
post-industrial countries
post-industrial
Most economies are
What countries are at the top with research and development
U.S. and E.U.
"developed"
Most industrial or post-industrial economies are considered
analyzed the major influences over industrial location and focused on three major costs
Weber's Model of Industrial Location
Labor, Transport, Agglomeration
major costs per Weber's Model of Industrial Location
Weber's Industrial Location
any factory (no matter what they make) have costs and the cost determines where they put the factory
agglomeration
example would be tons of car dealerships close to each other
what a factory produces
What makes the cost differ between factorys
by whether an industry is "material oriented" or "market oriented"
how is location of a factory determined
material oriented
concerned with raw materials so locates close to where you get your raw materials
market oriented
concerned with customers so located according to their customer base
raw materials, labor force, market, transport costs
Weber's locational determinants for manufacturing
capital, technology, government regulations, political stability, inertia
additional factors that are important today concerning locational determinants for manufacturing
inertial
when you keep using the same old stuff because you already bought it and paid for it
raw materials
What is not as important in terms of locational determinants for manufacturing as it use to be
middle class
creating a ______ is very important for sustaining the demand for a product
the U.S.
inertial is a problem for who?
China
Who doesn't have environmental guidelines or OSHA so factorys go there
capital
What is very important for locational determinants for manufacturing
Substitution Principle; Comparative Advantage and Foreign Influences; Footloose
Modern Industry location concerns
Substitution Principle
the influence of certain costs have changed due to advances in technology (replacing something old with something new) (ie. people to robots)
Comparative Advantage and Foreign Influences
affect costs in the world economy because some places are available to provide things better than other places
outsourcing
the purchase of inputs outside of the local area; buying something outside your local area
footloose
If an industry can operate almost anywhere because it is not restrained by specific costs (raw materials or market costs)
a manufacturing process designed to cut down on storage costs and inventory by producing only the number and type of item to be sold; cuts down on opportunity costs; keeps track of customer demand and makes sure you make what is selling
JIT (just-in-time)
Flexible Production
allows factories to quickly shift from one process or level of output to another in order to immediately address changes in market demand; allows you to do JIT
domestic outsourcing
all components come from outside the area, such as the US Toyota Camry Plant
changing to more profitable products
moving down stream
Hong Kong, Singapore, South Korea, Taiwan
The four "Asian Tigers"; economic power houses
the four Asian Tigers
gained wealth by moving production from low value commodities to high value added manufactures (down-stream products)
Drugs, chemicals, computers, and communications equipment
makes most money because the profit margins are very high
East Asia, South Asia, Europe, and U.S. and N.U.
The 4 big World Manufacturing Regions
Political Economy
integration of politics and economic systems, used to describe the class hierarchy involved between different economic sectors or activities
as the inherent conflict between those who possess the means of production and those who must sell their labor power
How did Marx explain Political Economy
Oligarchy
control of economy or government (or both) by a small elite group; often several powerful families
Laissez-faire
Since the emphasis in US on individual pursuit of interest, the US adopted what type of attitude
means a minimum of interference or control
laissez-faire
government intervention
Special interests often demand what when it benefits them, such as farm subsidies, and government bailouts of failing companies
creation of world markets; international capital investment; widespread computer use; advanced telecommunications; advances in transportation technology
The Global Economy evolved from
Transnational Corporations
are in a position to take maximum advantage of the Global Economy's major components.
regional specialization and comparative advange
what are the Global Economy's major components
export its product to meet foreign demand; production facilities built in other countries; foreign market for product becomes as important than domestic; headquarters in another country; export to home country
How are multinational corporations formed
the creation of new products using advanced scientific and engineering methods
High Tech Industries are involved in?
significant investment in research and development; as well as access to highly skilled labor and advanced technology
High Tech Industries requires ?
electronics, computers, aerospace, biotechnology, pharmaceuticals
High Tech Industries includes
attract Foreign Direct Investment (FDI); create an Export Dominated Economy; Import Substitution
How to get ahead in a global economy
(FDI) Foreign Direct Investment
dominated by TRIAD of US, EU, and Japan
Create an Export Dominated Economy
encourages growth, but must keep your prices cheap to be attractive, and this can be difficult as your currency gains value
Import Substitution
can help prevent trade deficits, but may also require subsidies and tariffs
bourgeoise
those who possess the means of production; their interest is to hire the cheapest labor possible (Marx Theory)
proletariate
low class workers; best interest is to get the most salary for their labor (Marx Theory)
inherent conflicts
bourgeoise and proletariate
small number of people who control most of the industries
Oligarchy (ie Russia)
"laissez-faire"
means "hands off"
tarp program, Obamacare
examples of govt. controlled programs
farm bills
lets farmers know which crops will get subsidies and which will not
subsidies
when govt. gives farmers money in addition to what they make in the World Market, so they can break even
Break of Bulk
when a ship has gone to port to port to pick up cargo, and then heads home for long shore man to unload the ship; these long shore man get big salaries and the unloading can take weeks.
the use of container shipping (Roll on/Roll off), uses computers and not long shoreman, cuts labor costs by 70% and cut the prices of ocean transportation by 90%
"Ro-Ro"
"Ro-Ro"
advances in transportation technology as pertains to The Global Economy
China
What country is the cheapest place to do manufactoring right now
can buy goods all over the world
what does the creation of world market for goods represent
Arab Spring
The protests have shared some techniques of civil resistance in sustained campaigns involving strikes, demonstrations, marches, and rallies, as well as the effective use of social media to organize, communicate, and raise awareness in the face of state attempts at repression and Internet censorship.[
GM
An example of a Multinational Corporation
America, because we give freedoms to think outside the box
Who is at the top of high tech industries
the ideas are actually produced in other countries
What happens to the American idea's of high tech industries
Environmental: Geographers get involved; GIS: map making
Example of High Tech Industries
Do what China did
How can a country get ahead in a global economy
you want your currancy to be very low value so that when products are sold in other countries, you make more profit
facts about a country's currancy in a global economy
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