unit 3: economic geography Flashcards
Economy
How a society organizes the production, distribution, and consumption of goods and services
Goods
A good is a tangible or physical product that someone will buy.
Services
A service is something intangible, which can’t be physically touched or stored.
Developed country
Industrialized or advanced with high levels of economic development, infrastructure & technology.
High living standards with access to quality education & healthcare.
Undeveloped country
- Lower economic development & infrastructure.
- Citizens have low incomes and less access to healthcare & education.
- Limited access to clean water
Public sector
- Government owned.
- Primary goal: Provide services to the public & meet societal needs.
- Funded through taxes, government budgets or grants
Private Sector
- Private companies owned by people and not the government
- Primary goal: To make profit and maximize shareholder value.
- Often compete with each other for customers, market share & profits
Traditional economy
Based on customs; people trade goods directly.
Command Economy
The government makes all the decisions (communist).
Free market economy
Decisions are driven by market forces (supply and demand), as seen in capitalist countries.
Mixed economy
Combines government decisions with market decisions
Sustainability
Using resources wisely so they last a long time. Making sure we don’t use up all our resources or harm the environment for future generations.
Stewardship
Making choices and doing actions that do NOT hurt the environment.
Natural Resources
Materials that occur in nature and can be used for economic gain.
Renewable
Resources that can be replenished naturally over time.
Non-renewable
Resources that cannot be replaced once they are depleted.
Flow
Resources that can be replenished at the same time it’s used.
Ecological footprint
Statistic used to measure people/places impact on the environment.
The sum of everything it takes to sustain our lifestyle.
Value added
Amount by which the value of an object is increased at each stage of production.
Primary industry
Takes natural resources from the environment.
**Extraction of natural resources must happen before production
Secondary industry
Revolves around the transformation of materials. Creates finished, usable products.
Tertiary industry
Industries that provide services.
Quaternary industry
(Branch of tertiary) Involves intellectual services: research, development.
Import
Bringing goods and services into a country from another country.
Export
Goods and services produced in one country and sold to another.
Balance of trade
The difference between the value of a country’s exports and imports over a certain period.
Free trade
A trade policy that does not restrict imports or exports.
Protectionism
Government policies that restrict international trade to help domestic industries.
USMCA
United States–Mexico–Canada Agreement
(free trade agreement)
Multinational corporations (MNCs)
- Headquarters in one country but produces, markets, and sells in many countries.
- Doesn’t wholly subject to the laws on any one nation.
Availability of raw material
- Near perishable products
- Convenience and transportation costs
Location of markets
- Closer to consumers (low delivery cost, short delivery time)
- Competitive advantage over further companies
Labor supply
- Consider availability and cost
Access to energy & water
- Manufacturing industries need lots of water
- Located near water bodies
Transportation
- Manufacturers need quick access to efficient transportation
Political factors
- Government incentives for companies that are located in a specific location
- Tax cuts and interest free loans
Personal circumstances
- Person connected to a particular area
- Inherited company
Rail
Good: For moving heavy cargo, low cost, no traffic
Bad: Restricted routes, no access to certain communities.
Truck
Good: Flexible routes, light cargo, door-to-door delivery, cheap.
Bad: Can’t have heavy cargo, air pollution, traffic delays, driver’s fatigue.
Ship
Good: Moving low value cargo, access to mills & factories on waterways, cheap.
Bad: Slow, weather delays, accidents damage ecosystems.
Air
Good: Fast, good for perishable cargo.
Bad: Expensive, lightweight cargo.
Single industry town
A town where the economy and employment are primarily based on one main industry or company.
Canada’s energy usage
Second most in the world.
