CHAPTER 4 SECTION 2World Economic Activity

Economic Activities

1. Primary Activities- economic activities that rely upon natural resources

- examples: fishing, farming, mining, forestry- also located near natural resources

- example: coal mine located near coal deposits.

*hunting, gathering, and herding are ancient forms of primary activities

Economic Activities

Farming is the most important primary activity around the world. - subsistence farming

- people grow only enough food for their family or village needs

- tools, techniques are very basic- family, farm animals are main source

of labor

*much of the agriculture in developing countries have this type of farming

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- commercial farming- the production of food and other agricultural products for sale in markets- modern tools, techniques

*some commercial farming can take place in developing countries (plantations)

* What geographic and economic factors can affect the location of different types of commercial farms?

Economic Activities

2. Secondary Activities- people use raw materials to produce or manufacture new products of greater value- examples: processing wheat into flour, lumber into plywood

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- cottage industries- involves the production of something by hand- usually exists in a subsistence economy

- commercial industries- large factories located in or near major cities- produce large quantities of manufactured goods- examples: clothing, automobiles, machinery, appliances.

*What can affect the location of secondary activities?

Economic Activities

3. Tertiary Activities- service industries- activities that serve others- examples: lawyers, doctors, firefighters, police officers

*located where services are required.

Economic Activities

4. Quaternary Activities- focus on acquisition, processing, and sharing of information- examples: education, government, research

*located almost anywhere

Global Trade Patterns

Trade networks are established when nations do not have all the resources and goods that they want- exports- goods that are sent out of the country- imports- goods that are brought into the country

Global Trade Patterns

Trade Balance- domestic businesses may lose profits and fail- unemployment could rise- nation’s debt could increase

Trade Routes- determined by geography, transportation technology, and international relations

Level of Development

Developed Countries- modern industrial societies- examples: United States, Japan, France

Underdeveloped Countries- lack industries, modern technology, and depend on developed countries for manufactured goods

*Gross Domestic Product (GDP)- total value of goods and services produced in a country in a year divided by the total population