Government

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Chapter 6
Government EconomicSystems
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I. Economic Geography

• Economic Activities

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Economic Activities
Use NR to produce or manufacture something new
No direct use provide services to people biz
No direct use process distribute info
Direct use
Close to NR or market, source of labor for
finished product
Anywhere -close to skilled labor, good comm.
transp.
At site of NR being used
Near market or customers
Subsistence Commercial
Cottage Industry Commercial Ind.
Small sector Largest sector
Smaller sector Larger sector
Fireman/police sales Car dealer bakery doctor Spa/
salon
research engineering education Govt Info
processing
Farming Mining Fishing Timber
Wheat - flour Gold-jewelry Fish oils Timber
lumber
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Primary Economic Activities
Subsistence Farm
Commercial Farm
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Secondary Economic Activities
Industry!
Commercial Industry
Cottage Industry
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The US Economy
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Best Location for a factory?Where all of the
following are present

• Low labor costs
• Skilled workers
• Low energy costs
• Access to easy transportation

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Tertiary Economic Activities
We live to SERVE
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Quaternary Economic Activities
Information Processing
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Morocco
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B. Types of Economic Systems

• 3 basic economic questions
• What to make?
• How much to make?
• Who to make it for?

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Traditional Economy (subsistence economy)

• a. all goods svc produced consumed by the
  family/for family
• b. Very little surplus or exchange of goods
• c. Found in poor countries, mostly in rural
  areas

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Market Economy

• People freely choose what to buy sell
  according to the laws of supply demand
• Individuals or companies make decisions about
  production distribution competition
• Capitalism biz, industries, resources are
  privately owned
• In US, govt provides some svc imposes some govt
  regulations
• Pure capitalism govt plays NO part in economy

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3. Command Economy

• Central Govt makes decisions about
  production/distribution - decides what to make,
  where to make it, how much to make, what price
  to charge, what to pay workers
• Production doesnt necessarily reflect consumer
  demand
• c. Communist economy govt owns, operates all
  major farms, factories, utilities, stores

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D. Mixed Economy

• Combo of command market economies
• Socialism state owns/operates some basic
  industries while allowing pvt enterprise in other
  parts of economy
• Belief that wealth should be distributed more
  equally all entitled to certain goods/svcs
• welfare states characterized by HIGH TAXES to
  pay for the many social svcs like housing, health
  care, child care, pensions

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Mixed Economy (Socialism)
Government
Private Enterprise
Laws of Supply Demand
Determine price production
Determine price production
Operates some businesses
Owns some businesses
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C. Level of Development (Standard of Living?)

• 1. Measures of Development - determines
  economic progress and quality of life
• a. GNP
• b. GDP
• c. industrialization
• 2. Standard of Living
• a. Measured by many factors
• - personal income
• - levels of education
• - food consumption
• - literacy rate
• - quality of health care
• - technology level
• - life expectancy

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• 3. Developed vs. Developing

LOW
HIGH
HIGH
LOW
HIGH
LOW
HIGH
LOW
HIGH
LOW
LOW
HIGH
LOW
HIGH
LOW
HIGH
HIGH
LOW
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• Middle Income Countries those btwn the
  worlds riches/poorest
• a. Have features of both
• - cities may be modern, rural areas poor
• - urbanization increasing
• b. Examples Mexico, Brazil, Argentina, South
  Africa

Rural Mexico
Mexico City
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Developed or Developing?
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Developed or Developing?
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3. How to improve Development?

• Wealthy nations can invest in developing
  nations (capital resources)
• Exchange goods svcs, ideas, info

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D. Global Trade Patterns

• Diff. countries have diff types quantities of
  resources
• Options for obtaining needed resources
• a. War?
• b. Trade Network sell abundant items,
  buy items in short supply
• - imports goods that are brought into
  a country
• - exports goods that are sent out of a
  country

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• Trade Balance
• a. Trade Deficit occurs when a country imports
  more than it exports
• - domestic biz lose profits, fail
• - unemployment rises
• - national debt increases
• Can reduce imports by imposing tariffs (tax
  on imports) or by imposing quotas
• - but whats the problem with these?
• b. Favorable balance of trade occurs when a
  country exports more than it imports or 50/50

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Trade Balance favorable or not?

• 1. Which country imported the most goods in 1998?
• 2. Which country exported the fewest goods in
  1998?
• 3. Roughly how much did Portugal import and how
  much did it export in 1998?
• 4. Which country shows the greatest difference
  between the amount it imported and the amount it
  exported?

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• Trade Routes determined by geography,
  transportation technology and intl relations
• a. 1500s ocean travel avoided
  geographical obstacles unfriendly nations
• b. Today advances in communications
  computers allow for electronic trading

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II. Political Geography

• What is a country?
• Types of Govt
• Conflict Cooperation

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A. What is a country? 4 characteristics
territory, population, sovereignty, govt

• Clearly defined territory
• a. Includes land, water, natural resources
  (NR)
• b. NR more important than size
• c. Unequal distribution of NR has led to
  conflict
• d. Natural division can serve as boundaries
• e. Boundaries can shrink/expand due to war or
• negotiation
• f. Geog. Factors influence nations pwr to
  control territory (ex. Great Britain easy
  access to travel trade

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• There are 3 primary types of boundaries
  geometric, natural and cultural.
• Geometric boundaries follow lines of latitude,
  longitude, or certain compass direction between
  points. In the US, they were established to
  divide territories before settlers entered areas.
  
• Natural boundaries are usually curvy b/c they
  follow the crests of mts or the center of rivers.
• Cultural boundaries are borders based on cultural
  traits, such as religion, language

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Geometric Boundary
49?N
Natural Boundary
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Cultural Boundaries
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• Population
• a. Vary in size (China,1.3B vs. Canada,
  33M)
• b. Vary in population density (Mongolia,
  4.3/sq. mi vs. Bangladesh, 2,200 /sq. mi)
• c. Vary in cultural diversity (USA vs.
• Japan

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• Sovereignty (freedom from outside control)
• a. Country is sovereign if it can rule itself
  or act independently -free to make own
  laws have own leaders
• b. Can deal equally w/ other countries
  and protect its territory citizens - can
  negotiate/deal w/ other countries in
  peace (diplomacy) make trade agreements,
  deal with intl orgs.
• c. Geog. Factors can help nation
  defend/maintain sovereignty (UK vs Poland)

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• Government
• a. Good govts protect lives,
  property,freedoms, rights of their citizens
• - ensures conditions needed for
  economies to develop for people to
  prosper
• b. Unstable govts dont last long or have
  little authority
• - govt corruption
• political leaders use
• public office to enrich
• themselves or their friends

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A more comprehensive list of requirements

• Has space or territory which has internationally
  recognized boundaries (boundary disputes are OK).
  
• Has people who live there on an ongoing basis.
• Has economic activity and an organized economy. A
  country regulates foreign and domestic trade and
  issues money.
• Has the power of social engineering, such as
  education.
• Has a transportation system for moving goods and
  people.
• Has a government which provides public services
  and police power.
• Has sovereignty. No other State should have power
  over the country's territory.
• Has external recognition. A country has been
  "voted into the club" by other countries

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B. Structure of Government

• Government structure how govts are classified
  based on relationship btwn smaller units (states)
  the central govt
• 1. Unitary central govt rules entire
  nation
• 2. Federation Natl govt shares pwr w/
  state govts
• 3. Confederation smaller levels of govt
  keep most of the pwr give central govt very
  limited pwrs

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C. Government Authority

• Govt Authority who has the power? Authoritarian
  (govt has the power) vs Democracy (people have
  the power)
• Worldwide trend shows gradual shift from
  authoritarian towards democracy

Citizens
Govt
Govt
Citizens
Authoritarian
Democratic
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1. Authoritarian Govts

• Dictatorship most common form of
  authoritarian govt. - an individual or
  small grp holds complete or absolute
  political pwr
• - the leader has not been elected and often
  uses military/political terror to stay in
  pwr
• - people not free to voice opinions
• - dictators power usually not restricted
  by constitution or laws
• - in a military dictatorship, the army is
  in control

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Some of the worlds most notorious Dictators
Hu Jintao of China
Kim Jong-il of North Korea
Omar al-Bashir of Sudan
The 2008 Parade Magazine's "World's Worst
Dictators" list
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• Totalitarian a govt that seeks to subordinate
  the individual to the state by controlling not
  only all political economic matters, but also
  the attitudes, values, and beliefs of its
  population

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c. Communist State

• Govt an economic system
• The state plans controls the economy and a
  single-often authoritarian-party holds power
• state controls are imposed with the elimination
  of private ownership of property or capital while
  claiming to make progress toward a higher social
  order in which all goods are equally shared by
  the people (i.e., a classless society)

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• d. Monarchy hereditary rulers
• - ruling family headed by king or queen
  holds political power
• - past ruled w/ dictatorial pwrs
  absolute monarchs
• - present most are now Constitutional
  Monarchies share pwr w/ citizen bodies
• - pwr rests w/ elected lawmaking body,
  monarch ceremonial or represents natl
  unity

Queen Elizabeth
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Monarchy Today

• Japan  Great Britain  Spain  Netherlands
  Sweden  Belgium   Norway  Saudi Arabia 
  Malaysia  Kuwait  UAE  Morocco  Luxemburg 
  Oman  Jordan  Qatar  Nepal   Brunei 
  Lesotho  Swaziland  Liechtenstein  Monaco 
  Bhutan  Samoa  Tonga  

• - Empire  Kingdom  Kingdom  Kingdom  Kingdom 
  Kingdom Kingdom  Kingdom Kingdom  Emirate   
  Emirates  Kingdom  Grand Duchy  Sultanate 
  Kingdom  Emirate  Kingdom Sultanate  Kingdom
  Kingdom   Principality  Principality  Kingdom
  Chiefdom   Kingdom

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Ceremonial Head of State vs. Absolute Monarch
Netherlands
Saudi Arabia
Belgium
Swaziland
Japan
Brunei
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Misc. info about European Monarchies

• Most European nations are Constitutional
  Monarchies
• Sys of gov where monarch guided by constitution
  rights responsibilities are spelled out in
  written law or by custom
• How a constitutional monarchy differs from U.S.
  Government?
• Parliament Elect a party. Party leader becomes
  Prime minister. (determine elections)
• Nationalized healthcare, housing, and industry.
• Royal Family figure heads to unify nation have no
  political power. (Wealthy and help with tourism.)

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2. Govts where people have the power!

• a. Democracy citizens hold political pwr
• - direct democracy
• - representative democracy (most common)
  adult citizens vote for people who make the
  laws
• - leaders chosen by voting in free elections
• - value individual freedoms human rights

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3. Miscellaneous forms of govt.

• theocracy religious leaders control the govt
  (Tibet Dalai Lama)
• - rely on religious law
• - consultation w/ religious scholars
• aristocracy govt by the best or privileged class
• Plutocracy govt by the wealthy
• Kleptocracy govt by those seeking personal gain
  at the expense of the governed

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D. Conflict Cooperation

• Political Conflicts
• a. Competing feelings of nationalism (pride
  loyalty for ones country)
• b. Differing culture traits (religion,
  ethnicity, etc)
• c. Type of govt
• d. Economic issues trade disputes,
  tariffs quotas

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• Terrorism the use of violence fear as a
  political force.
• a. some terrorists want independence for
  homelands that may be under control of another
  country
• b. some terrorists have political goals to
  change policies
• c. dont usually act under direct authority of
  govt but may be protected or supported
  financially

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• Intl Cooperation
• a. United Nations (UN) most countries are
  members
• - goals to settle intl disputes, to prevent
  wars, humanitarian aid (disease,
  hunger, illiteracy)
• b. Economic cooperation/free trade
• - helps countries produce goods at
  lower costs reach larger markets. People
  can then buy these goods at lower prices
• - reduce tariffs quotas