GNP AND GDP

GNP – “Gross National Product”

Total value of all goods and services by a country over one year. Includes facilities overseas owned by domestic companies.

GDP – “Gross Domestic Product”

Total value of all goods and services within a country’s borders over one year. This is a good indicator of the size of a country’s economy.

Examples (2010 est.)USA – $14.5 trillionMexico – $1.0 trillionJapan – $5.4 trillionChina - $5.8 trillionSudan - $0.07 trillion

PER CAPITA GDP GDP per 1000 people, how “wealthy” the country is. Roughly the amount of $$$ earned per person in a

political unit per year. Examples? U.S. = $47,000 Mexico = $14,000 Japan = $33,000

China = $7,500 Sudan = $2300

4 ECONOMIC EMPLOYMENT SECTORS

1) Primary2) Secondary3) Tertiary4) Quaternary

GET STUFF

Gathering raw materials – natural resources taken from the earth

Example: Mining, Fishing, Farming

PRIMARY EMPLOYMENT SECTOR

MAKE STUFF Manufacturing / Industry - Adding value to raw

materials by changing their form Example: Iron changed into an automobile

Secondary Employment Sector

DO STUFF Business or professional services Example: teachers, retail salespeople, doctors

Tertiary Employment Sector

THINK STUFF Provide info, research,

management, etc. by highly trained personnel

Engineers, researchers, scientists, software designers

Quaternary Employment Sector

A tool developed by the United Nations to measure and rank countries' levels of social and economic development - HDI is a summary measure of average achievement in key dimensions of human development.

HDI INDICATORS AND DIMENSIONS

ECONOMIC STAGES OF DEVELOPMENT

INFRASTRUCTUREthe fundamental structures and systems serving a country, city, or area:: transportation and communication systems, power plants, and schools

LEAST DEVELOPED COUNTRY GDP: Nearly none – collapsed.

Per Capita Income: Very Low (less than $1000/ yr)

Employment Sectors: “Primary” if any at all

Infrastructure: Very little to none Lack of electricity Lack of clean water Lack of roads, Airports, Ports

Quality of Life: In crisis, collapsed infrastructure and economy.

Examples: Afghanistan, Somalia, Haiti

DEVELOPING COUNTRY

GDP: Low

Per Capita Income: Low

Employment Sectors: Mostly “Primary”

Infrastructure: Relatively little Lack of electricity Lack of clean water Lack of roads, Airports, Ports

Quality of Life: Low, little literacy, nutrition, or medical care

Examples: Burma, Jamaica, El Salvador

NEWLY INDUSTRIALIZED COUNTRY (NIC) GDP: Low/Medium but increasing

Per Capita Income: Low/Medium but increasing

Employment Sectors: “Primary” shifting to “Secondary” to varying degrees

Infrastructure: Increasing Things are being built as wealth increases Long process, very expensive

Quality of Life: Still low in most places, but improving in many ways

Examples: IndiaMexico

DEVELOPED COUNTRY GDP: High

Per Capita Income: High

Employment Sectors: Mostly “Tertiary” and “Quaternary”

Infrastructure: Strong High amount of roads, Airports,

Ports Clean water systems Electricity available to all

Quality of Life: High, with good nutrition, medical care, education

WHICH PICTURE BEST FITS EACH ECONOMIC LEVEL?

Picture A

Picture B

Picture C

Picture D