Resources and Land Resources and Land UseUse

World Economic ActivityWorld Economic Activity

Section TwoSection Two

Economic ActivitiesEconomic Activities

People acquire the things they need and People acquire the things they need and the luxuries they desire by engaging in the luxuries they desire by engaging in many different activities.many different activities.

Geographic economists classify these Geographic economists classify these economic activities into four categories:economic activities into four categories:

1.1. Primary Economic ActivitiesPrimary Economic Activities

2.2. Secondary Economic ActivitiesSecondary Economic Activities

3.3. Tertiary Economic ActivitiesTertiary Economic Activities

4.4. Quaternary Economic ActivitiesQuaternary Economic Activities

Primary ActivitiesPrimary Activities These are activities that rely primarily on natural resources.These are activities that rely primarily on natural resources. Examples are: fishing, forestry, mining, farming, hunting, Examples are: fishing, forestry, mining, farming, hunting,

gathering herding.gathering herding. Hunting, gathering and herding are mostly ancient forms of Hunting, gathering and herding are mostly ancient forms of

primary economic activity.primary economic activity. Farming is the most widespread and important form of Farming is the most widespread and important form of

primary economic activity today.primary economic activity today. Subsistence farming is used in developing nations. Only Subsistence farming is used in developing nations. Only

enough food is grown for the family or village. Food is enough food is grown for the family or village. Food is grown to eat, not to sell.grown to eat, not to sell.

Commercial farming uses modern techniques and Commercial farming uses modern techniques and equipment. Small numbers of workers can produce large equipment. Small numbers of workers can produce large amounts of food to sell.amounts of food to sell.

Commercial fishing is also widely practiced in the world.Commercial fishing is also widely practiced in the world. Commercial farming and fishing is mostly used in the Commercial farming and fishing is mostly used in the

developed or industrialized world.developed or industrialized world.

Secondary ActivitiesSecondary Activities This is when people use raw materials to produce or This is when people use raw materials to produce or

manufacture new products of greater value.manufacture new products of greater value. Examples are: processing wheat into flour, milling lumber Examples are: processing wheat into flour, milling lumber

into plywood, and producing electrical power.into plywood, and producing electrical power. In subsistence economies, secondary activities are small in In subsistence economies, secondary activities are small in

scale and do not use advanced technology. These are scale and do not use advanced technology. These are called cottage industries. This involves items produced by called cottage industries. This involves items produced by hand.hand.

In more advanced economies, hundreds of thousands of In more advanced economies, hundreds of thousands of people work in large factories near major cities. These are people work in large factories near major cities. These are called commercial industries. They turn out large quantities called commercial industries. They turn out large quantities of manufactured goods such as: clothing, automobiles, of manufactured goods such as: clothing, automobiles, household appliances, and heavy machinery. household appliances, and heavy machinery.

Factories are built either near raw materials, near markets Factories are built either near raw materials, near markets where the products will be sold or near cheap labor where the products will be sold or near cheap labor sources, or areas with low energy or transportation costs.sources, or areas with low energy or transportation costs.

Tertiary ActivitiesTertiary Activities

These are service industries.These are service industries. Examples are: lawyers, doctors, Examples are: lawyers, doctors,

salespersons, truck drivers, firefighters, salespersons, truck drivers, firefighters, and police officers.and police officers.

People do not directly gather or process People do not directly gather or process raw materials in these activities.raw materials in these activities.

These activities are located where services These activities are located where services are required. This near where people live are required. This near where people live and work.and work.

Quaternary ActivitiesQuaternary Activities These are jobs that focus on the acquisition, These are jobs that focus on the acquisition,

processing, and sharing of information.processing, and sharing of information. Examples are: education, government, Examples are: education, government,

information processing, and research.information processing, and research. These sorts of activities do not need to be near These sorts of activities do not need to be near

resources or a market. They are usually located resources or a market. They are usually located near concentrations of highly educated workers near concentrations of highly educated workers and excellent communication networks.and excellent communication networks.

The internet has allowed many of these workers The internet has allowed many of these workers to live anywhere in the world. It has also made to live anywhere in the world. It has also made this one of the fastest growing categories of this one of the fastest growing categories of economic activity.economic activity.

Global Trade PatternsGlobal Trade Patterns

Each country in the world possesses Each country in the world possesses different types and quantities of resources.different types and quantities of resources.

When nations do not have all the When nations do not have all the resources and goods that they want or resources and goods that they want or need, they establish a trading network.need, they establish a trading network.

The goods that are sent out of the country The goods that are sent out of the country are called exports.are called exports.

The goods that are brought into the The goods that are brought into the country are called imports.country are called imports.

Trade BalanceTrade Balance

Governments seek a balance Governments seek a balance between imports and exports.between imports and exports.

Too many imports may cause a loss Too many imports may cause a loss in profits for domestic companies, in profits for domestic companies, increase unemployment, and increase unemployment, and increase debt to foreign nations.increase debt to foreign nations.

Imports are often limited by imposing Imports are often limited by imposing taxes on foreign made goods.taxes on foreign made goods.

Trade RoutesTrade Routes

Trade routes are determined by Trade routes are determined by geography, transportation technology, and geography, transportation technology, and international relations.international relations.

Today modern technology allow for Today modern technology allow for electronic trading to take place.electronic trading to take place.

Goods are still transported between Goods are still transported between nations, but business deals and payments nations, but business deals and payments are often made via computer and satellite are often made via computer and satellite networks.networks.

Level of DevelopmentLevel of Development Economic activities and trade patterns influence a country’s level Economic activities and trade patterns influence a country’s level

of development.of development. Modern industrial societies are said to be developed nations. Modern industrial societies are said to be developed nations.

(United States, Japan, France)(United States, Japan, France) Countries with lower levels of prosperity are considered Countries with lower levels of prosperity are considered

underdeveloped.underdeveloped. Countries showing economic or political improvement are Countries showing economic or political improvement are

considered developing countries.considered developing countries. The GDP or Gross Domestic Product is used to compare levels of The GDP or Gross Domestic Product is used to compare levels of

wealth among nations.wealth among nations. The GDP is the total value of goods and services produced in a The GDP is the total value of goods and services produced in a

country in a year, divided by the total population.country in a year, divided by the total population. Developed countries have high GDPs compared to Developed countries have high GDPs compared to

underdeveloped or developing countries.underdeveloped or developing countries. People in developed countries enjoy a higher standard of living, People in developed countries enjoy a higher standard of living,

have better transportation and communication networks, and live have better transportation and communication networks, and live longer.longer.