Economic Geography
Production, Trade, and Resource Distribution
What is Economic Geography?
Economic geography examines the location, distribution, and spatial organization of economic activities. It explores how economic systems interact with the physical environment and how resources, production, and trade are distributed across different regions.
Economic Sectors
Primary Sector
Extraction and harvesting of natural resources directly from the Earth.
Activities: Agriculture, mining, forestry, fishing, hunting
Employment: Declining in developed nations, significant in developing countries
Secondary Sector
Manufacturing and processing of raw materials into finished goods.
Activities: Manufacturing, construction, energy production, processing
Employment: Major employer in industrializing nations
Tertiary Sector
Provision of services to consumers and businesses.
Activities: Retail, transportation, healthcare, education, hospitality
Employment: Largest sector in developed economies
Quaternary Sector
Knowledge-based activities involving information and research.
Activities: IT, research, consulting, financial services, education
Employment: Rapidly growing in advanced economies
Quinary Sector
Highest-level decision making in society and economy.
Activities: Government, universities, healthcare, culture, media, research
Employment: Small but influential portion of workforce
Global Trade
International trade involves the exchange of goods and services across borders, driven by comparative advantage, resource distribution, and specialization. Modern trade is characterized by global supply chains and economic interdependence.
Comparative Advantage
Countries specialize in producing goods they can make most efficiently relative to other goods, benefiting from trade.
Trade Blocs
Regional agreements like EU, NAFTA, and ASEAN that reduce barriers between member countries.
Global Supply Chains
Production processes distributed across multiple countries to optimize costs and efficiency.
Trade Barriers
Tariffs, quotas, and regulations that governments use to control international trade.
Economic Development Levels
Developed Economies
High-income countries with advanced technological infrastructure and diverse economies.
Emerging Markets
Rapidly industrializing countries with growing middle classes and improving infrastructure.
Developing Economies
Lower-income countries with economies heavily dependent on primary sector activities.
Major Economic Systems
Market Economy
Economic decisions driven by supply and demand with minimal government intervention.
Examples: USA, Singapore, Hong Kong
Command Economy
Government controls production, distribution, and pricing of goods and services.
Examples: North Korea, Cuba (historically USSR)
Mixed Economy
Combination of market forces and government intervention and regulation.
Examples: Most countries: UK, Canada, France, Japan