Cultural Geography

Tuesday, October 3rd

 Warm Up
Team Challenge Tuesday
Divide into pairs and time how long each of you
can hold your breath.
THEN, subtract 15 seconds from your time this
is how much time you have to complete the task
given to you before you can take another breath.
 Wealth of Nations
Economics: the process of how people
and countries make decisions regarding
development and distribution of
resources, good and services.
3 Main Economic systems:
Capitalism
Socialism
Mixed Economy
 Wealth of Nations
Distribution activity
 Capitalism
Maximizes LIBERTY
Profit is the motivator and competition will
weed out which businesses succeed and fail.
Good of the individual is above the good of
society.
Little to no government interference.
 Capitalism
Private individuals or corporations build
industries and run businesses in order to
make profits.
Capital - The money and equipment
needed to build industries.
 Capitalism
Free Market - Anyone can start a
business and attempt to make money.
Businesses compete with little
government interference.
Entrepreneurs - people who take risks
to start businesses.
 Socialism/Communism
Maximizes EQUALITY.
The government owns major industries and
makes decisions on behalf of the citizens of
the country.
Socialism higher taxes on wealthy to
redistribute wealth to all more equally
and to fund more government programs.
Communism the government owns all
means of production.
 Socialism
The government owns major industries
and makes decisions on behalf of the
citizens of the country.
Command Economy few
entrepreneurs because the government is
the one who profits.
 Socialism
Socialism was popular in the first half of
the twentieth century.
Corruption interfered and leaders ended
up enriching themselves at the expense
of the people.
In the late 1980s and early 1990s,
socialist governments collapsed.
 Mixed Economies
Combination of both capitalism and
socialism.
Private citizens own property and
businesses, but the government closely
monitors their choices.
 Measuring Wealth
Wealth: the ability to produce new
things.
The more a country produces each year,
the more prepared they are for the next
year.
Gross Domestic Product (GDP) the
total value of all products made by
domestic workers in a year.
 Measuring Wealth
GDP per Capita the total value of all
products divided by the number of the
people of a country.
Productivity - how much each person
produces each year.
 Measuring Wealth
A high GDP per Capita doesnt
necessarily mean that everyone is rich
due to wealth distribution.
Those who are already rich make the
most money.
 Wealth Distribution
Development how a country effectively
uses their materials, labor and capital.
Value Added the worth an item has
after the raw materials have been
manufactured into something useful.
 Measuring Wealth
Development effective use of raw materials,
labor and capital
Developed countries countries with
productive economies.
G-8: produce more than 3/4th all value added
by manufacturers.
Developing countries high GDPs, but low
GDP per capita
 Measuring Wealth
Division of Labor in developed countries,
workers can choose from hundreds of
occupations.
Poor countries have limited skilled workers
 Measuring Wealth
Economic self-sufficiency countries that want
to produce everything for themselves
Wealthy nations trade for what they need.
Market people or business to buy products
Exports goods a country ships to other
countries.
Imports goods a country receives from
another country.
 Measuring Wealth
Balance of Trade difference between imports
and exports.
Countries measure international trade of the
monetary value between the two.
Tariffs taxes on imports and exports
embargo ban on importing or exporting
products from a certain country
 Wealth Distribution
Developed Countries
Wide industries that use peoples skills.
Good infrastructure, trade and
economy.
Developing Countries
High GDPs and factories, but low GDP
per capita because of large population.
 Division of Labor
Workers can choose among many
different jobs, mainly in the service
(tertiary) industry.
Developed countries lots of jobs in
service industry.
Developing countries few jobs
available in service industry.
 Division of Labor
Undeveloped/Underdeveloped
Countries
Little promise or hope of development
in the near future.
Due to unstable governments or
cultural habits
 Hope of Prosperity
What makes some countries rich and
others poor?
Labor people work to help produce
wealth.
Government how a government runs
a country to protect and encourage
development.
 Trade Wars
Economic Self-sufficiency when a
country try to make everything it needs
for itself.
More trade = more wealth
 Activity
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