Economic and Political Geography

Why would countries be willing to place barriers on trade? Explain two factors that might encourage a country to place quotas and tariffs on imported goods.

Countries might create quotas, tariffs, and other trade barriers to protect their own industries. A country may realize that an important industry is struggling because foreign competitors can produce goods more cheaply for import. These industries may lose employees or hurt the country's economy. By restricting imports, a country would encourage its own industries to thrive while limiting the ability of foreign industries to grow in their place.

What is a boundary? Using four or more complete sentences, identify both types of boundaries and give an example of each.

A boundary is a line surrounding a territory that is controlled by a person or group in power. Boundaries can be visible or imaginary. There are two types of boundaries: physical and political. A physical boundary is created by natural or physical features. For example, the Himalayas create a natural boundary between India and Tibet. A political boundary is one that is formed between groups of people for political reasons, e.g. conflicts or peaceful agreements between neighboring groups.

Using four or more complete sentences, differentiate between federal and confederate systems of government.

A federal system of government is a system wherein self-governing nations are united by a strong central government. Although the amount of power that local governments have varies, the goal is to have an equal distribution of powers across local and central governments. A modern example of the federal system of government is the United States. In contrast, a confederate style of government involves strong local governments and a weak central government. The confederate style of government is built around the idea that local governments can best serve the needs of the people. A modern example is Sweden.

Using complete sentences, compare and contrast a traditional economy and a command economy. Make sure to address the three economic questions and to provide at least one incentive for each.

A traditional economy has very little in common with a command economy, except that both provide the incentive of security for those who use them. Everything else regarding the two economic systems is different. In a traditional economy, people use traditional methods to produce goods that have been made in the past. They produce them for their communities and family members. If they happen to produce too much of something (i.e. if they have a surplus), they can use those goods to barter or trade with other communities. This provides stability for the people. A command economy functions in a different manner. In a command economy, the goods and services produced are determined by the government. They produce what the government feels is best. The people use government-owned lands and machinery to produce goods, and the government decides who can use the goods produced. In other words, the government has full control and makes all the decisions. A command economy can also provide economic equality.

What is NAFTA? What is the purpose of it? What effect has NAFTA had on trade?

NAFTA is the North American Free Trade Agreement. It was created to eliminate trade barriers within the United States, Canada, and Mexico and to allow goods and services to flow freely between these three nations. The effect has been a dramatic increase in trade between North American countries.

Using complete sentences, explain the differences between a command economy and a market economy. What type of economic system is created when these two systems are combined? What are the benefits of combining these two systems?

A command economy and a market economy are completely opposite economic systems. In a command market, the government controls everything. The government determines which goods and services they want the nation to produce. The government owns all capital used, including land, materials, machinery, and technology, and it decides who can use the goods and services produced. A command economy can provide economic equality and security to those who use it. A market economy is completely different. The goods and services produced in a market economy are determined by the consumers. All businesses belong to the private sector, which means that individuals own the business and capital. The goods and services produced are used by those who can afford them. Market economies are used because they can profit producers greatly and because competition creates progress. When these two types of economies are combined, a mixed economy is created. It has some privately owned businesses and some government businesses and regulations. Most modern economies are mixed economies to some degree. The benefits of using mixed economies include competition that ignites progress and government regulations that protect workers and try to provide some economic equality.

Using three or more complete sentences, describe a unitary government system.

A unitary system of government is a single-unit system in which the central government has supreme power. A unitary government allows for decisions to start at the national level and then flow into local communities with the end goal being an equal distribution of power. France and South Africa are modern examples of unitary governments.

Which of the following descriptions characterizes a unitary system of government? A. the belief that the only efficient government is one with limited power B. the belief that a strong central government best serves the needs of the people C. a system where local governments control the powers of the central government D. a system where local governments share their powers with a strong central power

B. the belief that a strong central government best serves the needs of the people

Using complete sentences, explain the differences between developed and developing countries in the following areas: GDP per capita, the dominant sector(s) in the economy, and the standard of living for most of the people in the country.

Developed countries have very high GDPs per capita, while countries with developing economies have mid-range GDPs per capita. There is a broad middle range between the world's developed countries at one end and the world's least-developed countries at the other end. The dominant sector in developed economies is the tertiary sector. The dominant sectors in developing economies are the primary and secondary sectors. Most people enjoy a high standard of living in developed countries. Developing countries are moving toward greater prosperity; the standard of living is improving for many people, but large numbers are still living in poverty.

The graphs above show the exchange rates between the US dollar and two other currencies in 2008. During the months shown, the number of Mexican pesos (MXN) in relation to one dollar rose from 10.2 to 13.1. The number of British pounds (£) in relation to one dollar also rose from .51 to .65. Based on the graphs, did the value of the US dollar increase or decrease during these months?

During these five months, the US dollar's exchange value increased. In the first month, July, one US dollar was worth 10.2 pesos or .51 pounds. By November, this amount had grown to 13.1 pesos or .65 pounds. This means that the US dollar grew more valuable during these months.

In a theocracy, the leader of a nation is only a representative of a deity.

F

What role do a nation's resources play in the goods that the nation exports? Give an example.

In general, countries export what they specialize in producing. A nation's specialty depends on the resources it has. This is because the right resources allow a nation to produce a given good or service more cheaply than another nation might. For instance, one of China's most important resources is its huge labor force. The large number of available workers helps keep the cost of labor low and allows China to mass produce and export many factory goods cheaply.

Using four or more complete sentences, explain why new technologies are making physical features less of a challenge when creating and changing national boundaries.

New technologies make physical features less of a challenge when creating boundaries. Many new technologies have been created to overcome these barriers. For example, a mountain range was once an impassable barrier. Now we have the technology that allows us to fly over the mountain or tunnel through it. We have created heating and cooling systems that allow us to live in extreme climates, such as desert or arctic regions. We also build dams that allow us to live near water sources or store water where it is scarce. These technologies allow people to create barriers for political reasons, rather than because of physical challenges.

How does improving technology in primary and secondary sector jobs lead to more workers in the tertiary sector?

Primary-sector jobs are focused on obtaining natural resources or raw materials. Farming, fishing, mining, and logging are primary-sector jobs. Primary-sector jobs turn raw materials or resources into usable finished products. Processing, manufacturing, and construction are secondary-sector jobs. The primary and secondary sectors provide the basics that people need. When there is little technology, it takes a lot of workers to provide these basics. However, as technology improves (e.g. bigger and faster farm equipment and robots in factories), machines do more of the work. It takes fewer and fewer people to produce what is needed from the primary and secondary sectors. The extra workers are now available to take jobs in the tertiary sector, providing more and different services for others.

Political boundaries can change due to peaceful agreements between nations. Using complete sentences, explain two reasons why one nation might peacefully agree to hand over part of its territory to another.

Several peaceful political actions can change a country's territorial boundaries. For example, a country may need money to pay off a debt or to buy needed supplies. That country can choose to sell a portion of its land in exchange for money. A country might also change its boundaries if it exchanges territory with a neighbor. One country might make agreement with another country to give up territory after a war. After many years, that land may be returned to its original owner. Finally, a country might change its boundaries to avoid a war. A country may choose to give up a piece of land rather than to fight a war against a neighbor.

Congratulations! You are one of the youngest entrepreneurs in the United States. Using complete sentences, compose a short business plan that explains your company. Make sure to include the name of your business and to answer all three economic questions about your product.

Students' answers will vary depending on the type of product chosen. The most important element in their response will be how they address the three economic questions: What goods and services to produce? How to produce them? Who will use what product is produced? Business Plan My business would be called Jamie's Cookies. I would start a small bakery near the middle school and high school because growing kids love to eat. They especially love to eat cookies. My bakery would produce a variety of cookies and beverages. All the cookies would have fun names, like the Summer School cookie, which would be a lemon cookie with a sweet cream filling, and the Prom Explosion, which would be a soft sugar cookie full of colorful sprinkles. The drinks would all be specialty drinks like the Raspberry Creamsicle or the Hawaiian Kickpunch. I would target kids between the ages of 10 and 18 because those are the ages of middle school and high school students. I would make sure the business was open before school, at lunch, and after school. I would be closed on weekends and reduce my hours in the summer. In order to produce my goods, I would take out a small loan from the bank to buy all my supplies and rent the building. I would start with two employees, and we would produce ten types of cookies and five specialty drinks at the beginning. I would hope to expand the business after three years of solid profits.

Modern democracies function as republics in which elected officials make decisions for the majority of the people.

T

Using four or more complete sentences, describe the creation, goals, and special agencies of the United Nations.

The United Nations (UN) is a supranational organization whose membership includes most of the world's nations. The United Nations was created in 1945, shortly after World War II, with the outlined goals of defending human rights and maintaining peace. In order to accomplish these goals, the United Nations has formed several agencies that have particular responsibilities. For example, the World Food Programme (WFP) specializes in providing food to impoverished or famine-stricken parts of the world. The United Nations Children's Fund (UNICEF) focuses on improving the health and well-being of the world's children. Finally, the World Health Organization (WHO) works to treat curable diseases and promote healthy living worldwide.

What is the World Trade Organization (WTO)?

The World Trade Organization is an international organization that was created to encourage free trade among countries. It also helps countries negotiate when they have conflicts over trade.

Using complete sentences, describe the central economic problem facing all humans. Why does this require people to make choices? How can this result in opportunity costs?

The central economic problem facing all humans is scarcity. Scarcity occurs because there is a limited amount of resources, but people have unlimited wants. Because of this, it is necessary to make choices. People must decide how to use the resources that are available to them. Every choice comes with a cost. A cost is something given up as the result of a choice. In economics, costs are usually known as opportunity costs or the best alternative given up.

What are factors of production? Provide an example of each of the four factors of production. Make sure your answer is written in complete sentences.

The factors of production are what a society uses to produce goods and services. This includes land, labor, capital, and entrepreneurship. Land includes all the natural resources people can use for business, such as soil, forests, water, and minerals. Labor is work done for pay, which is what a business' employees do. Capital includes the things needed to produce good and services. Capital can be broken into two parts: physical capital (buildings, machinery, tools, etc.) and human capital (skills, experience, knowledge, etc.). The entrepreneur is the factor of production that brings all of the other items together. Entrepreneurs are people who start businesses and bring products to market.

Using four or more complete sentences, summarize the difference between a state and a nation

The terms "nation" and "state" are often used interchangeably; however, they are two different things. A state is a politically organized space with a defined territory, a governing body, and a unified population. A state is also sovereign, which means that its government has complete authority within its boundaries: no other state has any power or control within those boundaries. An example of a state is the United States. Though a state is similar to a nation, there are differences. The term "nation" is more conceptual, while "state" is more concrete. A nation refers a group of people who are united by a common history, culture, and beliefs. People can belong to a nation even if they do not have defined territory or a state. Many Native American tribes are examples of nations.

Using complete sentences, describe the two types of changes that national boundaries experience on a regular basis. Provide an example of each.

The two types of changes that national boundaries experience on a regular basis are small changes and drastic changes. A small change may be something as simple as a river shifting direction and moving 50 feet. This would be an example of a small change in a state's boundary. If a state experiences a drastic boundary change, it is normally due to a revolution, a war, or the collapse of a government system. Drastic changes may also take place because of the exchange of land through a purchase.

Using complete sentences, define government and discuss its four responsibilities. Identify the three systems of government and give one example of a form of government that is currently being used in the world today.

The word "government" can be used to describe the system of rule used by nations. There are different styles of government, but most governments have the same responsibilities. These responsibilities include maintaining order by establishing and enforcing laws and rules, providing public services, protecting citizens, and managing the affairs of a large group of people. The three different government systems include unitary, federal, and confederate. Democracies, theocracies, monarchies, oligarchies, dictatorships, and communism are all examples of government forms currently used in modern society.

Use an example to explain why economists measure a country's economic development by its GDP per capita rather than its total GDP.

Total GDP tells us the value of the goods and services a nation produces, but the total number does not tell us how productive the country is compared to its population. For instance, in the lesson we saw that Mexico's GDP was $875 billion in 2010. Mexico's total GDP was more than twice the size of Norway's $381 billion GDP. If total GDP was all we looked at, we might get the idea that Mexico is much more productive than Norway. However, Norway had a population of about 4.9 million in 2010, while Mexico's population was close to 113 million. Mexico's population was 23 times as big! When we divide Norway's GDP by its population, we get its GDP per capita of $79,089. We can say that Norway's economy was productive and developed enough to produce $79,089 per person. Mexico's GDP per capita was $8,143. Using GDP per capita, we can see that Norway's economy was actually more productive and developed than Mexico's economy in 2010

Using four or more complete sentences, contrast monarchies with dictatorships.

Traditional monarchies and dictatorships have many similarities. For example, their rulers are not elected by the people, though how they gain power differs. Traditional monarchs often follow a hereditary line, while dictators often take power by force and attempt to hold power by limiting the rights of the people they rule. In both types of government, the ruler is the unquestioned leader of the country and holds unlimited power. Constitutional monarchies are different from dictatorships because they have a constitution that limits the monarch's powers. That constitution outlines the structure and the power of the government and prevents the monarch from denying citizens their rights.

Use an example to explain how investing money in better physical capital (machine, buildings, tools, and equipment) can help a country increase its GDP.

When a country's government or businesses put money into buying better buildings, machines, tools, or equipment, the country can produce more goods and services, better goods and services, or both. The example we use can be simple or complex. For instance, if a small bakery invests in two ovens instead of one, it likely can produce twice as much. If an advertising agency invests in new high-speed computers with powerful art programs, the employees can produce more ads with higher-quality artwork. When people in a country produce more goods and services like this, the nation's gross domestic product goes up.