Government and Economy The Big Idea The world s countries have different governments and levels of economic development. Main Ideas The governments of the world include democracy, monarchy, dictatorship, and communism. Different economic activities and systems exist throughout the world. Geographers group the countries of the world based on their level of economic development.
Main Idea 1: The governments of the world include democracy, monarchy, dictatorship, and communism. Governments: Make and enforce laws Regulate business and trade Provide aid to people Help shape the culture and economy of a country as well as the daily lives of people who live there Many countries have democratic governments. A democracy is a form of government in which the people elect leaders and rule by majority. Some work to protect the freedoms and rights of their people. Others restrict the rights and freedoms of their people.
Other Types of Government Monarchy One of the oldest types of government Ruled directly by a king or queen, the head of a royal family In some, power is in the hands of just one person. In others, many democratic practices are used. Dictatorship A single, powerful ruler has total control. Leader is called a dictator. Often rules by force People have few rights and no say in their own government. Communism A political system in which the government owns all property and dominates all aspects of life in a country Leaders are chosen by the Communist Party or by Communist leaders. People have restricted rights and very little freedom.
Main Idea 2: Different economic activities and systems exist throughout the world. The economy is a system that includes all of the activities that people and businesses do to earn a living. Countries use a mix of different economic activities and systems. Geographers divide economic activities into four levels.
Four Levels of Economic Activity Primary industry Secondary industry Tertiary industry Quaternary industry People earn a living by providing raw materials or natural resources to others. Examples include farming, fishing, and mining Use natural resources or raw materials to manufacture other products Example: automobile manufacturers use steel and other materials to build cars and trucks. Goods and services are exchanged Includes people who sell the products made in secondary industries and people who provide services rather than goods, such as health care Involves the research and distribution of information People work with information rather than goods and often have specialized knowledge and skills.
Traditional Economy Economic Systems Market Economy Command Economy System in which people grow their own food and make their own goods Trade may take place through barter, or the exchange of goods without the use of money. Often found in rural and remote communities System based on private ownership, free trade, and competition Individuals and businesses are free to buy and sell what they wish. Prices determined by the supply and demand for goods Sometimes called capitalism System in which the central government makes all economic decisions Government decides what goods to produce, how much to produce, and what prices will be. Communist governments own and control most businesses in their countries.
Main Idea 3: Geographers group the countries of the world based on their level of economic development. Economic Indicators Measures of a country s wealth used by geographers to decide if a country is developed or developing One measure used is gross domestic product (GDP) the value of all goods and services produced within a country in a single year. Other indicators include a country s per capita GDP, level of industrialization, and overall quality of life. Developed and Developing Countries Developed countries have strong economies and a high quality of life; usually have high per capita GDP Developing countries have less productive economies and a lower quality of life; usually have lower per capita GDP
Global Connections The Big Idea Fast, easy global connection have made cultural exchange, trade, and a cooperative world community possible. Main Ideas Globalization links the world s countries together through culture and trade. The world community works together to solve global conflicts and crises.
Main Idea 1: Globalization links the world s countries together through culture and trade. Globalization is the process in which countries are increasingly linked to each other through culture and trade. Caused by improvements in transportation and communication over the last 100 years Popular culture refers to culture traits that are well known and widely accepted. Examples include food, sports, music, and movies. United States has great influence on global popular culture and is also influenced by global culture. Expansion of global trade has increased interdependence the reliance of one country on the resources, goods, or services of another country between countries. Many companies in one country often rely on goods and services produced in another country.
Main Idea 2: The world community works together to solve global conflicts and crises. Because of globalization, the world seems smaller. Places are more connected. What happens in one part of the world can affect the entire planet. The world community works together to promote cooperation among countries in times of conflict and crisis.
A World Community Countries often join together to settle conflicts such as wars, trade disputes, and political disagreements. The United Nations (UN) is an organization of the world s countries that promotes peace and security around the globe. The world community promotes cooperation in times of crisis such as ones caused by earthquakes, floods, and drought. Groups from many nations often come together to provide humanitarian aid, or assistance to people in distress. Organizations representing countries around the globe work to help in times of crisis.