| A | B |
|---|
| Five Factors that influence economic activity | 1) work force skills – 2) natural resources 3)new technologies 4) transportation and communication networks 5) investment capital |
| 4 Factors of Location and ability to exchange goods | 1) Landlocked countries 2) Coastal and island countries 3) Proximity to shipping lanes 4) Access to communication networks |
| What is the comparative advantage? | The ability of countries to produce goods and services at lower relative costs than other countries, resulting in exports of goods and services. |
| Three effects of unequal distribution of resources | 1) Effects of unequal distribution of resources 2) Specialization in goods and services that a country can market for profit •3) Exchange of goods and services |
| Japan's uses of resources - | Highly industrialized nation despite limited natural resources |
| Russia's uses of resources - | Numerous resources, many of which are not economically profitable to develop |
| United State's uses of resources - | Diversified economy, abundant natural resources, specialized industries |
| Switzerland's use of resources - | Limited natural resources, production of services on a global scale |
| Côte d’Ivoire | Limited natural resources, cash crops exchanged for manufactured goods |
| Why Countries engage in trade | Import goods and services that they need and export goods and services that they can market for profit |
| Effects of comparative advantage on international trade | 1) Enables nations to produce goods and services to market for profit 2) Influences development of industries 3) Supports specialization and efficient use of human resources |
| Name 4 Economic Unions | 1) EU 2) NAFTA 2) ASEAN 4) OPEC |
| 4 Advantages of economic unions | 1) More efficient industries 2) Access to larger markets 3) Access to natural, human, and capital resources without restrictions 4) Greater influence on world market |
| 4 Disadvantages of economic unions | 1) Closing of some industries 2) Concentration of some industries in certain countries, leaving peripheral areas behind 3) Agribusiness replacing family farms 4) Difficulty in agreeing on common economic policies |
| Examples of political divisions | Neighborhoods • Election districts • School districts • Regional districts • Cities • Counties • States |
| Reasons for political divisions | • Desire for government closer to home • Need to solve local problems • Need to administer resources more efficiently |
| Reasons for conflict | • Boundary disputes • Cultural differences • Economic differences • Competition for scarce resources • Political advantages (e.g., gerrymandering) |
| Reasons for cooperation | Natural disasters • Economic advantages • Cultural similarities, ethnic neighborhoods • Addressing regional issues |
| Examples of changes over time | • Industrial labor systems • Migration from rural to urban areas • Industrialized countries export laborintensive work to developing nations • Growth of trade alliances • Growth of service industries • Growth of financial services networks and international banks • Internationalization of product assembly • Technology that allows instant communication among people in different countries • Modern transportation networks that allow rapid and efficient exchange of goods and materials .• Widespread marketing of products |
| Economic interdependence can be depicted through | trade, resource, or transportation maps. |
