Economic Geography Lesson 0 PDF

ECONOMIC GEOGRAPHY Dr. Khoudjia HOUHOU 2024-2025  Lesson 0: Introduction to Economic Geography What is economics? Economics: A complex system of interrelated processes of production, exchange, distribution and consumption activities that determines how resou...

ECONOMIC GEOGRAPHY Dr. Khoudjia HOUHOU 2024-2025  Lesson 0: Introduction to Economic Geography What is economics? Economics: A complex system of interrelated processes of production, exchange, distribution and consumption activities that determines how resources are allocated in and effectives and efficient way and through which wealth is generated. (Hudson, 2005) We conclude … - Economy by definition , is not a process that operates in isolation; rather, it is interrelated in nature, constituted essentially of: Production: involves combining several factors, land (including its resources), capital, labor and knowledge We conclude … - We conclude that the first and main activity of economy, which is “production” , primally relies on RESOURCES that are conditioned with GEOGRAPHIC DISTRIBUTION. We conclude …  The modern capitalist economy model operates in an increasingly global scale  The two ends of the economy activities (production and consumption) are often geographically separate; creating a need for extensive transport and distribution networks.  All this necessitates:  The intervention of geography What is Economic Geography? Economic geography is: What are spatial arrangements? What are spatial arrangements? The organization and distribution of people, places, and resources in a given space 1) People 1) People 1) Migration Patterns: Spatial arrangements of people can be seen in migration flows, such as rural-to-urban migration, where large numbers of people move from the countryside to cities in search of better jobs and living conditions. Example 01: For example, China's rapid urbanization over the past few decades has seen millions of people move from rural provinces to major cities like Shanghai and Beijing. Consequences:  Labor Market Imbalances: Rural areas lose workers, while cities may face unemployment due to oversupply of labor.  Pressure on Urban Infrastructure: Overcrowded cities strain housing, transportation, and services.  Remittances: Migrants send money home, boosting local economies through consumption and investment. Example 02: 2) Residential Segregation: The spatial arrangements of different socio-economic or ethnic groups in specific neighborhoods within a city. For example, wealthier individuals may live in upscale, well-serviced areas, while lower-income populations may be concentrated in less developed regions (e.g., suburban sprawl or inner-city areas). Example 02: For example, wealthier individuals may live in upscale, well-serviced areas, while lower-income populations may be concentrated in less developed regions 2) Places 2) places Industrial Zones: Specific places designated for manufacturing and industry, often located near resources or transportation hubs. For example, Detroit in the U.S. was historically an industrial hub for the automobile industry, with factories and related services clustered in the region. Example 01: For example, Detroit in the U.S. was historically an industrial hub for the automobile industry, with factories and related services clustered in the region. Consequences:  Income Inequality: Segregation worsens disparities, with poorer areas receiving fewer resources.  Unequal Tax Bases: Wealthy areas generate more taxes, enhancing public services, while poorer areas decline.  Economic Isolation: Segregated areas may limit access to jobs and economic opportunities. Example 02: Economic Hubs: Major cities or regions that act as centers of economic activity, such as New York City (financial services/ Manhatan) or Dubai (trade and tourism). These places often serve as central spots in national or global economic networks. Consequences:  Increased Investment: Hubs attract capital, boosting jobs and growth.  High Cost of Living: Concentration of wealth drives up housing and living expenses.  Innovation and Productivity: Hubs promote innovation through collaboration and knowledge sharing. 3) Resources 3) resources Natural Resource Deposits: Areas where natural resources like oil, coal, or minerals are concentrated. For instance, the Middle East is known for its large oil reserves, leading to the spatial concentration of extraction activities and related infrastructure in countries like Saudi Arabia or the UAE. Consequences:  Resource Dependence: Economies reliant on resources face instability from price swings.  Foreign Direct Investment (FDI): Resource-rich regions attract foreign investment, but profits may flow abroad.  Infrastructure Development: Resource extraction spurs investments in roads, ports, and energy, aiding development. Let’s debate about it … Case 1: World sugar trade (2010/2011) Case 1: World sugar trade (2010/2011) This map illustrates the global pattern of sugar imports and exports Countries may both export and import sugar for several reasons, even though it may seem paradoxical. Case 1: World sugar trade (2010/2011) Explain ? Case 1: World sugar trade (2010/2011) This phenomenon is often related to the different types of sugar, production methods, quality, and the demands of the domestic market. Here are some key reasons why countries may engage in both sugar exports and imports:  Case 1: World sugar trade (2010/2011)  Quality and Type of Sugar:  Different types of sugar, such as raw sugar, refined sugar, and specialty sugars, serve various purposes in the food and industrial sectors.  A country may produce and export one type of sugar while importing another to meet specific market demands.  For example, a country might export raw sugar for processing and import refined sugar for direct consumption. Case 1: World sugar trade (2010/2011) Economic Efficiency: Some countries may have a comparative advantage in producing a particular type of sugar efficiently. They may export this type of sugar to maximize profits while importing other types that are more costly to produce domestically. Case 1: World sugar trade (2010/2011) Seasonal Production: Sugar production is often seasonal, depending on factors like climate and growing conditions. A country may produce sugar during its harvest season but need to import sugar during the off-season to meet domestic demand continuously. Case 1: World sugar trade (2010/2011)  Quality and Purity Standards:  Sugar quality and purity standards can vary between countries.  Some countries may import higher-quality sugar for specialized uses or to meet specific food safety requirements that their domestic production cannot fulfill. Case 1: World sugar trade (2010/2011) Consumer Preferences: Local consumer preferences can play a significant role. Some consumers may prefer imported sugar for its taste, texture, or other attributes, even if domestic sugar is available. Case 1: World sugar trade (2010/2011) Processing and Refining Capacity: A country may export raw sugar if it has a surplus of raw material but lacks the refining capacity. Case 1: World sugar trade (2010/2011) Trade Agreements: Countries often engage in international trade agreements that promote the exchange of goods, including sugar. These agreements can facilitate both exports and imports of sugar. Case 1: World sugar trade (2010/2011) Global Price Fluctuations: International sugar prices can fluctuate due to factors like weather events, crop yields, and global supply and demand. Countries may take advantage of favorable prices to import or export sugar, depending on the market conditions. Case 2: cluster-based economic development Case 2: cluster-based economic development Cluster development, is a strategy and approach used to promote economic growth and innovation by fostering the growth and collaboration of businesses within a specific geographic area that operate in related industries.. Case 2: cluster-based economic development Example: Concentration of Tech Companies like ‘Silicon Valley” is home to a dense concentration of technology companies, including industry giants like Apple, Google, Facebook, and many startups and small businesses. Case 2: cluster-based economic development The paradoxe: California’s Silicon Valley, is the unofficial capital of the global computing industry. Far from making geography obsolete, the something that is no longer in use, relevant, or effective because it has been replaced by something newer, better, or more advanced. internet has in some ways made it more important than ever. THANK YOU