The document discusses economic concepts including the definition of an economy, GDP, economic sectors, agents, and systems. It defines economy as all activities related to production, distribution, trading and consumption of goods and services. It describes how GDP is calculated and used to measure the total value of goods/services produced by a country. The three economic sectors - primary, secondary, and tertiary - are defined along with different types of economic agents and their roles. Various economic systems such as capitalism, socialism, and mixed economies are also outlined.

1. UNIT 4: ECONOMIC ACTIVITIES
AND GEOGRAPHICAL SPACES

2. WHAT'S ECONOMY?

3. WHAT'S ECONOMY?
● Economy refers to all the activities of a country related to
production, distribution, trading and consumption of goods and
services.
– Goods: are materials that people consume to satisfy their
needs. (tangible and physical)
– Services: are intangible products such us: banking, cleaning,
transporting, education and healthcare.

4. GDP (PIB)
GDP: Gross Domestic Product. It is
the total value of all the services
and goods produced by a country
during a specific period of time,
usually one year.

5. GDP map

6. GDP per capita
GDP Per capita: The total value of all the goods and services produced by a
country in a particular year, divided by the number of people living there

7. GDP per capita in Europe

8. NEW VOCABULARY
● Labour: mano de obra
● GDP (Gross Domestic Products): PIB
● Developed country: País desarrollado
● Emerging country: País emergente
● Underdeveloped country: país subdesarrollado
● Enterprise: empresa
● Sustainable development: desarrollo sostenible
● Unemployment: desempleo
● Supply: oferta
● Demand: demanda

9. 1. ECONOMIC ACTIVITIES.
COMPONENTS AND SECTORS
● PRODUCTION
● DISTRIBUTION
● CONSUMPTION

10. 1. ECONOMIC ACTIVITY.
SECTORS
● PRIMARY SECTOR: Economic activities that obtaine resources
directly from nature. (Agriculture -Livestock Farming – Forestry –
Fishing)
● SECONDARY SECTOR: E. Activities that transform the natural
resources into finished or semi-finished products. (Industry –
Construction)
● TERTIARY SECTOR: E. Activities that provide services for people
or companies. (Tourism – Education – Health care – Transport –
Commerce)

11. 1. ECONOMIC ACTIVITY.
SECTORS
● In which sector your parents work?
● Which one do you think is the most
important for?
● How can we measure the importance of
each sector in a country?

12. 1. ECONOMIC ACTIVITY.
SECTORS
ECONOMIC SECTORS IN DIFFERENT COUNTRIES
UNDERDEVOLPED
COUNTRY
EMERGING
COUNTRY
DEVELOPED
COUNTRY
SPAIN – FINLAND-
USAETHIOPIA NIGERIA,
BOLIVIA
EX. 2 ON PAG. 82

13. 2. ECONOMIC AGENTS AND
THEIR RELATIONSHIPS
● BUSINESSES
– FUNCTION: Produce, distribute and sell goods to consumers.
– AIM: Obtain economic profit (ánimo de lucro)
● TYPES:
– SIZE:
● SMALL (UP TO 50 employees)
● MEDIUM (50 – 250 employees)
● LARGE ( more than 250 employees)
– CAPITAL OWNERSHIP (Depending on which provide the
money and needs)
● PUBLIC: (The state provide it)
● PRIVATE: (The capital is privately owned)
● MIXED: (cobine both)

14. PUBLIC BUSINESSES IN SPAIN

15. 2. ECONOMIC AGENTS AND
THEIR RELATIONSHIPS
● Types of Businesses
– Social organisation (Depending on who provide the
capital)
● P. L. C. (Public licensed companies) (S. A.) – capital is
divided into shares (acciones) one of the equal parts into
which the capital stock of a corporation is divided
● Ltd (Limited Companies) (S.L.) - capital is provided by a
number of partners
● Cooperatives: collectively managed by the partners who
provide the capital.

16. P.L.C

17. P.L.C. examples

18. 2. ECONOMIC AGENTS AND
THEIR RELATIONSHIPS
● FAMILIES: basic units of consumption
– FUNCTION: Spend money to the acquisition of goods.
– AIM: Satisfy their needs
● STATE:
– FUNCTION: Use its enterprises to produce material
goods and public services needed by society
– AIM: Provide welfare (Bienestar)

19. THE ECONOMIC CIRCUIT

20. 3. PRODUCTION FACTORS. RESOURCES,
CAPITAL AND TECHNOLOGY
● Sustainable development: it is the principle for
meeting human current needs at the same time
sustain the natural resources and ecosystems for
future generations.
Trump on climate change

21. PRODUCTION FACTORS.
LABOUR

22. ● 1. Calculate the unemployment rate of the region
“x” using the data.
– Labour force: 12.006.000 people
– Employed population: 7.000.000 people
– Unemployed population: 4.500.000 people
2. Calculate the labour force participation rate.
● Employed people: 3.000.000
● Unemployed people: 100.000
● Students over 16: 10.000
● Homemakers: 800.000
● Retired people: 25.000

23. ECONOMIC SYSTEMS:
CAPITALISM
CHARACTERISTICS
● Economic activity regulated by the
market.
● Market governed by the law of supply
and demand
– WHAT to produce (depending on
people's needs)
– HOW to produce (to achieve the
highest economi profit)
– WHO to produce FOR
● Predominance of private property
● Free circulation of individuals and
commodities
● Free competition between companies.

24. ECONOMIC SYSTEM. SOCIALISM
● Economy activity regulated by the
State (PLANNED ECONOMY).
It makes plans that businesses are
obliged to comply
– Decide what to produce
– How to produce
– Who to produce for
– Set product prices and worker's
salaries
● The State is the owner of companies
and means of production
● Achievement of social equality

25. MIXED ECONOMY
● Economy regulated by the maket
bbut with the State economic
intervention (in great or less way)
→ WELFARE STATE
● Market and State decide what to
produce, how, and who to
produce for.
● States guarantees that basic
needs are affordable for all
citizens.
● Respect private property.
● Adopt measures to redistribute
wealth (taxes)

26. TYPES OF CAPITALISM
NEOLIBERAL IDEOLOGIES
● Defend the total liberalisation of
the economic system.
Economic system governed by
market forces
● State just need to legislate to
guarantee the free functioning
of the market.
● Promote private enterprises
● Public expenditure (gasto
público) should be reduced to
the minimum.
● Salaries should be reduced in
order to increase company
profits.
KEYNESIAN IDEOLOGIES
● Defend the state intervention
in economic activity.
● Promote grater public
expenditure to protect the
poorest social strata.
● Promote public enterprises
● Increase the salaries to
create demand for products.
HOMEWORK:
EXCERCISES 1-2-3 on page 92
Try to find a solution for problems in
number 3 .

27. TYPES OF
CAPITALISM
*Join each cartoon with an
ideology

28. PROBLEMS OF CAPITALISM
POLITICAL PROBLEMS:
(The reacher the more powerful)
Owners major businesses influence
decisions making by states and
international organisations.

29. PROBLEMS OF CAPITALISM
● Economic problems
Capitalism generates
periodic crisis:

30. PROBLEMS OF CAPITALISM
SOCIAL PROBLEMS: It can create great
social inequalities.

31. PROBLEMS OF CAPITALISM
ENVIRONMENTAL
PROBLEMS.
Capitalism
promotes
unsustainable
growth (increase
of production and
consumption)

32. ECONOMIC GLOBALISATION

33. CAUSES OF GLOBALISATION
ADVANCES IN TELECOMMUNICATIONS
IMPROVEMENTS IN TRANSPORTATION
THE SPREAD OF CAPITALISM

34. WHO SUPPORT
GLOBALISATION?
INTERNATIONAL GLOBALISATIONS
These organisations promote free trade all over
the world

35. WHO SUPPORT
GLOBALISATION?
● MULTINATIONALS: They are interested in
globalisation in order to increase their benefits.

36. PROS AND CONS OF
GLOBALISATION
ADVANTAGES OF
GLOBALISATION
● The exchange of goods
ans services is easier and
more accessible.
● Production is organized in
a worldwide scale.
● Increase employment,
where multinational's
subsidiaries are located.
● Reduces production
costas and lower prices.
DISADVANTAGES OF
GLOBALISATION
● Poor countries are expoilte
● Loss of jobs in developed
countries due to offshoring
● Increases economic inequality
between developed and
underdeveloped countries.
● Favours large businesses
(multinationls). Damage small
companies.
● Harms the environment (to
obtain natural resources)
● Multinationals interfere
economically in
underdeveloped countries.

37. GLOBALISATION'S QUOTES.
Globalization, as defined by rich people like us, is a very nice thing... you are talking
about the Internet, you are talking about cell phones, you are talking about computers.
This doesn't affect two-thirds of the people of the world. Jimmy Carter
It has been said that arguing against globalization is like arguing against the laws of
gravity. Kofi Annan
We should keep on going along the path of globalization. Globalization is good... when
trade stops, war comes. Jack Ma
Globalization has changed us into a company that searches the world, not just to sell or to
source, but to find intellectual capital - the world's best talents and greatest ideas. Jack
Welch
I just started taking Mandarin classes. I love the idea of globalization: of being able to
work in different countries. Sandrine Holt
Globalization is the process by which markets integrate worldwide. Michael
Spence
The 1 to 2 billion poorest in the world, who don't have food for the day, suffer from the
worst disease: globalization deficiency. The way globalization is occurring could be much
better, but the worst thing is not being part of it. For those people, we need to support
good civil societies and governments. Hans Rosling

38. What do you think?
● Write a brief essay (no more than 10 lines)
about your own impression of Globalisation,
taking into account their pros and cons.
Use expressions to express
personal ideas:
● FROM MY POINT OF VIEW
● I PERSONALLY BELIEVE THAT..
● I AM AGAINST …. BECAUSE....
● I TOTALLY AGREE WITH THE FACT
THAT....
● I STRONGLY BELIEVE THAT...
● I THINK BENEFITS OVERPAST
DRAWBACKS.

39. WORLDWIDE GEOECONOMIC
AREAS
● According to economy there are three types of countries:
– DEVELOPED COUNTRIES
– EMERGING COUNTRIES
– UNDERDEVELOPED COUNTRIES

40. THE TRIAD
The traditional focus for economic activity:
● NORTHERN AMERICA
● EUROPEAN UNION
● JAPAN
CHARACTERISTICS:
● Agrarian activities have little significance
● Very advanced industry
● High level of good consumption
● High standard of living
● They lead the global exchange.

41. EMERGING ECONOMIC POWERS
● They came from an underdeveloped situation
(historically)
● They are countries with abundant natural resources.
● They have experienced rapid economic growth.
● Production is based on rapid industralisation caused
by:
– Low salary cost for labour
– Looser environmental restrictions.
BRICS: Brazil – Russia – India – China – South Africa
Emerging countries: Latin America – Northern Africa – Middle East
(Saudi Arabia, Israel, Qatar), Austrialia.
All of these countries are in their way to became developed in economic terms,
however, in social terms, they are so far from a developed country. There are
strong contrast between social clases.

42. EMERGING ECONOMIC POWERS

43. UNDERDEVELOPED AREAS
SUB-SAHARAN COUNTRIES (Chad,
Niger, Congo, Ethiopy...
Some countries of Latin America
(Guayana). Some countries of Asia
(Mongolia, Laos, Cambodia)
● Production based on agrarian activities (primary sector predominant)
● Poor industry and barely (escasamente) advanced
● Very limited consumption
● Low santdard of living.

44. WORLDWIDE GEOECONOMIC
AREAS
● Another rate to measure development is the HDI: Human
development index (IDH → Índice de Desarrollo Humano)
The Human Development Index (HDI) was developed by the
United Nations as a metric to assess the social and
economic development levels of countries. Four principal
areas of examination are used to rank countries: mean
years of schooling, expected years of schooling, life
expectancy at birth and gross national income per capita.

45. IDH 2016
NAME 3 COUNTRIES WITH A VERY HIGH IDH
NAME 3 COUNTRIES WITH A HIGH IDH
NAME 3 COUNTRIES WITH A MEDIUM IDH
NAME 3 COUNTRIES WITH A LAW IDH