SAJC Cluster 1.2 Lecture 10 Notes (The Geography of the Global Economy)

St. Andrew’s Junior College H2 Cluster 1: Development, Economy and Environment H2_DEE_lecture10_2025/pg 1 Lecture 10 The Geography of the Global Economy KEY QUESTION FOR 1.2: How does the global economy impact places? With the completion of this lecture, attached readings and tutorial, you should be able to discuss: - the sectors of the economy: agriculture, manufacturing, services - the interconnectedness within the global economy illustrated by global patterns of flows of trade, capital and labour - the shifts in the global patterns of production in manufacturing, services and agriculture since the 1950s and their impact on a country’s economy Lecture Outline 10.1 Introduction: Geography and the Economy 10.2 Sectors of the Economy 10.2.1 Agriculture 10.2.2 Manufacturing 10.2.3 Services (a) Tertiary (b) Quaternary 10.3 Changes in the Structure of the Economy as Development Occurs 10.3.1 The Decline of the Agriculture with Development 10.3.2 The Decline of the Manufacturing with Development 10.3.3 The Growth of Services with Development 10.4 The Interconnectedness Within the Global Economy Illustrated by Global Patterns of Flows of Trade, Capital and Labour 10.4.1 Global Patters of Flows of Trade 10.5.1.1 Global Patterns of Flows of Merchandise Trade 10.5.1.2 Global Patterns of Flows of Trade in Services 10.4.2 Global Patterns of Flows of Capital 10.4.3 Global Patterns of Flows of Labour 10.5 Concluding Remarks

St. Andrew’s Junior College H2 Cluster 1: Development, Economy and Environment H2_DEE_lecture10_2025/pg 2 In the 18 th century, “economy” would have referred to the management of a house hold. At that time, production and use of goods/services were of very small scale, limited to the family or household. But the Industrial Revolution brought about large -scale production with factory -based manufacturing. With production on a much grander scale and increasingly levels of work specialisation, Adam Smith observed that the “economy” is something larger than the management of a household. Since then, the word “economy” is used to represent an integrated whole with many individual parts that worked together to create wealth for all. His work was so important that it is enshrined in the £20 note in the UK (see above image)! 10.1 Geography and the Economy [Not examinable, but useful for background] • The economy is a set of human activities and institutions linked together in the production, distribution, exchange and consumption of goods and services. o ‘Economies’ or ‘economy’ are preceded by various adjectives such as: global, local, market, command (or redistributive), capitalist, informal, subsistence, mixed, Internet, information, new or space economy. There are many different kinds of ‘economy’ depending on the perspective of analysis. • Economic geographers are interested in the space economy; the way in which the behav