04 Economic Activitiesmn

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UNIT
4
Economic
Activities
Unit Overview Learning Objectives
➢ Classify the economic

4.1 Introduction activities.
4.2 Primary activities ➢ Understand the
4.3 Secondary activities relationship between
economic development
4.4 Tertiary activities and economic activities.
4.5 Division of the world on the basis of ➢ Differentiate primary activities from
Economic Activies secondary activities.
➢ Divide the world on the basis of
economic activities.
4.1. Introduction
Have you heard about Waymo car? A car without brakes, accelerators or steering wheel – a
driverless car is indeed a dream come true.
Google started testing self-driving technology with the Toyota Prius on freeways in California
in 2009.
A new development was the unveiling of a new prototype
vehicle in 2014, capable of being a fully self-driving car. These
intelligent cars use sensors and software to detect objects like
pedestrians, cyclists and can safely drive around them. According
to Google, the car can process both map and sensor information
to find out its exact location - precisely which street or lane it
is driving in. The sensors are so powerful that it can detect all
kinds of objects. What’s more interesting, the software can predict what these objects around the
car will do next and take action accordingly.
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In an instance, where the traffic signal turned green and the car was about to move forward, the
car sensed an ambulance coming from the right side and it stopped, making way for the ambulance.
Google calls its cars, ‘experienced drivers’. Each car’s speed is capped safely at 25 mph (40 km/hr).
The cars halt for 1.5 seconds after the signal turns green at a junction as many accidents happen
during this time.
But the cars can travel as fast as 161 km/hr. To ensure safety, the front side has about 2 feet
of foam and the windshield is made of plastic instead of glass. This is the amazing product of
secondary industries which we learn about as part of economic activities in this lesson
Economic activity refers to the activity are directly connected with nature. Hunting,
of making, providing, purchasing and selling Gathering, Pastoralism, Fishing, Forestry,
goods or services. Economic activities exist at Mining and Agriculture are the primary
all levels within a society. Human beings are activities.
engaged in various kinds of economic activities. Hunting and Gathering
In general all the economic activities are
Until 12,000 years ago, all humans lived as
broadly categorised into Primary, Secondary
hunters and gatherers. At present only 0.0001%
and Tertiary activities. The Tertiary activities
human live as hunters and gatherers. Gathering
are further sub divided into Quaternary and
and hunting are the oldest known economic
Quinary activities.
activity in the world. It often involves primitive
Let us first understand the meaning and societies which collect both plants and animals to
concept of the different categories of economic satisfy their needs for food, shelter and clothing.
activities. These primitive activities are being carried out
still in a very few parts of the world. Gathering
Types of Economic system: is practiced in the areas of High altitude zones
1. Subsistence economy: Goods and of Northern Canada, Northern Eurasia and
services which are created for the use of Southern Chile and in the low altitude zones of
the producers and their kinship groups. the Amazon Basin, Tropical Africa, Northern
2. C
ommercial economy: Goods and fringe of Australia and interior parts of South
services which are produced mainly for East Asia. Present day gatherers and hunters
sale. Market competition is the primary are confined to a few pockets. Inuit in the Arctic
force determining the production and region, Pygmies of Kalahari, Pintupi, Aborgines
distributions. of Australians, and Paliyan of South India are
3. P
lanned economy: Goods and services the examples of foragers.
created are controlled by government Pastoralism
agencies. Supply and price are controlled Pastoralism is the process of grazing and
by the state. It was practiced earlier by the rearing of different types of animals like cattle,
Communist controlled societies. sheep, goats, etc in an organised manner to
get animals products. The animals rearing can
4.2. Primary activities be primitive which is carried on by nomads or
Primary activities help man to fulfill his highly scientific means on a commercial scale.
needs and desires, by using resources which So, animal grazing and rearing can be divided
are gifted to man by nature. These activities
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into two broad categories as Nomadic Herding Gujiars, Bakarwals, Gaddis and Bhotiyas
and Commercial Livestock Rearing. in the Himalayan region migrate from plains
to the mountain in summer and to the plains
Nomadic Herding (or) Pastoral
from the high altitude pastures in winter. In
Nomadism the tundra regions, herders move from south
It is a primitive subsistence activity in to north in summer and from north to south
which the herders rely on animals for food, in winter. The number of pastoral nomads has
clothing, shelter, tools and transport. They move been decreasing and the areas operated by them
from place to place along with their livestock, shrinks due to developments and spreading of
depending on the availability of pastures and other economic activities.
water. These people do not lead a settled life but
keep on moving from place to place. Pastoral
nomadism is commonly practiced in regions
with little arable land, typically in the developing
world. They are mostly found in central and
western Asia, Northern and Western regions of
Africa and some parts of southern Africa and
Tundra regions.
Transhumance
Transhumance is the seasonal movement
of people with their livestock between fixed
summer and winter pastures. In mountain
region it implies movement between higher
Agriculture
altitude pastures during summer and valleys in
winter. Agriculture is the most fundamental
form of human activity and includes not only
cultivation of crops but also the domestication
of animals. The following are the major
agricultural types and their characteristic
features.
Employees of the economic activity called as

Economic Activity Name
Primary Red collar
Secondary Blue collar
Tertiary Pink collar
Quaternary White collar
Quinary Gold collar
Rearing of Animals
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Subsistence Agriculture is a type of farming in proportion for sale. Farmers follow traditional
which output is consumed almost entirely by the method of cultivation in this kind of farming.
farmers and their families leaving only a small
Subsistence Agriculture
Shifting Cultivation
farming an area of ground is cleared of vegetation
Shifting Cultivation is a kind and cultivated for a few years and then abandoned
of traditional farming practiced by for a new area until its fertility has been naturally
tribes in the hilly and forest regions. restored. They are called with different names in
It is practiced especially in tropical Africa. In this different regions.

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Shifting Agriculture
S. No Name Region
1 Jhuming / Bewar North eastern states of India
2 Ladang Malaysia
3 Chengin / Kaingin Philippines
4 Milpa Central America and Mexico
5 Konuko Venezuela
6 Roca Brazil
7 Masole Congo
8 Ray Vietnam
9 Humah Indonesia
10 Taungya Myanmar
11 Chen Sri Lanka
Intensive Agriculture is the one in which three crops in the same piece of land in a year.
the agricultural land is utilised intensively. Generally it is practiced wherein the size of the
Farmers prefer the cultivation of short duration agricultural land holding is small.
crops which enables the cultivation of two or
Intensive Agriculture
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Extensive Farming Mixed Farming

It is a kind of farming practiced in the It is an agricultural system in which a
regions where the size of the land holding is farmer conducts different agricultural practice
very large. It is practiced in the Interior parts of together, such as crops, fishing and livestock.
semi-arid lands of the mid-latitudes. Wheat is The aim is to increase income through different
the major crop of this region and the farming is sources and to complement land and labour
highly mechanized. demands across the year.
Pomology – The study of

growing fruits.
Olericulture – science of
vegetable growing.
Floriculture – refers to cultivation of flowers.
Sericulture – refers to Rearing of Silkworms
Extensive Farming Viticulture – T

he study of grape
cultivation`
Mixed farming
Dairy farm

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Plantation Agriculture Horticulture

Plantation agriculture is a form of
Specialised cultivation of flowers, vegetables
commercial farming where crops are grown for
and fruits is called horticulture. It is also termed as
profit. Large land areas are needed for this type
“truck farming”. These crops are grown on small
of agriculture. Countries that have plantation
farms which are well connected to the markets by
Agriculture usually experience high annual
cheap and efficient means of transportation. It is
temperatures and receive high annual rainfall.
labour and capital intensive crops. The main areas
Plantation is mainly found in countries that have
are northwest Europe, northern eastern USA and
a tropical climate. The important plantation
Mediterranean region.
crops are tea, coffee, cocoa, rubber, oil palm,
sugarcane, bananas and pineapples.
Tea Plantation
Mediterranean Agriculture
Mediterranean agriculture is highly
specialised commercial agriculture. It is practised
in the countries on either side of the Mediterranean
Sea, Europe and in North Africa from Tunisia
to Atlantic coast, southern California, central
Chile, south western parts of South Africa and
south and south western parts of Australia. This
region is an important supplier of citrus fruits.
Viticulture or grape cultivation is a speciality of Viticulture
the Mediterranean region. Best quality wines in
the world with distinctive flavours are produced
from high quality grapes in various countries Von Thunen model of agriculture
of this region. The inferior grapes are dried into The Von Thunen model of agricultural land
raisins and currants. This region also produces use was created by the farmer, landowner, and
olives and figs. The advantage of Mediterranean economist Von Thunen in 1826 in a book called
agriculture is that more valuable crops such as The Isolated State. Von Thunen model was
fruits and vegetables are grown in winters when created before industrialization and is based on
there is great demand in European and North the following limiting assumptions:
American markets.
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The city is located centrally within an land is also more expensive, so the agricultural
"Isolated State" that is self-sufficient and has no products would have to be highly valuable ones
external influences. and the rate of return is maximized.
➢➢ The Isolated State is surrounded by an Ring 2: Timber and firewood would be
unoccupied wilderness. produced for fuel and building materials in
➢➢ The land of the State is completely flat and has the second zone. Before industrialization and
no rivers or mountains to interrupt the terrain. coal power, wood was a very important fuel for
heating and cooking. Wood is very heavy and
➢➢ The soil quality and climate are consistent
difficult to transport, so it is located as close to
throughout the State.
the city as possible.
➢➢ Farmers in the Isolated State transport their
own goods to market via ox cart, across the Ring 3: The third zone consists of extensive
land, directly to the central city. Therefore, field crops such as grains for bread. As grains last
there are no roads. longer than dairy products and they are much
➢➢ Farmers act to maximise profits. lighter than fuel, to reduce transport costs, they
can be located farther from the city.
Ranching and Livestock Ring 4: Ranching is located in the final ring
surrounding the central city. Animals can be raised
Grains and Field Crops
far from the city because they are self-transporting.
Forests
Dairy Farming
What the Model Tells Us?
Even though the Von Thunen model was
Urban Centre Market
created in a time before factories, highways, and
Market even railroads, it is still an important model in
Gardening
geography. The Von Thunen model is an excellent
illustration of the balance between land cost and
transportation costs. When one gets closer to a
city, the price of land increases. The farmers of the
Isolated State balance the cost of transportation,
land, and profit and produce the most cost-effective
In an Isolated State with the foregoing product for market. Of course, in the real world,
statements being true, Von things do not happen as they would in a model.
Thunen hypothesized that a
pattern of rings around the Mining
city would develop based on The process of extracting minerals from
land cost and transportation the earth crust is known as mining. The
cost. discovery of minerals in the history of human
development is reflected in many stages in
The Four Rings terms of copper, Bronze and Iron age. The use of
Ring 1: Dairying and intensive farming minerals in ancient times was largely confined
occur in the ring closest to the city. Because to making of tools, utensils and weapons. The
vegetables, fruit, milk, and other dairy products actual development of mining began with the
must get to market quickly, they would be industrial revolution and its importance is
produced close to the city. The first ring of continuously increasing.

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Types of Mining
Open-pit or opencast mining
Open pit mining involves mining minerals

ore that can be found near the surface layer of
the site. Some quarries can be over 1000 meters
deep. This form of mining doesn’t require
tunneling into the earth and is a simple method
of mining that yields high production.
Surface Mining
Surface mining is the process of mining Drilling
the ores found on the surface of the earth. In
this process, any unwanted soil is stripped off
4.3 Secondary Activities
from the land and the ore beneath is extracted.
Surface mining often leaves behind large areas Secondary sector transforms the raw
materials obtained from the primary sector
of infertile land and waste rock as 70% of the
into consumer goods. So it consists of
mined earth is waste materials.
manufacturing and industrial activities. Since it
adds value for the raw materials, it is also called
Underground or sub surface
as value addition sector. Industries consume
mining/Shaft mining large quantities of energy and require factories
Sub-surface mining involves the digging of and machinery to convert the raw materials
into goods and products. The secondary sector
a network of shafts and tunnels into the earth
supports both the primary and tertiary sectors.
to reach and extract the deposit of mineral
ore beneath the earth. In comparison to other Factors affecting location of Industries
methods, underground mines impacts are less
1. Availability of raw-materials or nearness to
on the environment and are more harmful to raw-materials: Availability of raw materials
those working within them. In modern practice, or nearness to raw materials is a primary
underground mines are pre-assessed for oxygen factor which governs location of industries.
toxicity levels and a system of ventilation An industry is located in a place where
machines and protocols are in place to ensure raw materials are available in abundance
workplace safety. and at cheaper rates. It is more so for the
weight loosing and bulky raw materials. For
In-Situ Mining example, oil refinery factories are established
at Visakhapatnam because oil is imported
It is a rarely used method of mining
through Vizag port.
material. It is also called as solution mining. It
is the process of pumping a solution into the 2. Availability of power: Availability of power
ore body, which dissolves the ore and is then is another important factor of concentration
or location of industries. In olden days
extracted by a second pump. This method is
steam was used for running industries. As
used most in mining uranium deposits.
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a result industry is established near the coal Weber’s Theory of Location

mines. But with the invention of electricity,
Weber has developed an industrial location
today industries are located in any place
emphasising the least cost principle. This is
where electricity is available. Industries
based on assumptions relating to transport
like aluminum units are located near the
costs and other conditions. From his theory,
hydroelectric projects.
industrial locations for three different situations
3. Transport costs Transport costs also influence are made clear.
the location of industries. Industries incur
transport costs for bringing raw-materials
Assumptions:
and for sending the finished goods into the 1. Some resources are available only in certain
markets. It is economical to start an industry regions. Yet, resources such as water are
near the area where transport costs are ubiquitous (present everywhere).
minimum and low. Raw-materials which are 2. Markets are found only in specific places.
heavy and occupy large place, require huge
cost for transporting them. So an industry 3. Transport costs are determined based on the
must be located near the area where the weight of the raw materials and distance of
transport costs are minimal. transfer.
4. There is competition in the markets for the
4.
Nearness to the market: This is a chief
commodities produced at the industry.
factor governing the location of an industry
in modern period. Several advantages are 5.
Humans use their discretion in their
secured when an industry is established near consumer behaviour in relation to the
the market. industrial commodities.
5. Availability of labour: Labour is required Based on these assumptions, together with

for organizing the productive affairs of an the notion of high profits with least costs and
industry. The entrepreneurs like to start imagination, Weber describes his theory of
industries in those areas where labour is industrial location.
abundantly available. For example The growth Weber uses a triangular structure to
of cotton textile industry near Bombay is due elaborate on his theory of industrial location
to the availability of cheap labour. using least transport cost principle. The two
corners of the triangle defined by the base line
6. Government policy: The policy of
represent the places where raw materials are
government also influences the location of
found (R1 and R2). The market (M) is at the
industries. The Government may establish an
apex of the triangle. In the figure below, R1
industry on political considerations by giving
and R2 are resource locations, consisting of two
several incentives. It provides finance, land,
types of resources. M is the market and P is the
water, and transport and communication
industrial location.
facilities in backward regions with a view
to developing them. It also provides tax As the logic behind Weber’s location
concession, marketing consultancy, export indicates, some industries produce finished
and import facilities. products which lose weight (weight losing raw
materials). In this case, the transport cost for
7. Availability of capital: Capital is the most raw materials transfer to the industrial location
essential factor for the establishment of an is higher than the transport cost of moving
industry in a locality.

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P P
R R R R
finished products from industrial location In the final analysis,

M M
to market. It is because the waste from raw the transport cost for
materials at the industrial site will be high. raw materials to the
Hence, it is profitable to have industry at the industrial location P and
P P
raw materials’ locations. the finished products
to market M from P
If industry is located at the raw material R R R R
together is the least when
source R1, then raw material R2 must be
industry is located at P.
transported to
M M M
There is thus a chance for increased profit for
industrial location R1 Weber’s Theory
the industry. P
and the finished
products must be The triangle at top left represents a location
M transported
M to the M M
where distance to be covered M M
by transport
P market M. This results is at Pminimum, the triangle at the P top rightP
R R R R
in transport costs. illustrates the locationR of a ‘weight R – losing
Likewise the industry industry’ and the triangle at the bottom left
could be located
P at R2,Ptoo. But if it is located at represents the
P location P of a ‘weight – gaining
MR R R R R
M R R R M
R R atRP is R
M, R1 and R2 resources must be transported to industry’. Hence, the location of industry
market M. This would also involve transport an ‘optimal industrial location’ P.
M costs. If on the M M
PM M
other hand, the P
M M M
P P P
industry is located
R R R
halfP way between
R R R
P P P
R1 and R2, and
R P then the transport
R R RR R R R R
Weber’sR
R
Theory
R R R R R
cost to bringR the
raw materials from As the industry is located at a point
R1 and R2 is equal. Transport cost involved in Weber’s
between theTheory
raw materials
Weber’s Theorylocations, transport
M M
transporting the finished products to the Market cost to transfer bulky raw materials is reduced
decreases because of small distance to market P considerably. The transport cost for transferring
M (if transport cost is assumed to increase with the finished products from the industry to the
distance). P
market is also small. In such a context, Weber
R R R R believes
R that it is profitable to set up the industry
at a location in between the industry.
M
Weber’s Theory There are some industries which
P manufacture finished products gaining weight
in the process. The transport cost between raw
materials location and industry is lower than
the transport cost of finished products from
P industrial location to the market. It is logical
R R R therefore to locate the industry at the market.
According to Weber, this location is more
M
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P

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profitable to the industry than any other. The of industrial location is considered superior
Weber’s location theory is that it is based on to other industrial location theories for its
the transport cost. Nevertheless, this theory logical conclusion.
Classification of Industries
On the Basis of Labour Heavy Industries

Large Scale Industries
Industries which use heavy and bulky
Industries which employ a large number of raw-materials and produce products of the
labourers with huge capital are called large-scale same category are called heavy industries.
industries. Cotton and jute textile industries are Iron and steel industry presents a good
large scale industries. example of heavy industries.
Small Scale Industries Light Industries

Industries which employ a small number of The light industries use light raw-materials
labourers with small investments are called small and produce light finished products. Electric
scale industries. They include nut & bolt making, fans, sewing machines are light industries.
coir making, plastic bags industries, dying
On the basis of Ownership
industry, match box making, weaving industry are
some examples for small scale industries Private Sector Industries
Cottage Industries Industries owned by individuals or

firms such as Bajaj Auto or TISCO situated at
Those industries whose labour force consists Jamshedpur are called private sector industries.
of family units or individuals working at home
with their own equipments are called cottage Public Sector Industries
industries. It is a small and often informally Industries owned by the state and its
organized industry. The industries like weaving agencies like Bharat Heavy Electricals Ltd., or
and pottery are the examples this category. On the Bhilai Steel Plant or Durgapur Steel Plant are
Basis of size of raw-Material and Finished Goods public sector industries.

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Joint Sector Industries goods. Basic industries are manufacturing

goods by using them as raw materials are basic
Industries owned jointly by the private
industries. For example Iron and steel machines
firms and the state or its agencies such as Gujarat
for textile industry. Consumer industries are
Alkalies Ltd., or Oil India Ltd. fall in the group
producing goods for consumers. For example,
of joint sector industries.
Television, soap, biscuits, etc
Co-operative Sector Industries
4.4 Tertiary activities
Industries owned and run co-operatively by
The tertiary industry provides services
a group of people who are generally producers
to its consumers. It is also known as service
of raw materials of the given industry such as a
industry/sector.
sugar mill owned and run by farmers are called
co-operative sector industries. All types of services and special skills
provided in exchange of payments are
On the Basis of Source of Raw
called tertiary activities. Health, education,
Materials
law, governance and recreation etc; require
Agro Based Industries professional skills. These services require other
theoretical knowledge and practical training.
Agro based industries are those industries
Most of the tertiary activities are performed
which obtain raw-material from agriculture.
by skilled workers and professionally trained
Cotton textile, jute textile, sugar and vegetable
experts and consultants.
oil are representative industries of agro-based
group of industries. Tertiary activities involve commercial
output of services rather than the production
Mineral Based Industries
of tangible goods. Expertise provided by service
The industries that receive raw materials relies more heavily on special skills, experience
primarily from minerals such as iron and steel, and knowledge of the workers rather than on the
aluminium and cement industries fall in this production techniques, machinery and factory
category. processes. Trade and commerce, transport,
communication and services are the categories
Pastoral-Based Industries
of tertiary sector. Tertiary sector is further
These industries depend upon animals for divided into quaternary and quinary sector.
their raw material. Hides, skins, bones, horns,
Quaternary Activities
shoes, dairy, etc. are some of the pastoral-based
industries. The quaternary sector of the economy
consists of intellectual activities, example,
Forest Based Industries
libraries, scientific research, education, and
Paper card-board, lac, rayon, resin, tanning information technology. The workforce who is
of leather, leave- utensils, basket industries are readily involved in this sector is typically well-
included in this type of industries. educated, and people are often seen earning
well through their participation in this industry.
Classification based on Nature of
products Quinary Activities
Based on the nature of products it is The professions of the people working in
classified into basic industries and consumer this industry are generally referred to as "gold
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collar" professions since the services included in government officials. The people are designated
the sector focus on interpretation of existing or with high positions and powers, and those who
the new ideas, evaluation of new technologies, make important decisions that are especially
and the creation of services. It involves highly far-reaching in the world around them often
paid professionals, research scientists, and belong to this category.
City in a less Developed Country
etc. Developed Countries refer to the sovereign

HOTS
state, whose economy has highly progressed and
Why most of the developed countries are possess great technological infrastructure, as
located in the northern hemisphere? compared to other nations.
4.5 Division of the world on the Developed countries

basis of Economic Activies A developed country,
industrialized country, more
For analytical purposes, World Economic
developed country, or more
Situation and Prospects classifies (WESP)
economically developed
all countries of the world into one of three
country (MEDC), is a country that has a
broad categories: developed countries,
developed economy and advanced technological
countries in transition (South-Eastern Europe
infrastructure relative to other less industrialized
Commonwealth of Independent States and
nations. Most commonly, the criteria for
Georgia) less developed countries.
evaluating the degree of economic development
The classification of countries is based on the are gross domestic product (GDP), gross
economic status such as Gross Domestic Product national product (GNP), the per capita income,
(GDP), Gross National Product (GNP), per capita level of industrialization, amount of widespread
income, industrialization, the standard of living, infrastructure and general standard of living.

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City in a Developed Country
Countries in transition
Developed countries have generally post- A country in transition economy or
industrial economies, meaning the service sector transitional economy is an economy which is
provides more wealth than the industrial sector. changing from a centrally planned economy to a
market economy. Transition economies undergo
As of 2015, advanced economies comprise 60.8%
a set of structural transformations intended to
of global GDP based on nominal values and
develop market-based institutions. These include
42.9% of global GDP based on purchasing-power economic liberalization, where prices are set by
parity (PPP) according to the International market forces rather than by a central planning
Monetary Fund. In 2017, the ten largest advanced organization. The process has been applied in the
economies by GDP in both nominal and PPP former Soviet Union and Eastern bloc countries
terms were Australia, Canada, France, Germany, of Europe and some Third world countries,
Italy, Japan, South Korea, Spain, the United and detailed work has been undertaken on its
Kingdom, and the United States. economic and social effects.
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Developed Economies
GDP growth
3.0 3.0
3% 2.7
2.4
2.2 2.2
2.0
Share of 2% 1.6
the world
1%
2015 2016 2017 2018

GDP per capita growth
GDP per capita
3%
2% 1.9 1.8 1.9
1.3 1.8
1.6 1.7 $10,600
1% 1.2
$43,700
2015 2016 2017 2018
Developed Economies
World
Economies in transion
GDP growth
3% 3.0 3.0
2.7
Share of 2.4
the world 1% 2.2 2.3
0.4
-1%
-2.2
-3%
GDP per capita growth 2015 2016 2017 2018
GDP per capita
3%
1.9 2.1
1.6 1.2
1.8 1.9
1%
$10,600
2017
0.0
-1%
$7,100
-3% -2.5
2015 2016 2017 2018
Economies in Transion
World

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The Least Developed Countries percentage of population displaced by natural

disasters).
The Least Developed Countries is a list
of countries that, according to the United
Nations, exhibit the lowest indicators of The world’s 10 biggest economies in
socioeconomic development, with the lowest 2015
Human Development Index ratings of all The economy of the United States is the
countries in the world. A country is classified largest in the world. At $18 trillion, it represents
among the Least Developed Countries if it a quarter share of the global economy (24.3%),
meets three criteria. according to the latest World Bank figures.
• Poverty – adjustable criterion based on China follows, with $11 trillion, or 14.8% of
GNI per capita averaged over three years. As the world economy. Japan is in third place with an
of 2018 a country must have GNI per capita economy of $4.4 trillion, which represents almost
less than US$1,025 to be included on the list, 6% of the world economy. European countries
and over $1,230 to graduate from it. take the next three places on the list: Germany
in fourth position, with a $3.3 trillion economy;
• Human resource weakness (based on
the United Kingdom in fifth with $2.9 trillion;
indicators of nutrition, health, education and
and France in sixth with $2.4 trillion. India is
adult literacy).
in seventh place with $2.1 trillion, and Italy in
• Economic vulnerability (based on eighth with an economy of over $1.8 trillion.
instability of agricultural production, Ninth place goes to Brazil, with an almost $1.8
instability of exports of goods and services, trillion economy. And in 10th is Canada, with
economic importance of non-traditional an economy of over $1.6 trillion. The economy
activities, merchandise export concentration, of the United States is larger than the combined
handicap of economic smallness, and the economies of numbers three to 10 on the list.
The world’s biggest economies

GDP in current USD and share of global total, latest World Bank Data:2015
United States US$18 trillion 24.30%

China 11 14.80%
Japan 4.4 5.90%
Germany 3.4 4.50%
United Kingdom 2.9 3.90%
France 2.4 3.30%
India 2.1 2.80%
Italy 1.8 2.50%
Brazil 1.8 2.40%
Canada 1.6 2.10%
Source: World Bank and Visual Capitalist
XII Geography 78

DIVISION OF THE WORLD N
W E
S
TN_GOVT_XII_Geography_chapter 04.indd 79
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Developed Countries
Countries in Transion
Developing Countries
Not to Scale
Less Developed Countries
Economic Activities
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Fastest-growing economy
Although China trails the US by $7 trillion, it’s catching up. China’s economy grew by 6.7% in
2016, compared with America’s 1.6%, according to the IMF. It has also overtaken India as the fastest-
growing large economy. The IMF’s World Economic Outlook estimated China’s economy grew at
6.7% in 2016, compared with India’s 6.6%. The chart above shows the world’s 40 biggest economies
individually, but grouped by colour into continents. The Asian bloc clearly has a larger share than
anywhere else, representing just over a third (33.84%) of global GDP. That’s compared to North
America, which represents just over a quarter, at 27.95%. Europe comes third with just over one-fifth
of global GDP (21.37%). Together, these three blocs generate more than four-fifths (83.16%) of the
world’s total output.
GDP Share of World Economies
XII Geography 80

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1. Quarries – Large deep pit stone and other materials are extracted from.
2. S overeign state - state with borders where people live, and where a government makes laws and
talks to other sovereign states.
3. Shellac - resin secreted by the female lac bug, on trees in the forests
4. Debt - a sum of money that is owed or due.
5. Protocol - a set of rules that governs the communications between computers on a network.
6. Malnutrition - Lack of sufficient nutrients in the body.
7. Poverty - the state of being extremely poor.
8. G
ross domestic Product - the final value of the goods and services produced within the geographic
boundaries of a country during a specified period of time
9. Standard of living - the degree of wealth and material comfort available to a person or community.
10. G
ross National Product (GNP) - the value of all finished goods and services produced in a country
in one year by its nationals.
Exercise
I. Choose the correct answer
1. Viticulture or grape cultivation is a speciality of
a) The Pampas region b) The savannah region
c) The Sahara region d) The Mediterranean region
2. Which of the following consists of only the developed countries?

a) Australia, Kenya, Pakistan, Germany and Italy
b) Australia, Canada, France, Germany and Italy
c) Australia, Sri Lanka, Thailand, Germany and Italy
d) Pakistan, Sri Lanka, France, Germany and Italy
3. Identify the one which is incorrectly matched.
a) Foragers — Region
b) Inuit — Arctic region
c) Pygmies — Kalahari
d) Aborigines — South America
e) Paliyan — South India
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4. As per the Vonthunen’s agriculture model, the order of the rings from the urban centre is
a) Grains and Field crops, Market, forests, dairy farming and ranching.
b) Forests Market, Grains and Field crops dairy farming and ranching.
c) Market, dairy farming, forests, Grains and Field crops and ranching.
d) Ranching, Market, forests, Grains and Field crops and dairy farming.
5. Which of the following is not the characteristic of the Least Developed countries?
a) low Gross Domestic Product b) high literacy rate
c) unequal distribution of income d) high level of unemployment
6. Which of the following is not the assumptions of Vonthunen’s model of agriculture?
a) The Isolated State is surrounded by an unoccupied wilderness.
b) The land of the State is completely flat and has no rivers or mountains to interrupt the terrain.
c) The soil quality and climate are not consistent throughout the State.
d) Farmers act to maximize profits.
7. Identify the one which is incorrectly matched?
a) Heavy industry - Iron and steel industry
b) Light industry - Sewing machines industry
c) Private industry - Bhilai steel plant
d) Public sector industry - Bharat Heavy Electricals Ltd
8. Which of the following is not the characteristics of the Developed countries?
a) lower per capita income
b) better housing and living conditions
c) high GDP
d) infrastructural and technological advancement
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9. Which of the following diagrams indicates profitable industrial location?
M M M M
P
P P R R
R R R R R R
a) b) c) d)
10. Which one of the following is not a plantation crop?

a) tea b) coffee
c) corn d) cocoa
II Very short answers

11. How do you differentiate plantation agriculture from extensive farming?
12. Define transhumance.
13. What is intensive agriculture?
14. Differentiate Quaternary and Quinary sector.
15. Write a short note on cottage industries.
III Short answers

16. Differentiate subsistence agriculture from commercial agriculture.
17. List out the factors which affects the location of industries.
18. Why are secondary industries more important than primary industries?
19. Define shifting cultivation. Name the regions where this type of farming is practiced.
20. Write any three assumptions of Vonthunen’s agriculture model.
IV Detailed Answers
21. On the basis of labour, source of raw materials, and ownership classify the industries and explain
any two types of industries.
22. Elucidate Weber’s Industrial location theory with suitable diagrams.
23. Explain any three characteristics of the developed and the least developed countries.
24. On the outline map of the world mark the developed and underdeveloped countries and write a
short note of it
V Practice
25. Read carefully and answer the following.
Where and what are the developing countries?
The map of the world given below shows the division between the rich developed countries of the
north and the poor developing countries of the south.
a) Lightly shade the rich countries in Red and the poor countries in Green.

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b) Name the equator and the two tropics.
c) 12 of the world's developing countries are written in box below. Each is located on the map by
its first letter.
Bangladesh, Nigeria, Kenya, Egypt, Pakistan, Brazil, China, Venezuela, India, Mexico, Peru, Ghana.
Write each name in full on the map.

N
W E
S
NORTH IVIDE
HD
O UT
-S
TH C
NOR
P
Tropic of C N
V
M E B
K
P
B
Tropic of C
SOUTH
Not to Scale
d) Which four of the statements are correct about the developing countries?
1. All of them lie south of North-South divide.
2. The all lie south of the Equator.
3. Most of them lie within the tropics.
4. They all lie in South America, Asia and Australia.
5. None are found in Europe and North America.
6. They all lie in South America, Asia and Africa.
Reference
1. Economic and commercial geography, K.K. Khanna and Dr. V.K Gupta
2. Human and economic Geography, Goh Cheng Leong and Gillian C. Morgan
Web reference
1. https://www.un.org/development/desa/dpad/
2. www.weforum.org/agenda/2017/03/worlds-biggest-economies-in-2017/
XII Geography 84

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ICT CORNER
Economic Activities- Farming
This activity enables the students to

understand about the FARMS and how to
do the farming. And also know a little bit
about sales and profit
Steps
• Type the URL link given below in the browser or scan the QR code. A page opens go
down and click “FARM MANIA”. Skip the add
• Now another page opens with menu.
• Select Play and start to play according to the instructions.
• End you will get your own farm.
Step 1 Step 2 Step 3
Website URL:
http://www.primarygames.com/arcade/simulation/farmmania/
*Pictures are indicative only.

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Unit Overview Learning Objectives

➢ Classify the economic

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Employees of the economic activity called as

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Extensive Farming Mixed Farming

Pomology – The study of

Extensive Farming Viticulture – T

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Plantation Agriculture Horticulture

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Open pit mining involves mining minerals

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a result industry is established near the coal Weber’s Theory of Location

5. Availability of labour: Labour is required Based on these assumptions, together with

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finished products from industrial location In the final analysis,

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On the Basis of Labour Heavy Industries

Small Scale Industries Light Industries

Cottage Industries Industries owned by individuals or

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Joint Sector Industries goods. Basic industries are manufacturing

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City in a less Developed Country

etc. Developed Countries refer to the sovereign

4.5 Division of the world on the Developed countries

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City in a Developed Country

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2015 2016 2017 2018

2% 1.9 1.8 1.9

the world 1% 2.2 2.3

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The Least Developed Countries percentage of population displaced by natural

The world’s biggest economies

United States US$18 trillion 24.30%

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GDP Share of World Economies

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4. Debt - a sum of money that is owed or due.

6. Malnutrition - Lack of sufficient nutrients in the body.

7. Poverty - the state of being extremely poor.

2. Which of the following consists of only the developed countries?

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9. Which of the following diagrams indicates profitable industrial location?

10. Which one of the following is not a plantation crop?

II Very short answers

III Short answers

22. Elucidate Weber’s Industrial location theory with suitable diagrams.

Where and what are the developing countries?

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b) Name the equator and the two tropics.

Write each name in full on the map.

5. Availability of labour: Labour is required Based on these assumptions, together with

4.5 Division of the world on the Developed countries

4. Debt - a sum of money that is owed or due.

6. Malnutrition - Lack of sufficient nutrients in the body.

7. Poverty - the state of being extremely poor.

2. Which of the following consists of only the developed countries?

9. Which of the following diagrams indicates profitable industrial location?

10. Which one of the following is not a plantation crop?

22. Elucidate Weber’s Industrial location theory with suitable diagrams.