In this section, you will examine the three factors that affect economic activities in various regions around the world: climate, resources, and infrastructure. Read more about each element below.

Climate

The climate of an area can determine the types of economic activities within a region. Climates with warmer temperatures and abundant, fertile soil may be better suited for farming, while a much colder climate may not be suitable for farming.

Scroll over each image to learn more.

Resources

Resources are important factors that affect the types of economic activities of a region. There are two types of resources.

Natural resources - items provided by nature from which people produce goods or services

Human resources - individuals who do the work within an economy

Natural resources occur naturally within environments undisturbed by mankind while human resources make up the workforce of an organization. In the photo shown below, blueberries which grow wild in Kake, Alaska, are being harvested as an organic fruit that sells for up to $3.10 per pound. This is an example of commercial farming.

Infrastructure

The infrastructure within a region is another factor that affects the economic activities of a region. Infrastructure is the organization of systems such as communication, transportation, and technology that support an economy. The more advanced the infrastructure, the more advanced and prosperous the economy.

Look at the two maps below. What do they have in common?

Both Switzerland and Rwanda are small, landlocked countries. Neither has direct access to a sea. These two countries, however, have economies that are completely different; Switzerland has a highly skilled workforce, while 90 percent of Rwanda’s population is engaged in subsistence agriculture.

Read below about the resources of each of these countries.

You have already learned that Switzerland has a highly skilled labor force and an economy led by services such as banking and insurance. Coupled with the resources listed above, Switzerland is a highly technological society. Switzerland has strong ties with its neighboring countries and maintains a constant level of peace.

To read more about Switzerland, click on the link below.
Switzerland

Although Rwanda has rich fertile soil, the dominant subsistence farming leads to slow food production. The resources listed above indicate that the infrastructure of the country does not support much in the way of technological innovation. Rwanda is also affected by the political instability that plagues its neighboring countries; Rwanda is unable to maintain a positive trading relationship with any of these countries given the constant unrest.

To read more about Rwanda, click on the link below.
Rwanda

Given the geographic similarities of Switzerland and Rwanda, think about the how the infrastructure impacts the economic activities of each country. Answer the following questions in your notes.

1. Using what you have learned about each country, list at least three similarities and three differences for each country.

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   Similarities - Both countries are small and landlocked and have agricultural output.
   Differences - Switzerland has a higher level of technology overall. Switzerland has good relations with neighboring countries. Switzerland’s agricultural output represents a small percentage of the economic activities.
2. Although Rwanda and Switzerland are both landlocked, Rwanda is bordered by Lake Kivu on its southwestern border. With this adjacent waterway, Rwanda still lacks the proper transportation to trade goods such as its cash crop, coffee. Why is the lack of transportation still an issue for this country?

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   The constant political instability of the neighboring countries makes the use of the waterway impossible for trade.
3. When comparing the technology of both countries, how does this impact the economic activities of Switzerland and Rwanda?

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   The primary economic activities in Switzerland revolve around services such as banking and insurance; technology is extremely important to these industries.
   Agriculture is the primary economic activity in Rwanda. Nearly 90 percent of Rwandans are involved in this industry, mainly in subsistence farming. Technology is not essential to this industry.

Summary

In this lesson, you were able to identify and locate economic activities around the world. Factors such as climate and resources are important to determining what types of economic activities are located within a region.