Those concepts tie into world-systems theory, associated with economist Immanuel Wallerstein. We just mentioned the core and the periphery. Wealthier countries can benefit from both commodity dependence and dependency theory, as they allow them to take advantage of cheaper resources. It is somewhat related to dependency theory, a system that enables or encourages commodity dependence: the flow of resources from developing countries ( the periphery) to developed countries ( the core). Commodity Dependence and Dependency TheoryĬommodity dependence is an economic situation in which a country comes to rely on the export of commodities to generate wealth. The Least Cost Theory can be seen in action today with the many Western industries that have exported their manufacturing to developing nations where workers can be paid a lower salary. This pattern is called the Least Cost Theory. German economist Alfred Weber suggested that industries-seeking to minimize costs and maximize profits-would likely choose to locate manufacturing plants where labor and transportation would be the cheapest. ![]() Trying to understand how and why wealth is distributed is no small task, and geographers have developed a number of different theories and hypotheses to explain overarching patterns. That being said, a few theories of economic geography have proven to be foundational to modern study. ![]() You can look into historical patterns real estate, gentrification, and urbanization types of economies the concentration of wealth within cities, regions, and countries trading philosophies and policies-the methodologies are endless. How and why does economic wealth play a factor in the human condition? What effects does economic development have on human well-being? Studying economic geography helps answer those questions.īut there are quite literally dozens of different ways to approach economic geography. Economic geography is the study of the spatial distribution of economic activity and economic development.īecause so much of our daily lives revolve around economic transactions, great and small, economic geography is a critical subset of human geography.
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