This article defines a new term, Effective Area, K, of a given territory as a function of four independent parameters: its nominal acreage, A, the intellectual competence of its inhabitants, B, their social competence, C, and their global influence, D, using a simple formalism: K = A x B x C x D. This analysis demonstrates that in our current world any consideration of the physical area of a given territory is meaningless if the quality of its population is ignored. K is a much more useful parameter than A, certainly for political and economical considerations, explaining why claims for territorial expansion are placed low on the national ladder of priorities in the developed countries. In many respects, large geographical areas may become a burden rather than an advantage. Thus, the importance of armed conflicts over geographical territories, which have taken a dominant part of the entire human history, is fading away. Furthermore, although the global acreage is constant, the total effective area of planet Earth keeps growing, providing sufficient room for the growing human population.