50 terms

Geography Economic Change

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Primary Sector
The extraction of raw materials from the ground or sea. Examples: Farming, fishing, mining, forestry
Secondary Sector
This is the manufacturing of goods using the raw materials from the primary industry. Examples: Car manufacturing
Tertiary Sector
Involves the provision of goods and services. Examples: Real estate agent, hairdresser, teacher, doctor, sales assistant
Quaternary Sector
Concerned with research and development. Often included within the tertiary sector.
Employment Structure
The proportion of people working in the primary, secondary and tertiary sectors in any place
LIC, Mali Employment Structure
85% in the primary sector, 21% in the secondary sector, 17% in the tertiary sector. LICs often have a lot more space and natural resources for the primary sector. Mali isn't very economically developed and poor because most of the population still works in the primary sector.
MIC, Taiwan Employment Structure
20% in the primary sector, 35% in the secondary sector and 45% percent in the tertiary sector. The highest % of people are employed in the tertiary sector, but the primary and secondary sectors still have quite high percentages too. Taiwan is a newly industrialised country therefore each sector has relatively even percentages.
HIC, Germany Employment Structure
3% in the primary sector, 30% in the secondary sector and 67% in the tertiary sector. The highest percentage of people are employed in the tertiary sector, very few people work in the primary sector and the secondary sector still has quite a few people. Germany is a rich country, and has a mature and developed economy.
GDP
Gross domestic product. The total value of goods and services produced by a country in a year.
UK's Employment Structure: Primary
In the 1800s around 85% of the UK's population was employed in the primary sector. However this percentage rapidly decreased to about 25% in 1850- it dropped by 50% over 60 years. From the onwards it steadily declined reaching about 1% in 2000
UK's Employment Structure: Secondary
In the 1800s 2% of the UK's population was employed in the secondary sector. This gradually increased to 20% in the 1900s, however it began to slowly decline reaching 19% in 2000.
UK's Employment Structure: Tertiary
13% of the UK worked in the tertiary sector. This began to rapidly increase to 58% in the 1900s, reaching 81% in 2000.
Reasons For Decline in the Primary & Secondary Sectors in the UK
Mechanisation, Depletion of resources, cheap imports, social changes, globalisation, government policies
Mechanisation
Improvements in technology has led to increased mechanisation, which has had a serious impact on the number of people employed in both the primary and secondary sectors. For example the Honda factory in Swindon used to have people manually paint the cars, whilst now they used different types of machinery/robots to do it. Also there is less need for manual labour in the agricultural industry as machines have also replaced workers.
Cheap Imports
Raw materials are difficult to access in the UK, trying to extract them would be a lengthy and expensive process. Therefore companies now import resources from abroad. For example Port Talbot in South Wales used to locally mine resources, whilst now they import iron ore from Norway and steel from Russia. (primary sector)
Social Change
There has been a change in attitudes towards jobs in the primary sector. Jobs are often seen as dirty and to physically demanding. People prefer better paid and less physically challenging jobs. Tertiary jobs are often situated in more urban areas where the facilities are better. (primary)
Depletion of Resources
The mining industry in the UK has declined significantly in the UK because many raw materials that used to be mined have been used up. The production of coal in the UK peaked at 287 million tonnes in 1913, these decreased to only 17 million tonnes in 2007. Also, 1 million people are employed in the mining industry in 1917, in 2007 it was only 5,500.
Globalisation
Companies have been able to move their manufacturing bases to cheaper locations due to globalisation. Firms now have branches all over the world, technology and the internet allowing the companies to easily keep in contact with producers. A development in transport technology means goods can be moved easily and quickly around the world. For example many Marks & Spencers products are made in Portugal where land and labour costs are much less therefore goods can be produced more cheaply. M&S also have manufacturing bases in Morocco, Sri Lanka and the Middle East.
The Pre-Industrial Phase
The primary sector leads the economy and employs more than 2 thirds of the working population. Agriculture by far is the most important activity.
The Industrial Phase
The secondary and tertiary sectors increase in importance. As they do the primary sector declines. The secondary sector peaks during this phase but rarely provides jobs for more than half of the workforce.
The Post-Industrial Phase
The tertiary sector establishes itself as the most important sector. The primary and secondary sector continue to decline. The quaternary sector begins to develop.
The Growth of the Secondary Sector in China
Education, energy, raw materials, globalisation, private enterprise, infrastructure improvements and workforce.
Education
Literacy levels have risen dramatically over the past 20 years (90%) in China. This has also fuelled the economic development of China. Therefore China has both a large numbers of unskilled workers and a growing number of skilled workers.
Energy
Since the 1990s China has been developing its energy base with new hydroelectric and nuclear power stations.
Infrastructure Improvements
The government has built may new roads and allowed the building of many new factories which have also fuelled the growth of the economy.
Raw Materials
China has great wealth in natural resources such as coal and natural gas. The natural resources are being used to fuel industrial development in the country.
Globalisation
Globalisation has enabled companies in HICs to have goods assembled at a low cost in LICs. Goods can easily be transported around the world where from where they are produced to where they are sold. China has a large workforce which can be employed cheaply.
Workforce
Chinese workers are the lowest paid in the world, receiving only 40p an hour. There's a plentiful supply of workers in China, many people move from rural to urban areas to work.
Negative Environmental Effects Of Growth In The Secondary Sector Of An LIC
- Rapid economic growth has led to many environmental issues
-3 million people are affected by pollution
- 80% of rivers are below the standard of fishing
- Out of the top 20 most polluted cities in the world, 16 of them are in China
- There's arsenic in water supplies
- 75% of energy in China is produced from coal
- Endless landscapes of factories in Linfen releasing toxic fumes
- 70% of Chinese cities cannot reach their air quality standards
- There are 760,000 recorded deaths every year due to pollution
- In Linfen lung cancer and heart disease are common due to the air pollution
Positive Environmental Effects Of Growth In The Secondary Sector Of An LIC
- As a result of a vast amount of pollution, the government is spending more money on environmental protection: $72 billion
- $37 billion for desulphurisation
- $25 billion for industrial waste and water treatments
Government Targets:
- 16% of energy to be renewable by 2016
- Reduce energy consumption by 20%
Positive Economic Effects Of Growth In The Secondary Sector Of An LIC
There has been an unprecedented growth in the Chinese economy over the last 20 years, resulting in:
- A better quality of life (steady income)
- Improvement in infrastructure
- More jobs are being created due to a growth in the secondary industry
Positive Social Effects Of Growth In The Secondary Sector Of An LIC
- Government spending on health is lower than it was in the 1980s, however more and more is being spent on education instead
Negative Social Effects Of Growth In The Secondary Sector Of An LIC
- There has been little spending on social infrastructure
- Although schools do eventually produce well educated students, there's only 1 teacher for 80 students
- There are few laws protecting migrant labourers
- They're excluded from the health care system
- Live in appalling, overcrowded living conditions
- They have very long working hours and get low wages under hazardous conditions. Chinese workers get 40p an hour
TNCs
- Transnational Company
- A TNC is a company that operates all over the world, helping to connect different nations
- There are over 60,000 TNCs
- Employ 1% of the worlds workforce
- Top 200 account for 25% of the world's economic activity
Examples Of TNCs
- McDonalds
- Nike
- Apple
- Microsoft
- Marlboro
- Starbucks
- Shell
Outsourcing
Sending parts of the work to other countries
Social Effects Of TNCs
- TNCs only have to meet the local health and safety laws which may be very weak, resulting in health damage to workers
- There have been literacy improvements as workers are trained by TNCs
- Hybrid products: new products emerge to accommodate local fashion and tastes
- Worker exploitation: employees may be forced to work long hours and are often banned from joining trade unions
- Traditional clothing and food may be abandoned to due global products being favoured over local ones
Environmental Effects Of TNCs
- TNCs often have a poor record of looking after the environment E.g Oil spills in Nigeria- Shell
- Many products have to be shipped over great distances creating even more pollution
Economic Effects Of TNCs
- Local firms benefit from increased customs as people are receiving pay from TNCs
- There has been an increase in gender inequality, firms are happy to pay more money to men and less to women
Factors Affecting The Choice Of Economic Locations: Primary
Primary:
- Raw materials
- Transport routes to export goods
- Edge of the city- room for expansion
- Workforce
- Cost of land- cheaper in rural
- Land relief
Factors Affecting The Choice Of Economic Locations: Secondary
Secondary
- Transport routes to import and export goods
- Workforce
- Edge of the city- room for expansion
- Close to the market to sell goods
- Cost of land- cheaper in rural
- Land relief
Factors Affecting The Choice Of Economic Locations: Tertiary
Tertiary
- Customers in the area
- Transport routes for customers and importing of goods
- University- possible skilled workforce
Factors Affecting Location In The Primary Industry: China clay extraction in Cornwall
- Kaolin, also called china clay, is a soft white clay that is an essential ingredient in the manufacturing of porcelain and is widely used in the making of paper, rubber, paint, and many other products.
- Kaolin only found in the South-west of England.
- Train to ports on the south coast of Cornwall, ships took raw material to Liverpool, transport by barge along the Trent and Mersey Canal to Winsford in Cheshire, Last 30 miles to Stoke-on-Trent by packhorse
- Nowadays: 80 per cent of the China clay extracted is used by the paper industry, 12 per cent by the ceramic industry
- 120 million tonnes of china clay has been extracted and the supply is to last at least another 100 years
Factors Affecting Location In The Secondary Industry: Shoreham Powerstation
Shoreham Powerstation
- Southwick, West Sussex, South coast of the UK
- Gas supply from nearby port, resulting in lower transportation costs- coal is also nearby
- River Adure is very close, providing a source of hydroelectric power
- Built on the site of an old power station, few renewal and redevelopment costs required
Factors Affecting Location In The Secondary Industry: Toyota Factory in Derby
- Toyota
- In Derby, Peak District National Park, Central UK
- Excellent transport routes: on the junction of the A38 and A50- dual carriageways. which link to the M1 and M6 which travel all the way through the UK- goods can easily be exported
- It has been built on a greenfield site, leaving a lot of room fro expansion, about 280 hectares
- Car manufacturing is a tradition in Derby, therefore many of the parts/supplies can be obtained in the local area
Factors Affecting Location In The Tertiary Industry: David Lloyd's Health Club
- David Lloyd's Health Club is located near to auctions 3 and 4 of the motorway A1(M), making it easily accessible to other potential customers
- It is within walking distance from Hertfordshire University, again providing another base of potential customers
- It's next to a large indoor shopping centre, so when shoppers are done shopping, they can easily walk to David Lloyd's health club
- Attractive landscapes attract workers, people would much rather work in a green, lush, nicely landscaped area than a bare, isolated area
- Modern flats house young, single people, the exact type of people that Health Clubs attract
What Are The Reasons For Decline In The Secondary Sector In The UK?
- Demographic changes
- A rise in demands and services (and disposable income)
- New Technology
New Technology
- Due to a number of new developments in technologies, especially in computing and telecommunications, more people are employed in this area of the tertiary sector
- Most high street shops have several shops selling mobile phones as most people nowadays purchase a new phone every year
- Communications on the internet has also developed
- Shopping and banking online has become very popular,resulting in major developments of the jobs servicing these websites
- E.g designing and running websites, call centres
- In 2000, 350,000 people worked in call centres, which increased to 950,000 in 2008
A Rise In Demand And Services (And Disposable Income)
- Households on average are getting richer, they have more disposable income
- The average amount that households spend on non-essential items has doubled between 1987 and 2006
- This resulted in an increase luxury services such as gyms and beauticians, to suit the needs of the growing middle class
- In 2004, 4 million people were part of fitness centres, which has been rising by 12% every year since
Demographic Changes
- The ageing population has led to an increase in the number of healthy people, they have both money and time to spend on luxuries such as leisure and tourism
- Saga is a holiday firm for pensioners which has invested in garden centres. This is a predictable way for seniors to spend their time