Economic Change Revision Define primary, secondary and tertiary sectors, giving examples for each sector How the importance of the sectors has changed and the reasons for the changesWhy has there been a decline in the numbers employed by the Primary Sector in theUK? Including: depletion of resources, cheap imports, Mechanisation, social change Why has there been a decline in the secondary sector in the UK? including: globalisation and cheaper production overseas, mechanisation, government policies. Case Study: Growth of the Secondary Industry in China and it’s effectsWhy has there been a dramatic growth of the tertiary sector since 1970? Including: i. a rise in the demand for services lined to disposable incomes ii. The development of new technologies and services iii. Decrease in employment in the primary and secondary sectors iv. Demographic changes, eg the ageing population What are the Factors affecting the location of primary, secondary and tertiary activity What are the costs and benefits of de-industrialisation in rural areas
Sectors of IndustryAlthough there are hundreds of different jobs or occupations, they can all be classified into 4 categories:Primary Working with or the extraction of natural resources e.g. Farming, mining or forestry Making things either by manufacturing orSecondary construction e.g Nissan Car manufacturing This type of industry provides services. These include commercial servicesTertiary (Shops), Professional (Solicitors), Social (School teacher), entertainment ( restaurants), Personal (Hairdressers) This is a new sector and is linked toQuaternary ICT and research development (Genetics Researcher)
The diagram above shows how the sectors change over time over three phases. The main type of industry for a country depends upon theeconomic status of a country e.g. LIC tends to be mainly theprimary and secondary sector and a HIC tends to be mainly the tertiary and quaternary sector.
Reasons for Economic Sector ChangeIn the UK in 1800AD most people would have During the industrial revolution, more Improvements in technology led tobeen employed in the primary sector. people were needed to build ships, work in increased mechanisation, this means steel making and with textiles. All of these machines were created which meant less jobs are found in the secondary sector workers were needed.Mechanisation has led to the reduction of Foreign industries also became more Since 1900 mechanisation meant that lessagricultural workers . competitive and imports such as coal people were required to work on the land became more affordable. As the availability and in industry, as machines could carry of coal declined in the UK, and also became out most of the work that people more expensive to extract more coal was previously did. imported.The demand for work increased in schools, By 1900 over half of the workers in the UK Materials being imported from abroad ledhospitals and retail industries. As people were were employed in secondary industries. to a decrease in the number of peopleliving longer, having fewer children and people employed from in the primary industry.have more disposable income.Jobs in primary industries are often seen to be An increase in tertiary employment. This was By the year 2000 over half of the UK‘dirty’ and to have few career prospects. gradual but steady until the second world workforce was employed in tertiaryWorkers prefer the better paid and less war, then this was slightly reversed due to industries and only a small number werephysically demanding jobs like in the tertiary increased manufacturing as part of the war employed in primary industries. This hassector. effort. changed the work that people do, and also where they work.The manufacturing industries were steady until Many raw materials, for example iron ore The growth in the tertiary sector increaseda decline in the 1990’s which mirrored the and coal, have been used up or cheaper to rapidly in the last decades of the twentiethgrowth of the tertiary sector. import from abroad. century. Most of this was in the new hi- tech industries such as micro-electronics and research/development.Quaternary industries are a relatively new Many secondary industries were relocating In the UK there is more people employedconcept, and it is only recently that they have in different LIC countries linked to labour by the tertiary and quaternary sector.been added to these figures. However it is being cheaper, cheaper to locate there etc. Linked to imports and globalisation thebecoming an important and growing sector in things we acquire from primary andthe UK as many firms want to carry out secondary tend to be carried out in LICresearch and development for their products. countries.
Why has there been a decline in the Primary Sector in the UK?Reasons:• Resource depletion is the exhaustion of raw materials within a region. Therefore. without the resources the primary industry cannot run.• Globalisation – The world becoming more interconnected has meant its easier and cheaper to transport goods, therefore it is easier for industries to move abroad where it is cheap to import and export goods with cheaper land and cheaper labour force.• Cheaper Imports – It can be cheaper to export natural resource from other countries e.g. Bananas from Chile.• Mechanisation – The advancements in technology has resulted in machines being built and these resources are replacing the workforce. E.G. A farm that used to employ 150 people 100 years ago now employs 10 people linked to the fact they now have a mechanised plough.• Social Change – Some primary jobs are now classed as undesirable linked to the fact people perceive the jobs as hard, with long hours and hard manual labour.
Primary industry in the UK has declined in recent years.Give two reasons for this decline. (4)Credit references to both primary industry and primaryemploymentMax 3 for 1 reason e.g. increased mechanisation (1); longer hours (1), dangerousconditions (1), coal is getting too expensive to mine (1) andit’s cheaper to import it (1); resources become exhausted (1)so they are imported (1)Explain why the numbers employed in the primary sector in the UK havedeclined over the last 50 years. Use examples in your answer. (4)
Why has there been a decline in the Secondary Sector in the UK ?• Globalisation – The world is not more interconnected meaning it easier to transport imports and exports, easier to communicate and is overall cheaper as well. Therefore, due to globalisation companies can move there factories abroad, however, can still manage their company from the country of origin.• Cheaper Production Costs – Many factories are closing in the UK and moving to other countries, which tends to LIC’s for its a cheaper workforce, with no or very little working regulations and cheaper land. Overall, cheaper production costs than it would be in the UK, which means they can make more money from just selling the product.• Mechanisation - Advances in technology has resulted in the creation of machines in manufacturing plants which are replacing labourers.• Government Policies/Regulations• Deindustrialisation – Factories are closing within the UK and moving abroad due to various reasons.
Growth of the Secondary Industry in a LIC/MIC - ChinaPolitical Change - China has moved from a communist government to a capitalist government. Basically more private industries can now thrive and prosper without having to share their profits with the whole country therefore a growth of secondary industries can create more money, therefore the industry can grow furtherWorkforce - Linked to the large population there is a plentiful supply of workers, also linked to the fact that mechanisation in agriculture means workers are moving from rural to urban areas in search of work. Linked to the large population there is a plentiful supply of workers, also linked to the fact that mechanisation in agriculture means workers are moving from rural to urban areas in search of work.Globalisation - The shrinking of the world by the process known as globalisation has enabled countries in HICs to have good s assembled in LICs at a fraction of the price of the manufacturing process in the HIC. Goods can be transported easily around the world from where they are produced to where they are sold. China has a large workforce which can be employed cheaply.Natural Resources and Energy - China has a great wealth of natural resources having vast reserves of cal, oil and natural gas. These are being used to fuel the industrial development of the country. China has also developed a large amount of new hydroelectric and nuclear power station to provide even more energy.Government Policy - There has been a change in government policies,for example, laws which used to stop people investing in China have been abolished. Many companies from foreign countries now have factories in China, particularly Transnational Companies
Choose either one LIC or one MIC that you have studied. Explain the reasons for the growth in its secondary sector.
Growth of the Secondary Industry in a LIC/MIC – China EffectsYou must be able to explain the following effects: There has been an unprecedented Damage to the environment Better Housing in urban areas. growth in the Chinese Economy in caused by the working of natural the last 20 years. With exports resources, exceeding imports. such as coal, oil and iron ore There are few laws to protect the Rising incomes and a higher China’s status within world power workers, particularly the millions standard of living for its people is rising therefore they are of migrant workers. They are (at least those becoming an influential super being heavily exploited and have living in towns and cities) power which great influence in to live and work in appalling, global affairs. overcrowded conditions Linked to natural reserves running In the whole country there are There has been very little out, China is having to invest 760 000 recorded deaths a year spending on social infrastructure, heavily into creating new energy from air and water pollution, mush for example government spending sources. as this is create through industry. is lower now than the 1980’s. Massive rural-to-urban migration China’s rate of development is The gap between the rich and as people leave the countryside increasing within each year, with a poor is widening. With the poor for factory shift from LIC to MIC. being amongst the poorest in the Job’s in towns and cities. Few world. people left to work within rural areas.
Choose one LIC or MIC which has experienced growth in the secondary sector. Explain the effects of the growth of the secondary sector on this country. (6)Chosen LIC or MIC .................................................................
Why has there been a dramatic growth of the tertiary sector in the UK since 1970?• More disposable Income – Linked to the fact people are paid more, once they have paid off the bills they have more money to spend on themselves e.g. Can afford to have a gym membership (Tertiary Employer).• Advances in technology – Technology has created new services such as lots of mobile phones shops have opened on the high street. Broadband service providers, website designers and the servicing of PC’s and laptops.• Decline the primary and secondary industries – The decline in the two sectors has led to more people being employed in the tertiary sector• Demographic Changes – Linked to people marrying later, people tend to spend money on entertainment services and personal services. Also people live later therefore, the retirees have more money to spend on services such as care homes, day centres and Saga holidays. The ‘Greying Pound’.
Factors affecting the location of industriesYou must be able to explain how the following factors are linked to the location of the following industries: Primary Industry Secondary Industry Tertiary Industry Location Factors: Location Factors Location Factors • Availability of • Skilled Labour force •Modern design to attract nearby potential clients Natural Resources •Other secondary •Location next industries industries nearby e.g. which employ a large •Demand for the For parts number of employees, therefore have an easy natural resource • Transport links – Very customer advantage. accessible •On the edge of town (rural •Transport Links to •Greenfield sites areas) , for space transfer natural nearby for potential expansions and easy access resources expansion •Excellent transport •Government Incentives system including wide•Labour force nearby roads, bus routes, cycle – Grants offered to and pedestrian lanes for attract businesses to easy public access. certain areas where •Location next to other there might be tertiary industries, to unemployment. attract custom
Exam Practice Study Figure 1b (photograph) in the Resource Booklet. It shows a retail park (tertiary sector) in the north-east of England. Suggest reasons why this area is a good location for a retail park. Use evidence from the photograph in your answer. (3)
Due to industries closing down Extraction of sand and gravel this meant that people were around Reading in Berkshire migrating away to find left many dangerous water employment. filled quarries. RURAL – URBAN MIGRATION Many rural areas suffered highlevels of unemployment, which Evidence of environmental has had a impact for many pollution was left such as years. Linked to the fact many polluted waterways, waste who were employed only had heaps etc specific skills.
Many Rural areas after deindustrialisation became regenerated and used for alternative purposes. Look at the example of READING. BENEFITS Madejski stadium, built Green Park, which is a on waste tip which was science park covering 70 an old gravel quarry. The Copthorne Hotel, next to hectares and employing land cost £1 10 acre lake. The hotel 7000 people has many facilities including water sports.Quarry still in use. Describe the benefits deindustrialisation has Former Gravel pit quarry now agricultural land brought to Reading.
Exam PracticeExplain the benefits and costs of de-industrialisation in rural areas.Use examples in your answer. (6)