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 changes

Why has there been a decline in the numbers employed by the Primary Sector in the UK? 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 effects

Why 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 servicesiii. 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

Secondary

Tertiary

Quaternary

Working with or the extraction of natural resources e.g. Farming, mining or forestry

Making things either by manufacturing or construction e.g Nissan Car manufacturing

This type of industry provides services. These include commercial services (Shops), Professional (Solicitors), Social (School teacher), entertainment ( restaurants), Personal (Hairdressers)

This is a new sector and is linked to ICT and research development (Genetics Researcher)

Change in Economic Sectors

The diagram above shows how the sectors change over time over three phases.

The main type of industry for a country depends upon the economic status of a country e.g. LIC tends to be mainly the primary 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 been employed in the primary sector.

During the industrial revolution, more people were needed to build ships, work in steel making and with textiles. All of these jobs are found in the secondary sector

Improvements in technology led to increased mechanisation, this means machines were created which meant less workers were needed.

Mechanisation has led to the reduction of agricultural workers .

Foreign industries also became more competitive and imports such as coal became more affordable. As the availability of coal declined in the UK, and also became more expensive to extract more coal was imported.

Since 1900 mechanisation meant that less people were required to work on the land and in industry, as machines could carry out most of the work that people previously did.

The demand for work increased in schools, hospitals and retail industries. As people were living longer, having fewer children and people have more disposable income.

By 1900 over half of the workers in the UK were employed in secondary industries.

Materials being imported from abroad led to a decrease in the number of people employed from in the primary industry.

Jobs in primary industries are often seen to be ‘dirty’ and to have few career prospects. Workers prefer the better paid and less physically demanding jobs like in the tertiary sector.

An increase in tertiary employment. This was gradual but steady until the second world war, then this was slightly reversed due to increased manufacturing as part of the war effort.

By the year 2000 over half of the UK workforce was employed in tertiary industries and only a small number were employed in primary industries. This has changed the work that people do, and also where they work.

The manufacturing industries were steady until a decline in the 1990’s which mirrored the growth of the tertiary sector.

Many raw materials, for example iron ore and coal, have been used up or cheaper to import from abroad.

The growth in the tertiary sector increased rapidly in the last decades of the twentieth century. Most of this was in the new hi-tech industries such as micro-electronics and research/development.

Quaternary industries are a relatively new concept, and it is only recently that they have been added to these figures. However it is becoming an important and growing sector in the UK as many firms want to carry out research and development for their products.

Many secondary industries were relocating in different LIC countries linked to labour being cheaper, cheaper to locate there etc.

In the UK there is more people employed by the tertiary and quaternary sector. Linked to imports and globalisation the things we acquire from primary and secondary tend to be carried out in LIC 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.

Population employed in Agriculture in the UK

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 - China

Political 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 further

Workforce - 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.

You must be able to explain the following effects:

Growth of the Secondary Industry in a LIC/MIC – China Effects

There has been an unprecedented growth in the Chinese Economy in the last 20 years. With exports exceeding imports.

Damage to the environment caused by the working of natural resources,such as coal, oil and iron ore

Better Housing in urban areas.

There are few laws to protect the workers, particularly the millions of migrant workers. They are being heavily exploited and have to live and work in appalling, overcrowded conditions

Rising incomes and a higher standard of living for its people (at least thoseliving in towns and cities)

China’s status within world power is rising therefore they are becoming an influential super power which great influence in global affairs.

Linked to natural reserves running out, China is having to invest heavily into creating new energy sources.

In the whole country there are 760 000 recorded deaths a year from air and water pollution, mush as this is create through industry.

There has been very little spending on social infrastructure, for example government spending is lower now than the 1980’s.

Massive rural-to-urban migration as people leave the countryside for factoryJob’s in towns and cities. Few people left to work within rural areas.

China’s rate of development is increasing within each year, with a shift from LIC to MIC.

The gap between the rich and poor is widening. With the poor being amongst the poorest in the world.

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 industries

You must be able to explain how the following factors are linked to the location of the following industries:

Primary Industry Location Factors:

• Availability of Natural Resources

• Demand for the natural resource

• Transport Links to transfer natural

resources• Labour force

nearby

Secondary Industry Location Factors

• Skilled Labour force nearby

• Other secondary industries nearby e.g.

For parts• Transport links –

Very accessible• Greenfield sites nearby for potential

expansion• Government

Incentives – Grants offered to attract

businesses to certain areas where there

might be unemployment.

Tertiary Industry Location Factors

•Modern design to attract potential clients

• Location next industries which employ a large number of employees, therefore have an easy customer advantage.

• On the edge of town (rural areas) , for space

expansions and easy access

• Excellent transport system including wide

roads, bus routes, cycle and pedestrian lanes for

easy public access.• Location next to other

tertiary industries, to 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)

Extraction of sand and gravel around Reading in Berkshire left many dangerous water

filled quarries.

Due to industries closing down this meant that people were

migrating away to find employment.

RURAL – URBAN MIGRATION

Many rural areas suffered high levels of unemployment, which

has had a impact for many years. Linked to the fact many who were employed only had

specific skills.

Evidence of environmental pollution was left such as

polluted waterways, waste heaps etc

The costs of rural-deindustrialisation

Many Rural areas after deindustrialisation became regenerated and used for alternative purposes. Look at the example of READING. BENEFITS

Copthorne Hotel, next to 10 acre lake. The hotel has many facilities including water sports.

Green Park, which is a science park covering 70 hectares and employing 7000 people

Madejski stadium, built on waste tip which was an old gravel quarry. The land cost £1

Quarry still in use.

Former Gravel pit quarry now agricultural land

Describe the benefits deindustrialisation has

brought to Reading.

Exam PracticeExplain the benefits and costs of de-industrialisation in rural areas.Use examples in your answer. (6)