4. Economic Activity and Energy Flashcards
What are the 4 economic sectors?
- Primary (collection of raw materials)
- Secondary (turning raw materials into manufactured goods)
- Tertiary (selling of services and skills)
- Quaternary (providing information services)
What is economic activity like in LICs (eg Ethiopia)
Majority of people employed in primary industries, inc subsistence farming
Secondary industries make up very small proportion of employment as the country is not yet fully industrialised
Still some people employed in tertiary industries eg doctors and teachers
What is employment like in NEEs (eg China)
Mechanisation causes primary industries to shrink
More people employed in secondary industries as many new factories are built
As country becomes richer, education improves, more people can work in tertiary industries
What is employment like in HICs (eg the UK)
Majority work in tertiary industries due to highly skilled workforce
Primary industry very small due to mechanisation and exhaustion of resources
Secondary sector decreases due to outsourcing
What factors affect the location of economic activities?
Availability of raw materials Land Customers Amenities Standard of employees Infrastructure Transport links
What are sector shifts?
Changes in the relative importance of economic sectors that take place as a country develops
Why does a country’s percentage employment in each sector not necessarily match the percentage GDP generated?
Primary industry doesn’t generate high incomes because the raw materials are low value items
Primary industry includes subsistence farming which does not generate income
Tertiary industry generates high incomes
What are reasons for sector shifts?
Availability of raw materials Globalisation and outsourcing Mechanisation Demographic changes Government policies
Facts about economic sector shift in China
Pop 1.4bil, GDP per capita $10,217
In the 1970s, China began to focus on secondary industry and export-led growth
Economy grew rapidly, bringing people out of poverty
On average, economy has grown by 9.2% a year for 30 years
Produces half of world’s microwaves, 2/3 of shoes and 1/2 of clothes
Value of international trade rose from $1.13bil in 1950 to $2,561bil in 2008, over 2,000 fold increase
In 2009, total value of exports was $1,435bil
Impacts of economic sector shift in China
POSITIVE:
Economic: Increasing GDP, high level of foreign investment, more employment opportunities in manufacturing and services, rising average wages
Social: better education, health, housing and social services
NEGATIVE:
Economic: increasing cost of living, companies look for cheaper countries
Social: ageing population in rural areas
Environmental: emissions from factories cause heavy air pollution, esp in major cities eg Beijing
Facts about sector shift in the UK (Sheffield)
UK pop 67 million, GDP per capita $40,284
Sheffield was famous for steel making and high quality cutlery made by master craftsmen
During the industrial revolution, Sheffield’s economy grew massively
Competition from more cheaply produced cutlery from China meant the industry went into decline
City died out in the 60s and 70s due to deindustrialisation
Area now being regenerated
Impacts of economic sector shift in the UK (Sheffield)
POSITIVE:
Economic: outsourcing is cheaper, new job opportunities, higher salaries
Social: Social development, people are better educated
Environmental: less pollution
NEGATIVE:
Economic: rising unemployment, inexperienced workforce
Social: many lost jobs, difficult to find jobs when applicants were inexperienced
What is informal employment?
Work that is not officially recognised, monitored or regulated by the government.
In LICs, often done on the streets in cities
In HICs, common through cash-in-hand jobs eg babysitting, tutoring etc
Sometimes called the ‘shadow economy’
What are causes of informal employment?
Too much rural-urban migration
Surplus labour
Underemployment
Not enough wages to support family
Facts about informal employment in Dhaka, Bangladesh
Pop 16 million
GDP $7,000
25% living in slums
Over 50% employed in the informal sector
Characteristics of informal employment in Dhaka, Bangladesh
No healthcare benefits
High exposure to risk
Child labour (half a million children in Dhaka)
Long hours and low pay
Poor/dangerous conditions
Bad health
Very difficult to break out of poverty cycle
Causes of informal employment in Dhaka, Bangladesh
Most densely populated megacity in the world
Job deficit
Limited education so people lack qualifications for formal jobs
Attracts immigrants from all over Bangladesh
Parents can’t afford living costs so children are forced to work
Advantages and disadvantages of informal economy in Dhaka, Bangladesh
ADVANTAGES:
Jobs for people who lack qualifications/skills
No tax (positive for workers)
Provides wide range of services and cheap goods
DISADVANTAGES:
Child labour
No government protection/work benefits
No tax (negative for government), hindering development
Dangerous
Low wages so it is hard to break out of the cycle of poverty
Fear and uncertainty for workers
