7.2 : Economic Sectors and Patterns (Pgs. 452-461) Flashcards
Primary Economic Sector
Extracting natural resources from the earth. Examples: Farming, Mining, Fishing, Forestry. Dominated economy until the late 1800s, Includes many high-risk jobs, A small part of today’s economy, Few high-paying jobs, Most jobs require physical skill.
Secondary Economic Sector
Making products from natural resources. Examples: Manufacturing and Building. Significant growth from the 1840s to the 1960s, Wages vary greatly.
Tertiary Economic Sector
Providing information and services to people. Examples: Retail sales, Medicine, and Housekeeping. A small part of the economy until the mid-1900s, Most people in the U.S. labor force today, Wages vary widely.
Quaternary Economy Sector
Managing and processing information. Examples: Financial analysis, Software development, and Data science. Small percentage of employees, Most jobs require advanced education or technical skills, High wages, Considered part of the tertiary sector until recently.
Quinary Economic Sector
Creating information and making high-level decisions. Examples: Research and Top managers in corporations or government. Very small percentage of employees, Very high income, Decisions can affect millions of people, Considered part of the tertiary sector until recently.
Structural Changes in Economies (Chart)
Periphery: Primary is high, Secondary and Tertiary is low, Quaternary and Quinary don’t exist.
Semiperiphery: Primary lowers, Secondary grows with Tertiary but ends up plateauing, Quaternary and Quinary begin to exist.
Core: Primary is low, Secondary has lowered as well, Tertiary is the highest almost as high as Primary is in periphery, Quaternary and Quinary are growing.
Labor Force by Sectors (Chart)
US: Primary is a tiny sliver, Secondary is around 20%, Tertiary is the rest (big sector of labor force)
China: Primary and Secondary are around the same size and together take up a bit more than half of the labor force, Tertiary is the rest.
Ethiopia: Primary is the majority and takes up around 90% of the chart, Secondary is around 3% of the rest, Tertiary is 7% of the rest.
Multiplier Effect
The potential of a job to produce additional jobs.
Weber’s Least Cost Model
Explains the key decisions made by businesses about where to locate factories. Minimize total cost by minimizing transportation costs, minimizing labor costs, and maximizing agglomeration economies.
Agglomeration
The spatial grouping of several businesses to share costs.
Locational Triangle
The three points of the triangle are the market for a good and two resources needed to make the good.
Bulk-reducing Industry
These types of industries are known as weight-losing, raw material-oriented, or raw-material-dependent industries.
Bulk-gaining Industry
These factories are usually located close to the market. This is so they don’t have to pay large costs for transportation.
Comparing Weber’s Theory to Reality
-Uniformity of Area
-Labor
-Raw Materials
-Number of Products and Markets
-Transportation Costs
-Influences on Location
-Significance of Costs
Labor-oriented Industry
Highly dependent on a workforce and will want to be near a source of those workers.
Break of bulk
The procedure of transferring cargo from one mode of transportation to another.
Containerization
The system in which goods are loaded into a standardized shipping unit.
Intermodal
Meaning they can be carried on a truck, train, ship, or plane.
^ Factors in locating in locating industry - national scale of analysis
Example: Southeastern United States
- Proximity to the market of the densely populated northeastern United States
- Proximity to raw materials
- Availability of sufficient labor with the right mix of skills
- Lower than average wages for the United States
- Access to global transportation network through the Atlantic Ocean and the Panama Canal
- Adequate and affordable supply of power
^ Factors in locating industry - regional scale of analysis
Example: Charleston, South Carolina
- Favorable government regulation such as tax incentives
- Agglomeration economies from nearby factories
- Access to global and national transportation networks: Large airport, container ship port, 2 major rail lines, and 3 interstate highways.
- Local universities and tech schools provide skilled workers
- Lower than average energy costs for the United States
- High quality of education, recreational, affordable housing, and medical facilities
^ Factors in locating industry - local scale of analysis
Example: Industrial park site beside the harbor
- Large, flat piece of land that is easy to build on
- Adequate water and sewer lines
- Waterfront access and a dock available for ships
- Rail spur line connecting to the main rail system
- Good road system connecting to major highways and airport
- Adequate space for easy truck loading and unloading
- Adequate parking space for employees.
Footloose
Businesses can pack up and leave for a new location quickly and easily.
Back office
The company deciding to locate the rest of its employees in less expensive office spaces.
