Component 1 - Topic 3: Challenges Of an Urbanising World 3:2 Flashcards
What is an informal economy ?
An unofficial and unregulated economy where no records are kept. People in the informal economy have no contracts or employment rights
Formal economy
Meets legals standards for accounts, taxes, worker pay and working conditions
Describe the proportion of people employed in each sectors in the pre-industrial stage
Most population works in the Primary sector (72%), some people work in the secondary sector (21%) and little people work in the tertiary sector (9%)
Describe the proportion of people employed in each sectors in the industrial stage
Around the safe amount of people working in tertiary and secondary sector (about 40%) and less people work in the primary sector about (20%)
Describe the proportion of people employed in each sectors in the Post-industrial stage
Majority of workers in the tertiary sector (50%) less people in the secondary sector, less people work in the secondary sector (30%) primary sector has heavily decreased (12%) and a new quaternary sector has emerged and is steadily growing (8%)
Give an example of an Emerging city and state some statistics
New Dehli: Located in North India, 50% of GDP from informal economy, worth 3.6T dollars
Give an example of a Developing country and state some statistics
Kampala: located in souther Uganda, 50% of GDP is from infirmal economy, value is 33B dollars,
Give an example of a developed country and state some statistics
New York: Located on east coast of USA, 7% of GDP is from informal economy, worth 1T dollars, main jobs are from “knowledge economy”
Define the primary sector
involves acquiring raw materials. For example, metals and coal have to be mined, oil drilled from the ground, rubber tapped from trees, foodstuffs farmed and fish trawled
Define the secondary sector
manufacturing and assembly process. It involves converting raw materials into components, for example, making plastics from oil. It also involves assembling the product, eg building houses, bridges and roads.
Define the tertiary sector
commercial services that support the production and distribution process, eg insurance, transport, advertising, warehousing and other services such as teaching and health care.
Why can a large informal economy be harmful to the development of a country
Money coming through the informal economy cannot be taxed therefore there the government cannot re-invest the money into infrastructure or developing other industries
Define the quaternary sector
Known as the information economy, e.g. research and development, scientists and researchers developing and investigating new products
Why is there some employment in the quaternary sector in developed countries
The country has lots of highly skilled labour and has money to invest in technology needed
Why is it that a low proportion of people work in the secondary industry in the developing countries
There is not enough money to invest in the technology needed for this type of industry
