Economic activity and energy Flashcards
Cycle of poverty
A self-perpetuating pattern of poverty and deprivation that passes from one generation to the next. It is perpetuated by poor educational opportunities and a low income
De-industrialisation
The process whereby the importance of manufacturing in the economy declines
Disposable income
Income that is left after taxes and social security charges have been deducted. Income that can be spent or saved as a household or person wishes
Economic sector
A major division of the economy based on the type of economic activity. The economies of all countries are made up of 3 sectors, most HICs have 4
Globalisation
A primarily economic process, increasing the integration of national markets for goods and services into a single global economy of market
Global shift
The movement of manufacturing from HICs to cheaper production locations in LICs
High-tech industry
Economic activities that rely on advanced scientific research and produces new, innovative and technologically advanced products, such as microchips, new medical drugs and new materials
Industrialisation
The process by which an economy is changed from a primarily agricultural one to one based on the manufacturing of goods
Informal employment
Types of work that are not officially recognised and are taken up by people working for themselves on the streets of LIC cities
Outsourcing
A practice used by some companies to obtain goods or services by contract from an outside supplier, rather than providing those goods or services themselves
Overpopulation
When the population of an area cannot be adequately supported by available resources
Primary sector
Working with natural resources e.g. fishing, agriculture, mining and quarrying
Secondary sector
Processing things such as food or minerals, making things by manufacturing, assembling or building
Tertiary sector
Providing services and enabling goods to be traded. This includes services that are commercial, professional, social, entertainment and personal. Public and private transport are also included in this sector
Quaternary sector
Economic activities that provide highly skilled services concerned with information and communications (ICTs) and research and development (R&D). Universities are an important part of this sector.
Primary sector Clark-Fisher model
- Pre-industrial is labour intensive
- Mechanisation in the industrial period reduces the need for labour
- The decline in sector continues post-industrialisation, especially with increasing food imports and further technological advances
Secondary sector Clark-Fisher model
- People forced out of the primary sector found jobs in the secondary sector
- The peak was during the industrial period where manufacturing was at its height
- Steady decline of people working in manufacturing during post-industrial period due to technological advances
- Many jobs in this sector are moved abroad due to cheaper labour
Tertiary sector Clark-Fisher model
- Steadily increasing since pre-industrial period
- More and more people required to sell the increasing number of goods produced
- Recent fluctuations due to technological advances but customer care is desired
Quaternary sector Clark-Fisher model
- Growth only begins to occur in post-industrial societies
- High levels of technology and skill involved require significant investment
- Growth in this sector can further decline employment in other sectors due to rapid technological advances
Newly Industrialised Countries
- Rapid increase in manufacturing due to Foreign Direct Investment from TNCs taking advantage of low wages and government incentives
- Declining employment in the primary sector due to mechanisation
- When NICs becomes advanced enough a quaternary sector will begin to emerge
HICs
- Post-industrial societies
- The majority of people work in the tertiary sector due to increasing incomes
- A growing quaternary sector due to investment and skill
- Declining manufacturing due to TNCs manufacturing abroad for cheaper labour etc. and technological advancements reduce the need for workers
The number of people employed in each sector are also dependent on a number of influencing factors such as…
- Availability of raw materials
- Globalisation
- Mechanisation
- Demographic changes
- Government policies
The multiplier effect
Explains why the tertiary sector grows as a country develops. As more people earn more money and are paid better, they have more money to spend on basic requirements. After they’ve bought the basics, people have disposable income. This means the demand for service increases and the tertiary sector grow, therefore more jobs are created and more people are paid better and the cycles continues
Why is the urban fringe a popular destination for several different industries?
- Cheap land
- Room for expansion
- Plenty of car parking space
- Attractive environment with little pollution
- Workers and work available nearby
- Good accessibility
What are two ways of measuring the importance of each sector?
- Percentage of total workforce employed in the sector
- Contribution to overall economic output - percentage of GDP or GNI
Production chains
A sequence of stages in which companies exploit resources, transform them into goods and distribute them to consumers. It is a pathway along which goods travel from producers to consumers
Sector shift
A change in the relative importance of an economy’s sectors
TransNational Company
A large company operating in several countries and often in a variety of economic activities
Underemployment
A situation in which a person seeking full-time employment can only find part-time jobs
MINT countries
An acronym referring to four NICs: Mexico, Indonesia, Nigeria and Turkey that are expected to see high levels of economic development and sector shifts
Agricultural employment in Nigeria
Steadily declining due to mechanisation and competition from other sectors offering better working conditions and pay
Disparities within Nigeria
Gender inequality, urban areas generally earn more than rural areas due to higher literacy levels
What could stop Nigeria’s economic growth
- Inadequate infrastructure
- Obstacles to investment
- Tariff and non-tariff barriers to trade
What could aid Nigeria’s economic growth?
- Mechanisation
- Oil
- Finance
- Real estate
Impacts of oil extraction and remixing by TNCs in Nigeria
- Provides jobs
- Charities
- Invested money
- Pay tax
- Uses local companies
- Pollutes environment
- Human rights abuse
- Long working hours
- Poor working conditions
- Profits to HICs’ HQs