Economic sectors Flashcards
what are the four economic sectors?
- primary
- secondary
- tertiary
- quaternary
define primary sector
the growth or extraction of raw materials from the earth or nature
examples of primary sector
- fishing
- farming
- forestry
- mining
define secondary sector
when materials are processed, assembled or manufactured to produce finished products
examples of secondary sector
- car manufacture
- food processing
- oil refinery
define tertiary sector
the provision of a service such as commercial, retail, social, entertainment or transport
examples of tertiary sector
- doctors
- lawyers
- teachers
- hairdressers
define quaternary sector
high-tech economic activity, including information, communication and R&D of new technologies
examples of quaternary sectors
- software engineer
- pharmaceutical researcher
GDP and GNI definition
- GDP = gross domestic product
- GNI = gross national income
what are the two ways to determine the relative importance of economic sectors within a country?
- the amount each sector contributes to the Gross Domestic Product (GDP)
- the percentage of the population employed in each sector
describe the relative importance of industries in a developing country
(ethiopia)
- ethiopia is a developing country with a high % of pop. employed in agriculture
- this means that the primary sector dominates
- not undergone large-scale industrialisation and urbanisation so many ppl are employed in farming
- this includes subsistence farming and production of cash crops
describe the relative importance of industries in an emerging country
(China)
- china is an emerging country that has somewhat recently undergone large-scale urbanisation and industrialisation
- jobs have shifted from agriculture to manufacturing
- thus there has been lots of R-T-U migration as people search for jobs in factories
- therefore secondary sector dominates
describe the relative importance of industries in a developed country
(UK)
- UK is a developed country with a dominant tertiary sector
- it industrialised in
- economic development brought high levels of disposable income so ppl have money to spend on services
- rise of globalisation = cheaper to manufacture goods in emerging countries and import them
- this leads to deindustrialisation and so secondary sector declines in UK
- a highly skilled + educated workforce = quaternary sector gains increasing importance
what is the clark-fisher model?
explains how employment structures shift over time as economies develop, transitioning from primary to secondary and finally to tertiary and quaternary sectors
what are the three periods of the clark fisher model?
- pre-industrial
- industrial
- post-industrial
what happens in the pre-industrial period?
- primary is the dominant sector
- many ppl work in subsistence farming and agriculture
- high demand for manual labour workers
- country not industrialised or urbanised
what happens in the industrial period?
- mechanisation of agriculture = decrease in primary sector that leads to large-scale unemployment
- industrialisation creates new jobs so large-scale R-T-U occurs to the factories of growing towns and cities
- as country industrialises, they develop economically so there is more wealth so more disposable income which leads to development of tertiary industry
what happens in the post-industrial period?
- primary sector declines even more due to exhaustion of raw materials
- secondary sector decreases due to globalisation so goods can be imported from emerging countries more cheaply as developed countries begin to deindustrialise
- tertiary sector is dominant due to spending of disposable income on services
- quaternary sector starts to grow as developed countries have high capital to invest in R&D as well as a highly skilled and educated workforce
name the reasons for sectoral shifts
- availability of raw materials
- mechanisation of agriculture/ introduction of new tech
- globalisation
- demographic changes
- government policies
sectoral shifts - exhaustion of raw materials
- raw materials drives the primary and secondary sector
- when they run out, the primary sector in the area would close down and move away to another area rich in raw materials eg coal
- secondary industires had to remain nearby to raw materials to reduce transportation cost and distances travelled for transport
- however improvements in transport and energy tech reduce this need so location of secondary industries is no longer tied to location of raw materials
- exhaustion of raw materials can cause the decline in secondary sector
sectoral shifts - mechanisation/ new tech
- mechanisation of agriculture removes demand for manual labourers so causes large-scale unemployment in rural areas
- at the same time, industrialisation leads to large-scale R-T-U as it creates new jobs
- so a sectoral shift occurs from primary to secondary
- mechanisation of production line leads to deindustrialisation, causing some factory workers to seek tertiary jobs
- so a sectoral shift occurs from secondary to tertiary
- new technology creates an entirely new economic sector in developed countries = sectoral shift from tertiary to quaternary occurs
sectoral shifts - demographic changes
- as population grows and changes, there can be various demands that causes different sectors to grow and decrease in employment - aging population = high demand for healthcare professionals so tertiary sector increases
- as countries develop and have more disposable income, the services (tertiary) sector increases as people have more money to pay ppl to carry out their jobs
- rise in online shopping since COVID has seen an increased demand for delivery drivers (increased tertiary employment)
sectoral shifts - government policies
- gov control of economic activity is more common in communist countries but occurs everywhere to some extent
- e.g 1978 president of china opened up its economy for trade w rest of world leading sectoral shift from primary to secondary
- UK’s policy to be net 0 carbon emissions by 2050 reduced the already low number of ppl working in UK’s coal mines
sectoral shifts - globalisation
- globalisation causes countries to be increasingly interdependent on one another within a single global economy
- this has been made possible due to improvements in transport tech (e.g aeroplanes and cargo ships) and comms tech (e.g zoom and email) that allow that cheap and efficient transportation of goods, reducing the ‘friction of distance’
- global shift in manufacturing from western europe to east asia as developed countries begin to deindustrialise as its cheaper to import goods from there
- western developed countries see a shift from secondary to tertiary
- eastern asia countries see shift from primary to secondary due to a rise in manufacturing therefore making new jobs
economic sector shifts in china
- increasing tertiary sector reflects high levels of disposable income and investment in education to produce an educated workforce
- decline in primary sector due to political decision of china to join global economy in 1978 lead them to become manufacturing hub of world - drove sectoral shift from primary to secondary
- with its cheap labour and energy, china became a very attractive location for TNCs to outsource the manufatcure of their products
- china still has lot of pop. employed in agriculture as it hasn’t mechanised at the same rate that manufacturing tech increased
what are the regional differences in economic activity in china?
- east cost more urbanised than the west coast
- west is more rural and agricultural
negative impacts of sector shifts in china
- growth of secondary industry = rise in heavy industries e.g steel mills = high levels of air pollution that lead to poor respiratory health
- as urban china develops, western china remains underdeveloped and poverty stricken
- industrial water pollution has destroyed many aquatic habitats = loss of biodiversity
- growth of secondary sector fuelled by electricity from coal power stations = contributes to highest carbon emissions globally = climate change
Positive impacts of sectoral shifts in china
- china earns 2.2 trillion dollars from exports (more than any other country globally) = increased affluence for people and increased investment into infrastructure
- GDP per capita increased from $165 in 1978 to $10,200 in 2015
- caused transition from poorly paid primary sector workers to properly paid secondary sector workers = poverty has reduced from 85% in 1981 to under 5% today
negative impacts of sectoral shifts in UK
- high levels of unemployment in areas that were dependent on manufacturing that have now deindustrialised = this leads to low incomes, poor health, deprivation and high suicide rates
- reduced tax revenue of local gov in deindustrialised areas leaves them with less money to reinvest into infrastructure
- large areas of derelict deindustrialised land is contaminated with high levels of industrial pollution such as heavy metals = expensive to clear and creates a health hazard
positive impacts of sectoral shifts in UK
- higher paid jobs in tertiary sector leads to more disposable income for most families = higher standard of living and better access to technology
- closure of heavy industries resulted in a reduction in industrial water pollution = rejuvenating habitats previously considered ‘biologically dead’
- deindustrialised cities and regions forced to undergo a re-imaging process to reinvent themselves
name the physical factors affecting the location of economic activity
- energy source
- access to raw materials
- sufficient space or land
name the human factors affecting the location of economic activity
- energy source
- infrastructure
- access to a market and customer base
- access to a workforce
- good transport links
factors affecting primary activity location
- climate = e.g preicipation, sunshine hours all affect crops and livestock
- land = amount of land available - is there enough?
- proximity to market = soft fruits such as strawberries must be very close to market to prevent damage
- labour = in developing countries manual labourers must be nearby ; in developed countries (due to mechanisation of agriculture) this isn’t needed
- transport = is it close by to main roads or a port/airport for easy transportation??
factors affecting secondary activity location
- proximity of raw materials to factory
- amount of land = for heavy good processing large amounts of land is required for factories
- water = it may be required for cooling machinery
- market access = market is needed to sell the goods made
- energy source = needed to power factories (electricity now but it used to be coal)
- transport = access to roads is essential
factors affecting tertiary activity location
- land = large retail parks on the urban fringe tend to need lots of land for car parks to be built
- market = needs to be somewhat close to a customer base
- energy for a power source is needed
- transport links = must be accessible to customers
factors affecting quaternary activity location
- land = science parks generally require lots of land near unis or on the urban fringe
- energy (electricity) is needed bu this can be easily accessed
- transport = needs to be accessible to workers
why might the location of primary activites change over time?
- exhaustion of raw materials, leaving the area economically unviable
- climate changes may affect the crops able to be grown due to drought, soil erosion etc
why might the location of secondary activities change over time?
- exhaustion of raw materials and climate changes
- advancements in energy technology means that factories are no longer tied to coal-rich areas for energy as electricity is accessible anywhere
- movement of factories to developing/emerging countries due to cheaper labour and land
- this causes deindustrialisation
why might the location of tertiary and quaternary activities change over time?
- increasingly more of this happens on rural-urban fringe
- more land at cheaper costs
- land is more accessible as commuters leave the city to go home
- closer to commuter villages so a large customer base is always nearby
what would the pie chart of economic sectors for each type of country look like?
- developing = half primary and then secondary and tertiary at lowest
- emerging = all in equalish proportions with secondary leading
- developed = tertiary dominating with quaternary just starting
what is argued as the ‘fifth’ economic sector?
informal sector
in what types of countries is the informal sector most common in?
developing and emerging countries
name the characteristics of the informal sector
- unregulated by the government
- lacking employment contracts
- highly entrepreneurial
- mostly in shanty towns and on side of streets
- low levels of health and safety implementation
- high levels of child labour
name the four types of informal sector jobs
- street vending = selling products such as veg on streetside
- street services = provision of services such as shoe shining on streetside
- refuse collection and recycling = collection of rubbish and sorting it to recycle
- paratransit = provision of an informal transport system e.g rickshaw
what causes the informal sector to occur?
- Rapid urbanisation in developing and emerging countries causes city population growth, fuelled by economic development initially
- Rural-to-urban migration increases as new jobs emerge.
- Rural to urban migration also occurs bcos of climate change (e.g losing land due to soil erosion)
- Number of job seekers far exceeds job availability, leading to unemployment and underemployment.
- Weak welfare systems fail to provide adequate support (e.g., no job seekers’ allowance).
- To avoid poverty and deprivation, people engage in informal economic activities outside the formal sector.
define underemployment
- when someone finds a job but they are overqualified for it
- they possess more skills than required to complete it to a high standard
define unemployment
when someone is jobless
impacts of the informal sector
- many child labourers do not have to chance to go to school
- children are exposed to work-related risks e.g drugs, violence and crime, which can cause very poor health and lots of developmental problems at young ages
- workers are often exploited due to lack of regulation
- paratransit adds more congestion to already busy roads
advantages of the informal sector (from the POV of the workers in it)
- cash-in-hand economy means all profits remain untaxed with the worker
- provides low-cost goods and services for the poorest members of society, who barely have a disposable income to spend on tertiary services
- lack of government regulation means that workers can be more creative and entrepreneurial
disadvantages of the informal sector (from the POV of the workers in it)
- low and unreliable wages = lack of income security leads to poverty
- very high levels of child labour = poor health and range of developmental problems and lack of education
- workers are easily exploited by employers due to no job contract so they may struggle at times of economic crisis
what percentage of employment in Dhaka occurs in the informal sector?
87.4%
what is the capital city of bangladesh and what’s its population?
- Dhaka - the most densely populated megacity in the world
- 16 million population
what percentage of the pop. rely on the informal sector?
around 50%
define birth rate
number of babies born per 1000 people per year in a country
define death rate
number of people who die per 1000 people per year in a country
define total fertility rate
within a country, the average number of children a woman has in her lifetime
define replacement rate
the total fertility rate required to keep a country’s population stable
what types of populations do developed countries have and why?
- developed countries have aging populations
- the death rate is slightly higher than the birth rate
- this is bc people tend to have smaller families/ don’t need to have more children
- developed countries have higher female literacy rates so childbirth is often pushed further back
what has to balance in order for steady population growth?
there must be a high birth and death rate
reasons for high birth rates pre-18th century
- low access to female ducation and employment = early marriage and childbirth
- low access to effective contraception
- having children was an economic asset as it meant more workers
- high infant mortality rates meant that lots of children would prevent the family from suffering economically should a death occur
reasons for high death rates pre-18th century
- low levels of medical knowledge
- poor sanitation leads to rapid spread of disease
- low food security = malnutrition, starvation and weak immune system
why did death rates decrease post-18th century?
- new medical breakthroughs (vaccinations) improved healthcare
- better sanitation lead to improved access to clean drinking water
- improved diets = reduced malnutrition
after a few generations post-18th century, why did birth rates decline again?
- better access to contraception = improved family planning
- improved female access to education and employment = delays age of first marriage and childbirth
- improved healthcare resulted in decreased infant mortality rates = people didn’t need to have so many children
- this shifted children from being economic assets to economic burdens as they had to be well-fed and clothed until adulthood
- reduced birth rates
why has world resource consumption increased exponentially in recent decades?
- population increased exponentially = more ppl means greater demand of resources
- economic development = more wealthy ppl = more disposable income = consumer lifestyle = supported through greater resource consumption
- new technology = resource base can be expanded
define carrying capacity
maximum number of people that the planet can support before irreversible environmental degradation occurs
what is malthusian theory?
- states that food supply grows arithmetically and population can grow exponentially
- eventually population will outstrip food supply = positive checks would occur
- the positive checks would bring population back down to sustainable levels
what was the point of crisis in malthusian theory called? What did thomas malthus believe about this?
- point of crisis = malthusian catastrophe
- he advocated that the only way to stop this was through abstinence as this was the only effective form of family planning in 1798
- however, thomas malthus didn’t consider that food supply could increase
when did thomas malthus make his theory?
1798
when did esther boserup make her theory?
1965
who has history supported more (boserup or malthus) and why?
- supported boserup over malthus
- pop has grown 8 times since malthus was alive and we haven’t seen positive checks
- only regional-scale famines have occurred but not due to shortages of food
what did esther boserup argue?
- as pop nears food supply (at which points Malthusian checks would begin) human ingenuity and technological advancements would increase food supply to support a larger population
name some examples from when esther boserup’s theory makes sense
- agricultural revolution = mechanisation of agriculture that increase food production in 18th century
- green revolution in 1960’s = cross breeding of crop species to produce higher yield varieties
- gene revolution in 21st century = genetically modified crops may support population over 8B ppl
underpopulation
- when there aren’t enough people in the country to exploit and develop the resources available to maximum potential
- this leads to lower economic output and lower QoL
optimum population
- when the population is at just the right level to develop resources fully without putting unsustainable pressure on them
- this leads to maximum possible economic output and best QoL possible
overpopulation
- when the population exceeds the capacity of the resources available to support them
- too many people for the resources available
- leads to lower economic output and QoL is unsustainable
how can we avoid overpopulation?
- reduce population growth by improving access to contraception and female employment and education
- reducing resource consumption (e.g increasing energy efficiency, reducing food waste)
- using technology to discover and exploit new resources
define primary energy
fuels that provide energy without undergoing any conversion process (e.g coal or firewood)
define secondary energy
energy that is made from the processing of primary fuels (e.g electricity or petrol)
define renewable energy
energy sources that are infinite - they can be used repeatedly without being exhausted
define non-renewable energy
energy sources that are finite and continued exploitation of them will lead to them running out
define energy security
when a country is able to meet all of its energy demands through reliable energy production in its own borders
define energy gap
occurs when a country’s energy consumption is greater than its ability to produce energy - it makes up for this deficit by importing energy from other countries
define energy mix
balance of energy sources
why has the global energy demand increased?
- global population increase from 1Bn-8Bn
- economic development = tertiary and quaternary sectors have much higher energy requirements
- increased wealth = more disposable income = consumer lifestyle involving use of energy-hungry tech so energy demand increases
- diversification of energy resources = new tech means previously inaccessible energy resources can now be exploited so we can produce and so consume more energy
factors affecting global energy consumption by country
- economic development = more developed countries consume more energy as their economies consist of mostly energy-hungry tertiary and quaternary sectors + high wealth = disposable income = consumer lifestyle w/ energy-hungry tech
- climate = countries with tropical latitudes may have lower consumption due to less domestic heating but if they are developed there may be demand for AC
- energy resource availability = easy access to natural resources within its own borders = higher energy consumption as its easier to get the source
factors affecting the growth/decline of energy consumption
- political unrest/conflict = decreased
- rapid population growth due to natural increase = increased
- increased environmental awareness = decreased
- rapid economic development = increased
define natural increase
Natural increase is the population growth calculated by subtracting the number of deaths from the number of births.
factors affecting energy production by country
- resource availability = countries that have energy-rch natural resources within their borders are able to exploit them to produce more energy
- level of development = more developed countries are able to afford the infrastructure to extract energy and then have quaternary industries to expand their resource base
energy surplus versus energy deficit
Energy surplus occurs when a country produces more energy than it consumes, leading to excess energy. Energy deficit happens when a country consumes more energy than it produces, resulting in a shortfall.
why might an energy gap develop?
- population growth increases demand
- economic development increases demand
- increased environmental awareness decreases energy supply
- political volatility decreases energy supply
how can we get rid of the energy gap?
- import energy from other countries
- build more of existing energy production infrastructure
- use R&D to develop new tech to expand our resource base
- decrease energy consumption via behavioural changes
- develop more energy efficient technologies
name non-renewable energy sources
- coal
- oil
- natural gas
- uranium
- shale oil
name renewable energy sources
- solar
- wind
- HEP
- geothermal
- biomass
challenges of energy resource management in nepal
- low access to fossil fuels as its landlocked - difficult and expensive to import from elsewhere
- reliance on fuelwood due to lack of variation in resource base = causes air pollution and respiratory disease
- increasing energy demand due to economic development and increased population size
- difficulty building infrastructure due to mountainous terrain
name the ways nepal manages energy
- micro-hydro
