Paper 2) Economic Activity and Energy Flashcards
Economic activity definition
Activities carried out by human to earn income and acquire wealth by making, providing, purchasing, or selling goods or services
Employment structure definition
The % of workers in primary, secondary, tertiary and quaternary sectors. Employment can be classified according to the type of work that is done.
Primary sector definition
Working natural resources. The main activities are agriculture, fishing, forestry, mining and quarrying
Secondary sector definition
Manufacturing things, or construction
Tertiary sector definition
Providing services: doctors, teachers, waiters, hairdressers, banker
Quaternary sector definition
Intellectual or knowledge-based economy
-computing, research
Employment structure of the UK
1.4% Primary
18% secondary
80% tertiary and quaternary
70,000 USD GDP per capita
Employment structure of Nepal
75% primary
7% secondary
18% tertiary
1200 USD GDP per capita
Positives of the quaternary sector
-Allows for a specialized space where entrepreneurial thinking becomes key
-Provides countries with an opportunity to focus on finding new ways to support other sectors
Negatives of the quaternary sector
-too specialized environment, tends to decline during poor economic circumstances
-Requires significant investment to compensate for highly skilled people
Clark fisher model
-Draw it
Agglomeration industries
A localized economy where many companies and industries cluster together and benefit from the cost reductions and gains in efficiency from this proximity.
Example: LA for movies, Houston for energy, Silicon Valley for computer technology
Footloose industries
An industry that can be at any location without effect of factors of location such as land, labour, climate and capital.
Example: Diamonds, computer chips, and mobile manufacturing
Physical factors affecting the location of industry
-flat, unpolluted land (greenfield site)
-natural transport links - rivers
-raw materials/ water supply
-climate
-high environmental quality
-renewable energy sources
Human factors affecting the location of industry
-cheap labour
-good housing
-close supply network
-reliable electricity and water supply
-nearby universities - quaternary industries
HIC, MIC, LIC
-high income country
-middle income country
-low income country
Reasons for change in the numbers of people employed in each sector
-raw materials become exhausted
-new technology
-government policies
-globilisation
-demographic and social change
Change in the numbers of people employed in each sector - raw materials
-become exhausted
-manufacturers may change their location
Change in the numbers of people employed in each sector - new technology
-Increased mechanisation in agriculture and manufacturing
-reduces demand for labour - less people in the primary sector
Change in the numbers of people employed in each sector - government policies
The degree of government intervention in the economy
-minimal in capitalist countries
-complete control in communist countries
Change in the numbers of people employed in each sector - globilisation
-advances in transport and communications technology
-countries become increasingly dependent on each other
-therefore all places can concentrate on their economic strength
-e.g. Kenya able to grow fruit, vegetables, flowers for markets in Europe/ cars made in South Korea cheaply shipped around the world
Change in the numbers of people employed in each sector - demographic and social change
Populations change over time. Mostly they grow
-more workers
-increased demand for a range of goods and services such as food
-boost the economic sectors.
China’s economic growth facts
-in per capita terms, it is still a MIC
-GDP growth has averaged over 9 percent a year
-more than 800 million people have lifted themselves out of poverty
-manufacturing output in China in 1970: 5th
-2015: 1st
China economic sector shifts
-shift from primary –> secondary - main cause of China’s recent economic development and prosperity
-secondary sector accounts for half of the country’s GDP, but only a quarter of the labour force
-success mainly due to availability of cheap labour and energy
-large employment in primary sector but contribution to GDP is shrinking