Unit 1 Flashcards
What is the primary industry?
involves the extraction of raw materials e.g. farming, fishing and mining
What is the secondary industry?
manufacturing of goods using the raw material from primary industry or construction
What is the tertiary industry?
involves the provision of different services to people and to other industries
What is the quaternary industry?
knowledge based sector, mainly found in HIC’s which is concerned with information and communication technology (research and development)
What does the Clark Fisher model show?
changing employment structures in countries at different stages of development
What are the three stages of the Clark Fisher Model?
Pre-industrial, Industrial, Post-industrial
How are the sectors distributed in the first stage of the Clark Fisher Model? An example of a country in this stage?
- around 70% of the population are employed in the primary sector, there is no quaternary sector
- example = Burkino Faso (LIC’s)
- country relies on raw materials
How are the sectors distributed in the second stage of the Clark Fisher Model?
An example of a country in this stage?
- in this stage a countries wealth will increase and factories are built, max 50% of the jobs are in the secondary sector
- primary sector steadily declines and tertiary sector also increases (secondary sector peaks in this stage)
- example = China + Mexico (NEE’s)
How are the sectors distributed in the third stage of the Clark Fisher Model?
An example of a country in this stage?
- primary and secondary continue their decline, tertiary sector is the main sector
- the quaternary begins to increase as new jobs are created in the R & D sector
-example = U.K or Japan (HIC’s)
What is a LEDC?
less economically developed country
What is an MEDC?
more economically developed country
What is a NIC?
newly industrialised country
What factors have influenced the decline in Primary employment?
- depletion of resources
- cheap imports
- mechanisation
- social change (education)
- government policies
What factor have influenced the decline of Secondary employment in manufacturing?
- globalisation
- automation
- cheaper imports from other countries
- government policies
When did the British Coal Industry peak and how many men where employed?
in the 1920’s, 1.2 million men were employed in coal mining pits
Why did the British Coal industry decline?
- more accessible seams of coal became exhausted and the cost of mining increased
- coal became cheaper to import from other countries making the U.K less competitive
In 2012, how much coal was imported into the U.K and from where?
96% of coal was imported from USA, Russia and Columbia
How did government policies lead to the miner’s strike (industrial action)?
Margret Thatchers conservative government announced they intended to close 20 coal mines, resulting in the loss of 20,000 jobs
What year did the miner’s strikes happen?
1984
What were social attitudes towards using coal at the time?
increased concerns about greenhouse gas emissions, global warming
coal = dirty fuel
How many coal fired power stations are left? How many closed between 2015 and 2016
There are 10 left and 4 closed in those years
Where is the world’s largest wind farm and how many houses does it provide for?
London Array opened in 2013, powers 500,000 homes
What is mechanisation?
where machines replace people and this causes a decrease in employment
In 1841, how many workers worked in the agricultural industry, compared to 2011?
1841 = 22%
2011 = less that 100 ppl
What is deindustrialisation?
process by which there is a decline in manufacturing industry within a country/region, resulting in reduction of secondary sector employment and % contribution to GDP
Name three external factors of deindustrialisation?
- globalisation
- multi - national companies
- new production technology
Name three internal factors of deindustrialisation?
- loss of competitiveness
- lack of investment/financial factors
- human resources issues
What is globalisaton? What has this process been driven by?
“process of increasing interconnectivity and interdependence among countries and economies of the world”
- process is driven by Multi National Companies (MNC’s)
What are some examples of MNC’s?
Microsoft, Apple, Nike, KFC
What are the six comparative advantages between MNC’s and MEDC’s?
- much lower labour costs
- fewer employment laws/regulations
- hard working and often well educated workforce
- cheaper land/factory construction costs
- relaxed environmental controls where pollution is less restricted
- government incentives such as development of free ports and export processing zones, where companies could operate with low levels of taxation
What is global shift?
movement of manufacturing from MEDC’s to the developing world
What 4 countries make up the Asian Tiger Economies? (experienced global shift)
Taiwan, South Korea, Hong Kong, Singapore
When was Dyson founded? Who was it founded by? Where is their HQ?
- founded in 1993
- owner = James Dyson
- HQ in Singapore
How many employees and what was Dysons revenue in 2018?
12,000 employees
£4.4 billion revenue (highest)
What percentage of goods are sold outside of U.K?
90%
Dyson moved manufacturing abroad due to comparative advantages. In what year and to where?
Malaysia became the technology centre with 50,000m2 facility focused on R and D projects
Moved in 2003
What is automation?
(where factory work is run by machinery)
Automation of manufacturing processes has contributed to a reduction in labour, replaces employees without reducing input
What did a loss of competitiveness in Britain lead to?
closing down of factories and an increase in abandoned buildings and brown field sites
What are some of the issues that have been created due to factories being located in the inner city?
- competition, pollution
- limited expansion, overcrowding
- traffic congestion
Are lack of investment and financial factors an internal or external factor?
internal
What was the bank base rate in 1970’s and 1980’s compared to 2011? What does this show?
1970’s - 1980’s = 12.2% to 14%
2011 = 1%
investment was too costly and too expensive to automate factories, too risky
During the 1970’s + 1980’s what where the exchange rates like?
pound was a valuable currency = high exchange rates
What is it good to have high currency value?
good for importers of that country, more demand for foreign goods/services
What is meant by low currency value?
good for exporters of that country, more demand for foreign business
Why is it good for a country to have high exchange rates?
importing raw materials is cheaper overall
When was British Leyland formed? What where some of the companies that merged?
formed in 1975
Jaguar, Rover, Land Rover, Austin
What was the production capacity? How many did it employ and in how many locations? For British Leyland
capacity = 1 million cars a year
128,000 people in 36 locations
(was a national, government owned company)
British Leylands workforce was highly unionised. What problems did this lead to?
Birmingham’s Longbridge Plant = 523 strikes in 30 months
lead to closing of factories, strikes affected productivity, people couldn’t by cars so they bought from elsewhere e.g Ford
How did the government respond/fight back the strikes? (Longbridge)
they privatised the company in 1980’s -> this meant that if the company couldn’t make money it would be forced to close
What percentage of people in Coventry were employed in a car related industry ?
in the 1980s, 40% (this was affected by the closing of car factories in this decade)
How did Britain manage to maintain a car industry and examples?
by attracting FDI (Foreign Direct Investment)
Japanese car manufactures have established themselves in the EU market:
- Honda, In Swindon established 1985, employs 3500
- Nissan, In Sunderland established 1984, employs 7000
