Unit 1 Flashcards
What are the 4 sectors and what are they?
Primary: extraction of raw materials
Secondary: manufacturing of goods using raw materials
Tertiary: provision of different services to people and industries, but does not produce anything
Quaternary: knowledge based sector
The Clarke Fisher Model: what is it?
It is a graph that shows changing employment structure in countries at different stages of development.
3 phases include:
Pre Industrial (1800s UK, Present LICs such as Chad,Congo) <primary>
Industrial (Industrial Revolution, NEEs, China, Mexico) <secondary&tertiary>
Post Industrial (Present UK, HICs, Japan,USA <tertiary overpowers, quaternary develops></primary>
What is an MNC and what do they do
Multi National Company. A company that has business operations in at least one other country than its home country.
What are the factors contributing to the decline of British industry?
External reasons were Globalisation, MNCs, New production technology
Internal reasons were loss of investment, loss of competitiveness, human resource issues
What is globalisation?
The process of increasing interconnectivity and interdependence among countries and economies of the world.
Summarise Dyson case study
Dyson is a company which manufactures household appliances,
• They moved their headquarters from Malmesbury to Singapore.
What are LICs/LEDCs , EEs/NICs , HICs/MEDCs?
LICs / LEDCs:
Lower Income Countries / Lower Economically Developed Countries
• Poor countries
• Typically on ‘Pre-Industrial’ stage on Clarke Fisher Model
EEs / NICs:
Emerging Economies / Newly Industrialised Countries
• Countries that are experiencing rapid growth of Secondary and Tertiary sectors
• Typically on ‘Industrial’ stage of Clarke Fisher Model
HICs / MEDCs:
High Income Countries / More Economically Developed Countries
• Wealthiest countries of world
• Typically in ‘Post-Industrial’ stage of the Clarke Fisher model
How many lost their jobs when Dyson moved to Singapore?
They moved from UK to Singapore, causing 800 people to lose jobs
Why did Dyson move to Singapore?
• Cheaper labour
• Less safety precautions
• Little to no tax.
Why do MNCs now manufacture most of their goods in developing ‘emerging economies’ countries?
• Much lower labour costs
• Fewer employment laws / regulations
• Cheaper land & factory construction costs
• Government incentives such as development of Freeports and Export Processing Zones, where companies could operate with low levels of taxation
What is automation?
Advancing to make a system operate automatically.
Can cause:
• Job losses
• Increased production
