Economic Change

Question	Answer
Primary Industry	Extraction of raw materials from the ground or the sea
Secondary Industry	Manufacturing of goods using the raw materials
Tertiary Industry	Provision of different services
Mali	High proportion of workers in primary industry about 85% common in LIC position to UK 150 yrs ago early stages of economic development
Germany	High proportion of workforce in tertiary industry about 70% similar to other mature economies
Taiwan	NIC (Newly Industrialized Country) has strong manufacturing sector many transnational companies have factories located take advantage of cheap labour and land up to 40% of workforce in secondary industry
Causes of primary sector decrease 1.	Improvements in mechanization has led to reduced need for agricultural workers in particular
Causes of primary sector decrease 2.	Many raw materials have been used up or are cheaper imported from abroad
Cause of primary sector decrease 3.	Jobs in primary industries are often seen as dirty have few career prospects. Workers prefer better paid less physical work
Employment Pattern Primary Industry	Primary industry decreases as the country becomes increasingly urban. Number of farmers decrease as rural workers migrate to the urban areas
Employment patterns Secondary Industry	Increases as country gradually becomes industralised
Government attituedes	In LIC value of Primary industry is high in HIC's in the western world the main sector is tertiary industry
Cheaper production in LIC's	Production costs of manufacturing are less than HIC's due to cheap labour, lack of rules, in some cases government grants to help the establishment of industry. In UK loss of manufacturing industry caused high unemployment rates in 1980 UK unemployment rate of 10.8%. In 1980 40% of Birmingham population worked in manufacturing in 2007 only 20% employed in manufacturing
Globalisation	This is growing economic inter dependency of countries worldwide which has brought about technological developments. Firms can now move branch all over the world and outsource the manufacturing with use of the internet. Developments in transport technology means goods can be transported easier and quicker. M&S products made in Portugal transported to UK by lorry using European Motorway system
Government policies	Withdrawal can be seen as reason for decline in secondary industry UK. In 1967 British PLC formed. company from government made to protect production steel in country, tried to stop decline by offering grants and loans to foreign investors policy used 1980-90
Government attitudes	In late 1980's Toyota were offered incentives to set up their plan at Burnastorn in Derbyshire. UK government now concentrates on development of tertiary industry
China Physical factors	Raw materials: Many natural resources of coal, oil and natural gas fuel industrial development in the country. Location: Located near developing markets example South Korea has major trade routes
Human factors	Workforce: Many workers people migrate rural to urban. Estimated 500,000 million people will leave Chinese countryside in search for work in next 20 yrs. Unemployment rate is 25%. Low paid earn 40p per hour other Asian workers earn ten times as much. Factory owners can invest money in business.
Government policy	Laws used to stop people investing in China have been abolished. Xiamen City the Taiwanese company EUPA have a factory making coffee machines which employs 23,000 workers
Education	Literacy levels have risen dramatically over last 20yrs now at 90%. Fueled economic development of the country. Large number of unskilled workers growing number of skilled workers. China trains 600,000 new engineers every year.
Private enterprise	20% of firms are privately owned
Effects of growth	Economic: Unprecedented growth of the Chinese economy over past 20 yrs Social: Very little social spending teacher speaks to 80 students. Few laws to protect workers especially migrant workers no health care system and education, live in appaling overcrowded conditions forced to work long streches little pay Environmental: 75% of energy produced from coal, 16 of worlds 20 most polluted cities in China. 760,000 recorded deaths a year caused by air and water pollution. World leader production of carbon dioxide by 2025 surpass USA for leader production of greenhouse gases. 80% rivers below fishing standard 90% of underground water in urban areas is polluted. Targets: 10 energy generated renewable by 2010 16 energy generated renewable by 2016 Reduce energy consumption by 20% $172 billion on environmental protection $37 billion for desulphurisaton $25 billion on industrial waste water treatment $ 22 billion on municipal waste water treatment
Tertiary sector UK	employed 76% of workforce in 2005 largest sector of industry in the UK economy. In 20 yrs 1984 to 2004 80 per cent increase in financial and business services people employed. In 1980 one in 10 worked in this industry now 1 in 5.
Disposable income	Average amount that households had to spend on non-essential items doubled between 1987 and 2006. rise in luxury services and gym memberships in 2000 4 million people were members of fitness centres increases be 12% a year
New technologies	Particularlyin computing and telecommunications sector more people employed in sector. In 2000 350,000 people working in call centres increased to 950,000 by 2008.
Decrease in employment in the primary and secondary sector	Must be employed in tertiary industry
Demographic change	People marrying later and having fewer children means more money to spend on services provided by the tertiary sector. Ageing population led to number of wealthy people have money and time for example Saga small holiday firm and plants
Factors affecting economic location	Labour supply Accessibility- Move by tramway and train Raw materials- China clay extraction in Cornwall more than 120 million tonees of china clay has been extracted Distance to market Government incentives Power supply
Factors affect location of tertiary industry	Transport Energy Communication Can locate themselves where this is possible: David Lloyd Health Club - Hatfield Business Park Modern design attracts potential clients, transport system- wide roads, bus routes, cycle and pedestrian lanes. Salisbury village, large are of exec and middle class housing, located on Hatfield business Park with many large firms like T-Mobile workers use club due to proximity. Next to large shopping area, The Galleria, people can shop and go to club in one journey, modern flats, young sing people high proportion of the club's clients, close to juntions 3 and 4 of the A1 motorway access to large number of potential users, within walking distance of Hertfordshire Uni potential source of clients
Deindustralisation definintion	Areas that are no longer used for industrial purposes
Benefits of deindustrialisation in rural areas	Cleaning up site, can be used for recreation, agirculture and urban growth Eden project 60m deep and covers an area equivalent to 35 football pirtchesbeen transformed into a tourist attraction with landscaped walks huge diversity of plants and tow enormous pods. Project run in sustainable way building called The Core teaches how to be more aware of the damage we are causing to the planet in a user friendly way. Employs 500 staff provides jobs for approx 3000 other people in restaurant hotels and suppliers of products. Estimated since opened in 2001 contributed 1 billion pounds to the Cornish economy
Benefits and costs of deindustrilisation	Benefits: Positive impact on environment Costs: Decrease of economy, loss of jobs, ageing population
Cost of deindustrialisation	Loss of employment, decline in other economic activities, declining income for government. Land has been left scarred extraction of coal in South Wales left the area waste heaps potentially dangerous. Illustrated in 1966 with Aberfan disaster after heavy rainfall tons of material fell onto village school 144 people 116 of them children.
Factors affecting location of primary industry	Most important, availability of raw materials, if to succeed other factors location also important like market and accessibility. Example of a successful primary industry is china clay extraction in Cornwall. More than 120 million tonnes of china clay has been extracted from this area and reserves should last another 100 years. Kaolin as china clay is also known it's used to make porcelain and by many other industries including the paper industry. Most important; kaolin found in the south-west of England, derived demand as demand for porcelain. Cornish clay formed which ensured the success of the industry as the mined kaolin had a definite market. By 1869 65,000 tonnes were yearly being mined. Transportation another factor as china clay was moved by tramway and train to the ports of Charlestown, Pentewan and Par on the south coast of Cornwall. Ships then took raw material to Liverpool where it was then transported by barge along the Trent and Mersey canal to Winsford in Cheshire and then by packhorse the final 30 miles to Stoke-on-Trent to be made in to porcelain.
Factors affecting location of secondary industry	Most important factor varies, for some will be raw materials like aluminium smelting others market for example soft drink industry. Car manufacturing (Toyota Burnaston) on example which has a lot of important factors: large area of flat land giving room for expansion: 280 hectares, tradition of car manufactures (suppliers of component parts and engineering components), location on edge of greenfield site with ample room for expansion, Peak District National Park, close by, has opportunities for leisure activities, Derbyshire County Council offered to buy 20 million pound stake pledged to improve transport infrastructure upgrading the A50 to a dual carriageway, exellent transport routes ( on junction of two main trunk roads- A50 and A38) allowing easy transportation of parts and finished product throughout UK. Attractive village location such as Findern for managerial workers.
Factors affecting the location of primary industry: Now	Now 80% of the china clay extracted is used by the paper industry, 12% by the ceramics industry and the rest in products like toothpaste and paint. Raw material still transported by train and 50% of production is moved by rail to ports of Par and Fowey which handle 2 million tonnes of china clay a year.

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	Created by Chima Power over 10 years ago