Knowledge Organiser: GCSE Unit 3 Section A-Economic Change

1 Knowledge organiser: GCSE Unit 3 Section A-Economic Change The four sectors Primary industry is the extraction of raw materials from the ground or the sea. It includes farming, fishing, forestry and mining. Secondary is the manufacturing of goods using the raw material from primary industry (e.g. a TV or a car) or industry construction (e.g. a house, a road or new airport) Tertiary industry does not produce anything, but involves the provision of different services to people and to other industries, e.g. schools and hospitals. Quaternary New sector mainly found in HICs (high income countries) which is concerned with information and industry communication technology (ICT) and research and development (R&D). Universities are part of it. Clark-Fisher model Shows that these sectors change with time over three phases.

In an LIC, such as Mali, a high proportion of the active population works in primary industries, especially in farming. This type of country is in the pre-industrial phase. China is an NIC and has a strong manufacturing sector. It is in the industrial phase. HICs, such as Germany, are in the post-industrial phase. Reasons for the decline in numbers employed in the primary sector in the UK: Learn all reasons and examples Depletion of Decline of mining industry b/c many raw materials used up. Reflected in the decrease of the workforce: resources 1913: > 1 million people employed in coal mines. Now, only 5,500. Cheap imports Cheaper to import raw materials from abroad as raw materials left in the UK difficult to mine. E.g. iron ore from Norway and coal from Russia which used to be mined in South Wales. Mechanisation Need for agricultural workers reduced as machinery has replaced many jobs formerly carried out by men. Social change Major change in people’s attitude towards primary sector jobs often seen to be dirty and physically demanding .Fewer career prospects. Better paid and less physically demanding jobs in the tertiary sector (more regular hours/located in urban areas) Government attitudes to the value of primary industry Vary from place to place and over time. LICs: whole of the country’s economy based on primary industry = high value of primary industry. As countries develop over time the value of primary industry decreases as more secondary industries spring up. In oil- producing countries such as Saudi Arabia, still high value of primary industry. In many HICs, primary industries such as farming are of value to feed their population but the main sector of industry is tertiary. Reasons for the decline in the secondary sector in the UK Globalisation The process, led by transnational companies, whereby the world’s countries are all becoming part of one vast global economy. Each country has a role to play-which might be as a supplier of raw material or cheap labour or as a wealthy consumer market. Reasons for Firms can keep in contact with producers easily and quickly using the internet. Developments in transport globalisation technology: goods can be moved around the world quickly and easily. Development of aircraft and containers, efficient motorway networks which cross Europe. Example Marks and Spencer Many products are made in Portugal where land and labour costs are less and then transported to the UK by lorry using the European Motorway system. Other manufacturing plants in Sri Lanka, Morocco, the Far East and Middle East. Cheaper Relocation of many manufacturing industries to MICs and LICs. Why? Lower production costs. Why? Cheap production in LICs labour e.g. China. and MICs Lack of rules and regulations in the productive process. Government grants to help the establishment of industry. E.g. Brazil and Fiat Mechanisation Increased use of machinery and advances in technology (robots)= large decrease in the number of people employed. E.g. Car industry 2 Government Withdrawal of government help to industries. For instance: policies In 1967: Formation of the British Steel Corporation, a nationalised company, owned and run by the government to protect the production of steel in the country and to keep employment high in the declining industry. Since British Steel was a main employer in depressed regions, it had to keep many mills and facilities operating at a loss. Therefore, the company was sold back in 1988. Under private control the company has dramatically cut its work force. Government attitudes to the value of secondary industry Vary from place to place and over time. HICs: As much of the manufacturing is done abroad in MICs, the government of some countries, for example the UK, has tried to keep some manufacturing in the country by offering development grants to foreign manufacturers. E.g. late 1980s, Toyota were offered incentive to set up their plant in the UK. Change of attitude: the UK government now concentrates on the development of tertiary industry. Over the last twenty years: China has put a high value on the growth of secondary industry to help the country to develop. The growth of the secondary sector in China. Reasons for 1- Physical factors growth (6marks) Raw materials: Great wealth of natural resources: coal, oil and natural gas. Location: Geographical position beneficial for its development: markets in South Korea, Taiwan and India/ on major trade routes. 2- Human factors Globalisation Companies in HICs have goods produced in LICs at a fraction of the price of the manufacturing process in the HICs. China has a large workforce which can be employed cheaply. Easy transport around the world. 2- Changes in government policy: Laws which used to stop people investing in China abolished. 3- Education: Increase of literacy levels over the past 20 years: 90%. China has both large numbers of unskilled workers and a growing numbers of highly skilled workers. E.g. China trains 600.000 new engineers every year. Impacts of growth - Social Very little spending on social structure. E.g. spending on health lower than in the 1980s. However, (SEE) (6 marks) positive input in education: decrease of illiteracy (see bullet point 3 above)Few laws to protect the workers, particularly the migrant workers (200 million) - Economic (positive) Unprecedented growth: With a population of 1.3 billion, China recently became the second largest economy and is increasingly playing an important and influential role in the global economy. GDP growth averaging about 10 percent a year has lifted more than 500 million people out of poverty. - Environmental 16 of the world’s 20 most polluted cities are in China. Why? 75 per cent of China’s energy is still produced from coal. In the whole country there are 760,000 recorded deaths a year from air and water pollution. 80 per cent of rivers are below the standard for fishing and 90 per cent of underground water in urban areas is polluted. Reasons for the dramatic growth of the tertiary sectors. 1- A rise in the demand for services linked to an increase of disposable incomes Disposable income is the amount of money which an individual has available to spend on non-essential items after essential bills have been met. The average disposable income doubled between 1987 and 2006. Rise in luxury services such as beauticians and health clubs. 2- The development of new technologies and services Computing and telecommunications sector. High demand for mobile phones. Development of the Internet and websites. Call centres which answer calls from numbers given on internet sites or make unsolicited calls. There are 5,675 call centres in the UK employing 1,125,000 people. That means 4 per cent of all workers are now employed at call centres. 3-Demographic changes People in their late twenties: Late marriage and fewer children: more disposable income and more free time to spend on services such as entertainment, socialisation and beautification services. Ageing population (more people living longer) Increasing number of wealthy retired people with money (the ‘grey pound’) and time to spend on leisure and tourism. Example: Saga offer an array of products and services exclusively for the over 50s, including insurance, home care, holidays and the UK's bestselling monthly magazine. Factors affecting the location of primary, secondary and tertiary activity, illustrated by reference to an activity in each sector. Location factors Labour supply- Accessibility- Raw materials- Distance to market- Government incentives- Power supply Primary industry Main factor: Physical factor Availability of raw materials Economic factors Market and accessibility 3 Example of China clay (Kaolin) extraction in Cornwall Primary activity Factors which explain its location Physical factor: Kaolin only found in the south-west of England. Economic factors Demand for kaolin for the production of porcelain from the 19th century. Pottery manufacturer Josiah Wedgwood based in Stoke-on-Trent market for kaolin Accessibility: Ways of transporting the raw material to the factory where it was made into the finished product such as way of transporting the raw material to the factory where it was made into the finished product such as train to ports on the south coast of Cornwall and ships took raw material to Liverpool. Nowadays- Economic factors Market e.g. 80 per cent of the China clay extracted is used by the paper industry. Location of Example: Why did Toyota locate at Burnaston, near Derby? 5 main reasons secondary 1- Accessibility industry Excellent transport routes. On the junction of two main trunk roads. This allows easy transportation of parts and the finished product throughout the UK 2- Incentives Derbyshire County Council offered to buy a £20 million stake in the company. It also pledged to improve the transport infrastructure. 3- Room for expansion Location on the edge of the city. Greenfield site (an area on the edge of the city, which has never been developed in any way) with ample room for expansion. Large area of land: 280 hectares 4- Suppliers of component parts The area has a tradition in car manufacturing. There are many suppliers of component parts and engineering components 5- Attractive location for managerial workers Attractive village location such as Findern for managerial workers. The Peak District National Park, which is closed by, has many opportunities for leisure activities. Location of Less dependent on geographical factors. Given good transport, energy and communications, tertiary tertiary industry companies can locate anywhere. Example: David Lloyd Health Club in Hatfield-Reasons for its location in Hatfield 1- Accessibility a- Excellent transport system including wide roads, bus route, cycle and pedestrian lanes. b- Proximity to many large firms whose workers use the Health Club. c-Next to a large indoor shopping area, the Galleria. People can shop and go to the club with just one journey. 2- Market Salisbury Village. A large area of executive and middle class housing. Add 1b, 1c and 1d 3- Attractive location Modern design to attract potential health club clients. Attractive landscaped area to attract workers Explain how the factors affecting the location of industry can change over time. Example of activity: retailing The location of much retailing has changed, moving from urban centre to urban fringe. The reasons for this shift are linked to accessibility, the rise of big supermarkets and lifestyle changes. New supermarkets around the edges of towns and cities, often part of big retail parks or shopping complexes such as the Trafford Centre in Manchester. The costs and benefits of deindustrialisation in rural areas. Examples needed Deindustrialisatio The decline in industrial activity in a region or an economy. n Costs 1-Loss of jobs in rural areas. South Wales also suffered from a loss of employment in the mining industry which impacted on the iron and steel industry. 2-Break-up of rural communities, as people move to towns and cities to find work. 3-Derelict industrial buildings and disused quarries scar the landscape. The extraction of coal in South Wales left the area with many waste heaps which were potentially dangerous. 4-Need to clean up old industrial sites-demolishing old buildings, filling in old pits and removing toxic waste. The extraction of sand and gravel around Reading in Berkshire left many dangerous water filled quarries. Benefits Deindustrialisation in the Reading area (extraction of sand and gravel) 1- Old industrial buildings that can be made into tourist attractions. Copthorne Hotel, next to 10 acre lake. The hotel has many sporting facilities including water sports. It provides a number of jobs for the local community. 2- The chance to return land to farming (reagriculturalisation) or forestry-or to create new wildlife habitats. Former gravel quarry now agricultural land. 3- The opportunity to use brownfield sites – area which is no longer used for industry -for new housing and services. Watersports centre for use by the general public. Madejski stadium, built on waste tip which was an old gravel quarry. The land cost £1.