Economic Change Revision
Define primary, secondary and tertiary sectors, giving examples for each sector
How the importance of the sectors has changed and the reasons for the changes
Why has there been a decline in the numbers employed by the Primary Sector in the
UK? Including: depletion of resources, cheap imports, Mechanisation, social change
Why has there been a decline in the secondary sector in the UK? including:
globalisation and cheaper production overseas, mechanisation, government policies.
Case Study: Growth of the Secondary Industry in China and it’s effects
Why has there been a dramatic growth of the tertiary sector since 1970? Including:
i. a rise in the demand for services lined to disposable incomes
ii. The development of new technologies and services
iii. Decrease in employment in the primary and secondary sectors
iv. Demographic changes, eg the ageing population
What are the Factors affecting the location of primary, secondary and tertiary
activity
What are the costs and benefits of de-industrialisation in rural areas
Sectors of Industry
Although there are hundreds of different jobs or occupations,
they can all be classified into 4 categories:
Primary
Secondary
Tertiary
Quaternary
Working with or the extraction of natural
resources e.g. Farming, mining or
forestry
Making things either by manufacturing or
construction e.g Nissan Car manufacturing
This type of industry provides services.
These include commercial services
(Shops), Professional (Solicitors), Social
(School teacher), entertainment (
restaurants), Personal (Hairdressers)
This is a new sector and is linked to
ICT and research development
(Genetics Researcher)
The diagram above shows how the sectors change over time
over three phases.
The main type of industry for a country depends upon the
economic status of a country e.g. LIC tends to be mainly the
primary and secondary sector and a HIC tends to be mainly
the tertiary and quaternary sector.
Reasons for Economic Sector Change
In the UK in 1800AD most people would have
been employed in the primary sector.
Mechanisation has led to the reduction of
agricultural workers .
The demand for work increased in schools,
hospitals and retail industries. As people were
living longer, having fewer children and people
have more disposable income.
Jobs in primary industries are often seen to be
‘dirty’ and to have few career prospects.
Workers prefer the better paid and less
physically demanding jobs like in the tertiary
sector.
During the industrial revolution, more
people were needed to build ships, work in
steel making and with textiles. All of these
jobs are found in the secondary sector
Foreign industries also became more
competitive and imports such as coal
became more affordable. As the availability
of coal declined in the UK, and also became
more expensive to extract more coal was
imported.
By 1900 over half of the workers in the UK
were employed in secondary industries.
Improvements in technology led to
increased mechanisation, this means
machines were created which meant less
workers were needed.
Since 1900 mechanisation meant that less
people were required to work on the land
and in industry, as machines could carry
out most of the work that people
previously did.
An increase in tertiary employment. This was
gradual but steady until the second world
war, then this was slightly reversed due to
increased manufacturing as part of the war
effort.
By the year 2000 over half of the UK
workforce was employed in tertiary
industries and only a small number were
employed in primary industries. This has
changed the work that people do, and also
where they work.
The growth in the tertiary sector increased
rapidly in the last decades of the twentieth
century. Most of this was in the new hitech industries such as micro-electronics
and research/development.
In the UK there is more people employed
by the tertiary and quaternary sector.
Linked to imports and globalisation the
things we acquire from primary and
secondary tend to be carried out in LIC
countries.
The manufacturing industries were steady until Many raw materials, for example iron ore
a decline in the 1990’s which mirrored the
and coal, have been used up or cheaper to
growth of the tertiary sector.
import from abroad.
Quaternary industries are a relatively new Many secondary industries were relocating
concept, and it is only recently that they have in different LIC countries linked to labour
been added to these figures. However it is being cheaper, cheaper to locate there etc.
becoming an important and growing sector in
the UK as many firms want to carry out
research and development for their products.
Materials being imported from abroad led
to a decrease in the number of people
employed from in the primary industry.
Why has there been a decline in the Primary Sector in
Population employed in
the UK?
Agriculture in the UK
Reasons:
• Resource depletion is the exhaustion of raw materials within a region.
Therefore. without the resources the primary industry cannot run.
• Globalisation – The world becoming more interconnected has meant its easier and
cheaper to transport goods, therefore it is easier for industries to move abroad
where it is cheap to import and export goods with cheaper land and cheaper
labour force.
• Cheaper Imports – It can be cheaper to export natural resource from other
countries e.g. Bananas from Chile.
• Mechanisation – The advancements in technology has resulted in machines being
built and these resources are replacing the workforce. E.G. A farm that used to
employ 150 people 100 years ago now employs 10 people linked to the fact they
now have a mechanised plough.
• Social Change – Some primary jobs are now classed as undesirable linked to the
fact people perceive the jobs as hard, with long hours and hard manual labour.
Primary industry in the UK has declined in recent years.
Give two reasons for this decline. (4)
Credit references to both primary industry and primary
employment
Max 3 for 1 reason e.g. increased mechanisation (1); longer hours (1), dangerous
conditions (1), coal is getting too expensive to mine (1) and
it’s cheaper to import it (1); resources become exhausted (1)
so they are imported (1)
Explain why the numbers employed in the primary sector in the UK have
declined over the last 50 years. Use examples in your answer. (4)
Why has there been a decline in the
Secondary Sector in the UK ?
•
•
•
•
•
Globalisation – The world is not more interconnected meaning it easier
to transport imports and exports, easier to communicate and is overall
cheaper as well. Therefore, due to globalisation companies can move
there factories abroad, however, can still manage their company from
the country of origin.
Cheaper Production Costs – Many factories are closing in the UK and
moving to other countries, which tends to LIC’s for its a cheaper
workforce, with no or very little working regulations and cheaper land.
Overall, cheaper production costs than it would be in the UK, which
means they can make more money from just selling the product.
Mechanisation - Advances in technology has resulted in the creation
of machines in manufacturing plants which are replacing labourers.
Government Policies/Regulations
Deindustrialisation – Factories are closing within the UK and moving
abroad due to various reasons.
Growth of the Secondary Industry in a
LIC/MIC - China
Political Change - China has moved from a communist government to a capitalist government.
Basically more private industries can now thrive and prosper without having to share their
profits with the whole country therefore a growth of secondary industries can create more
money, therefore the industry can grow further
Workforce - Linked to the large population there is a plentiful supply of workers, also linked to
the fact that mechanisation in agriculture means workers are moving from rural to urban
areas in search of work. Linked to the large population there is a plentiful supply of workers,
also linked to the fact that mechanisation in agriculture means workers are moving from
rural to urban areas in search of work.
Globalisation - The shrinking of the world by the process known as globalisation has enabled
countries in HICs to have good s assembled in LICs at a fraction of the price of the
manufacturing process in the HIC. Goods can be transported easily around the world from
where they are produced to where they are sold. China has a large workforce which can be
employed cheaply.
Natural Resources and Energy - China has a great wealth of natural resources having vast
reserves of cal, oil and natural gas. These are being used to fuel the industrial development
of the country. China has also developed a large amount of new hydroelectric and nuclear
power station to provide even more energy.
Government Policy - There has been a change in government policies,
for example, laws which used to stop people investing in China have
been abolished. Many companies from foreign countries now have factories
in China, particularly Transnational Companies
Choose either one LIC or one MIC that you have studied. Explain the reasons for the
growth in its secondary sector.
Growth of the Secondary Industry in
a LIC/MIC – China Effects
You must be able to explain the following effects:
There has been an unprecedented
growth in the Chinese Economy in
the last 20 years. With exports
exceeding imports.
Damage to the environment
caused by the working of natural
resources,
such as coal, oil and iron ore
Better Housing in urban areas.
There are few laws to protect the
workers, particularly the millions
of migrant workers. They are
being heavily exploited and have
to live and work in appalling,
overcrowded conditions
Rising incomes and a higher
standard of living for its people
(at least those
living in towns and cities)
China’s status within world power
is rising therefore they are
becoming an influential super
power which great influence in
global affairs.
Linked to natural reserves running
out, China is having to invest
heavily into creating new energy
sources.
In the whole country there are
760 000 recorded deaths a year
from air and water pollution, mush
as this is create through industry.
There has been very little
spending on social infrastructure,
for example government spending
is lower now than the 1980’s.
Massive rural-to-urban migration
as people leave the countryside
for factory
Job’s in towns and cities. Few
people left to work within rural
areas.
China’s rate of development is
increasing within each year, with a
shift from LIC to MIC.
The gap between the rich and
poor is widening. With the poor
being amongst the poorest in the
world.
Choose one LIC or MIC which has experienced growth in the secondary sector. Explain the effects
of the growth of the secondary sector on this country. (6)
Chosen LIC or MIC .................................................................
Why has there been a dramatic growth of
the tertiary sector in the UK since 1970?
• More disposable Income – Linked to the fact people are paid
more, once they have paid off the bills they have more money to
spend on themselves e.g. Can afford to have a gym membership
(Tertiary Employer).
• Advances in technology – Technology has created new services
such as lots of mobile phones shops have opened on the high
street. Broadband service providers, website designers and the
servicing of PC’s and laptops.
• Decline the primary and secondary industries – The decline in
the two sectors has led to more people being employed in the
tertiary sector
• Demographic Changes – Linked to people marrying later, people
tend to spend money on entertainment services and personal
services. Also people live later therefore, the retirees have
more money to spend on services such as care homes, day
centres and Saga holidays. The ‘Greying Pound’.
Factors affecting the location of industries
You must be able to explain how the following factors are linked to the location
of the following industries:
Primary Industry
Location Factors:
Secondary Industry
Location Factors
• Availability of
Natural Resources
• Skilled Labour force
nearby
•Other secondary
industries nearby e.g.
For parts
• Transport links – Very
accessible
•Greenfield sites
nearby for potential
expansion
•Government Incentives
– Grants offered to
attract businesses to
certain areas where
there might be
unemployment.
•Demand for the
natural resource
•Transport Links to
transfer natural
resources
•Labour force nearby
Tertiary Industry
Location Factors
•Modern design to attract
potential clients
•Location next industries
which employ a large
number of employees,
therefore have an easy
customer advantage.
•On the edge of town (rural
areas) , for space
expansions and easy access
•Excellent transport
system including wide
roads, bus routes, cycle
and pedestrian lanes for
easy public access.
•Location next to other
tertiary industries, to
attract custom
Exam Practice
Study Figure 1b (photograph) in the
Resource Booklet.
It shows a retail park (tertiary sector) in the
north-east of England.
Suggest reasons why this area is a good
location for a retail park.
Use evidence from the photograph in your
answer. (3)
Extraction of sand and gravel
around Reading in Berkshire
left many dangerous water
filled quarries.
Due to industries closing down
this meant that people were
migrating away to find
employment.
RURAL – URBAN MIGRATION
Many rural areas suffered high
levels of unemployment, which
has had a impact for many
years. Linked to the fact many
who were employed only had
specific skills.
Evidence of environmental
pollution was left such as
polluted waterways, waste
heaps etc
Many Rural areas after deindustrialisation became regenerated and used for alternative
purposes. Look at the example of READING. BENEFITS
Copthorne Hotel, next to
10 acre lake. The hotel
has many facilities
including water sports.
Green Park, which is a
science park covering 70
hectares and employing
7000 people
Madejski stadium, built
on waste tip which was
an old gravel quarry. The
land cost £1
Quarry still in use.
Former Gravel pit quarry
now agricultural land
Describe the benefits
deindustrialisation has
brought to Reading.
Exam Practice
Explain the benefits and costs of de-industrialisation in rural areas.
Use examples in your answer. (6)