Industry and Trade We have already learned about

Industry and Trade

• We have already learned about “Natural Resources”, raw materials needed for industry ▫ Forestry ▫ Mining ▫ Water

Industry • There are numerous ways of classifying industries. • For this course we will classify them as ▫ primary, secondary, tertiary and quaternary.

Primary Industry (Raw Materials) • Primary industries work to extract raw materials from the earth. ▫ Mining, agriculture, fishing and forestry are examples of primary industries.

Secondary Industry (Manufacturing ) • Secondary industries convert raw materials into useable products. • Most factories and construction industries are examples of secondary industries.

Tertiary Industry (Services) • Tertiary industries provide services to people. • There are two types of tertiary industries: ▫ profit-making and profit-utilizing. • Profit-making tertiary industries: are those industries which make money. ▫ These include restaurants, all types of stores, movie theatres, etc. • Profit-utilizing tertiary industries: provide services but do not make money. ▫ Schools, hospitals and emergency services are examples of profit-utilizing industries. • It is important to remember that any country that has profitutilizing industries also has profit-making industries so the country is able to maintain their medical and educational services.

Quaternary Industry (Information Service) • Quaternary industries are industries that have began over the last 30 years as a result of the information era. • A quaternary industry deals with information using technology such as computers. • Information is required by industries since the Industrial Revolution; however, the widespread use of computers to store and transmit information has made this an industry in its own right. ▫ Examples of quaternary industries include companies that collect data on: the sales of certain products, the number of trees needed to maintain current building practices and the number of people interested in a certain political party.

Can of Beans Exercise • You should now have an understanding of the 4 main levels of Industry! • Explain how a can of beans moves through the various levels of industry.

Can of Beans • Let’s take a look at a can of beans and how it moves through the various levels of industry. • There are three primary industries that are involved in the production of a can of beans. ▫ First there is the agricultural industry that plants, grows and harvests the beans. ▫ Secondly, there is the mining industry that extracts the metal from the ground for the can. ▫ Thirdly, the forestry industry cuts down trees for the pulp that makes the paper for the label.

• Secondary Industry Level ▫ There is the factory that sorts, cleans, processes and cans the beans. ▫ The smelters refine the metal into usable tin and make the tin cans. ▫ Pulp and paper companies take the logs and make paper from the pulp. ▫ Dye and ink companies print the labels for the cans. The glue industry makes the glue to stick the label to the can.

• Tertiary Industry ▫ provides the services for the product. There a number of tertiary industries involved. ▫ First the transportation industry moves the beans to the supermarkets, stores and wholesalers. ▫ Advertising firms market the beans. The stores sell the beans to the customers. ▫ Restaurants purchase beans and use them in their meals. ▫ Recycling companies take the used tins and any other wasted contents and prepare them for other uses.

• Quaternary Industry ▫ Is not as easy to identify by company. ▫ First of all, most stores use bar-codes as a way to store information about the price of the can of beans and the number of beans sold and available for sale. ▫ This information is used by the industries mentioned earlier to determine if the demand is greater or less than the supply. ▫ Advertisers use this information to help them make ads that will sell more beans. ▫ Farmers and loggers will also benefit from this information by knowing how much more of this product they need to produce.

Location factors • There a variety of factors that determine where an industry is located. • These factors also vary depending on the type of industry.

Primary Industry Location • Primary industries are located where the natural resource is. ▫ Agriculture occurs where the land is suitable for agriculture; ▫ logging occurs where there are trees. ▫ Fishing occurs near water.

• Since nature determines the location, governments have provided incentives (motivation, financial assistance) for these industries to continue operating even though its location is less than ideal. ▫ People who live and work in northern locations receive a northern allowance for working so far north. ▫ No labor force/ attract people to work there ▫ Ex. Teachers up North get paid more. Different division pay scale.

Secondary Industry Location • Secondary industries have several factors to consider. It is also important to note that these factors are not equally relevant to every industry. • Labour Supply – If an industry requires many people to work in its factory or manufacturing plant, it will need to be located near a large population. • Transportation – Transportation costs are always a concern for industries. They require transportation methods that are fast and efficient. Rail, air, road, pipeline and sea are all methods of transportation that industries will take into consideration. • Markets – Secondary industries may also consider the distance they are from their market. A snowmobile plant would probably not start up in Florida, for example. Transportation costs would be too high for this to be profitable.

• Power Supply and Fresh Water – Manufacturing plants usually require huge amounts of power. Others may need a large supply of water. Those plants that require large amounts of power and/or fresh water will be located near these sources. • Availability of raw materials - If the plant requires perishables as its raw material, tomatoes, for example, it will be located near the tomato farmers. The canned tomatoes do not perish as quickly and can be transported further. In addition, being nearer to heavy, bulky raw materials will help reduce transportation costs. • Site – Industries that require large sections of land will look for areas where this is possible. • Government – Often governments offer incentives such as reduced taxes, grants, or loans for secondary industries locating in areas not normally seen as ideal. These are offered by the government as a way of keeping industries or as a way of having industries locate in more remote areas.

Tertiary Industry Location • The primary location factor of a tertiary industry is market and labour force. • Since this industry provides services to people, it needs people in order to be successful. • This means that most tertiary industries will be located in urban or town/city areas. • If there is a large population base, there will be a greater variety of tertiary industries.

Quaternary Industry Location • Quaternary industries tend not to follow any of the above factors. • Since quaternary industries deal with information, they do not require specific locations. • Many quaternary industries are located in home offices around the world. • The only location requirement is access to the information.

Industry Around the World There are 4 major manufacturing regions in the world. 1. The Northeastern United States and Southern Great Lakes region, also known as the “rust” belt. ▫ Located in northeastern U. S. and southeastern Canada. ▫ This region includes the New England states, New York and the Mid-Atlantic States. ▫ Southeastern Ontario and Quebec make up the Canadian portion of this region. ▫ The St. Lawrence Seaway and the Great Lakes are a primary reason for this manufacturing region.

2. Northwestern Europe is another manufacturing region. ▫ This region runs in a north-south line from Scotland, through England, through the mouth of the Rhine River Valley, through Germany and France, to northern Italy. ▫ This region has many ports as well as a large population which is able to support large manufacturing companies.

3. Western Russia and Ukraine make up a third manufacturing region. • This region is subdivided into five smaller regions. ▫ The Moscow region is the population centre of Russia and can take advantage of a large, skilled labour pool as well as a large market. ▫ Eastern Ukraine, southwest of Moscow, benefits from rich coal deposits, thus attracting steal and iron producers. ▫ The Volga Region, east of Moscow, has a substantial amount of oil and natural gas deposits. This region is also linked to the Black Sea. ▫ East of the Volga Region is the Urals Region where the Urals Mountains have large deposits of industrial materials. ▫ The Kuznetsk Basin is the chief industrial region to the east of the Urals.

4. Japan is the fourth major manufacturing region. ▫ This region has a large number of skilled labourers, a large consumer market and easy access to countries along the Pacific Rim.

Open your own Manufacturing plant • Use the 5 factors that influence the location of industry in order to make an educated decision on where you are going to open your new manufacturing plant. • Your new plant must be dedicated to the production of one of the following products: • • Wooden Canoe Paddle Leather Purse Gold Necklace Kleenex

Assignment • Imagine you are starting up a business and are trying to decide where you should locate your manufacturing plant. ▫ Secondary Industry/ Manufacturing • Use the 5 factors that influence the location of industry in order to make an educated decision on where you are going to open your new manufacturing plant.

• Your new plant must be dedicated to the production of one of the following products: • • • Wooden Furniture Wooden Canoe Paddle Leather Purse Gold Necklace Kleenex