World Geography 3202 Unit 5 Secondary and Tertiary

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World Geography 3202

World Geography 3202

Unit 5: Secondary and Tertiary Activities

Unit 5: Secondary and Tertiary Activities

Chapter 13 PATTERNS IN MANUFACTURING

Chapter 13 PATTERNS IN MANUFACTURING

Introduction to Manufacturing Three Sectors of the Economy 1. Primary – Involves the collection

Introduction to Manufacturing Three Sectors of the Economy 1. Primary – Involves the collection or extraction of raw materials from the earth. Farming, fishing, mining, forestry are the classic parts or examples of the primary economy. – The farmer takes plants from the land, the forester takes trees from the forest, the fisher takes fish from the ocean and the miner takes ore from the ground. – All involve collecting natural resources.

2. Secondary – Involves processing or manufacturing raw materials into products for people to

2. Secondary – Involves processing or manufacturing raw materials into products for people to buy. All the activities start with a raw material and convert it to a product for sale. – It is often referred to as the “manufacturing or processing” sector.

– There a multitude of examples for secondary processing. – Sometimes referred to as

– There a multitude of examples for secondary processing. – Sometimes referred to as “Value adding” (Example: the tree would be much less expensive to buy than the lumber. The processing (sawmilling) to make lumber has added value).

3. Tertiary Economic Activity – It involves providing service to people. It is often

3. Tertiary Economic Activity – It involves providing service to people. It is often referred to as the service industry. Does not deal with raw materials – Nurses, doctors, lawyers, teachers, waitresses, hairdressers, sales people all provide services for other people. Tourism is an important part of the tertiary sector.

Manufacturing: A Systems Approach 1. Inputs: materials & factors that go into making a

Manufacturing: A Systems Approach 1. Inputs: materials & factors that go into making a product (Examples: raw materials, electricity, buildings, land, labor, capital, machinery). • There are two types of inputs: 1. Human: Made by people (i. e. steel) 2. Natural: Nature (i. e. sunshine)

2. Manufacturing Processes: 3 types of processes that change a raw material to a

2. Manufacturing Processes: 3 types of processes that change a raw material to a usable form: 1. Conditioning: minimal change to a resource (Example: logs into lumber; fish into fillets). 2. Analytical: one resource converted to a number of different products (Example: cow into leather, milk & cheese).

 • 3. Synthetic: several resources are combined to make one resource(Example: light bulb

• 3. Synthetic: several resources are combined to make one resource(Example: light bulb has glass, tungsten, nitrogen and aluminum).

3. Outputs: it is the finished product from a manufacturing process. For example, the

3. Outputs: it is the finished product from a manufacturing process. For example, the output from the fish plant is fish sticks or frozen fish fillets.

Types of Manufacturing 1. Labour Intensive vs. Capital Intensive (Process) – “Labor intensive”: requires

Types of Manufacturing 1. Labour Intensive vs. Capital Intensive (Process) – “Labor intensive”: requires a lot of person hours to produce the product (Example: jewelry making). – “Capital intensive”: requires a lot of expensive equipment to make the product (Example: automotive plant).

– Some manufacturing businesses might be more difficult to classify because they require large

– Some manufacturing businesses might be more difficult to classify because they require large quantities of both capital and labour.

Labour versus Capital

Labour versus Capital

2. Heavy vs. Light Industry (Output) – Manufacturing businesses can be classified based on

2. Heavy vs. Light Industry (Output) – Manufacturing businesses can be classified based on the output. – Heavy industry: produces big expensive products for other industry (Ex. Ship yard, tractor production). – Light Industry: produces products for consumers (Ex. Pop, clothing manufacturing).

 • Some manufacturing businesses might be more difficult to classify because they produce

• Some manufacturing businesses might be more difficult to classify because they produce items that might be used by business or by private people.

Heavy Industry or Light?

Heavy Industry or Light?

Location of Industries 1. Site/Physical Cost Factors – Three major factors of site (physical

Location of Industries 1. Site/Physical Cost Factors – Three major factors of site (physical location) a) Proximity to raw material: Heavier & bulkier the raw material the closer the industry will be located to reduce transportation costs. • “Resource Oriented Industry” – industries located close to the resource because it is to heavy/bulky to transport; – communities frequently spring up around resource industries. Labrador City, Churchill Falls, Grand Falls-Windsor and Bonavista are good examples.

b) Land: price, level, good drainage, dense wellsettled soil c) Energy: not as important

b) Land: price, level, good drainage, dense wellsettled soil c) Energy: not as important a factor today due to our ability to transport power long distances.

2. Human-based Cost Factors – Market Oriented Industry • Industries that are located close

2. Human-based Cost Factors – Market Oriented Industry • Industries that are located close to the market because the product is expensive to transport. The resources are not bulky or expensive to transport. The soft drink industry is a good example.

– Agglomerating Tendency • Agglomerating tendency refers to the tendency for factories producing related

– Agglomerating Tendency • Agglomerating tendency refers to the tendency for factories producing related products to locate close to each other for mutual benefit (Ex. Auto plants & tire factories).

- Industrial Parks • Industrial parks provide many advantages for a business. Existing infrastructure

- Industrial Parks • Industrial parks provide many advantages for a business. Existing infrastructure of roads, on and off ramps to highways, large building lots, sewer, ample electricity, and close location to related industries make industrial parks attractive for manufacturing businesses.

– Labour force characteristics that attract business • Wages: lower wages in some developing

– Labour force characteristics that attract business • Wages: lower wages in some developing countries like Mexico, and the Philippines attract manufacturers • Training: highly skilled labourers can attract businesses that require welders, mechanics, carpenters etc. • Benefits (EI, Pensions etc): lower costs of employment insurance, pensions , etc. can attract business just as easily as low wages. • Availability: a high unemployment rate might attract business, especially if large numbers of workers are required.

3. Government Influence – Subsidies: affect the location of industry. Subsidies are financial aid

3. Government Influence – Subsidies: affect the location of industry. Subsidies are financial aid from government • Subsidies allow businesses to locate farther from the resource. • Subsidies allow governments to encourage industry in rural areas. Examples: – – ice breakers in Botwood; roads in Labrador; cost of coastal transportation in Labrador; cost of crossing the Gulf.

– Tax breaks affect the location of Industry. • Provinces like Newfoundland have attempted

– Tax breaks affect the location of Industry. • Provinces like Newfoundland have attempted to attract business by offering tax breaks. The company obtains a financial break while the province gets the advantage of putting people to work.

4. Industry Location; The Global Picture – Look at figure 13. 6 on page

4. Industry Location; The Global Picture – Look at figure 13. 6 on page 223 of your text book. – The highly industrialized areas on the earth's surface are concentrated in 4 definite regions: • • North America Western Europe Japan Australia – Do you see any other patterns?

Activity – Read the case study "Human and physical factors in Japan's Car Industry"

Activity – Read the case study "Human and physical factors in Japan's Car Industry" on pages 227 -228 and complete questions 18 & 19 on page 228 of your text book.

Industry & Environmental Threats Industrial Waste • Industry has waste out put as well

Industry & Environmental Threats Industrial Waste • Industry has waste out put as well as product output. Three of the many types of waste are outlined below. – Green house gasses; ex. Carbon dioxide, Chlorofluorocarbons & methane. Causes global warming & associated problems. – Acid Rain; ex. Sulfur & nitrogen. Decreases soil fertility, kills fish, corrodes buildings – CFC’s (chlorofluorocarbons); ex. Refrigerants & sprays. Breaks down ozone which filters harmful cancer causing UV rays.

 • Industrial wastes are obviously mostly related to areas of heavy industry. However,

• Industrial wastes are obviously mostly related to areas of heavy industry. However, when we look at the maps on p. 238 and realize prevailing winds play a role we can see that pollution does not recognize political or economic boundaries.

Role of Government and Interest groups Remember: It is the extreme views that define

Role of Government and Interest groups Remember: It is the extreme views that define the middle. • Interest groups often play the extremist. They raise valid points of concern and argue them vehemently. • Government has the role of balancing environmental concerns & encouraging economic development.

Averting environmental threats posed industry. • Analyzing the acid rain map p. 238 and

Averting environmental threats posed industry. • Analyzing the acid rain map p. 238 and the industrialized country map p. 223 and the prevailing winds map p. 64 you can see that prevailing winds are transporting acid rain from industrialized areas and depositing it in locations down wind from the industrialized area. It is important to note that industrialized areas as well as those areas down wind from industrialized areas are affected.

 • Any solution to industry related problems will have to be dealt with

• Any solution to industry related problems will have to be dealt with by cooperation and consultation between different nations. The major environmental summits that have been held in recent years are examples of that. The recent Kyoto summit and the summit held in Rio de Janeiro several years ago attempted to get countries to reduce their carbon dioxide emissions.

 • Solutions to solving the acid rain problem include: – government regulation to

• Solutions to solving the acid rain problem include: – government regulation to reduce sulfur & nitrogen emission; – development of sulfur filtering equipment; – tax breaks for companies if they reduce pollution output; – meetings and consultation between business, environmentalists and government to decide on a plan of action.

Moral Issues and Industry • There are many social/moral issues associated with manufacturing operations.

Moral Issues and Industry • There are many social/moral issues associated with manufacturing operations. Examples include child labour, safety of workers and a Company’s responsibility to be environmentally friendly. • Business drives the economy and provides us with our high standard of living here in the western world. The question we have to keep asking ourselves is "are industries acting within the moral parameters of our society". • In Canada and most well developed nations there are strict regulations about safety, waste emissions, age of workers, and corporate responsibility. In some developing nations the regulations might not be in place or they might be relaxed in the hope of stimulating business instead of inhibiting it.

Activity – "When Children Do Not Play" on pages 235 -236 of your text

Activity – "When Children Do Not Play" on pages 235 -236 of your text book.

Kyoto and Environmental Summits Activity • Using your favorite search engine find some web

Kyoto and Environmental Summits Activity • Using your favorite search engine find some web sites that deal with the Kyoto summit. Skim several sites. Don't spend more than 30 minutes. Do NOT get caught up and read through an entire site. Remember different stakeholders have different views and reading through only one site will give you a slanted view. • Answer the following questions on line in your discussion forum. You may not find all of the answers but you should be able to address the central issues of the questions – What environmental issues did the Kyoto summit address? – Were all countries represented at the summit? – Even though this was a summit to address environmental issues did environmentalists have any concerns? – Will the problems addressed be solved quickly?

Tertiary Activity – Service industry. – Providing services for people (Ex. Doctor, lawyer, waitress,

Tertiary Activity – Service industry. – Providing services for people (Ex. Doctor, lawyer, waitress, tourism industry, mechanic, teacher, etc. )

Public vs. Private Tertiary activity. – Private service industry is run by private business

Public vs. Private Tertiary activity. – Private service industry is run by private business and requires that a profit be made from the service. Ex. Mechanics, Lawyers, Tourism. – The four types of tertiary activity are: • Distributive activities: involves the transportation and sale of all products from manufacturer to consumer. ex. truck driver, warehouse manager, sales person • Financial Activity: involves banks, insurance companies, financial advising companies, and trust companies.

 • Personal Service: involves a wide range of services from legal services, to

• Personal Service: involves a wide range of services from legal services, to food services, to entertainment and counselling services. • Government service: Public service industry is operated by Government and is not for profit. On the contrary it cost tax payers money. Ex. Education, health care, mail, water, sewer, roads. Hence the term ? public servant? – It is important to note that many careers in the tertiary sector can not be classified as public or private. A teacher can work in the public school system which is public service or s/he can work for a private college which is private service.

Tertiary Activity • Proximity & price are two key factors that determine the location

Tertiary Activity • Proximity & price are two key factors that determine the location of service industries. – Location: services must be located close to a large enough market to produce DEMAND. – Viability: services are only viable as businesses if the demand is high enough & the price is reasonable.

 • Service Availability vs. Population Size. – Larger populations support a wider range

• Service Availability vs. Population Size. – Larger populations support a wider range of services. – Consider: Health services, Education, recreation facilities, shopping facilities, hotels, restaurants and you will see that the range of services available is directly related to community size.

Tourism is one of the fastest growing sectors of the economy. It is also

Tourism is one of the fastest growing sectors of the economy. It is also one of the most profitable. If your country happens to be located in a sunny area or to have good ski slopes or to have cultural attractions then people will flock there and spend money. Furthermore from a country's perspective international tourism is new money coming to the country.

International tourism has increased dramatically for 6 reasons: – people have increased leisure time

International tourism has increased dramatically for 6 reasons: – people have increased leisure time due to available technologies; – retired people have secure incomes and are able to travel; – people have increased discretionary spending money; – travel has become easier and less expensive; – travel agencies have packaged attractive "all expenses paid" trips; – advertising has been effective using attractive & exotic pictures.

Travel agents see that people are usually looking for one of three different kinds

Travel agents see that people are usually looking for one of three different kinds of vacations: – Climate oriented (skiing & sun bathing are at opposite extremes but both rely on climate) – Landscape oriented (some people like to view the sites) – Culture oriented (cultural land marks are of interest to people ex. Athens)

Activity Assigned Readings • "International Tourism in the Tertiary Sector" p. 245 -246 Assigned

Activity Assigned Readings • "International Tourism in the Tertiary Sector" p. 245 -246 Assigned Activities • Complete questions # 11 -14 on page 246 of your text book. • Case Study "Costa Del Sol" p. 247 -248 complete questions #15 -18

Quaternary Activity The quaternary sector of the economy is a specialized part of the

Quaternary Activity The quaternary sector of the economy is a specialized part of the Tertiary Sector. – QUATERNARY activity refers to activities which involve the collection, recoding, arranging, storage, retrieval, exchange, and dissemination of information. Computers, Cell Phones, E-mail, and the WWW are some of the examples of new information technology which drives the quaternary sector.

Factors Affecting Location of Quaternary Activity • People & Infrastructure: – Populations of people

Factors Affecting Location of Quaternary Activity • People & Infrastructure: – Populations of people concentrated in an area make the information sector viable. Historically, information technology like cable TV, telephones, and Radio flourished in areas where there was a population large enough to support them.

– Infrastructure is required for the communication of information. The infrastructure has been closely

– Infrastructure is required for the communication of information. The infrastructure has been closely linked to populated areas. Lesser developed nations currently do not have much access. However, lesser developed nations are not tied to the old and outdated infrastructure. This might be the time for lesser developed nations to build infrastructure and increase their share of the information technology market.

Factors Affecting Mass Communications Patterns. • In the telesphere of global communications there are

Factors Affecting Mass Communications Patterns. • In the telesphere of global communications there are islands and continents of activity and there are deserts or areas where there is no activity because there is no connectivity. The areas of connectivity are closely associated with development and you will see that in your readings and activity.

Mass Communication Affects Workplace Location. • As more and more people work in the

Mass Communication Affects Workplace Location. • As more and more people work in the information sector we may see a trend towards reducing urbanization. People would not be tied to an office building if they could work at home. Maybe they could work at home on the country farm and submit work electronically.

 • Businesses need not be located physically near other businesses as we saw

• Businesses need not be located physically near other businesses as we saw with the agglomerating tendency of the manufacturing sector. • If Infrastructure improves to the point it overcomes distances information technology will be a new source of employment and economic activity in rural depressed regions.

Assigned activities – Read "The Quaternary Sector and The Information Age" p. 249 –

Assigned activities – Read "The Quaternary Sector and The Information Age" p. 249 – Complete questions #19 -21

Tertiary & Quaternary Activity Trends • Economists recognize that the tertiary industry has expanded

Tertiary & Quaternary Activity Trends • Economists recognize that the tertiary industry has expanded significantly in the last 100 years. The tertiary sector in Canada has grown from 36% of GNP - 73% of GNP over the last 100 years. • The entire tertiary sector is growing and is becoming a much larger part of the economy of developed nations. As the secondary sector of the economy grew there were more people working in urban areas as manufacturers. The concentration of people meant there was more need for services. Service industries grow in turn. The people working in the tertiary industry need services too so the growth of the service industry continues.

International Tourism • In the last quarter of the twentieth century International tourism increased

International Tourism • In the last quarter of the twentieth century International tourism increased 12. 5%. There are several reasons for this which are outlined below. • More leisure time since WWII: – – – – More retired people because of aging population Younger retirement age. It did average 65 now it is closer to 55. The average holiday time has increased from 2 weeks to 4 weeks More money for leisure & recreation since WWII. Wages have increased giving people more disposable income Travel time and travel costs have decreased Travel agencies are offering all inclusive packages which attract people Appealing advertising campaigns by travel agencies.

 • Travel agencies and related tourism industries have both been a cause and

• Travel agencies and related tourism industries have both been a cause and a result of the increased interest in tourism. • Tourists tend to be looking for any one or combination of three destination sites. – Climate-oriented Sites: • warm climates, sunbathing and swimming attract some tourists from colder regions. • Abundant snow and good skiing conditions attract those avid skiers and snowmobilers – Landscape-oriented Sites: • some tourists are attracted by site seeing opportunities. – Culture-oriented Sites • Some tourists are attracted by historic sites like Athens and Jerusalem.

Assigned activities – Read "Tertiary Activity and Economic Development" p. 241 -244 – Complete

Assigned activities – Read "Tertiary Activity and Economic Development" p. 241 -244 – Complete questions #5 -8 p. 244 – Assignment: "Quaternary Trends"

Standard of Living Indicators Economic Indicators • Economists, sociologists, cultural geographers and all social

Standard of Living Indicators Economic Indicators • Economists, sociologists, cultural geographers and all social scientists use "indicators" to give some degree of measure to the concept of development. • There seems to be two aspects to development, economic (financial) and social (human). Social scientists have developed economic indicators and social indicators. There is some debate over which indicators are a better measure of development. It is very likely that a variety of indicators is the best way to determine the level of economic development.

Economic Indicators • There a variety of economic indicators which can provide a measure

Economic Indicators • There a variety of economic indicators which can provide a measure of the degree of development in a country. Two of these indicators are; 1) Employment Structure, and 2) GNP per Capita.

Employment Structure • Economists have recognized that those countries that have become "developed" have

Employment Structure • Economists have recognized that those countries that have become "developed" have been able to move their economy beyond the primary sector to the secondary sector which in turn grows the tertiary sector. • When economists calculate the percentage of people working in each economic sector the statistic created is known as the employment structure.

 Employment Structure for Country "X" Primary sector 60% Secondary sector 15% Tertiary sector

Employment Structure for Country "X" Primary sector 60% Secondary sector 15% Tertiary sector 25% • Economists would look at country X and realize that it is not a developed country. It might be developing but a developed country would have a great majority of its workers in the secondary and tertiary sectors of the economy.

Employment Structure for Country Y Primary sector 5% Secondary sector 25% Tertiary sector 70%

Employment Structure for Country Y Primary sector 5% Secondary sector 25% Tertiary sector 70% • Economists would classify country Y as a developed country. It has a great majority of its workers in the secondary and tertiary sectors of the economy.

GNP per Capita • GNP refers to the total value of the production of

GNP per Capita • GNP refers to the total value of the production of goods and services in a nation measured over a year, together with any money earned from investment abroad, less the income earned with in the nation by non-nationals. The GNP per capita takes that dollar value and divides it by the population of the country.

 • It is very likely that country X would have a much higher

• It is very likely that country X would have a much higher GNP per Capita. • Economists do recognize there is a major flaw in this measure as a measure of "Standard of Living. " This measure is an average which assumes that the wealth in the country is evenly spread. This is often not the case. If one or two families in the country are very rich and control most of the money then many of the people could be living in poverty even though the GNP per capita is high. • Look at Figure 13. 12 on page 231 of your text. This map shows you a comparison of countries based on GNP per capita. The disparity between countries should reveal a familiar pattern. • NOTE: GNP and GNP per capita are usually expressed in U. S. Dollars.

Assigned Readings & Activities – "Employment Structures and Development Indicators" on page 230 -233

Assigned Readings & Activities – "Employment Structures and Development Indicators" on page 230 -233 of your text book and complete questions #22 -28 – "Tertiary Activity & Economic Development" on Pages 241 -243 of your text book.

Defining Development The level of development in a country refers to two type of

Defining Development The level of development in a country refers to two type of development, economic development and social development. • Economic development refers to how well the economy is doing and how much money people have at their disposal. • Social development is often closely tied to economic development but refers to more human indicators of well being such as life expectancy, infant mortality rate, literacy rate, availability of communications. Generally speaking, people in more developed countries are better off and have an easier life than people in lesser developed nations. Economists and sociologists use the term "standard of Living" to describe how well off people are. Standard of living equates to quality of life.

 • The level of development among nations is far from equal. Some countries

• The level of development among nations is far from equal. Some countries have a very high standard of living with long life expectancy, equal rights, high average wages, strong economies, great health care and high literacy rates while other countries have a short life expectancy, fierce discrimination against woman, very low wages, faltering economies, little health care and very low literacy rates.

 • The United Nations recognizes the disparity and has set forth eight "millennium

• The United Nations recognizes the disparity and has set forth eight "millennium goals" to reduce the disparity among nations. – – – – Eradicate extreme poverty and hunger Achieve universal primary education Promote gender equality and empower women Reduce child mortality Improve maternal health Combat HIV/AIDS, malaria and other diseases Ensure environmental sustainability Develop a global partnership for development

 • By the year 2015 all 189 United Nations Member States have pledged

• By the year 2015 all 189 United Nations Member States have pledged to meet the above goals.

Assigned Activity • Assignment – “Developing Nations"

Assigned Activity • Assignment – “Developing Nations"