Patterns in Manufacturing Chapter 13 Three Sectors of the Economy 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 ID: 702298
Download Presentation The PPT/PDF document "World Geography 3202 Unit 5: Secondary a..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
World Geography 3202Slide2
Unit 5: Secondary and Tertiary ActivitiesSlide3
Patterns in Manufacturing
Chapter 13 Slide4
Three Sectors of the Economy
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.
Introduction to ManufacturingSlide5Slide6
Secondary
I
nvolves 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. Slide7
There are 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).Slide8Slide9
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. Slide10Slide11
Manufacturing: A Systems Approach
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)Slide12
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).
Slide13
3.
Synthetic:
several resources are combined to make one resource(Example: light bulb has glass, tungsten, nitrogen and aluminum).Slide14
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. Slide15
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).
Types of ManufacturingSlide16
Some manufacturing businesses might be more difficult to classify because they require large quantities of both capital and
labour
. Slide17
Labour versus Capital Slide18
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).Slide19
Some manufacturing businesses might be more difficult to classify because they produce items that might be used by business or by private people.Slide20
Heavy Industry or Light?Slide21
Site/Physical Cost Factors
Three major factors of site (physical location)
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.
Location of IndustriesSlide22
Land: price, level, good
drainage,
dense well-settled soil
Energy: not as important a factor today due to our ability to transport power long distances. Slide23
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. Slide24
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).Slide25
- 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.Slide26
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. Slide27
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. Slide28
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. Slide29
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? Slide30
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. Slide31
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.
Industry & Environmental ThreatsSlide32
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. Slide33
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. Slide34
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. Slide35
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. Slide36
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. Slide37
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
.
Moral Issues and IndustrySlide38
Activity
"
When Children Do Not Play" on pages 235-236 of your text book. Slide39
ActivityUsing
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?
Kyoto and Environmental SummitsSlide40
Tertiary Activity Service industry. Providing services for people
(Ex
. Doctor, lawyer, waitress, tourism industry,
mechanic
,
teacher, etc.)
Tertiary ActivitySlide41
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. Slide42
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. Slide43
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.
Tertiary ActivitySlide44
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. Slide45
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.
TourismSlide46
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. Slide47
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) Slide48
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 #15-18Slide49
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.
Quaternary ActivitySlide50
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. Slide51
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. Slide52
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. Slide53
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.Slide54
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.Slide55
Assigned activities
Read "The Quaternary Sector and The Information Age" p. 249
Complete questions #19-21 Slide56
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.
Tertiary & Quaternary Activity TrendsSlide57
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. Slide58
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. Slide59
Assigned activities
Read "Tertiary Activity and Economic Development" p. 241-244
Complete questions #5-8 p. 244
Assignment: "Quaternary Trends" Slide60
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.
Standard of Living IndicatorsSlide61
Economic Indicators
There are 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. Slide62
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. Slide63
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.Slide64
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.Slide65
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. Slide66
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
.Slide67
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. Slide68
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.
Defining DevelopmentSlide69
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. Slide70
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 Slide71
By the year 2015 all 189 United Nations Member States have pledged to meet the above
goals.Slide72
Assigned
Activity
Assignment – “Developing
Nations
"