INDUSTRY AND DEVELOPMENT Hunter gatherer  farmer  surplus traded  manufacturing industry  service and hi tech industry

Topic ECONOMIC ACTIVITIES and GLOBALISATION

PRIMARY SECTOR This sector deals with extraction of RAW MATERIALS eg Fishing / Farming / Mining Most people in Developing countries are employed in this sector.

SECONDARY SECTOR This sector involves factories. It processes / changes materials into products. Eg crisps or steel Eg Port Talbot Steel Works in South Wales Eg Walkers crisps factory Countries develop by earning wealth through manufacturing industries

TERTIARY SECTOR This sector is the retail / service sector. This is where products are sold in shops, supermarkets The tertiary sector includes services such as banking, insurance etc. Anyone who provides a service is employed in the tertiary sector. In Developed countries a large proportion of the population is employed in the Tertiary Sector.

Quaternary Industry These include Hi- Tech industries such as computer and communications Research and Development sectors. These industries require a highly educated work force and so are mainly found in the Developed countries.

One company may involve all levels of economic activity Eg Walkers Crisps

Place these jobs under the correct heading. PRIMARY SECONDARYTERTIARY QUARTENARY TEACHER-PRO-FOOTBALLER-FISHERMAN-DOCTOR-CAR ASSEMBLY WORKER-SCIENTIST-CHECKOUT ASSISTANT- FARMER-RESEARCHER-BUILDER-MINER-STEELWORKER-FOOD PROCESSOR-LAWYER-ESTATE AGENT

Employment Structures Look at these 3 pie charts that show % of people employed in the three sectors in different countries. Which is the developing country and which is the Developed country? How do you know?? What do you think is meant by the term Emerging country??

China 1990 to 2003…. And now??

Industry as a System

INDUSTRIAL LOCATION..or where shall I put my factory??

INDUSTRIAL LOCATION There are many important factors to be considered before any business selects a location for a factory. Physical factors. RELIEF / FLAT LAND DRAINAGE / NO RISK OF FLOODING NATURAL RESOURCES (WATER OR RAW MATERIALS) ACCESSIBILITY COASTAL LOCATION / PORTS Look at this photograph and list 3 problems of selecting this location

Changing location - Steel in South Wales

Industrial Location Human Factors Including : 1.Power supplies 2.Transport 3.Communications 4.Labour supply 5.Markets 6.Government Policy ( Assisted areas)

What are Industrial Estates? This is Faringdon Industrial Estate. Note the buildings. All purpose built / uniform. Lots of parking / flat land.

Industrial Estate Location Faringdon Industrial Estate Think about Physical Factors + Human Factors Oxford M40 + A34 Swindon M4 + M5 Labour Flat land

Aeriel view of Faringdon Industrial Estate Note the following Large open site. Easy to park Lorries can come and go quickly Flat land easy to build Easy to expand Close to transport links Close to housing for labour supply

What is a Retail Park ? Retail Parks are large sites with stores / warehouses that sell products.

Location of Abingdon Retail Park Retail Park A 34 Edge of town easy access

Footloose industries

Case Studies – Nissan car plant in Sunderland iPhone Farming in the UK and Africa

Industrial location Case study of Nissan in Sunderland near Newcastle

iPhone – a global product made in many countries – why? Coltan mining in Republic of Congo I Pad assembly in China

Livestock farming in Developed and Developing countries Cornwall, UK and Tanzania How do location factors influence this industry??

What is a Multinational MNC = MULTINATIONAL CORPORATION ? A company that has offices / factories around the world. Examples :

What is Globalisation ? “And before you finish eating breakfast in the morning, you’ve depended on more than half the world” was part of a speech made by Martin Luther King in 1967 Why did he make this observation? Globalisation is the process where the world becomes increasingly interconnected through increased trade. As a result of globalisation, many companies now operate in several countries. These international companies are called multinational corporations (MNC) or transnational companies (TNC). The first MNC was the Dutch East India Company, founded in 1602 to profit from trade in spices including pepper, ;nutmeg cinnamon and cloves. By 1670 it was the richest corporation in the world.

What is Globalisation ? This is the idea that the world is a global market place where people / companies can trade. Think about the multinationals like How is this possible ? Modern communications,internet / video / skype/ texting all mean that people can communicate 24 / 7. Modern transport can move goods around the world very easily. A reduction on trade restrictions internationally

CASE STUDIES Apple ipad

Comparative Case Study of Clothing industry In recent years the British clothing industry has been in steep decline. 1000s of people have lost jobs in this sector Why? Higher labour costs / minimum wage More expensive raw materials Overseas competition

Why are products produced in Developing Countries Like BANGLADESH Wages are low, therefore products are cheaper. Plentiful supply of labour. Workforce is highly skilled. Raw materials close at hand and cheaper. No unions to protect interests of workers. No strikes!! Not restricted by trade quotas

Textile Manufacturing in a Developing Country As with many types of manufacturing many TRANSNATIONAL companies now manufacture their products abroad. LEDC countries such as China, Bangladesh, Cambodia and Vietnam can produce goods more cheaply due to :- Cheaper labour costs Cheaper power costs Cheaper raw materials These tend to be lower Quality cheaply mass Produced affordable goods.

Bangladesh has come a long way in the past three decades. It is now the world's second-largest exporter of ready-to-wear clothes, next only to China. Last year it exported more than $19bn (£12bn; 14bn euros) worth of clothes. Textile Industry in Bangladesh

Negative impact of Globalisation on Developed Countries Factories in Developed countries lose business and might have to shut down: Higher unemployment. Impact on local economy. Loss of skills. Burberry closed its factory in Wales in people lost their jobs.

Positive impact on Developed Countries Cheaper products in the shops More variety of products available Bigger profits for MNC’s

Does Globalisation benefit people in Developing countries? Might receive training build up skills Local people have an income. The local economy benefits as people spend their money. 90% of factory workers are women. An income gives women status / empowerment. Greater awareness of production methods in LEDCs has seen western consumers demand a more ethical approach to how things are made. Standards in factories are improved for example. In this Nike factory in Taiwan workers produce 12 % of the 75 million pairs of Nike shoes made every year. The average wage is £30.00 a month On the other hand…….. If labour costs rise Nike could simply relocate where costs are cheaper

Negative impact of Globalisation on Developing Countries Poor pay and poor working conditions No rights for workers Employment of children Sweat shops

What impact does Globalisation have on Developing countries ? Loss of culture in poorer countries Loss of tradition in poorer countries. Negative influence of Western Culture. Including music / films etc.

British quality is desirable

High Quality Clothing PRODUCTS THAT ARE DESIGNED TO LAST HIGH QUALITY MATERIALS HIGHLY SKILLED LABOUR PRODUCTS THAT ARE DESIRABLE PRODUCTS THAT ARE EXPENSIVE LATEST DESIGNS

INDUSTRIAL LOCATION BBC - Learning Zone Class Clips - The birth of Swindon - Geography VideoBBC - Learning Zone Class Clips - The birth of Swindon - Geography Video

Steel in South Wales

Ebbw Vale steelworks

CASE STUDY SWINDON BBC - Learning Zone Class Clips - The birth of Swindon - Geography VideoBBC - Learning Zone Class Clips - The birth of Swindon - Geography Video

Where is steel produced today?

Case Study of NIKE

NIKE Facts Founded in 1972 Headquarters Oregan,U.S.A. 777 factories in 42 countries Area served : WORLDWIDE Products :Sports Wear shoes + clothes + accessories Employees : 1,005,547 Profits 2013 : $2.74 Billion Manufacturing: China, Vietnam, Indonesia,Mexico etc

Nike Industrial Location + GLOBALISATION Where are NIKE products manufactured? Why do Nike have their products made in these countries? Are there any benefits for the local people? Are there any problems created ?

Developing Countries offer NIKE……… A low paid workforce. Often no minimum wage. A ready supply of labour. No unions to fight against the company in some countries. Tax incentives to locate there. Access to huge market place.

NIKE SPORTS Where in the World? Headquarters in M.E.D.C.( Tertiary/quaternary) because more highly educated work force Manufacturing in L.E.D.C. where cheaper, skilled workforce Headquarters U.S.A China INDONESIA Mexico