Download Unit 5 Secondary and Tertiary Activities

Unit 5 Secondary and Tertiary Activities
5.1 Identify natural and human input in a manufacturing operation.
Case Study Page 227-228, Question number 19 a and b
19a. Physical factors accounting for a thriving auto manufacturing industry in Hiroshima
1. The city is located on a river delta at the head of a bay on the sheltered side of the
“Island sea”
2. The water is deep enough for very large ship.
b. Human factors that support this industry.
1. Hiroshima experience with industry was on its side. Early 20th century it had
developed a shipyard and carried on ship building activities.
2. Labor force had wide experience in the manufacturing sector, particularly in car
assembly
3. A large population in and around the city created a local demand for cars.
4. A vibrant research and development sector in Hiroshima supported car design work
and developed assembly line robotics.
5. Support service such as marketing and accounting were readily available.
5.2 Analyze the processes in a manufacturing operation.
Read case study on page 219 -220 Gum manufacturing
Use a flow chart to outline the process involved in making gum.
5.3 Describe the three processes that may be used to change a raw material
into a useable form.
1. Analytic process- Raw materials or resources are broken down into several useable or saleable
products. Example Cow = milk, fertilizer, meat, leather, and glue.
2. Synthetic process- several raw materials or resources are combined to make one useable product.
Example: Onions, potatoes, salt, cod, and pepper are combined to make fish cakes.
3. Conditioning process- raw material or resources are only slightly modified or changed into a
useable or saleable product.
Example: 1. Cod process cod fillets (2) Oil process furnace oil (3) Timber process lumber
5.4 Define the terms labor-intensive and capital intensive.
Labor-intensive- manufacturing which depends on the technical skill of workers, more than automated
equipment. Labor is a key component of the operation (number wise or hour wise). Specialized skills
performed by crafts people. Example: Jewelry
Capital Intensive- manufacturing largely depends on automated equipment and financial investment.
Labor is not as crucial to the manufacturing operations, as in the roots, and other technology used.
Example: Automated assembly line.
5.5 Analyze a manufacturing operation to determine if it is labor intensive or
capital intensive.
5.6 Define the terms light industry and heavy industry.
Light industry- any manufacturing focused on producing products for the general consumer. These
products usually require less input (ie, resources) and the majority are light in weight compared to
products produced in heavy industry. Example, automobiles, toilet paper, toys (productivity per
worker is high)
Heavy industry- Manufacturing requiring large, bulky inputs to produce heavy weighed products,
typically bought by other companies to transport or produce another product or service. Example:
Steel products – trains, airplanes, ships (productivity per worker is low) This industry is not typically
geared toward the general consumer.
5.7 Analyze a manufacturing operation to determine if it is an example of
light industry or heavy industry.
Case study- 221-222 Question # 10
Question: Classify steel production as a heavy or a light industry. Explain your
answer. Answer: Steel production is an example of heavy industry. This type
of operation requires large amounts of labor, investment, and heavy-weight
materials, namely iron ore or pelletized iron concentrate, limestone, and coal
or heavy oil.
5.8 Examine the influence that site conditions and situation may have on the
location of an industry.
Site: refers to the specific characteristics of an area which might make it attractive to industry.
Situational Factors: refers to how the area (site) is connected to surrounding areas (i.e. Market)
Natural factors:
1. Land- accessible, flat, spacious and able to support a large building
2. Resources- are accessible
3. Energy- accessible and cost efficient
Human Factors:
1. Skilled workers: some industries which locate in less developed countries do so to take
advantage of cheap labor.
2. Cheap labor-Most companies which locate in less developed countries do so to take
advantage of cheap labor.
5.9 Compare the terms resource oriented industry and market oriented
industry.
Resource oriented industry – Manufacturing industry that tends to locate near the source of its raw
material(s). In these industries, the ratio of the weight of the raw material used in the
manufacturing of the product to the weight of the finished product tends to be high. Example:
Plywood manufacturing- economical to ship than the logs.
Market Oriented Industry- An industry that tends to locate close to its market. Industries locate
near the market if the cost of transportation of the finished product to the customers is a major part
of the selling price. One example is the brewing industry where large bulky quantities of water are
used to make the finished product.
If there is a weight gain after manufacturing for example Wet batch cement plant.
5.10 Analyze the influence of weight gain and weight loss production on the
location of an industry.
Case study page 221-222 do Question # 14, 15, 16, and 17 and # 11 Page 223
5.11 Describe the advantages of the agglomeration tendency.
Agglomeration tendency- a pattern of economic activities concentrated in the same location. This
may apply to the concentration of particular commercial shops and service. Also, refers to the
material benefits industries or companies receives when they locate next to each other.
Example: Auto manufacturing – locate next to tire, paint, seatbelt manufactures.
Advantages- Labor pool, energy, related products, and greater efficiency. Also, reduces
transportation cost.
5.12 Identify the characteristics of a labor force that make it attractive to
industry.
What characteristics of labor encourages companies (industries) to locate in the less developed
world?
1. Access to an abundance of cheap, unskilled labor.
2. To avoid legistation, laws, and labor standards which are strict in the developed world (child
labor)
What characteristics of labor encourages companies (industries) to locate in the developed world?
1. access to technology – capital investments and skilled labor
2. labor creates a market
What are generic characteristic of labor which any industry would find attractive/
1. Work ethic
2. Responsible/dependable
3. Train-re-educate
4. Goal/ aspirations
5. Flexible
5.13
Explain how government subsidies on transportation influence the
location of a give industry.
1. Exemption from taxes (property/business) for a set period of time.
2.
3.
4.
5.
Interest free loans
Guaranteed loans
Subsides on employment wages
Any other incentive attractive to the industry
5.14 Draw conclusions about patterns in the distribution of highly
industrialized areas on the earth’s surface.
Figure 13.6 page 223
1. Identify four highly industrialized areas: Answer: Canada, United States,
Australia, and France.
2. Identify three agricultural low income areas: Answer: India, China, and
Sudan.
5.15 Analyze the roles of stakeholders in the face of an environmental threat
posed an industrial activity.
Stakeholders are: Government, company, public citizens, and Environmental groups
The role of each of this is highlight dangers, Discuss environmental impact, lobbying Government,
constant monitoring and safety checks
5.16 Relate the location of areas at risk with the location of major
industrialized areas.
5.17 Anticipate the kinds of action that should be taken to avert and
environmental threat posed by industry.
Before: Environmental impact Assessment (EIA) – the Industry, community, and the Government
(decision makers) work together on the EIA.
The Process, carried out by industry and government will identify any potential threats to determine
whether the industry will be given “the green light”. Assume they get the go ahead.
After/During: Constant Monitoring and Supervision: Periodic testing must be carried out to ensure
the industry is staying within the guidelines outlined in the EIA. They may have to set time lines if
they exceed the standard (i.e. Yellow light)
Threat Occurs: Emergency Measures Plan (EMP): Stakeholders directly related to the
environmental threat will begin action or way s to rectify the concern before it becomes an
environmental nightmare.
5.18 Defend selected social/moral issues associated with manufacturing
operations.
1. Moral Issue: Child labor – Is this is a local or global concern? This is a global concern because we
support this activity by buying the products.
This activity is actually preventing these countries from becoming more economically developed
because children are being kept from getting an education.
5.19 Define the term tertiary activity
Tertiary Sector- The sector of the economy concerned with the sale and use of economic goods and
services. (Service sector)
5.20 Identify the four categories of service activities.
1. Distribute Services: Getting products from the manufacturer to the consumer. Example,
wholesale businesses buy large amounts of products from manufacturers and sell smaller quantities
to retailers. In turn the retailers sell these products to customers.
2. Financial Services: Involves providing capital to manufacturing companies and individual
customers. Example: Banking institutions provide loans and insurance companies provide coverage
for financial loss.
3. Personal Services: food services, entertainment, legal assistance and a wide range of other
institutions provide personal services for manufacturing and consumers. Example: movie theaters,
hair salons.
4. Government Services: Any service provided by a government employee. Thus, this is the only
category which provides a public service. Example: Teachers, doctors, nurses.
5.21 Contrast private tertiary activity and public tertiary activity.
Public Tertiary activities are those services provided by government employees. This category of
tertiary activities, make up the largest share of the service sector. Example, social worker, swimming
pool, hospital, and CONA
Private Tertiary activities are those services provided by non-government agencies. Example, WalMart, McDonalds, Tim Horton’s, and the golf course.
5.22 Define the terms quaternary activity.
Quaternary Sector: Like the tertiary sector, this sector is service based. However, it is kept separate
from the tertiary sector because it involves the use of high technology to either, produce, retrieve,
store, or distribute information.
Examples: Mechanical Engineer developing the next engine for a leading automotive company.
Chemical Engineer companiy developing the next drug for cancer treatment. A computer analyst
working with the GNP figures for Switzerland.
5.23 Examine factors that affect the location of a tertiary activity.
1. Type of services: In essence, services are strategically located either to service the
people if they are a “public service” or as a means to experience an economic return if they
are a “private service”. For example, hospitals tend to be “regionally located” to service a
geographic area, whereas hotel/motels tend to located where the operators realize an
“economic return”
2. Service Price/Distance from the consumer: Some services must be located within a
reasonable distance of the customer, especially if the service is a private service. The reason
for this is that the further away a service location is from a customer, the costlier the service
will be in terms of both time and money spent traveling to access the service.
Note: Remember that population size has a major influence on the location of a tertiary
service and more importantly the number of the same service offered. For example, a small
city may only be able to support five restaurants or law offices, whereas a larger town
should be able to support many more of the same type of tertiary service.
Example: Page 224 #9
5.24 Examine factors that affect the location of quaternary activity.
1. Access to capital/Infrastructure: The country must have the ability to access the
finances/money and technological equipment to successfully and actively participate in the
quaternary industry.
2. Access to skilled Labor Force: the country must have the ability to access highly educated
and/or technologically trained individuals who can work in the quaternary industry.
5.25 Analyze factors that account for patterns in world trade for a selected
commodity.
1. Shipment by water: 90% of all world goods are shipped by water because water is the
most economical method to move large quantities of goods over long distances. This is
because shipment by water has very low line-haul or variable costs compared to other
modes of transportation.
2. Regional share or world trade: If more than one country trades in a product (i.e.
Wheat/fish) their relative share of the world market will be based upon the costs of their
inputs (i.e. wages, equipment, line-haul costs)
3. Regionalization in world trade: countries buy from and trades sell to countries that are
geographically closest to them. This ensures that transportation costs are minimized. The
exception to this pattern exists when we look at specific commodities which must be
bought from distance countries; for example, Canada cannot get all the tea it needs in the
Western Hemisphere so it imports from the distant countries of India and China.
4. Level of Economic development: the more developed a country become, the more world
trade it will secure. Economic development feeds trade and more trade feeds economic
development.
5.26 Analyze factors that account for patterns in mass communication.
1. Knowledge and technological ability
2. Access to capital (money and equipment)
3. Access to research and development
5.27Examine how mass communication can affect the location of a work
place.
Understand the concepts of telecommuting and tele-working (working at home instead of
at a specific company workplace.)
Examples:
1. Many multi-national companies provide services to one country by operating in another
country. For example, may U.S. insurance companies offer their products to U.S. citizen
but the services may be processed in Scotland.
2. Medical services, is such now that a doctor in Los Angeles can actually use a computer
aided robotic equipment to operate on a patient in Florida.
3. Education is such now that distance education makes having to attend a physical site
unnecessary.
5.28 Evaluate the economic importance of a tertiary activity.
Students should read pages 245 (the Bermuda experience)
1. Diversifies the Economy- allows for more individuals to move out of the primary and secondary
sectors, which is beneficial to a countries economy. As well the tertiary industry creates needed
employment opportunities for individuals by diversifying their skills in less developed countries
which lack a well-developed manufacturing sector. As stated on page 250, the development of
the tertiary industry in less developed countries will allow those countries that opportunity to
leap-frog from the primary industries to the tertiary industries since they have little secondary
sector development. This is presently evident in Barbados and India through the exportation of
information.
2. Contributes to countries GDP- these sectors produce over 70% of the GDP in many countries.
(Remember these sectors deal with value added services and high technology skills, especially
with the quaternary sector in the more developed countries of the world.
3. Improved Standard of living- this is especially true for the tertiary industry of tourism in less
developed countries such as Bermuda because its economy is do dependent on the tourist
trade. (Typical of many tropical destinations)
4. Growth stimulates more growth- As the country benefits from the increase growth of the
tertiary and quaternary industries, the growth feed off of itself. By this we mean that as the
economy grows and the standard of living improves, domestic citizens within that country tend
to spend more money which in turn allows the economy to grow.
Question: What trend can you determine from each graph on page 246?
Graph 1: The growth in International Travel Receipts, have increase continuously from 1970 to
1996. More and more people seem to be travelling outside their countries more often due to
the increase in international tourism. People seem to have more time available for leisure and
recreation resulted from more retirees, more benefits packages at work, and paid vacation time
up to 3 to 4 weeks. People have more disposable income. Travel time and cost decreased with
improvements in transportation.
Graph 2: Percentage share of international travel receipts by regions: This graph shows that
the greatest share of international travel receipts come from the more developed countries.
5.29 Analyze issues that affect the viability of a tertiary activity.
1. Population size/ Location
2. Type of Service and Price
3. Quality
As we discussed with the hairstyling example (#9 on page 244) the tertiary service must be
accessible and demanded by a sufficient number of individuals to make it viable.
5.30 Describe the economic importance of the quaternary sector.
Refer to outcome 5.28
5.31 Examine factors that affect the growth of the quaternary sector.
Students should read page 251 (how less developed countries are positioned to benefit from the
information technology boom)
1. Lower Wages- this gives less developed countries a competitive edge.
2. Reducing cost of infrastructure- information technology is constantly improving at a steadily
decreasing cost. As a result, it may be more advantageous for quaternary industries to set up
new systems in less developed countries as opposed to upgrading older infrastructure in many
parts of the developed world.
What must less developed countries do to achieve this goal?
1. Develop long term goals- they must make realistic plans to address how they will work
towards developing the quaternary sector.
2. Government investment – Governments of these countries must develop education and
training programs of its citizens to meet the needs of the information technology
companies.
3. Develop partnerships with Telecommunication companies- This companies need to work
with the countries to develop more efficient and cost effective communication networks
within and outside the country. This can only occur when these companies invest time,
money and energy to reap the benefits in the future.
5.32 Evaluate the social and economic impact of the development in the
quaternary sector.
Economic Impact:
1.
2.
3.
4.
Diversification of Economy creating more jobs within the country.
Growth of a country’s GDP
Improve Foreign trade relations with the world
Increased tax base for the country
Social Impact:
1. More opportunities to reinvest in fundamental programs such as education and health care.
2. Improved standard of living for its citizens
3. Opportunities for the country to increase its foreign aid commitment to less fortunate
countries.
5.33 Define the term Gross National Product (GNP).
GNP- refers to the total value of all goods and services produced in a country during a specific
period of time (ie. One month, one year)
Weakness: It is difficult to use this figure to determine standard of living in a country because it
does not take into consideration the population of the country. For example, two countries may
have the same GNP, but country 2 may have twice the population. Thus, from this we could assume
that the standard of living in country 1 is higher but we would not know this if we did not know the
population of the countries.
5.34 Define the term Per capita GNP.
PER Capita GNP- When we divide the GNP of a country by the population of that country we get
the per capita GNP. This is a much more accurate measure to use when referring to the level of
development within a country.
5.35 Relate per capita GNP to level of economic development.
Refer to figure 13.12 on page 231 or text.
1. What is the average world per capita GNP? Answer $5359 per person.
2. Identify two countries which have a per capita GNP of over 400% or the
world average? Answer: United States and France
3. Identify two countries which have a per capita GNP of under 10% of the
world average. Answer: India and China
4. From this information, what is the relationship between per capita GNP and
the Level of Economic Develop? Answer: The Greater the per capita GNP
within a country the higher the level of Economic Development. Example,
more people earning money support the growth of an economy.
5.36 Relate employment structure (i.e. percentage employed in the primary,
secondary or tertiary sector) to level of economic development.
Refer to figure 13.11 on page 231 of text.
1. From the data in this table and based upon your geographic knowledge,
explain the relationship between employment structure and level of economic
development? Answer: Based on the table it seems that the more people
employed in the primary sector the less developed the country is and the more
developed countries seem to have a much stronger employment in the tertiary
and quaternary sector.
5.37 Explain why it is beneficial to use more than one indicator when
describing the standard of living of a region.
5.38 Relate selected social and economic indicators to level of economic
development.
5.39 Analyze patterns in the distribution of selected socio-economic
indicators with patterns in the distribution of developed or developing
countries.
Outcome 5.37, 5.38. 5.39 are combined
Refer to page 233, figure 13.14 for different development indicators use to
compare the standard of living throughout the world.
1. Which of these are economic indicators: Answer: per capita GNP,
Percentage employed in manufacturing, percentage employed in
agriculture, Gross national product, share of world coal production, volume
of oil imports, volume of transportation exports.
2. Which of these are social indicators? Answer: Gender equity, literacy rate,
number of people per doctor, life expectancy, family size, out-migration
rate, birth rate, number of people per telephone.
Note: It is quite dangerous to only use one indicator to classify the level of
development in a country because that one indicator may be an outliner (i.e.
misleading, base upon other indicators)
Question #23 on page 233
Question: Steel production is often taken as a strong economic indicator. More
specifically, countries with a large output of steal tends to have a strong
economies. Can you find evidence for this correlation between steel production
and economic development when you compare figure13.5 on page 222 and figure
13.12 on page 231? Explain.
Answer: Yes, there is a correlation between steel production and economic
development. With the exception of China, Russia, and Ukraine, the major steel
producers have per capita GNPs that are equal to or greater than the world
average.