Economic Change

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  • Economic Change
    • The 3 sectors of industry
      • Primary Industry
        • The extraction of raw materials from the ground or the sea.
        • Examples
          • Mining, farming, fishing, forestry
      • Secondary Industry
        • The processing of goods using the raw materials from the primary industry. e.g.making paper from wood.
      • Tertiary Industry
        • Involves the provision of different services.
        • Examples
          • Teachers, sales assistants, cleaners and solicitors.
    • De-industrialsiation
      • Areas that are no longer used for industrial purposes.
      • Benefits and costs in rural areas
        • South Wales
          • The extraction of raw materials especially coal has left the landscape scarred with many waste heaps. In 1966, the Aberfan disaster occurred
          • Costs: A landslide occurred from a coal waste heap after heavy rainfall and tons of materials fell onto the village school
          • Benefits:The land is now used for agriculture and leisure. Visitors to the area would be unaware of its industrial past.
        • Reading in Berkshire
          • The extraction of sand and gravel around Reading has left many quarries full of water
          • Costs: The extraction left many dangerous water-filled quarries. Many jobs were lost when the quarries were closed so other industries needed to be developed to provide jobs for the previous quarry workers.
          • Benefits: These quarries are now being used in a number of different ways. Copthorne Hotel was built next to a 10-acre lake. The hotel has many sporting facilities including water sports. It provides a number of jobs for the local community. Green Park, which is a science park, covers 70 hectares and employs 7000 people.
        • Eden Project, Cornwall
          • The extraction of china clay in Cornwall left many pits full of water. One of these pits has become the Eden Project.
          • Costs: The pit is 60m deep and covers an area of about 35 pitches. When the quarries closed, a number of people lost their jobs and the local government lost income from the quarry owners.
          • Benefits: The pit has been totally transformed into a tourist attraction with landscaped walks, a huge diversity of plants and two enormous pods. The Eden Project employs 500 staff and provides jobs for 3000 other people in hotels and suppliers of products Since it has opened it has contributed £1 billion to the Cornish economy.
      • Positive Impacts
        • Old industrial buildings have turned into tourist attractions
        • Less environmental pollution caused by factory outputs
        • New wildlife habitats are created
        • Old, ugly industrial buildings can be demolished
        • Return land to farming
      • Negative Impacts
        • Loss of jobs in rural areas
        • Break up of rural communities and they have to be relocated
        • Many ugly buildings and disused quarries continue to scar the landscape
        • It has cost local authorities a lot of money to clean up derelict areas
    • Reasons for the decline in the numbers employed in the primary sector in the UK
      • Depletion of resources
        • Raw materials that used to be mined in the UK have run out. This has caused a decline in the mining industry.
      • Cheap imports
        • Most raw materials now used in the secondary sector in the UK are now imported from abroad. It is cheaper to import them because the raw materials that are left in the UK are deep underground.
      • Mechanisation
        • Fewer workers are needed in the primary industries because their jobs are now being done by machines. e.g. On farms, the jobs are now done by machinery like potato picking.
        • Animals are now being fed automatically rather than by people, for example chickens are reared in large sheds and computers determine when they are fed by machines.
        • Fishing boats now have computers to aid them to find shoals of fish and machinery to work the nets.
      • Social Change
        • Primary industry jobs such as farming are seen to be hard work
        • Many employees working in the primary industry have no chance for promotion.
        • The jobs are often low paid.
    • Mechanisation
      • The use of machinery instead of people to do jobs.
    • Raw Materials
      • Resources that are used to make useful products.
    • Reasons for the decline in the Secondary Sector
      • Globalisation; the growing economic interdependency of countries worldwide.
        • Modern communications, like the internet, allows businesses to communicate globally. This means that the owner could be in a different country to where the goods are being produced.
        • Development in transportation mean that goods can be moved around the world quickly and efficiently.
      • Cheaper production in LIC and MICs
        • Goods can be produced more cheaply in LICs & MICs than in the UK because workers are poorly paid and land is cheap.
        • There are fewer regulations in LICs as governments may not be so worried about environmental impacts, so money does not need to be spent on waste disposal and reprocessing.
      • Government Policies
        • The withdrawal of government help to industries may have been seen as a cause of the decline of the secondary sector in the UK. In 1967, the British Steel Corporation was formed. This was a nationalised company owned and run by the government to try to protect the production of steel.
      • Mechanisation
        • The increased use of machinery led to decrease in people employed in the secondary industry.
    • Disposable Income
      • Money left over each month from wages after all essentials have been paid for.
    • Grey Pound
      • Money spent by retired people
    • Demographic
      • Population
    • Case Study
      • The growth of the secondary industry in China
        • Positive Effects
          • The people who live in urban areas can now get jobs which give them a higher standard of living
          • The government spent $172 billion on protecting the environment
          • Many new homes are being built in urban areas which the workers can afford.
        • Negative Effects
          • 90% of the underground water in urban areas is polluted.
          • 760000 people a year die from illnesses related to water and air pollution.
          • Workers are poorly paid; many work for 40p and hour.
          • Many workers have left rural areas, so there is a lack of strong and young workers in rural areas.
          • Many urban areas suffer from pollution due to burning coal, for example in Linfen.
        • Factors of growth
          • Government Policy
            • All industry was owned by the government but now 20% of companies are privately owned with investors from other countries.
          • Infrastructure
            • Many new roads have been built by the government to improve transport in the country
          • Energy
            • The government has built many new nuclear and HEP stations to power new industries.
          • Education
            • There is a large unskilled workforce. In the next 20 years approximately 500000 million people will leave the Chinese countryside in search of work in the city, there is a growing skilled workforce.
          • Safety for Workforce
            • There are a few rules for health and safety rules in China which means that they can produce goods quickly.
          • Wages
            • People in China will work for less than people in other countries.
          • Raw Materials
            • China has a lot of natural resources such as coal, oil and natural gas.
          • Trade
            • China has a long coastline with major ports on trade routes.
    • Reasons for the increase of the tertiary sector in the UK since 1970
      • The demand that the average household had to spend on non-essential items doubled from 1987 to 2006.
      • Large Numbers of people are employed in telecommunication and computing services like internet banking.
        • Many people also work at call centres; the number of employees rose from 350,000 in 2000 to 950,000 in 2008.
        • Shops selling mobile phones and computers are now common on the high street.
      • Fewer people are employed in the primary and secondary sectors which means proportionally more people are employed in the tertiary sector.
      • The average age for a woman to have a child in the UK has risen to 29 years old.
        • 35% of the UK population are over 50 and 20% are over 65. This has led to an increase in the "grey pound"
    • Factors that affect the locations of industries
      • Primary
        • Location of raw material
        • Market: There was a demand
        • Transport
      • Secondary
        • Tradition
        • Transport
        • Land
        • Area
      • Teritary
        • Location
        • Demand
        • Transport or accessibility

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