Four Types of Industry
There are 4 types of industry-
1. Primary Industry involves raw materials. Raw materials are anything that occurs naturally on Earth. They can be quarried, mined or drilled for. They can be grown or collected from the sea. Examples are fishing, farming or coal mining.
2. Secondary Industry is manufacturing a product. A product from the primary industry is turned into another product BUT the finished product of one secondary industry may be raw material for another. For example, a factory may make tyres which then go to another factory making cars (makes sense now!)
3.Tertiary industry provides a service. This involves a wide range of services instead of making anything. Examples are anything from teaching, nursing and retailing.
4. (you may not need to know this one but its doesn't hurt) Quaternary Industry involves a small group of research and development industries.Its the newest industrial sector and is growing rapidly due to developments in technology. For example scientists.INDUSTRY IS NOT THE SAME AS EMPLOYMENT
Location of Industry
There are 4 main influences of the location of an industry:
1. Raw materials - a location near raw materials reduces the transport costs
2. Labour supply - the availability of labour as a factory is likely to open up where there are people looking for jobs
3. Transport - is the cost of transporting a good is greater than the cost of making it the industry is likely to be nearer the market
ROAD: convenient, flexible but traffic jams are problems SEA: cheaper, slower and suitable for international transports RAIL: cheaper, slower but there are resticted routes AIR: expensive, fast so suitable for small high value items.
4.The market - where the product is sold. (sort of the same for transport)
Changing Industry - MEDC's
Traditional Manufacturing has declined and the tertiary sector has grown this is because:
- Raw materials have started to run out so some are now being imported
- Competition from other countries has increased
As a result the tertiary indsutry is now the largest employer.
The British government is trying to change industry in 4 ways:
- setting up industrial areas and enterprise zones
- encouraging companies to set up in areas where there is high unemployment
- encouraging the development of derelict areas
- encouraging foreign investment
Multinational's MNCs or Transnational TNCs
MNCs or TNCs are large corporations with branches is several different countries. MNCs and TNCs are extremly powerful and they dominate the world's market. An example of a MNC or TNC is nike or macdonalds.
Advantages of MNCs/TNCs:
- Provide jobs
- Bring investment to country
- Provide expensive equipment the country cannot afford
- Increase international trade and bring foreign currency
- Provide healthcare for workers and families
- Increase wealth, providing a domestic market for their workers and families which then creates more industry
Disadvantages of MNCs/TNCs:
- Provide low paid jobs with long hours
- Bring in foreign nationals for management and higher paid jobs
- Take much of the profit out of the host country
- Make products for export rather than for domestic market
- Host countries can become dependent on the company
- Little regard of the countries environment