Economic Change

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Economic Sectors:

  • Primary- working with natural resources (fishing, farming, mining)
  • Secondary- manufacturing products (TV, car or construction)
  • Tertiary- providing services (shops, offices, banks, schools)
  • Quaternary- IT and research

As countires become more developed and wealthier (based on their per capita GNI or Gross National Income), they shift through the sectors. As a result, standard of living and settlements start to grow. 


Industrial Explosion...

China is currently ranked the third most important maufacturing country in the world. Iron and steel, chemicals and fertilisers, shipping, military equipment and space satellites are some of its industries. China is also famous for its consumer products and is globally responsible for:

  • 50% clothes and 66% shoes
  • 50% microwave ovens
  • 33% mobile phones
  • 66% photocopiers

Reasons for growth:


  • cheap workforcwe earning 40p per hour
  • increase in globalisation enables less rich countries to manufacture
  • increase in literacy rate 96% in 2011
  • increase in privately owned companies, from 100 in 1979 to 280,000 in 1998


  • avaliable natural resources eg coal, gas, oil to power industries
  • close to other developing countries so good trade routes

Positive impact: 10 fold increase in GNP per capita in the last 20 years

Negative impacts:

  • very little money spent on infastructure
  • few laws to protect workers
  • increase in air, noise and visual pollution

Tertiary sector growth 1:

The tertiary sector is considered the most important in HICs and accounts for more than 75% of economic output. Economic improvements and technological advances are major factors on the growth of the tertiary sector.

Economic improvements:

As a country develops and moves along the development pathway people have more disposable income to spend on:

  • basic items such as food and clothing 
  • luxury items such as entertainment, holidays, private healthcare and recreation

Because of economic improvements a country is able to afford better social services, this means more:

  • schools
  • medical centres
  • hosptials
  • libraries

Technological advances:

Increase in IT and telecommunications has led to: 

  • new job oppurtunities: internet service providers, website designers, PC and laptop servicing, call centres 
  • decline in cinemas as it becomes easier to view…


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