World Geography 3200/3202

Unit 5: Secondary and Tertiary Activities

Chapters 13 & 14

Outcome 5.1-5.3

Terms to know:

Primary production- extracting resources (fishing, farming, logging)

Secondary Production- manufacturing raw materials into a finished product (food products, paper, wood products)

Tertiary Sector- provides services (hair dresser, lawyer, teacher, salesclerk, office)

Quaternary Sector- more specialized work in research, and high tech communication

Con’d…..

Outcome 5.1-5.3 Con’d

Inputs- materials and factors that go into making a product. (natural inputs include raw materials, land, power and human inputs include buildings, labor, decisions, capital, machinery. See fig 13.1 page 217

3 Types of manufacturing processes to change a raw material into a usable form:

1) Conditioning process- minimal change to resource (logs to lumber, fish to fillets)

Con’d…..

Outcome 5.1-5.3 Con’d

2) Analytic process- resource is converted to a number of different products (cow into leather, milk, cheese, ground beef)

3) Synthetic process- Several resources are combined together to make one resource. (light bulb has glass, tungsten, nitrogen and aluminum)

Outputs- finished products (output from fish plant is fish sticks or fillets.Value added- the increase in the value of an article brought about by the production process minus the cost of production.

Con’d…..

Outcomes 5.1-5.3 Con’d

Student Activity:

Read case study on page 219-220 “manufacturing wrigley’s gum”

• Create a flow chart outlining the processes in making gum

• Answer # 6 – what type of manufacturing is involved in making gum? explain

Outcomes 5.4- 5.7

• Teacher lead: read pages 217-218 discuss

Terms to know

Labour-intensive: requires a lot of person hours to produce the product .(jewelry making, cameras) usually specialized skills performed by craftsmen.

Capital- intensive: Requires a lot of expensive equipment to make the product (car industry, automated machines performs job of people)

Con’d….

Outcomes 5.4- 5.7 Con’d

Light industry: produces goods that are light in weight, high in value and often very intricate. Marketed for consumers. Productivity/ worker is typically high (toys)

Heavy industry: needs large quantities of often bulky raw materials, transported by water or rail (ship building). Marketed to other industries. Productivity/worker is low. Often dirty and noisy. Not geared to general consumer.

Con’d…..

Outcomes 5.4- 5.7 Con’d

Student Activity:

• Answer # 5 on previous case study “wrigley’sgum” Labor-intensive or capital-intensive?why?

• Read Case Study 221-223 and answer # 10

Heavy or light industry? ExplainAnswer: Steel Production is Heavy industry because

- requires large amounts of labor(low productivity/worker)

- Large amounts of investment

- it has heavy weighted materials(iron ore, or pelletized iron concentrate, limestone, coal or heavy oil)

Outcomes 5.8-5.10

Site and situational factors to consider when deciding where to locate an industry:

Site factors (physical location)

• Land- price, level, good drainages, dense well settled soil, room for expansion

• Sufficient amount of land

• Can energy be supplied

• Access to labor (human factor)

Con’d….

Outcomes 5.8-5.10 Con’d

Situational factors-how the location is “situated” in reference to other locations or how it related to other locations

• Is it close to market (if the finished product is heavier than the raw materials, the industry will locate itself closer to market)

• Is it close to raw material (the heavier and bulkier the raw material, the closer the industry will be to it, to reduce transportation costs)

Con’d….

Outcomes 5.8-5.10 Con’d

Terms to knowResource-oriented industry• Located close to the resource because the raw materials are

too heavy/ bulky to transport (high transportation cost)• often communities spring up around resource industries :

labrador city(iron ore)Churchill falls(hydro-electricity)

Market-oriented industry• located close to market because the product is expensive to

transport. Resources used to make it are not expensive to transport. Ex. Softdrink

Con’d…..

Outcomes 5.8-5.10 Con’d

Weight Gain- when product weight is greater after production. Ex. Soda

Weight Loss- when product weight is lighter after production. Ex. Iron ore

Discuss Fig 13.7 page 225 and #11 page 223

Student Activity: page 226-227 #14,15,16,17

Outcome 5.11

• Define Agglomerating Tendency (see notes)

Outcome 5.12: Characteristics of Labour Force

Class Discussion:A. What are some characteristics of a region’s labor force

which may attract industry to the area?.......• Is there sufficient number of workers (labor intensive)?• What is the skill level of workers (capital intensive)?• What is the work ethic of the workers. Are they dedicated,

motivated, dependable, innovative, etc.?• What is the employee ability to learn?• Are the wage levels attractive?• What are the health standards and safety regulations of the

region. What are other employment benefits which may impact total operating costs?

• Is the region highly unionized or non-unionized?Con’d….

Outcome 5.12 Con’d

B. After reading the case study on page 229, what are some labor-related factors which make Nebraska an attractive location for industry?

C. What is the key labor factor which makes less developed countries different from more developed countries?

Outcome 5.13: How Government can Influence the Location of Industries

• Class DiscussionAfter reading the right side of page 224 and the left side of page 226, discuss some possible government actions (positive and negative) which may influence an industries site decision….

• Examples: (good and bad)Financial incentives such as exemption from taxes for a set period, wage subsidies, grants, loan guarantees, low interest loans, educational provisions.On the other hand stringent gov’t regulations such as legislation on safety or pollution may act as negative influences. Likewise, corrupt gov’ts may be associated with a high crime rate in the area or the gov’t may be embroiled in a land claims controversy with a indigenous (native) group.

Outcome 5.14: Highly Industrialized Areas

Class Activity:

Using figure 13.6 on page 223 and the map on the cover of your book, answer the following:

1. Identify 4 highly industrialized areas of the world.

2. Identify 3 agricultural low income economies of the world.

Outcomes 5.15 and 5.17: Role of Stakeholders to Identify and Avert an Envirnomental Risk Posed by Industry

• Examples: Any plant which poses an environmental risk…..• What are some of the actions which should be taken?......

– Lobby groups (ex: Can. Coaliation Against Acid Rain) mustmake the public and gov’t aware of any concerns.

– Environmental Impact Assessments (EIAs) must be carried out by independent firms to identify impacts of the industry.

– Constant monitoring and safety checks must be carried out to minimize the risks.

– Constant training of workers to be aware of the actions needed to identify and avert a risk.

– Emergency Measure Plans (EMPs) must be put in place to address the impacts indentified.

Outcome 5.16: Industrialized Areas and Areas at Risk of Environmental

Degradation• Class Discussion:• Refer to figure 13.17 on page 238 to answer the

following:– Identify three areas of the world presently

experiencing high levels of acid rain.– Are these areas industrialized?– Is there a correlation between industrialization and

environmental degradation?– What role does the industrialized world have when it

comes to addressing environment issues?

Outcome 5.18: Social/Moral Issues Associated with Manufacturing

Operations• Classroom Discussion

• Review the case study on pages 235-236:

– Is child labor a local concern in less developed countries where it exists or is it a global concern?....

• Refer to the last paragraph on page.

– How does child labor prevent a less developed country from being more economically developed?

– Share the story of Arman from Afghanistan.

Outcomes 5.19-5.21: Private and Public Tertiary (Service) Activities

• Tertiary activities refers to…..any worker who is providing a service for individual consumers, industry or government.

• Examples include

• Public tertiary activities are those services….provided by government employees. This category of tertiary activities make up the largest share of the service sector.

• Examples include

• Private tertiary activities are those services…….provided by non-government agencies.

• Examples includeCon’d…..

Outcomes 5.19-5.21 Con’dFour Categories of Tertiary Activities:(1) Distributive Services Getting products from the manufacturer to the consumer. Examples: ……..Or transmitting information(A) Wholesale business buy large amounts of products from manufacturers and sell smaller quantities to retailers. Retail stores in turn sell these products to consumers.(B) Cable companies or internet providers distribute information to customers

(2) Financial Services Involves providing capital ($) to manufacturing companies and individual consumers. Examples:……(A) Banking institutions provide loans(B) Insurance companies provide coverage for financial losses

(3) Personal Services Food services, entertainment, legal assistance and a wide range of other institutions provide personal services for manufacturing and consumers. Examples: ……. movie theatres, hair salons, etc.

(4) Government Services Any service provided by a government employee. This in the only category which provides a public service. Examples: ……….teachers, doctors, nurses, etc.

Outcome 5.22: Quaternary ActivitiesThe quaternary industry or sector is a special type of

tertiary activity • 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. (Research, development and technology)

Examples:• (A)Mechanical engineer developing the next engine

for a leading automotive company.• (B) Chemical engineer developing the next drug for

cancer treatment.• (C) Computer designer developing the next touch pad

cell phone.

Outcome 5.23: Location of Tertiary Industries

What determines where a tertiary industry locates?(A) Type of Service:• Is it a Public or Private Service? This will largely determine

its strategic location. Examples….. • Public services are strategically located to service the

people. Consider the location of hospitals, schools, human resource centers, law enforcement offices, etc. All of these will be "regionally located" to service a specific number of people in order for government to justify the expenditure of money.

• Private services are located where the owners/operators feel they will realize an economy return such as the location of hotels/motels and restaurants.

Con’d.

Outcome 5.23 Con’d.(B) Price/ Distance from the Customer:• Some services must be located within a reasonable distance

from the consumer, especially if the service is private. Closeness to the consumer reduces time and money needed to be spent to reach the service. For example, a movie theatre, beauty salon.

• Note that with both of these factors Population Size has a major influence on the location of a tertiary service and more importantly the number of the same type of service offered in an area.

• For example, which location would offer more restaurants, Stephenville, NL. or Miami, FL.?

Student Activity:• # 9 on page 244

Outcome 5.24: Factors Affecting the Location of A Quaternary Industry

• Students should read pages 249-250

(1) Access to Capital/Infrastructure

• The country must have the ability to access the financial resources and technological equipment to successfully and actively participate in the quaternary industry.

(2) Access to a Skilled Labor Force:

• The country must have the ability to access highly educated and/or technologically trained individuals.

Outcome 5.25: Factors Accounting for Patterns in World Trade for a Selected

Commodity• Students should read pages 274-275 and analyze maps on page 276-277.(1) Shipment by Water:• Why is 90% of all world goods shipped by water?.....• Water is the most economical method to move large quantities of goods

over long distances. (Low line-haul costs compared to other modes of transport).

(2) Regional Share of World Trade:• What determines the amount of trade a specific country will have for a

specific commodity?..........• If more than one country trades in a product (ex: wheat/fish), a country's

relative share of the world market will be based upon the costs of their inputs (ex: wages, infrastructure costs, line-haul costs, etc.). Overall, the more competitive their costs are the more they will control the world trade in that product.

Con’d.

Outcome 5.25: Con’d.

(3) Regionalization of World Trade:• Who actually trades with who?......• Countries tend to trade with countries who are closest to

them. This reduces transportation costs and makes their commodity more competitive over short distances. The exception to this is when countries have no other choice but buy from distant countries. For example, Canada cannot get all of its tea in the western hemisphere so it imports it for distant countries such as India, China and Sri Lanka.

(4) Level of Economic Development:• How does development affect the amount of trade?.....• The more developed a country becomes the more world

trade it will secure. Economic development feeds the growth of trade and in turn trade feeds economic growth.

Outcome 5.26: Factors Accounting for Patterns in Mass Communication

• Students should read pages 293-294• What do we mean by mass communication?

• As we have discussed on several occasions, patterns of mass communication are affected by the following:

(1) Access to capital (money and equipment)

(2) Knowledge and technological ability (access to research and development)

(3) Political Will (governments have to work with other companies to make it happen)

• Class Activity:• # 16 on page 294

Outcome 5.27: How Mass Communication Can Affect the Location of a Work Place

• Telecommuting or teleworking (working at home instead of working at a specific company workplace outside of the home) is common because of the availability of mass communication such as email, teleconferencing, videoconferencing, skype, twittering, etc.

• The use of Satellite Offices in another part of the world from the company is another example of teleworking. (Bell Canada).

• More Examples :(1) many multi-national companies provide services to one country by operating in another country. For example, many U.S. insurance companies offer their products to U.S citizens but the service is processed by employees located in Scotland.(2) Medical Services in the United States, and many other developed countries worldwide, is such that a doctor in one state can use computer aided robotic equipment to operate on a patient in another state.(3) Education is such now that distance education makes having to attend a physical site unnecessary (ie: Athabasca University is a virtual university in Alberta and CDLI is a computer aided instructional mode used by students in the smaller geographic areas of the island.)

Outcome 5.28 and 5.30: Economic Importance of the Tertiary and

Quaternary Sectors

• Students should read pages 245 (The Bermuda Experience).(1) Diversifies the Economy:

Development of these two sectors allows more people to move out of the primary and secondary sectors which is more beneficial to a country's economy (more value added jobs). As well, in less developed countries which lack secondary development, economists feel they can "leap-frog" past the secondary sector into the tertiary and quaternary sectors if they can secure the proper education and skill development. This is present in Barbados and India through the exportation of information.

(2) Increased Contribution to the Country's GDP:These two sectors produce over 70% of the GDP in many countries (again value added services).

• Con’d.

Outcome 5.28 and 5.30: Con’d.(3) Improved Standard of Living:This is especially true in many tropical destinations such as Bermuda which heavily depend on the tourism component of the tertiary sector. Individuals working within the tourism sector of these countries enjoy a much higher quality of living than individuals working in the primary sector of fishing or farming.

(4) Growth Stimulates More Growth:As a country, such as Bermuda, benefits from the increase growth of the tertiary sector, the growth feeds itself, creating more growth. This is the same for countries experiencing a growth in the quaternary sector. (Positive growth stimulates more positive growth.)

Student Activity:• What trend can you determine from each of the following graphs on page

246?Graph #1?Graph #2?

Outcome 5.29: Issues which Affect the Viability of the Tertiary Industry

(1) Location/Population Size:The more ideally located industry will have a greater chance of success, just like a tertiary industry in a larger populated area is more likely to be viable as opposed to one located in a sparsely populated area.Example: AHL franchise in NL???

(2) Price/Type of Service:Competitive prices may impact the viability of a tertiary industry, which has to be closely linked to the type of service offered.Example: Fine Dining Restaurant in Stephenville???

(3) Quality:Customers may also be looking for quality in the tertiary industry, whether that is quality service or quality entertainment.Example: People may not buy a specific brand name automobile because of the poor service quality they receive???

Outcome 5.31: Factors Affecting the Growth of the Quaternary Industry

Students should read page 251 (How less developed countries are positioned to benefit from the Information Technology Boom)

Factors Include:(1) Access to Skilled Workers (Human Resources)Remember the quaternary industry deals with highly skilled workers in the field of research and development. Thus, if a region has this aspect they are well positioned.(2) Access to Financial Resources and Infrastructure (Capital Resources)Countries need to have the access to capital as the quaternary industry is dealing with leading edge technology.(3) Government Investment (Commitment)Countries need to have governments committed to the financial costs of educating its population as well as investing money (through loan guarantees, grants, wage subsidies, etc) in emerging sectors of the quaternary industry.

Con’d.

Outcome 5.31: Con’d.(4) Development of PartnershipsCompanies interested in developing the quaternary industries need to work with telecommunication companies to develop more efficient and effective communication networks within the country, especially in moderately and less developed countries. Money and time invested up front will reap benefits years later for these telecommunication companies.

Class Discussion:• (1)Why do some economists feel less developed countries are well

positioned to take advantage of this growth in the quaternary industry?.........Lower wages and the reduced costs to purchase the infrastructure needed compared to more developed countries.

• (2)What is the major obstacle less developed countries face to achieve this goal?.........Lack of skilled educated workers.

Outcome 5.32: Social and Economic Benefits of Quaternary Sector Development

What is the difference between Economic and Social benefits?........Economic deals directly with $$, whereas social deals with the public social services provided by the $$.Economic Impacts:……..(1) Diversification of the economy(2) Increased GDP (reflecting overall wealth of the country)(3) Increased government tax base(4) Improved foreign trade

Social Impacts:………(1) Increased government tax base means the country has more opportunities to reinvest into essential social programs such as improved education and health care.(2) Increased government tax base means the country can increase its international aid by increasing its foreign commitment to less developed countries.(3) Diversification in the economy should result in a increased standard of living. (communication, linkages, public safety, etc.)

Outcomes 5.33, 5.34 and 5.35: Gross National Product (GNP) and Per Capita GNP• Students should read pages230 to 232.

Class Discussion:

1. What is the difference between GNP and per capita GNP?

2. Are GNP and per capita GNP economic or social indicators of development?

3. Why is it difficult to use GNP to compare the economic development of two different countries?

4. Refer to figure 13.12 on page 231. What is the correlation between per capita GNP and level of economic development?

5. Explain the validity of the following statement:

“Countries with a higher per capita GNP should have a greater level of social development than countries with a low per capita GNP.”

Outcome 5.36: Employment Structure and Level of Economic Development

Class Discussions:

1. What is meant by employment structure?

2. Is employment structure an economic or social indicator of development?

3. Refer to figure 13.11 on page 231. What is the correlation between employment structure and level of economic development?

Outcomes 5.37, 5.38 and 5.39: Relating Social and Economic Indicators to Level of

DevelopmentClass Discussions:

1. Explain why it is beneficial to use more than one indicator when describing the level of development in a country…….

Explain misleading information or outliers.

2. Refer to figure 13.13 on page 232. Understand examples of social and economic indicators to describe level of development within a country.

3. Discuss the following questions:

#22b on page 232

#s23 and 28 on page 233

#16 on page 275

End of Unit 5

• Two part test during week of May 3 – 7.

– Part 1 Selected Response (10% of year)

– Part 2 Constructed Response and Case Study (10% of year)