Economic Activity Chapter 2

Study Notes

Types of Economic Activity

Economic activity encompasses various work sectors and industries that generate money and wealth.
Work is classified into three main industries: primary, secondary, and tertiary.
Primary Industries involve the extraction or collection of natural resources (e.g., farming, fishing, mining).
Secondary Industries focus on manufacturing, converting raw materials into products (e.g., steelmaking, car assembly).
Tertiary Industries provide services without producing goods (e.g., teachers, nurses, shopkeepers).
The employment structure reflects how many people work in each of these industries.
A new category, quaternary industry, focuses on high-tech services and research (e.g., AI, research scientists).

Main Types of Farming

Agriculture or farming is vital for food production, involving growing crops and raising livestock.
The farming process includes inputs (water, seeds), processes (ploughing, irrigation), and outputs (wheat, chaff).

Factors Affecting Industrial Location

Manufacturers assess optimal factory locations, which often don’t meet ideal criteria.
Industrialised countries have advanced industries, machinery, and skilled labor.

The Iron and Steel Industry

In the 19th century, coal was essential for smelting iron ore, sourced from South Wales.
Factories were situated in valleys for resources and proximity to urban labor.

Choosing the Right Site - Car Industry

Modern factories favor populous areas for large consumer markets.
Car production involves numerous small parts made in various factories.
Efficient transport is crucial for moving components and finished vehicles.

Tertiary Industries (Schools)

Inputs include teachers and classroom necessities; outputs focus on a healthy teaching environment.
Proximity of factories producing car parts reduces assembly costs and enhances efficiency.
The just-in-time manufacturing system minimizes on-site storage costs through timely supply delivery.

The Tourist Industry

The tourist industry facilitates pleasure travel, catering to travelers' needs.
It is among the fastest-growing global industries, creating ample job opportunities.
Growth drivers include increased incomes, improved transport, and package holiday deals.
Tourism is pivotal for both developed and developing economies, fostering job creation.

Tourism Benefits and Drawbacks

Advantages include enhanced living standards, infrastructural improvements, and job creation.
Disadvantages encompass overcrowding, cultural loss, seasonality of jobs, and increased costs.

Popular Tourist Destinations

Europe, especially Spain and Italy, attracts significant tourist traffic.
Tropical developing countries like Kenya and Thailand are emerging as attractive destinations.

High-Tech Industries

High-tech sectors produce advanced products like microchips and smartphones, emphasizing innovation and development.
Firms in this sector typically necessitate a highly skilled workforce and often operate globally.
Examples include Microsoft, Google, and OpenAI.

Science and Business Parks

High-tech firms often cluster in science and business parks for strategic benefits.
Science Parks focus on research linkage with universities, while Business Parks may feature broader amenities but lack direct academic connections.

High-Tech Industry Location Choices

Industries in decline are termed sunset industries, while high-tech sectors are known as sunrise industries.
High-tech industries enjoy flexible location options due to reduced constraints in operations.

Description

Explore the different types of economic activities discussed in Chapter 2. Learn about primary, secondary, and tertiary industries, and how they contribute to the economy. This quiz will test your understanding of how various sectors operate and their significance.