ZIMSEC O LEVEL GEOGRAPHY FORM 4 - Industry
ZIMSEC O LEVEL GEOGRAPHY FORM 4 - Industry
ZIMSEC O LEVEL GEOGRAPHY FORM 4 - Industry
FORM 4 – Industry
Industry
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All industries can be thought of as a system of inputs,
processes, outputs and feedback. Industry as a system
1. Inputs are the things that go into the system. The main three inputs are:
Capital. This is the money invested in the business to pay for raw materials, staff, machinery and the buildings used
for production and storage.
1. Processes are all the things that happen to those inputs to help turn them into outputs. These include:
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Packaging which protects products during transit and presents them in a way that
makes customers want to buy them.
Transport, which is needed to move products from the factory to the warehouse and then on to the shops.
1. Outputs are the finished products, together with profits and wages.
2. Feedback includes anything that refines or improves the system, such as:
Customer feedback. Companies find out what consumers think of their products through market
research.
They may alter or adapt their range according to feedback to sell more products and maximise profits.
A profit is the money left over after inputs (staff wages, raw materials, machinery and buildings) have been paid for.
Profits need to be high enough to make it worthwhile for the company to continue investing in making the product.
If profits fall too low, the company will need to change the inputs, process or outputs to improve profit or diversify
into other products. If they do not they will go bust!
Classification of industry
Secondary industry
Factory
The tertiary sector is also called the service sector and involves the selling of services and skills. They can also
involve selling goods and products from primary and secondary industries. Examples of tertiary employment include
the health service, transportation, education, entertainment, tourism, finance, sales and
retail.
The biggest area of expansion in the tertiary sector in the UK has been in financial and business services. According
to government statistics, 25 years ago one in ten people worked in this industry, now it is one in five.
The quaternary sector consists of those industries providing information services, such as computing, ICT
(information and communication technologies), consultancy (offering advice to businesses) and R&D (research,
particularly in scientific fields).
The quaternary sector is sometimes included with the tertiary sector, as they are both service sectors. The tertiary
and quaternary sectors make up the largest part of the UK economy, employing 76% of the workforce.
The employment structure of a country shows how the labour force is divided between the primary, secondary and
tertiary sectors. Different countries have different employment structures. The employment structure of a given
country can tell you quite a lot about that country’s economy.
In the richest countries, for example, there will usually be more people working in the tertiary/quaternary sector than
in the primary and secondary sectors. In the poorest countries, there tend to be more people working in the primary
sector than in either the secondary or tertiary sectors.
Look at the diagram below. Based on the employment structure, which countries do you think are the richest and
poorest?
In the richest country (USA), most people work in the tertiary sector. In the poorest country (Nepal), most people
work in the primary sector. In Brazil, the labour force is more evenly distributed between the three sectors.
Note that the quaternary sector has been included in the tertiary sector.
Power supply
Raw materials
Agglomeration is when a number of producers in the same or related industries group themselves together. They do
this to benefit from local skill pools, economies of scale or the prowess of a locality in a particular field. An example
is the large number of financial services companies (eg banks and insurance companies) which are headquartered in
the City of London.
Footloose industries are those that are less dependent on factors that tie them to a specific geographical location.
Unlike manufacturing industries, tertiary or services companies do not have to be near a source of raw materials. As
long as they have suitable transport, energy and communications links, they can locate themselves virtually
anywhere in the world. Examples of footloose industries are computer software development, telephone sales and
call-centres.
The Ruhr is a heavily industrialised area of western Germany named after the river that flows through the
region. It is the centre of Germany’s manufacturing industry and includes the cities of Essen and Dortmund.
Background
Heavy industry in Germany
Natural resources such as coal, iron ore and limestone enabled the iron and steel industry
to develop in the Ruhr. The chemical and textile industries also grew due to good
transport links and available workforce.
Canals and rivers such as the Rhine were used for transport and power.
The area developed industrially in the 1930s and 1940s to supply arms for Germany.
Up until the 1970s the factories and associated services were an important source of
employment
for people in the region.
Many of the problems and changes in the Ruhr have also been experienced in other industrial
regions in the EU such as South Wales.
New industries, eg electronics, are moving in to replace the traditional heavy industries.
Much of the derelict land has been improved to provide a more pleasant living and working
environment.
The Ruhr has good access to much of the EU is once again an attractive location for industry.
corridor. Some of the benefits of locating an industry in the M4 corridor are shown in the diagram.
The M4
corridor
Few raw materials are used and therefore transport costs are low, making the industries
‘footloose’.
Advantages
Land on the edge of cities is often cheaper than in the centre. The out of town surroundings and easy access to
workers in the suburbs provides an ideal location for building science and business parks.
Motorway links and railways also provide access for commuters and for transporting components and products.
Disadvantages
Workers wanting to live near their place of work increases the demand for housing and puts pressure on green belt
land.
As demand grows, house prices increase. This means that less skilled and lower paid workers are priced out of the
market in desirable areas.
We now communicate, travel and share each other’s cultures on a world scale.
We also trade more than ever before, transporting products around the world in hours or days. The biggest
companies are no longer national firms but multinational corporations or transnational corporations (TNCs)
with subsidiaries in many countries.
What is globalisation?
Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively
increased trade and cultural exchange.
Globalisation has been taking place for hundreds of years, but has speeded up enormously over the last half-century.
Communications. TV, telephony and the internet have allowed information and ideas to travel quickly. UK
businesses can have a call centre in India answering calls from UK customers.
Transport has become cheap and quick. UK people now holiday all over the world. People from other countries can
travel to the UK to seek better-paid jobs. Businesses can ship products and raw materials all over the world more
easily – making products and services from all over the globe available to UK customers.
Trade liberalisation. Laws restricting trade and foreign investment have been relaxed. Some
governments even offer grants and tax incentives to persuade foreign companies to invest in their country. The idea
that there should be no restrictions on trade between countries is known as free trade.
Although globalisation is probably helping to create more wealth in developing countries – it is not
helping to close the gap between the world’s poorest countries and the world’s richest.
Good transport.
Access to markets where the goods are sold.
Globalisation is having a dramatic effect – for good or ill – on world economies and on people’s lives.
Inward
investment
by TNCs helps countries by providing new jobs and skills for local people.
TNCs bring wealth and foreign currency to local economies when they buy local resources,
products and services. The extra money created by this investment can be spent on education, health and
infrastructure.
The sharing of ideas, experiences and lifestyles of people and cultures. People can experience
foods and other products not previously available in their countries.
Globalisation increases awareness of events in far-away parts of the world. For example, the
UK was quickly made aware of the 2004 tsunami tidal wave and sent help rapidly in response.
Globalisation may help to make people more aware of global issues such as
deforestation
and
global
warming
– and alert them to the need for sustainable
development.
Protestors in London
Globalisation operates mostly in the interests of the richest countries, which continue to dominate world trade at
the expense of developing countries. The role of LEDCs in the world market is mostly to provide the North and
West with cheap labour and raw materials.
There are no guarantees that the wealth from inward investment will benefit the local
community. Often, profits are sent back to the MEDC where the TNC is based. Transnational
companies, with their massive
economies of
scale,
may drive local companies out of business. If it becomes cheaper to operate in another country, the TNC might close
down the factory and make local people redundant.
An absence of strictly enforced international laws means that TNCs may operate in LEDCs in a
way that would not be allowed in an MEDC. They may pollute the environment, run risks with safety or impose
poor working conditions and low wages on local workers.
Globalisation is viewed by many as a threat to the world’s cultural diversity. It is feared it might
drown out local economies, traditions and languages and simply re-cast the whole world in the mould of the
capitalist North and West. An example of this is that a Hollywood film is far more
likely to be successful worldwide than one made in India or China, which also have thriving film industries.
Industry may begin to thrive in LEDCs at the expense of jobs in manufacturing in the UK and
Industrial pollution
Any large-scale economic activity may have a negative impact on the natural environment. Manufacturing industries
in particular can cause air, water and noise pollution.
Industrial pollution can affect the environment in a number of ways:
It may damage the well-being of humans and other species – for example, it can pollute drinking-water supplies
or poison plants and animals.
It may interfere with natural processes – for example, it could change local climatic conditions or destroy
wildlife habitats.
It may impact on people’s livelihoods – for example, pollution of the sea will hurt people who are involved in
fishing and tourism.
Some governments have introduced legislation to try to cut down on avoidable pollution and to encourage indu
stries that are more
sustainable.
These laws need to be enforced by courts.
A dead seabird
A recent example of courts taking action against a company for causing pollution was in
2004 when a
US court ordered the oil company Exxon to pay £2.5bn for an oil spill in 1989.
The oil tanker Exxon Valdez ran aground while off course. It spilled 11 million gallons of crude oil contaminating
over 1,300 miles of the coast of Alaska. It is estimated that the spill killed as many as
250,000 seabirds, 3,000 sea otters, 300 seals and 22 killer whales.
The court wanted Exxon to pay to help compensate those people in Alaska whose livelihoods were hurt the worst.
The £2.5bn pay out is the latest ruling in a long-
In Zimbabwe we see serious land pollution by bus operator who let oil sip into the ground. For example Munenzva
Bus company
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