IGCSE Geography

Economic
activity and
Economic activity and energy – Variations in economic activity over time and spatially, the relationship
between population and resources and detailed case studies of energy resource management in a
developed and a developing or emerging country.
Spec says:
4.1 The relative importance of different economic sectors and the location of economic activity
varies spatially, and changes over time
A- Classification of employment by economic sector (primary, secondary, tertiary and quaternary)
and the reasons for the differences in the employment structures in countries at different levels
of development (Clark Fisher Model).

What are the different employment sectors?

Why do different countries have different employment structures?

• Employment structures change over time depending on the development level of the country.

• In the UK in 1800 most people were employed in the primary sector. Many people worked on the
land, and made their living from agriculture and related products.

• During the industrial revolution, people were needed to build ships and with textiles. All of these
jobs are found in the secondary sector. By 1900 over half worked in secondary industries.

• Since 1900 mechanisation meant that fewer people were required to work on the land and in
industry, as machines could carry out most of the work that people previously did.

• Foreign industries also became more competitive and imports such as coal became more
affordable and more was imported. This led to a further decline in primary sector employment in
the UK.

• The demand for work increased in schools, hospitals and retail industries. Many people left the
rural areas in the search for jobs in the towns and cities. By the year 2000 over half of the UK
workforce were employed in tertiary industries and only a small number were employed in
primary industries.

• This has changed the work that people do, and also where they work. Quaternary industries are a
relatively new concept. However, it is becoming an important and growing sector in the UK as
many firms want to carry out research and development for their products.
 What is the Clark Fisher Model?

The Clark Fisher Model shows how the UKs employment structure has changed over time. The
model can be loosed applied to many developing countries as they are often at different stages
of their development

As the UK is consider developed, it is a good example of how a country can develop from Pre-
industrial, industrial and finally to post-industrial
Spec says:
4.1 The relative importance of different economic sectors and the location of economic activity varies
spatially, and changes over time

B- Factors affecting the location of economic activity in each economic sector and
how these factors can change over time.

What factors affect the location of industries?

Each industry will have factors that are more beneficial to them, however, generally the 7 factors
below are key to the location of industry.

Different factors will be more readily available in different areas of the urban and rural
environment. For example, you are more likely to find industrial industries away from residential
areas and commercial industries close to a large market (people).
 Give examples of industries and their locations?

Spec says:
The relative importance of different economic sectors and the location of economic activity varies
spatially, and changes over time

C- Reasons for the changes in the numbers of people employed in each economic
sector, including the availability of raw materials, globalisation, mechanisation,
demographic changes and government policies.

Why do economic sectors change?

The Clark-Fisher model is based on the idea that, as a country

develops, the relative importance of the economic sectors
changes in terms of:
• Their contribution to a country’s economic effort (GDP or
GNI)
• The percentage of a country’s labour force employed in each
sector.

Any location factor change, such as new technology or the

availability of raw materials can result in movement of
industry. This also means a change in employment
 What role do raw materials play in?

The availability of raw materials often becomes exhausted.

Once the raw materials have been located and extracted, the
location of these industries must move to find the next
source. This can either be within the country or abroad.

CASE STUDY: UK
• Most manufacturing in UK in the 1800s was fuelled by coal.

• Now, most manufacturing is fuelled by electricity, which is

easy to transport thanks to vast global networks.

• This is also the case for oil and gas.

How does technology affect sector change?

The idea that distance between places

impedes movement between them; the
greater the distance, the greater the friction

Advances in technology have significantly reduced friction of

distance through new transport, communication and services
 How has technology advanced the global economy?

Technological advances are not only about introducing new

ways of doing things…

Its most advanced forms have created new industries, called

high-tech industries, such as aerospace, biotechnology,
robotics and telecommunications.

In the last 20 years new products such as the smart phone,

tablet and MP3 players have all appeared!

New services such as broadband providers, website

designers, software programmers and the servicing of PCs
and laptops are also relatively new to us.

THE WORLD IS NOW UNIMAGINABLE WITHOUT THEM!

 How has globalisation contributed to sector change?

The process by which

countries are gradually being drawn
together into a single global economy

• Decreased the relative size of the world due to improvements in

transport and communication.

• Allows countries to focus their economies on their economic

strengths.

How does government policy play a role in the global economy?

 Explain how demographics and social change promote the global economy?

Populations change, mostly they grow! This raises demand for a

range of good and services such as food, manufactured goods,
school and medical services.

Growth of these goods and services boosts economic sectors.

Population growth also means more workers and this can
encourage growth of economic activities needing supplies of
labour

All these challenges encourage a cycle of growth by

creating more services and jobs.
Spec says:
4.2 The growth and decline of different economic sectors has resulted in a range of impacts and
possible resource issues
Positive and negative impacts of economic sector shifts in a named developed and a named
developing or emerging country

LIC Sector Shift Case Study: Ethiopia?

MIC Sector Shift Case Study: China?
HIC Sector Shift Case Study: UK?
Spec says:
4.2 The growth and decline of different economic sectors has resulted in a range of impacts and
possible resource issues
Informal employment: causes (economic development, rural-urban migration) and characteristics
(advantages and disadvantages) in a named megacity

What is the informal economy?

• Informal employment refers to the unregulated and untaxed

employment sector that exists in all countries but is dominant in many
Low Income Countries.

• Commonly known as the black market in western countries and

considered illegal, in contrast it makes up the majority of industrial and
commercial activity in LICs, without which many millions would struggle to
exist.

• In LICs the informal sector is the economy in which the majority of

people operate and it can form the majority part of all three sectors of
industry, primary, secondary and tertiary.

Why does the informal economy exist?

• Informal employment develops because of people’s basic needs.

• As populations grow rapidly, countries have not been able to develop the sufficient
educational provisions and economy to provide jobs for all.

• Informal employment also develops because of rural – urban migration

• People search for work and a regular wage, together with the belief that the quality of life is
better in towns and cities. While this is true, there are normally more people moving than the
number of jobs available.

• This means that there is a surplus of labour and can lead to underemployment (want full time
but can only find part time) or unemployment.

• Employers can only pay them low wages and therefore the worker seeks work elsewhere to
avoid poverty.
 List the advantages of the informal economy.

List the disadvantages of the informal economy.

Spec says:
4.2 The growth and decline of different economic sectors has resulted in a range of impacts and possible
resource issues

A- Different theories (Malthus and Boserup) are used to explain the relationship
between population and resources

Explain Malthus’ theory on population?

Explain Boserup’s theory on population?

Spec says:
4.3 Countries increasingly experience an energy gap and therefore seek energy security by developing a
balanced energy mix and sustainable energy use

A- Energy demand and production varies globally and is affected by a range of

factors: population growth, increased wealth and technological advances

How does energy demand vary?

The demand for energy across the world is constantly rising

for two main reasons:

• Population Rise
• Economic Development

The amount of energy a country uses is widely used as an

indicator of its development. As a country develops it
increases the scale of its energy consuming activities such as:

• Manufacturing
• Provision of services
• Transport infrastructure

The rising demand will be met by the country using its

own energy or by importing from producer countries.
 What factors affect energy security?

Energy security is the balance between energy supply

(production) and energy demand (consumption).

Which countries have a surplus/ deficit?

Spec says:
4.3 Countries increasingly experience an energy gap and therefore seek energy security by developing a
balanced energy mix and sustainable energy use

B- Non-renewable, e.g. coal, oil, natural gas, uranium and shale, and renewable
sources of energy, e.g. solar, wind, hydroelectric power (HEP), geothermal,
biomass, have advantages and disadvantages for people and the environment.

What is non-renewable energy?

Non-renewable resources are finite – once they are used up they cannot
be replaced because they take too long to form or regrow. These include
the major fossil fuels formed over tens of thousands of years – coal, oil and
natural gas.
They are called fossil fuels because they are all made from fossils of dead
plants and animals.

Discuss the advantages and disadvantages of non-renewable energy?

 What is renewable energy?
Renewable energy sources quickly replenish themselves and can be used
again and again. For this reason, they are sometimes called infinite
energy resources.

Discuss the advantages and disadvantages of renewable energy?

Spec says:
4.3 Countries increasingly experience an energy gap and therefore seek energy security by developing a
balanced energy mix and sustainable energy use

C- Energy can be managed in a sustainable way through education, efficiency and

conservation (within industry, transport and the home) developing country

What is a carbon footprint and how can we reduce ours?

Energy use can be measured through carbon

footprints. A bigger carbon footprint means
that more energy is used and therefore more
carbon is produced.

• Goods and products - energy is used to produce goods

and so it is better to buy less. Owning electronic devices
can be bad, especially if they're often left on standby
rather than being switched off.

• Transport - walking or using public transport is best,

because travelling by car uses petrol or diesel per
person. Aeroplanes use much more fuel than other forms
of transport.

• Food miles - buying local food can use less energy as

food is transported a shorter distance. However,
sometimes food grown locally requires a lot of energy to
produce because of the bright, warm conditions needed
to grow food in huge greenhouses all year round.
 How can we conserve energy in the home?

Small changes at home by individuals can make a

big difference when added together. This is called
marginal gains
 How else can we conserve energy?

• New homes built in some developed countries have lots

of energy-saving measures, like loft and wall insulation,
radiator thermostats and smart energy meters that
monitor energy use. This is because any homes that are
built or rented out have an energy rating

• Businesses and organisations like to be energy efficient

because it saves money. Public buildings like schools
and hospitals have to display an energy certificate to
show how much energy they use.

• Local councils encourage people to use sustainable

transport. This could be by providing public transport,
creating cycle lanes or introducing congestion charging.
London has all of these measures, plus an underground
train network and a cycle hire scheme.
 How can technology improve energy efficiency?

Modern life is dependent upon the use of electrical

items. The European Union (EU) has introduced a
system that rates household appliances, like washing
machines and dishwashers - A+++ items use the least
electricity and D items use the most. This helps
people to choose products that use less energy.

Many cars now use less fuel and some have batteries
so that they can be charged using renewable
electricity. The Vehicle Excise Duty (VED) is a tax for
car owners. People who drive less energy efficient
cars pay a higher VED
 Sustainable Energy Case Study: India?

India has one of the fastest growing economies in the world and with
that comes increased energy use. It had 18% of the world’s
population and but uses only 6% of the world’s primary energy.

Its energy use has doubled since 2000 and it is vital to India’s
development that it manages its energy well.

Three quarters of India’s energy is met by fossil fuels. Coal

remains the main fuel source as it has many coal deposits.
Although this energy source is cheap and plentiful, it is having
a negative impact on the environment.

India’s future could lie with solar energy as the figure above
shows that it has great potential. Wind power by coastal
states is also beginning to be used.