What do you know?
What is an industry?
An industry is any economic activity which creates jobs and generates income.
Key points
- There are four main types of industry: primary, secondary, tertiary and quaternary.
- The type of industry a country specialises in changes over time.
- There are social, environmental and economic impacts of industry.
Types of industry
Industry is any economic activity which creates jobs and generates income.
There are four main types of industry:
- Primary sector
- Secondary sector
- Tertiary sector
- Quaternary sector
Primary industry involves the production or extraction of raw materialsThe basic material from which a product is made eg copper or wool. and includes forestry, farming, fishing and mining.
Secondary industry is the manufacturing of goods. For example, the north west of England used to have a thriving textile industry making cloth from cotton, China has a thriving manufacturing sector producing electronics, and Germany is one of the largest manufacturer of cars.
Tertiary industry involves providing services to people, for example a cleaner or a doctor.
Quaternary industry is the newest sector and focuses on knowledge-based industryIndustries related usually to high-tech industry, the service sector or business services. These usually rely on people rather than physical inputs such as raw materials. or high-tech industries such as ICT (information and communication technologies) and research and development.
What are some examples of primary industries?
Primary industry includes farming, fishing and mining.
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Phases of industry
What industry or industries a country focuses on changes over time and can be shown using the Clark Fisher model.
The model is split into three phases:
- The pre-industrialA time before there were machines to produce goods on a large scale. phase 鈥 a country is mostly focused on the primary sector and the main activity is likely to be agriculture.
- The industrial phase 鈥 secondary and tertiary sectors increase in importance. Primary sector activities start to decline. For example, in cities such as Manchester and later Li猫ge in Belgium during the Industrial RevolutionThe period in the 18th and 19th centuries when European countries and the United States began to use machines to produce goods on a large scale. .
- The post-industrialA post-industrial economy is when manufacturing is replaced by service industries. phase 鈥 manufacturing starts to decline as the tertiary sector becomes the most important sector and quaternary industriesA sector that consists of those industries providing information services, such as computing or research and development. start to develop. Only a very small percentage of the overall population will now be involved in primary industries.
Question
In the pre-industrial phase, which sector employs the most people?
In the pre-industrial phase, the primary sector employs the most people.
The effects of industry
Different countries around the world are at different stages of industrial development and there are regional variations within countries. Countries rely on each other for the manufacture and sale of goods to take place. For example, raw materials may be bought in one country, used to manufacture goods in another, and then sold in a third country. This can have positive benefits as it improves co-operation between countries through international tradeWhen countries buy and sell to one another. but can also be a source of conflict.
As countries develop, they move through the phases of the Clark Fisher model. When a country no longer mainly manufactures goods and moves into the service sector, this is known as de-industrialisation.
Economic effects
The transition of phases (Clark Fisher model) can happen for a number of reasons but one of the most significant is the off-shoringRelocate (a business for example) to a foreign country to take advantage of lower taxes or costs. of manufacturing from a high-income country (HIC) to a low-income country (LIC) or a newly emerging economy (NEE). An example of this is the relocation of aeroplane engine production from Barnoldswick in Lancashire, in the UK, to Singapore. This is done for a number of reasons:
- To increase profits by exploiting the lower cost of labourThe effort put into making something by the workers. by paying lower wages.
- To take advantage of less rigorous rules for example fewer environmental or health and safety laws.
Social effects
When primary and secondary industries, and their workers, are abandoned in favour of new industries this can lead to conflictA serious disagreement between individuals or groups. within a country.
This happened in the United Kingdom in the 1980s as the government decided to move from the secondary sector to a new phase of post-industrialism, where the tertiary and quaternary sectors were encouraged.
The decline in primary and secondary industries in many places has led to unemployment and many other social issuesProblems related to people eg health or wellbeing..
The countries who benefit from a decline elsewhere in primary and secondary industries are the newly emerging economies (NEEs)Countries that have rapid industrialisation along with economic development. (NEEs). Nigeria, for example, as it moves into the industrial phase of their development and begins to develop tertiary industries, can use the money generated to improve schools, hospitals and infrastructure in the country and provide jobs for the workforce.
Environmental effects
There may also be negatives for these countries as industry can be polluting.
For example, leather manufacturing is one of the largest causes of pollution in the River Ganges in India. This includes waste water from factories being released into rivers and lakes along with chemicals.
Increasingly there are calls for a new 鈥楪reen Industrial Revolution鈥 in manufacturing with a move away from polluting industries such as energy production using fossil fuels towards the development of green, environmentally friendly, technology such as wind turbines.
In 2020 the UK government announced a ten point plan for a green industrial revolution to support green jobs and move towards a zero carbon economyAn economy based on low-carbon power sources that has a minimal output of carbon dioxide and other greenhouse gases into the atmosphere..
Political effects
Low-income countries (LICs) tend to still rely on the export of raw materials, such as cocoa beans, to more developed countries to be converted into manufactured goods, such as chocolate. This can lead to exploitation of the poorer countries by those who are richer and reinforces the dominance of already powerful nations.
Question
When a country no longer focuses on manufacturing goods and moves into the service sector what is this process called?
When a country no longer focuses on manufacturing goods and moves into the service sector this is known as de-industrialisation.
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