The Four Categories of Industry



Name: __________________________Date: _______________IB Geography 11Period: ______The Four Categories of IndustryPrimary Industries:involve the extraction of raw resources.eg logging, mining, fishing, agricultureSecondary Industries: involve taking raw resources and making them into something (i.e. manufacturing). Tertiary Industries: involve the selling of goods and services eg retail stores, restaurants, etc.Quaternary Industries: involve the professions and services that require a high level of skill, expertise, and specialization. They include education, research and development, administration, and financial services such as plete the Table below. PrimarySecondary (basic manufacturing)Secondary (value added manufacturing)TertiaryQuaternaryCutting Down TreesMaking LumberBuilding FurnitureSelling it at IkeaNew Furniture DesignExtracting Oil from the GroundTaking initial impurities out of the oil (eg sand)Further Refining into GasolineSelling it at ChevronDeveloping gasoline that produces less air pollutionCatching SalmonGrowing and Harvesting WheatMining Iron Ore from the GroundRead and highlight the following information:Over time, a country such as Canada has made a transition from a primary based economy to secondary to tertiary, etc. For instance, think about what first attracted the Europeans to this part of the world – fish and furs. Then as more people settled, logging and agriculture grew in importance. All of these are primary activities. However, to truly gain wealth, a nation does not want to simply sell raw resources but rather sell manufactured goods. One of Canada’s first secondary industries was ship building. As time progressed, and Canada’s economy diversified, more secondary industry was created generating more wealth for the nation and its people. With more individual disposable income, people can afford to buy consumer goods and take advantage of the service industry. Consequently, today the tertiary sector employs the most Canadians. This would not happen though without the underlying support of the secondary and primary sectors. Furthermore, with continued wealth generation, monies have been made available to support research and development in a number of fields including medicine, aerospace technology, and computers. This is part of the quaternary sector.Within Canada, the level of economic diversification varies considerably from one part of the country to another. For example, Ontario has a well diversified economy with a strong primary base including minerals from the Canadian Shield and agriculture in the Great Lakes / St Lawrence Lowlands region. In terms of secondary, southern Ontario is the industrial heartland of the country with car manufacturing as a leading activity. In turn, the wealth from these industries supports a large population which can afford numerous consumer goods and services in the tertiary sector. As for quaternary, Toronto is the financial headquarters for corporate Canada. A number of these corporations, support research and development projects. Ottawa, being the nation’s capital, is the centre for government administration. As well, the city supports many high tech. jobs. It should be noted that there has been a major decline in the manufacturing sector in the traditional industrial heartland of North America around the Great Lakes for both the United States and Canada as manufactures have moved production to newly industrialized countries (i.e. NICs) such as China and India where labour costs and environmental standards (eg air and water quality protection) are significantly lower. President Trump was elected in 2016 due in part to his promise to bring manufacturing jobs back to the United States through lower corporate and personal taxes, reduced businesses regulations, and to put pressure on countries to re-negotiate trade deals with the United States to open their markets to more US manufactured goods by lowering their trade barriers (eg tariffs) on US products. One aspect of this re-negotiating pressure is to impose retaliatory tariffs on select foreign goods (eg steel and aluminum). Canada was impacted by these tariffs and retaliated on July 1, 2018 with tariffs on a series of US products coming into the Canadian market. In the specific context of re-negotiating NAFTA (the North American Free Trade Agreement), President Trump criticized Canada’s trade barriers in the dairy industry. As of May 2019, the US dropped the steel and aluminum tariffs on Canada and Mexico, and Canada dropped its retaliatory tariffs. A deal to replace NAFTA called The United States-Mexico-Canada Agreement (USMCA) was signed in Nov. 2018 and came into effect on July 1, 2020.A risk of a trade war is job losses in sectors hit by tariffs due to less sales outside of the country and higher prices for consumers. In Jan. 2020, the United States and China did sign a Phase One Trade Deal potentially easing tensions. But with the COVID-19 pandemic in the Spring and Summer of 2020, more countries are seeking to bring manufacturing back to their nations so that they are not as reliant on foreign powers for things such as medical supplies. For example, the government of Japan in June 2020 earmarked $2 billion to get manufacturers to shift production from China back to Japan. Back in the Canadian context, for a province such as Newfoundland and Labrador, it has never had a strong manufacturing / secondary base. Instead, the province has traditionally depended upon cod fishing as a main wealth generator. With the dramatic drop in cod stocks since 1992, the province has diversified into new areas such as offshore oil extraction (i.e. Hibernia). Western Canada had seen the lowest unemployment rates in the country for much of the first decade of the 21st Century, particularly in Alberta, Saskatchewan, and Manitoba, with most people employed in services but supported by strong development of natural resources (eg oil and minerals) aided by growing demand from Asia. However, unemployment rates spiked upwards dramatically especially in Alberta when oil prices dropped significantly during The Great Recession during the latter part of 2008 through 2009 and when a glut of oil supplies started to emerge on the world market in 2014-2015. The COVID-19 economic lockdown in the Spring of 2020 also caused oil prices to plummet to record low prices hurting oil-producing provinces and federal government revenues.Globally, these contrasts in economic development are also apparent. As evidence, complete the table below for your assigned countries using information from the UN Human Development Index World Rankings and the CIA Factbook for the remaining information.Country and Rank (UN HDI** 2020)GDP per Capita*(US dollars)GDP – composition by sectorLabour Force by OccupationEconomy Overview (five key points)Note: Focus on strengths / opportunities and / or weaknesses / challenges for each country’s economy rather than just more statistics._______A: _____I: _____S: _____A: _____I: _____S: -----_______A: _____I: _____S: _____A: _____I: _____S: _____-----_______A: _____I: _____S: _____A: _____I: _____S: _____-----_______A: _____I: _____S: _____A: _____I: _____S: _____------_______A: _____I: _____S: _____A: _____I: _____S: _____-----_______A: _____I: _____S: _____A: _____I: _____S: _____-----_______A: _____I: _____S: _____A: _____I: _____S: _____-----_______A: _____I: _____S: _____A: _____I: _____S: _____---------_______A: _____I: _____S: _____A: _____I: _____S: _____-----*GDP per capita: Is the money value of all goods and services produced within a country each year per person.**United Nations Human Development Index: World ranking of countries based on life expectancy, educational attainment, and GDP per capita / Purchasing Power Parity. **Remember LEG**In approximately 700 to 800 words, compare and contrast the economies and UN HDI rankings of these countries utilizing:the information and statistics that you have collected the Introductory notes provided with this assignment and the “Development” packetNote – For your analysis, decide which countries are MEDCs, NICs, and LEDCs and include statistics that you have found in this assignment which clearly show the differences. ................
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