Economic Systems and Development

GCSE Revision

OCR syllabus 1988

What will we cover?

• Types of industry

• Industrial systems

• Factors affecting location of industry

• Growth & decline of industry over time

• Changing industrial location

• Globalisation

• Trade & Aid

ON the Exam paper

• Could be in any section A question, based on place (EU, LEDC or MEDC)

• Always in question C6, based on this theme

Question C6: Economic Systems & Development

EU: UK & FranceUK South Wales: Iron & Steel, inward investment from Japan, cars, hi-tech

Bristol: hi-tech, services, retail (shopping)

FranceNord pas de Calais: Lille & TGV, textilesIsle de Paris: changing industrial location

MEDC outside the EU: Japan & USAJapan Pacific Belt & Kansai: changing industry; farming & changes,

international investment, trade & aidUSA Detroit: “wheel-spin in motor city”, car industry

LEDC: BrazilBrazil South East Region: ‘Economic miracle’, car industry, informal sector

Whole country: car industry, Amazon: tourism, sustainable forestry, mining, liana project, ecotourism

AID: Bangladesh, Malaysia

Types of Industry

• Primary– Extractive, gets resources from the ground, eg.

Farming, fishing, mining, logging, oil extraction

• Secondary– Manufacturing or making thingsEg. Iron & steel, textiles, cars

• Tertiary– Service, supporting industriesEg banking, retail, restaurants, tourism

• Quaternary– Research & developmentEg space programme

• Industrial Systems • Factories have inputs, processes and outputs.

Inputs can be the raw materials need to make something. Inputs can also be labour, buildings, capital and machinery. Processes are the things which go on within the factory. This is usually the manufacturing of goods. It can also be design and research - anything needed to make something. Outputs are the things which leave the factory. This can include the finished product, profit or even waste.

The Car Industry: a systems model

Factors affecting location of industry

market

Labour Raw materials

fuel

South Wales

• Industry based on:– Raw materials iron ore

limestone– Fuel coal– Labour flocked to valleys as

industry grew– Market growth of empire &

UK

Changing Industry in South Wales

PAST• In valleys inland• Focus on coal mining & iron & steel• Rail transport• Local raw materials• Local coal supply• Labour intensive• Unskilled & semi skilled, • heavy work, difficult conditions• Primary & secondary industry• Guaranteed market

Eg Pontypool, Ebbw Vale, Rhondda

Present• On coast & main roads (M4,

Heads of Valleys)• Imported raw materials• Road & container ship transport• Imported fuel – coal & oil• Hi-tech, computer based, skilled &

smaller labour force• Secondary & tertiary industry diverse• Pleasant working conditions • Global competition• Large scale integrated plants

Eg. Llanwirn, Llantarnam Business Park

Japan’s Industry

• Location– Pacific Rim (eg. Kansai region near Osaka)

• Raw materials: imported by ship

• Labour: high skilled, hard working, live on coastal plain

• Fuel: oil imported

• Market: global & home – close to export base

Lille: Nord pas de Calais

• Textile industry located here because:

– Raw Materials & resources linen, wool– Fuel nearby coalfield– Labour traditional

skills– Market Europe &

global

Lille: Nord, pas de Calais

Industrial Decline:– Exhausted raw materials– Changing fabrics– Mechanisation– High labour costs– Competition from abroad– Old, unsuitable sites & machinery

Lille: Nord pas de CalaisRegenerationRegeneration• Transport & communications led – TGV, 6 major

motorway links to European Cities• Telecommunications & ICT- use latest available

technology• Labour – use traditional skills & knowledge & links• EU investment – regenerated city centre → more

attractive base for industry & foreign investment

Eg. La Redoute mail order company; SIMA Japanese investment

Brazil: LEDC

Economic MiracleEconomic Miracle• Raw materials minerals, crops, land• Labour plenty of cheap, low skilled workers• Fuel some coal, import oil & coal• Market compete on global market, emerging

home market

Location focussed in South East Region & North East Coastal zone

Brazil: LEDC

• Primary & secondary industry• Cars – based on foreign investment eg Fiat,

Volkswagen• Crops & food packaging: coffee, chocolate, beef,

chicken, sugar cane• Minerals: iron ore, gold, copper, zinc, rarer

minerals• Tertiary: growing hi-tech, banking administration

as economy grows & education rises; mainly services in informal sector; tourism eg Amazon tours.

• Science Parks • Science Parks are located on the edge of cities in greenfield

locations. Many of the firms located in science parks are conected with information, high-technology, and electronic industries. science parks have direct links with universities for research. They have attractive layouts with grassy areas, ornamental gardens, ponds etc. An example is The Cambridge Science Park.

• The Cambridge Science Park • The Cambridge Science Park is on the edge of Cambridge,

alongside the M11 and the A10. It is located here because it is very accessible, lland values are lower on the edge of an urban area and there is plenty of open space for expansion. A number of companies have links with research departments at Cambridge University.

Changing structure of employment over time:

•Pre- industrial revolution most people were involved in primary industry, largely farming, although there were small manufacturing industries and a lot of people in service jobs

•1800 – onward: the industrial revolution leads to many people working in factories & manufacturing industry