EDEXCEL IGCSE – REVISION
NOTES
SECTION 4 – ECONOMIC ACTIVITY AND ENERGY
N.B. These notes should not be misconstrued to be entirely what will be tested, however they have been
compiled in line with the Specification, using resources recognised by the Examination Board.
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,Table of Contents – Economic activity and energy
4.1 The relative importance of different economic sectors and location of economic activity varies
spatially, and changes over time
a) Classification of employment by economic sector (primary, secondary, tertiary, and quarternary)
and the reasons for differences in the employment structures in countries at different levels of
development (Clark Fisher Model).
b) Factors affecting the location of economic activity in each economic sector and how these factors
can change 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
4.2 The growth and decline of different economic sectors has resulted in a range of impacts and possible
resource issues
a) Positive and negative impacts of economic sector shifts in a named developed and a named
developing or emerging country
b) Informal employment: causes (economic development, rural-urban migration) and characteristics
(advantages and disadvantages) in a named megacity
c) Different theories (Malthus and Boserup) are used to explain the relationship between population
and resources
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.
b) Non-renewable, e.g. coal, oil, natural gas, uranium and shale gas/oil, and renewable sources of
energy, e.g. solar, wind, hydroelectric power (HEP), geothermal, biomass, have advantages and
disadvantages for people and their environment.
c) Energy can be managed in a sustainable way through education, efficiency and conservation
(within industry, transport and the home
Specification
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,4.1 (a) Employment by economic sectors
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Classification of employment by economic sectors –
Definition of an economic sector:
A major division of the economy based on the type of economic activity.
Economic Sectors
Primary Sector
This sector is responsible for economic activity that includes the extraction of raw material to be supplied
to other industries. This sector often works with natural resources.
Main activities/employment include: farming, forestry, fishing and farming.
--
Secondary Sector
This sector is responsible for economic activity that includes the processing of raw materials to assemble or
manufacture a finished product. Materials from the primary sector are often used to make food, tools,
housing items and equipment.
Main activities/employment include: food processing, manufacturing, and building.
--
Tertiary Sector
This sector is responsible for economic activity that includes providing goods and services.
Main activities/employment include:
- Commercial – retail clerks and construction workers
- Professional – solicitors and accountants
- Social – school teachers and doctors
- Entertainment – restaurant chefs/waiters and cinema workers
- Personal – hairdressers and fitness trainers
--
Quarternary Sector
This sector is responsible for economic activity that includes providing the services of a highly-skilled
workforce.
Main activities/employment include:
- Research – providing specialist information and expertise to the above sectors as a means of
development design engineering, computer programming and financial management. (R&D)
- Design engineering – development of information terminals (R&D)
- Providing technical services and supporting companies in the management of their technological
infrastructures. (ICT)
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,Clark Fisher Model
Definition
The Clark Fisher Model is a graph through which changes in employment by sector can be presented on a
graph.
Clark-Fisher Model
Primary Sector
In the 1800s, primary sector employment accounted for 70% of the UK’s employment.
In the 1900s, this shifted from 70% to 40%; more people were required to build mechanical
equipment (which falls under the secondary sector.)
This dropped to 10% in the 2000s.
The overall movement of this sector, per the Clark-Fisher Model shows the decrease in importance
of the primary sector.
--
Secondary Sector
By the end of the 1800s, the sector saw an increase from 20% to 40%.
This sector saw an increase to 45% in 1950, which dipped to 30% by the 2000s.
This fluctuation showed a rise during the industrial revolution, which soon saw a continued decline
in the post-industrial era showing the demand for this sector was continually shifting.
--
Tertiary Sector
In the 1800s, this sector saw an increase from 10% to 20%.
This was met by a rapid 25% increase in the 1900s.
In the 2000s, there was a gradual 10% increase.
This sector saw a majority increase due to the other sectors seeing a shift in employment to gain
importance.
--
Quarternary Sector
There was no employment in this sector during the pre-industrial era and industrial revolution.
This sector started its emergence in the 2000s.
This sector shows that the importance of the quarternary sector commenced during the post-
industrial era.
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,4.1(b) – Location of economic activity in each economic sector
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Factors affecting the location of economic activities in each economic sector -
There are numerous factors affecting the location of economic activity in each sector:
Commercial Farming -
This is a type of farming where the production is intended for sale in markets. This is often large-scale, using
few workers, but a lot of technology.
Physical locational needs include:
- Climate – there needs to be optimal weather (rain and sunlight) for crops to grow
- Optimal soil – the soil has to be heavily fertilised with good nutrition
- Drainage systems – there has to be an optimal drainage system so water doesn’t ruin the soil
Miscellaneous needs include:
- There needs to be good access to the market to reduce transport costs
- There should also be an experienced workforce to improve existent systems
- The workforce should be able to work under time-pressured conditions and enjoy protections
under employment laws
--
Heavy Industry -
This Industry operates with heavy raw materials and finished products, e.g. Iron and Steel.
Physical locational needs include:
- Accessibility – this industry has to be located near docks/harbours/motorways for good transport
links to reduce the production costs
- Material access – there has to be optimal access to raw materials and energy suppliers so the
industry can operate at maximum efficiency
- Ability for expansion – this industry is ever-expanding, so there must be space for expansion
Miscellaneous needs include:
- Low maintenance costs – upkeeping facilities can be expensive in some cities due to planning
regulations and contrasting costs
- Low taxation – low tax is important to keep the production costs down; many corporations are
moving from California due to high tax rates
--
Light Industry -
This is the manufacturing industry that has light raw materials/components and finished products –
electrical goods, processed goods, computer software development and call centre services. This is a
footloose industry that is less dependent on factors that tie them to a specific geographical location.
Miscellaneous needs include:
- Very strong energy supply – in order to keep production going across the entire factory, they need
an abundant supply to energy
- Skilled labour workforce – a skilled workforce will allow for maximum product quality and efficiency
as they can pioneer change across the industry to ensure that productivity is at its peak
- Good communications and outreach – it is significant to maintain a good system of contact in order
to acquire contracts to ensure that profits are maximised and to maintain relationships with the
clients that they have.
- Subsidiaries/Contracts – The industry benefits from subsidiaries and the tax exemptions allows
them to grow even further; an example is the vaccination contracts and PPE contracts that were
issued by the UK Government when the COVID-19 Pandemic hit its peak which allowed numerous
companies to benefit and grow.
Retailing Industry -
The industry contains many services within the tertiary sector that need to be easily accessible by the
customers.
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, Physical locational needs include:
- Access to consumers – if there are not many customers, there will be fewer services to offer; this is
why retailing services will be located in the Central Business District as there will be a lot of facilities
that people wish to access due to the high footfall and greater likelihood of retailers to gain
customers at this region of the City.
- Good transport links – Trains, Buses, Taxis, and Cars must be able to reach these locations to allow
people to travel with ease, this means that it will be accessible for many people
- Optimal land – The land should have suitability in that the rent is not too high in comparison with
the income achieved, and there should be potential land for expansion to ensure that businesses
can scale their stores to meet demand.
- Consideration trends for economic activities – Decentralisation often occurs due to suburbanisation
and counter-urbanisation; tertiary-based economies tend to move away from the Inner City to the
Suburban ring, e.g. the Trafford Centre because the City Centre is not an attractive avenue for
retailing
Miscellaneous needs include:
- Making the retail venues favourable – It is important for there to be accessible parking, extensive
green space, attractions and a variety of stores; if people are comfortable, they will stay for longer
and will subsequently spend more money.
- Low direct and indirect costs – It should be inexpensive to be at this location, meaning there should
be no taxes for emissions (like the London ULEZ) and parking should ideally be free
--
Research and Development
This is an important quarternary activity that makes use of a highly-skilled workforce and the most latest
research to further experiments and development. This work tends to take place in concentrated locations
within Manchester, e.g. The Manchester Science Park or the Oxford Road Corridor.
Physical locational needs include:
- Stationed near a highly-educated workforce – R&D businesses will often be situated near the most
prestigious Universities, e.g. Russel Groups, in order recruit a highly-educated and skilled
workforce. The Russel Groups are a group of Research Universities and so they will the most
desirable candidates for employment.
- Flocking together for low costs – Institutions carrying out similar research tend to agglomerate
together so that they can share expensive resources for maximum profitisation, e.g. hydraulic
pumps that are only used every few weeks.
- Hazard Management – Dangerous experimentation/research (e.g. explosives/biohazards) tend to
happen in isolated regions like the Countryside because it has high risks for the general public and
so they must minimalize harm that can be caused on individuals
Miscellaneous needs include:
- Access to contracts – Government and private contracts are significant in allowing R&D firms to
survive and so they need access to a plethora of contracts to sustainably grow and exist as
companies.
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.1(c) – Reasons for the changes in the number of people employed in
each economic sector
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