Industry, Services & Global Economic Activities

A comprehensive set of flashcards covering key concepts about industry, services, and global economic activities.

Why is the iron and steel industry referred to as a 'basic industry' in the manufacturing sector?

Because it supplies raw materials like steel to other industries such as construction, machinery, and transport, forming the foundation of industrial development.

How do agglomeration economies influence the spatial clustering of manufacturing industries?

They reduce cost and improve efficiency through shared infrastructure, skilled labor pools, and supply-chain interlinkages near a leader-industry.

What explains the shift of iron and steel industries from traditional coal-based regions to coastal areas in modern economies?

Shift is due to imported ore reliance, cheaper seaborne logistics, reduced dependence on coal, and proximity to large markets and ports.

Why are footloose industries more prevalent in developed countries?

They rely on skilled labor and light raw materials, benefiting from flexibility, digital infrastructure, and less dependence on location-specific resources.

How does technological innovation in automation redefine labour requirements in manufacturing?

It reduces dependency on manual labor, increases productivity, and emphasizes skilled maintenance, programming, and innovation roles over traditional repetitive tasks.

Why is aluminum industry often located near hydroelectric power sources?

Because aluminum smelting is extremely energy-intensive and requires continuous, cheap electricity for economic viability.

How does the concept of 'break of bulk point' apply to global port-based industrial hubs?

It's where goods transfer from one mode of transport to another, promoting warehousing, processing, and value-addition industries.

Why are industrial regions like the Ruhr, Great Lakes, and Chota Nagpur similar in origin?

All developed around coal, iron ore, and water sources with transport access—classic factors of industrial location.

How does environmental regulation affect the locational shift of polluting industries?

Stricter norms in developed countries push dirty industries toward lax-regulated developing regions (pollution haven hypothesis).

Why are textile industries termed as sunrise industries in some developing countries?

Due to growing global demand, labor intensity, export potential, and low capital threshold enabling employment generation.

How do time-space convergence and digital connectivity redefine service delivery?

They allow services like education, banking, and telehealth to be delivered remotely, bypassing traditional location barriers.

Why are knowledge hubs like Bengaluru and Silicon Valley located in non-coastal interiors?

They leverage skilled labor, research institutions, policy incentives, and digital infrastructure rather than port access.

Explain how tertiary sector has become dominant in post-industrial economies.

Rising incomes shift consumer preference toward services; automation reduces manufacturing jobs; global outsourcing boosts service trade.

What is meant by quaternary activities being 'people-based, not place-based'?

They depend on individual expertise and can operate remotely, relying on networks more than geography.

Why are international airports major nodes of economic activity beyond transport?

They host logistics parks, MNC offices, hotels, and retail due to global connectivity and business clustering.

Match the following: A. Silicon Valley – 1. Quaternary hub B. Detroit – 2. Automobile C. Jamshedpur – 3. Steel D. Geneva – 4. Banking & diplomacy A: A-1, B-2, C-3, D-4.

Matching results are A-1, B-2, C-3, D-4.

Arrange these countries by increasing share of GDP from tertiary sector: Ethiopia, India, France, Japan.

Ethiopia < India < Japan < France.

Which Indian state leads in software service exports and why?

Karnataka, due to Bengaluru’s IT ecosystem, skilled workforce, and policy support.

Identify the economic region that transitioned from heavy industry to quaternary service economy.

Great Lakes region of USA.

Why are call center services concentrated in cities like Manila and Hyderabad?

Low-cost, English-speaking workforce, telecom infrastructure, and time zone complementarity with Western clients.

Why is the quinary sector considered elite decision-making?

It includes top executives, government officials, and policy makers who influence large-scale economic and social directions.

How do global cities act as control nodes in the world economy?

They house headquarters of MNCs, global banks, and institutions controlling capital, information, and talent flows.

Why are quaternary services crucial for innovation-driven economies?

They support R&D, design, information processing, and consultancy—key for sustained competitiveness.

What spatial trend explains the rise of telemedicine and ed-tech industries?

They thrive in digitally connected but geographically dispersed settings, reducing urban concentration dependency.

Why is knowledge economy more resilient to physical disruptions like pandemics?

It is digitally enabled, allows remote functioning, and is less dependent on supply chain mobility.

How does industrial dispersal strategy reduce regional imbalance?

It promotes small-scale units in backward regions, decentralizing growth and reducing migration pressure.

Why do Special Economic Zones attract high-value manufacturing?

They offer fiscal incentives, infrastructure, and regulatory ease to promote export-oriented high-tech industries.

How did colonialism shape industrial patterns in Asia and Africa?

Colonial powers developed port-based extractive industries and neglected inland diversified growth.

Why is cluster-based development promoted in India’s industrial policy?

It leverages synergy between similar industries, reduces logistics cost, and enhances competitiveness.

Explain how Make in India differs from Import Substitution Industrialization.

Make in India promotes global integration and export orientation, while ISI aimed at domestic self-reliance by limiting imports.

Why is manufacturing considered both a wealth and waste generator?

It creates employment and goods but also leads to pollution, resource depletion, and carbon emissions.

How does eco-industrial park differ from conventional industrial zones?

It designs waste reuse, energy efficiency, and resource cycling across firms to reduce environmental impact.

Why is shift toward circular economy gaining traction in industrial design?

It aims to minimize waste through recycling, reusing, and designing for durability, reducing ecological footprint.

What are ethical concerns around automation in manufacturing?

Job loss, skill redundancy, inequality, and surveillance risks associated with AI-driven workplaces.

Why are developed countries shifting towards green manufacturing?

To meet climate commitments, reduce emissions, and align with ESG norms demanded by global investors.

How does containerization revolutionize global manufacturing logistics?

It standardizes shipping, reduces transport cost/time, and facilitates smooth multimodal transfer.

Why are EPZs more successful in Southeast Asia than in Africa?

Better infrastructure, policy consistency, skilled labor, and integration with global value chains.

How does just-in-time manufacturing increase efficiency but risk?

It minimizes inventory and cost but depends on uninterrupted logistics and coordination.

Why are global value chains shifting from China to Southeast Asia?

Rising wages, trade tensions, and diversification strategy by MNCs to reduce supply chain dependency.

Explain how digital platforms enable micro-manufacturing in rural areas.

They connect small producers to markets, provide design tools and logistics, enabling decentralized production.

Why are industrial corridors like DMIC critical to India's manufacturing ecosystem?

They integrate transport, energy, and urban infrastructure to attract investments, reduce logistics costs, and enhance global competitiveness.

What spatial advantage do export-oriented industrial clusters near coastal SEZs offer?

Proximity to ports enables lower export costs, quick customs clearance, and efficient integration with global supply chains.

Why is the service sector termed 'invisible export' in national accounts?

Because it generates foreign exchange (e.g., IT, consultancy) without physical goods crossing borders.

How does service offshoring influence urban spatial planning in Tier-2 cities?

It creates demand for skilled housing, IT parks, education hubs, and boosts allied service sectors.

Why are financial services concentrated in global alpha cities like New York and London?

They host stock exchanges, regulatory bodies, multinational HQs, and talent pools creating financial gravity.

How do agri-based industries help in reducing rural-urban migration?

By offering local employment, value-addition to crops, and encouraging rural entrepreneurship.

What is the strategic logic behind India's focus on 'sunrise sectors' like semiconductors and green hydrogen?

To reduce import dependency, capture emerging global markets, and ensure energy and tech security.

Why are large-scale industries more vulnerable to supply chain shocks than decentralized models?

Centralized production nodes face greater risk if disrupted, while decentralized models are more adaptive and resilient.

How does regional disparity in industrial growth affect internal migration in India?

Industrial concentration in few states drives large-scale out-migration from underdeveloped regions, causing demographic and infrastructure stress.

What is the long-term implication of overdependence on service sector GDP growth?

It may create jobless growth, underutilize labor in agriculture/industry, and widen income inequalities.