Economic activity and energy case studies - Human Geography

What is our case study for economic sector shift in a developed country?

Detroit: Secondary → Tertiary Shift

Car manufacturing (Ford, GM, Chrysler) collapsed as factories automated or moved overseas, forcing Detroit to pivot to service industries — healthcare, education, tech, and tourism.

What are the pros of the Detrioit secondary → tertiary shift

PROS

• Downtown revival — companies like Quicken Loans (now Rocket Mortgage) relocated HQ to Detroit, bringing thousands of white-collar jobs

• "Detroit Tech Hub" emerging — Amazon, Google and Microsoft have opened offices, diversifying the economy away from manufacturing

Although, pros havent really helped anything that much.

What are the cons of the Detrioit secondary → tertiary shift

CONS

• Population fell from 1.8 million (1950) to under 700,000 by 2010 as jobs disappeared

• At its worst, unemployment hit 28% (2009) — nearly 1 in 3 out of work

• Detroit filed the largest municipal bankruptcy in US history in 2013 — $18–20 billion in debt

Whats our case study for economic sector shift in a developing country?

China: Primary → Secondary Shift

Subsistence farming (primary) gave way to mass manufacturing (secondary) as China became the "world's factory" — producing electronics, textiles, steel and cars for global export.

Pros of China economic sector shift?

PROS

• GDP grew from $300 billion (1980) to over $17 trillion by 2023 — fastest economic growth in history

• 800 million people lifted out of poverty between 1980–2015 — the greatest poverty reduction ever recorded

• Life expectancy rose from 67 years (1980) to 78 years (2023) as rising incomes improved healthcare, sanitation and nutrition

Cons of China economic sector shift?

• 300 million rural migrants moved to cities (largest migration in human history) — creating overcrowded urban areas and poor living conditions

• Severe air pollution — 26 of the world's 30 most polluted cities are in China

What case study do we use for the informal economy?

London

How is economic development a cause of informal employment?

• London's shift to a high-skilled tertiary/quaternary economy leaves low-skilled workers behind — those without qualifications struggle to access formal jobs

• High cost of living forces some into cash-in-hand work (cleaning, construction, food delivery) to avoid tax burdens they can't afford

How is rural-urban migration a cause of informal employment?

• Large migrant communities (particularly from South Asia, Eastern Europe, West Africa) arrive with language barriers or unrecognised qualifications, pushing them into informal work

• Undocumented migrants cannot legally access formal employment, forcing them into cash-in-hand industries like construction, hospitality and domestic work

• Around 1 million undocumented migrants estimated to live in London, many working informally to survive

Advantages of informal employment in London?

• Fills labour gaps — informal workers take on jobs (cleaning, construction, food delivery) that the formal economy struggles to fill, keeping the city functioning

• Flexibility — workers can set their own hours, useful for those with caring responsibilities or studying

• Entry point — gives recent migrants and low-skilled workers a foothold in the economy, building experience and contacts to eventually access formal work

• Cheaper services — informal labour keeps costs down in sectors like hospitality, construction and domestic work, benefiting businesses and consumers

• Self-sufficiency — reduces pressure on the welfare state as workers support themselves rather than claiming benefits

Disadvantages of informal employment in London?

• No worker protections — no sick pay, holiday pay, or minimum wage guarantees, leaving workers highly vulnerable to exploitation

• Tax loss — HMRC loses an estimated £6 billion/year in unpaid tax from the informal economy, reducing public funding for services

• No job security — workers can be dismissed instantly with no legal recourse

• Poverty trap — without formal employment history or references, workers struggle to ever transition into the formal economy

• Exploitation — undocumented migrants especially vulnerable to below-minimum-wage pay, with no legal protection to complain

• No pension contributions — informal workers build no retirement savings, creating long-term poverty risk in old age