Economic Sectors and Location Factors

Economic Sectors

  • Definition: Economic sectors refer to the broad categories of economic activities that can be classified based on the nature of goods and services produced.

  • Importance: Economic sectors help in understanding the structure of an economy, employment opportunities, and the types of goods and services available.

Classification of Economic Sectors

  1. Primary Economic Sector

    • Description: Involves the extraction and production of raw materials.
    • Examples: Agriculture, mining, fishing, forestry.
    • Characteristics: Often employs a large percentage of the workforce in developing countries due to resource availability.

  2. Secondary Economic Sector

    • Description: Involves the manufacturing and processing of raw materials into finished goods.
    • Examples: Automobile manufacturing, textile production, construction.
    • Characteristics: Typically occurs in more industrialized economies; involves labor-intensive work and manufacturing techniques.

  3. Tertiary Economic Sector

    • Description: Involves the provision of services rather than goods.
    • Examples: Healthcare (nurse, doctors), transportation (bus driver), finance (banker), education (teacher), hospitality (hairdresser).
    • Characteristics: Dominates in advanced economies; characterized by increasing specialization and the importance of customer service.

Economic Development Over Time in Germany (1950-2013)

  • Trends:

    • As economies develop, there is a significant shift from the primary and secondary sectors to the tertiary sector.
    • In advanced economies like Germany, over 70% of employment is in the tertiary sector.
    • Contrasts with developing countries where employment is higher in the primary and secondary sectors.

  • Graph Interpretation:

    • Analyze the deployment and growth patterns of each economic sector through the line graph provided.
    • Look for indicators that show growth or decline in each sector over the specified years.

Location Factors Affecting Economic Activities

  • Definition: Location factors are characteristics that influence where companies and economic activities choose to establish themselves.

  • Types of Location Factors:

    1. Hard Location Factors (measurable):
    • Examples include availability of raw materials, transportation networks, and government policies (taxation, incentives).
    1. Soft Location Factors (subjective):
    • Examples include cultural settings and social climates; less quantifiable but can affect the appeal of a location for businesses.

  • Importance of Location Factors:

    • Companies analyze these factors to minimize costs, access markets, and optimize operational efficiency.

Overview of Thematic Maps

  • Working with Thematic Maps:
    • Introduction: Note the title of the map, scale, and primary geographic focus.
    • Describing Regions: Identify the geographic coordinates and the main characteristics that are highlighted by the map.
    • Summary: Provide an overview of what the map conveys, including specific details like population, agriculture, and industries.