Flashcards in EQ1 - 3.2 Urbanisation is a result of socio-economic processes and change (A) Deck (17):
Definition Quaternary Sector
The research sector/economy, research for the development of products.
Define Tertiary Sector
Commercial services that support production.
Define Secondary Sector
Involves converting raw materials into components to help the tertiary sector. The building industry uses secondary produce a lot, timber, building materials.
Define Primary Sector
The raw materials, where the process starts, for example farming, fishing for example to pass on to the secondary sector for where they can change the raw materials into components.
Define an Informal Economy
An unregulated and unofficial business that doesn't benefit from the government. For example, people who sell on the streets, will not be on government regulations and therefore, it could be illegal. This is common in cities like Kampala, Uganda.
Define a formal economy
An economy that meets the requirements and regulations of the government. They pay their workers, taxes and have suitable working conditions.
Example Of Emerging City w/ statistics
New Delhi - India. 50% of GDP from the informal economy. Worth $3.6T
Example of Developing Countries w/ statistics
Kampala, Uganda. 50% GDP from informal economy. Worth $33B
Example of Developed country w/ statistics
New York, United States of America. 7% of GDP from informal economy. Worth $1T
Reason for Quaternary Employment in Developed Countries
Country has very skilled labour, therefore they must invest in technology for research in the quaternary sector.
Why does New York have many foreign employees to work in the quaternary sector?
50% of New York's quaternary sector are foreign. This is due to the lack of smartness in New York, therefore companies higher smarter people from other countries to research and develop product.
How Can the Informal Economy hurt a Countries legal economy?
If the informal economy is extremely large in a country, this can really affect a country's government as no money is coming through and it will not allow tax payment to come through so there will be no payments to education, benefits etc. In addition, no money to reinvest in infrastructure.
How come most people work in the tertiary sector in most developed countries?
As it requires you to be skilled. Most people will be interested to work in a shop or a bank. Therefore, people will get paid above the minimum wage and can make a loving out of it. Also, this is where the most job opportunities are likely to be in the sectors.
Why is the primary sector quite common in developing countries?
Big TNC's will pay people very little to collect the raw materials for their product. In addition, farming/agriculture is a big industry, therefore thats why primary sector is quite large in developing countries,
% of people working in each sector in the pre-industrial stage
Primary Sector = 72%
Secondary Sector = 21%
Tertiary Sector = 9%
% of people working in each sector in the industrial stage
Primary Sector = 20% Approx.
Secondary Sector = 40% Approx.
Tertiary Sector = 40% Approx.