Geography Unit 2: Economic

Activity — Study Notes

1. Types of Economic Activity
Most people have to work to provide the things
they need in life. Another word for work is
industry.
All the different types of work/industry together
are called economic activities. "Economic" means
money and wealth.
Work is divided into three main types: primary,
secondary and tertiary.
Type Definition Examples
Employs people to Farming,
collect or produce fishing,
Primary natural forestry,
resources from mining
the land or sea
 Type Definition Examples
Employs people to
make things,
usually from raw Steel making,
materials or by house
Secondary assembling parts construction,
into a finished car assembly
product (also
called
manufacturing)
Provides a Teachers,
service for people nurses, shop
Tertiary — gives help to assistants,
others; no goods entertainers
are made (a "service
industry")
Provides a high- Financial
tech service — advisers,
Quaternary carries out research
(added research and scientists,
since the provides people
1980s) information and working in
advice micro-
electronics

Employment structure
 The employment structure = the proportion of
people working in primary, secondary, tertiary
(and quaternary) activities.
Employment structure changes over time:
Before 1800 (UK): most people worked on
the land (primary); this was the era of the
agricultural revolution.
19th century: people turned to industry —
increasing numbers worked in factories
producing steel, ships and machinery (the
industrial revolution).
20th century to present: farming and
industry have become highly mechanised and
need fewer workers. Most people now work in
service (tertiary) activities such as schools,
hospitals, shops and transport.
Since the 1980s a fourth group, quaternary
activities, has been added.
Summary: The three main types of industry are
primary, secondary and tertiary. Recently, a fourth
group, quaternary, has been added. The proportion of
people employed in these groups changes over time.

2. Main Types of Farming in Britain

 Farming (agriculture) = the way people produce
food by growing crops and raising animals.
Three main types of farming in Britain:
Type Description
Arable Ploughing
crops
of the land and growing of

Pastoral Land is left under grass for the grazing of

animals
Mixed Both crops are grown and animals are
reared in the same area

Factors affecting farming choice

Farming is big business, so farmers must choose
carefully the type of farming that suits their location,
depending on:
Physical factors: climate, soils and relief
Human factors: farm size, technology/machinery,
distance from markets, market demand, and
transport
General pattern across Britain
 Towards the north and Towards the south and
west east
More wind More sheltered
Cooler summers Warmer summers
Milder winters Colder winters
More rain Less rain
Higher land Flatter land
Steeper slopes More gentle slopes
Thinner soils Deeper soil
More extensive farming More intensive farming
More subsistence More commercial
farming farming
General distribution: crofting and sheep in the far
north/uplands, cattle in the wetter west, arable in
the drier east/south, mixed farming in between.
The three farming types in detail
Arable farms grow crops such as cereals (wheat)
or vegetables (potatoes). They need: large areas
of flat land, deep fertile soil, warm sunny summers
to ripen crops, some (not too much) rain, and
 modern machinery for ploughing/harvesting.
Crops that are heavy to move (potatoes) or spoil
quickly (strawberries) are best grown near their
market.
Cattle farms raise either dairy cows (for
milk/dairy produce) or beef cows (for meat).
Cows need well-drained flat or gently sloping land.
Dairy cows need good-quality grass, which grows
best in a warm, moist climate that is neither too
hot nor too cold. Good roads and refrigerated
lorries help get milk to market quickly; beef cattle
are reared further from markets.
Hill sheep farms produce wool, lamb and mutton.
Sheep are hardy, can graze steep land unsuitable
for other farming, and can survive on poor-quality
grass and thin soils in any British climate, including
heavy rain and snow. Hill farms use little
machinery, and much of their produce goes to
large urban areas.
Mixed farms grow crops and raise animals
together. They need good-quality soil and gently
sloping land for cattle, crops and machinery.
Climate should not be extreme (not too wet, dry,
hot or cold), and good roads are needed for
market access.
Summary: The main types of farming in Britain are
arable, pastoral and mixed. The type best suited to an
area depends upon several different physical and
human factors.

3. Case Study: Beckside Farm — A

Hill Sheep Farm (Lake District)
Beckside Farm is a typical hill sheep farm in the
English Lake District.
Most of the farm is high fell and steep, rocky
hillside; soils are poor and only support rough
grasses and heather.
There is only a small area of flatter, low-lying land
— this has deeper soils but is often wet and hard
to cultivate.
Modern machinery is little used: valley sides are
too steep/inaccessible for tractors, and the valley
floor has small fields and waterlogged land that
restricts heavy machinery.
Climate is difficult: heavy rainfall, low cloud and
mist are common; summers are cool, winters cold
and windy; snow may lie on high ground for
weeks; sunshine amounts are lower than the rest
of the country.
Farm layout (land zones, from valley to fell)
Zone Description
Good grazing on flatter land near the
Inbye farmhouse and lake — sheltered,
warmer by 5°C, ~1,000 mm
rainfall/year
Allotment Rough pasture in large fields
surrounded by stone walls
Poor grazing on unfenced land,
High fell including rough pasture, peat moors
and rock — windier, colder, ~2,500
mm rainfall/year
Sheep spend most of their time on the high fells;
life is hard there and only strong, healthy sheep
survive. In winter, weaker sheep are brought down
to lower pastures.
The small area of lowland (inbye) is well used:
fields are ploughed each year, fertiliser is added to
improve soil fertility/structure, and oats, barley and
turnips are grown in summer and stored in barns
as winter feed for the sheep.
Beckside Farm earns most of its money in
autumn, when lambs and four-year-old sheep are
taken to market at Penrith. Wool is sold in summer
but is no longer a main source of income.
4. Case Study: Hawthorn Farm —
An Arable Farm (East Anglia)
Hawthorn Farm is a typical arable farm in East
Anglia.
The land is very flat, sloping gently towards a river;
most fields have deep, fertile soils that are easy to
work and well drained, although occasional
flooding restricts land use near the river.
East Anglia is one of the driest parts of Britain
— much rain falls during the growing season when
it is most needed. Summers are generally warm
with plenty of sunshine to ripen crops. Cold
winters bring hard frosts, which help kill diseases
and break up the soil, assisting ploughing.
Main problems: occasional high winds and
summer thunderstorms can ruin crops just before
harvest. Farmers cope with dry summers by
irrigating through a system of ditches, pipes and
pumping units; pumps are also used to move
water from fields into the river during floods.
Flooding is a growing concern because the land is
so flat and low-lying.
Hawthorn Farm makes heavy use of machines and
chemicals: it has five tractors, two combine
harvesters, muck spreaders, sprayers, ploughs,
seed drills and a grain drier. There are six full-time
labourers plus casual workers at busy times.
 The farm is large and efficient, owned by a
company and run by a professional manager with
money to invest in new methods — this type of
large-scale, company-run farming is called
agribusiness.
Summary: The difference in farming between a hill
sheep farm and an arable farm is due to climate, soils,
relief, transport and nearness to markets.

5. Choosing a Site for a Factory:

Location Factors
Before building a factory, a manufacturer works out
the best available site. There is rarely a "perfect" site —
the decision depends on several factors:
1. Raw materials — it costs money and time to
move raw materials, so it is best for a factory to be
as close as possible to them, especially if materials
are big and heavy.
2. Power (energy) — factories need power to run
machines. In the past this often came from fast-
flowing rivers (waterwheels); today it's usually
electricity.
3. Labour — workers needed to run the factory. In
the past many workers were needed; today
 machines do much of the work, but the smaller
labour force must be trained and skilled.
4. Market — the best place for a factory is often
near a large urban market, where most of the
people who buy the goods live.
5. Transport — needed to bring raw materials and
workers to the factory, and to send finished goods
to market.
6. Site — the actual plot of land the factory is built
on; a good site typically has plenty of cheap, flat
land.

6. Case Study: The Iron and Steel

Industry (Port Talbot)
Britain was the first country in the world to
become industrialised, beginning about 200
years ago after coal was found to produce steam
to power machines.
In those early days transport was poor (no lorries,
trains, motorways or railways), so heavy raw
materials were expensive to move — most early
industries grew up on Britain's coalfields.
The most important early industry became iron,
and after 1856, steel.
 In the early 19th century, large amounts of coke
(coal) were needed to smelt iron ore; coal, iron ore
and limestone were all found together in the
valleys of South Wales. Water was also
important, providing power from waterwheels and
transport by canal.
Iron factories were built on flat but narrow valley
floors in South Wales, and needed to be near
urban areas that supplied large numbers of
unskilled workers.
Port Talbot today
Port Talbot is today the largest of the few
remaining steelworks in Britain, producing mainly
sheet steel for the car industry.
Since local coal and iron ore have been used up,
raw materials now have to be imported from
overseas.
Port Talbot has its own docks, is built on a large
area of flat land, and is close to the M4 motorway
and mainline railway.
Power comes from the national electricity grid,
and steelworkers (now skilled) come from nearby
towns.
Summary: In choosing the best site for a factory, a
manufacturer should consider transport and the
nearness to raw materials, power sources, workers
and markets for the goods produced.

7. Case Study: The Car Industry

(Location Near Markets)
As raw materials get used up and transport
improves, modern factories tend to locate near
where many people live, because present-day
industries need large markets to sell their goods.
A modern car consists of many small parts, each
made in its own factory. If these part-factories are
close together, it is easier and cheaper to
assemble (put together) the finished car.
If large towns are nearby, workers can
make/assemble the parts and also buy the finished
cars. Transport is important for moving car parts,
assembled cars and workers.
Over time some car factories have closed while
others have opened, and many have changed
ownership in recent years.
Today, industrial growth is more likely in areas with
the most people — where new factories open,
jobs are easier to find, and more care is taken of
the environment.
Case study: Toyota at Burnaston (near
Derby)
Toyota is Japan's largest car company. In the early
1990s it decided to build a new manufacturing
plant at Burnaston, near Derby.
The plant opened in 1992; by 2012 it was
producing 130,000 cars a year with a workforce of
3,800 people.
Most Toyota cars made there are sold in the UK
and Europe; some are even transported back to
Japan to be sold.
Toyota uses a just-in-time system of
manufacture: components are supplied to the
assembly line just minutes before they are needed.
This means expensive parts don't need to be
stored on-site, reducing costs — but it requires a
very good transport system to work.
Why Burnaston was chosen (reasons)
Many skilled workers living in the local area
Many components made in local factories
Good access by road to major ports for export
markets
Good rail links to major UK markets
Attractive countryside and pleasant villages
Large flat site with room for expansion
 Good road and rail links for transporting
components and finished cars
Electric power available through the National Grid
Summary: Making cars is an important secondary
industry. Car companies are located close to large
towns/markets.

8. The Tourist Industry

Tourists are people who travel for pleasure. The
tourist industry helps get these people to the
places they want to visit, and looks after them
while they are there so they can relax and enjoy
themselves.
Tourism has become one of the world's fastest-
growing industries, and now employs more
people worldwide than any other economic
activity, with no sign of slowing.
Why tourism continues to grow
Many people are earning more money and have
more leisure time.
Transport between places has become faster and
cheaper.
There is a wider range of holiday destinations and
activities, which people may have seen on TV or in
 adverts.
Package holidays often include the total cost of
travel, accommodation and meals.
Importance to the economy
Tourism is an important factor in the economy of
most developed countries — e.g. in Britain in 2012,
one person in twelve was employed in tourism,
and the industry brought £35.9 billion into the
economy.
In many developing countries, tourism is often
seen as the best way to obtain income and create
jobs.
Jobs in the tourist industry include: airline pilot,
souvenir seller, coach driver, ski instructor, hotel
manager, restaurant owner, entertainer, travel
agent, ferry operator, tour guide, chef, holiday
planner.
Advantages and problems of tourism
Advantages Problems
Improves standard of Can affect the local
living — creates jobs in environment —
hotels, restaurants, cafés, scenery, vegetation
bars, discos; jobs and wildlife
making/selling souvenirs;
 Advantages Problems
tour guides and bus
drivers; entertainment
and farm produce
Improves quality of Tourists can cause
environment — enables overcrowding, noise,
new schools, hospitals litter, drunkenness and
and roads to be built drug use
Local people often
Brings wealth and jobs, find jobs are seasonal,
raising standard of unskilled and poorly
living/quality of life for paid; shopping
local people (e.g. once- becomes more
poor places in expensive; local culture
Mediterranean Europe) and traditions can be
lost
Summary: Tourism is one of the world's fastest-
growing industries. It can bring wealth, jobs and
amenities for local people, but it can also create
problems for them and for the environment.

9. Where Do the Tourists Go?

Every year more places are visited and there are
more things to do; transport has become cheaper
 and quicker, making it possible to visit almost
anywhere in the world.
Europe is by far the most popular tourist region,
especially Spain and Italy, with their hot, dry
Mediterranean summers. France, Germany and
the UK are visited to see historic attractions;
France and Italy are also popular for skiing in
winter.
A group of developing countries in the tropics
have also benefited from tourism in recent years,
including Kenya, Sri Lanka, Malaysia, Thailand
and some Caribbean islands.
Top tourist destinations (2012) by number of
arrivals: France, USA, China, Spain, Italy, Turkey,
Germany, UK, Russia, Malaysia.
Top earners from tourism (2012): USA, Spain,
France, China, Italy, Germany, UK, Hong Kong,
Australia, Mexico.
Regionally, Europe receives the most international
tourist arrivals, followed by East Asia and the
Pacific.
Choosing a holiday
People are increasingly looking for more
adventurous and active holidays — hot-air
ballooning, whitewater rafting, polar bear
watching, mountain trekking.
 Choices are often influenced by adverts, TV
programmes, or recommendations from
friends/family who have visited a place — but
people should also ask questions and learn more
about a place before deciding, such as: Where do
you want to go? What do you want to do? How
much do you want to spend? What is the place
like? What will the weather be like? When do you
want to go?
Summary: Cheaper, quicker and easier travel has
made it possible to travel almost anywhere in the
world. Deciding where to go needs careful thought.

10. High-Tech Industries

High-technology (high-tech) industries make
products such as microchips, computers, mobile
phones, pharmaceuticals (drugs) and scientific
equipment.
They have been the growth industry of recent
years and now provide more than 25% of the UK's
manufacturing jobs.
High-tech companies use the most advanced
manufacturing methods, put great emphasis on
research and development of new products, and
employ a highly skilled, inventive workforce.
 Most high-tech firms are huge organisations with
offices/factories worldwide. The UK electronics
industry, for example, is controlled almost entirely
by foreign companies, mainly from Japan and the
USA.
Science parks vs business parks
Science park Business park
All firms are High-tech firms,
Firm type high-tech superstores, hotels,
leisure centres
University Yes, direct No links with
links links with a universities
university
Fewer Many more
Number science parks business parks than
science parks
Both are usually located on edge-of-city
greenfield sites, although some business parks
are found in redeveloped inner-city areas, such as
London Docklands.
Advantages of a science/business park
Near a main road on the edge of town for easy
access
 Nearby firms can exchange ideas and information
Leisure facilities and support services may be
shared
A pool of highly skilled workers can be built up
Disadvantages
Over-use of cars can cause traffic congestion at
busy times
Edge-of-town sites can be far from
shops/services in the town centre
Firms may prefer to keep new ideas secret rather
than share a site
It may be difficult at times to find enough skilled
workers
Summary: High-tech industries use advanced
scientific techniques. They often locate on edge-of-
town science or business parks.

11. Where Are High-Tech Industries

Located?
Older industries — shipbuilding, steelmaking,
chemical manufacture, textiles — used to be very
important in the UK, employing hundreds of
thousands, mainly in the north and west. These
 industries are now in decline as companies close
or reduce output — these are often called sunset
industries.
Sunrise industries are growth industries,
including high-tech industries, which use modern
factories and often have their own research and
development units.
High-tech industries have a much freer choice of
location than old traditional industries, where
nearness to market and raw materials was so
important.
High-tech industries like to be located:
Near motorways or good roads
Near highly qualified and skilled workers
Near research facilities in universities
Near pleasant housing and open space
Near attractive countryside and good leisure
facilities
Near an airport for international links
Three main UK high-tech areas
1. The M4 corridor westwards from London —
nicknamed the "Silicon Strip"
2. "Silicon Glen" in central Scotland (Glasgow–
Edinburgh)
 3. "Silicon Fen" in and around Cambridge
Summary: High-tech industries can locate in a wide
variety of places. Most are found in central Scotland
and the south and east of England.

Quick Revision: Key Term Glossary

Industry / economic activity — the work people
do to provide the things they need.
Primary industry — collects/produces natural
resources from land or sea (farming, fishing,
forestry, mining).
Secondary industry (manufacturing) — makes
things from raw materials or assembles parts into
finished products.
Tertiary industry (service industry) — provides
a service; no goods are made.
Quaternary industry — high-tech service
providing research, information and advice.
Employment structure — the proportion of
people working in each type of industry.
Agriculture / farming — producing food by
growing crops and raising animals.
Arable farming — ploughing land and growing
crops.
Pastoral farming — land under grass for grazing
animals.
Mixed farming — growing crops and raising
animals together.
Physical factors (farming) — climate, soils, relief.
Human factors (farming) — farm size,
technology, distance to markets, market demand,
transport.
Agribusiness — large-scale, company-run, highly
mechanised farming.
Raw materials, power, labour, market,
transport, site — the six key factors in choosing a
factory location.
Smelt — to melt ore (e.g. iron ore) to extract the
metal.
Just-in-time — manufacturing system where
parts are delivered right when needed, reducing
storage costs.
Tourist / tourism industry — people who travel
for pleasure, and the industry that serves them.
High-tech industry — industry making advanced
products like microchips and pharmaceuticals,
based on research and development.
Science park — a site for high-tech firms with
direct links to a university.
Business park — a site for high-tech firms and
other businesses (shops, hotels, leisure) without
university links.
Greenfield site — undeveloped land, often on the
edge of a city, used for new development.
Sunset industry — an industry in decline (e.g.
shipbuilding, steelmaking, textiles).
Sunrise industry — a growth industry, often high-
tech.
Silicon Strip / Silicon Glen / Silicon Fen — the
UK's three main high-tech industry areas (M4
corridor, central Scotland, Cambridge area).