Economic Sectors and Development

Overview

• Discussion on different economic sectors
• Impact of state development on production
• Review of Weber's Least Cost Theory
• Break of bulk points

Economic Sectors

Primary Sector

• Involves extraction of natural resources
  • Examples: Farmers, coal miners, fishermen, lumberjacks
• No processing of resources; extraction only

Secondary Sector

• Processing and manufacturing of goods
  • Uses raw materials from the primary sector
  • Products become value-added
  • Examples: Processing wheat into flour, strawberries into jam
• Located near primary sector and infrastructure (railways, highways)

Tertiary Sector

• Provides services to people
• Often located near consumers; technology now allows remote services
• Examples: Lawyers, doctors, real estate agents, Uber drivers
• Dominant in developed economies like the USA

Quaternary Sector

• Sub-sector of tertiary
• Focused on acquiring, processing, sharing information
  • Examples: Teachers, journalists, finance professionals

Quinary Sector

• Sub-sector of tertiary
• Involves decision-making roles
  • Examples: Politicians, executives, CEOs

Economic Development and Transformation

• Less developed countries have more primary sector jobs
• Industrialization increases secondary sector jobs
• Post-industrial society leads to tertiary sector dominance
  • Example countries: Sweden, Finland

Classifying Economies

• Core countries: Advanced economies, high living standards
• Semi-periphery countries: Emerging economies, increased living standards
• Periphery countries: Lower living standards, primary sector jobs
• Examples:
  • Core: USA, Canada, Europe
  • Semi-periphery: China, Brazil, India
  • Periphery: Many African, Middle Eastern, Asian countries

Global Production and Trade

• Multinational corporations locate in periphery/semi-periphery for cost reduction
• Advancements in transportation enable global supply chains
• Break of Bulk Points: Transfer goods between transport modes (e.g., ports)
• Global trade leads to unequal economic development
  • Core countries benefit more

Weber's Least Cost Theory

• Industrial location influenced by:
  • Transportation costs
  • Labor costs
  • Agglomeration
• Bulk Reducing Goods: Lighter after production, located near resources
• Bulk Gaining Goods: Heavier after production, located near market
• Criticisms: Oversimplifications, ignores government, cultural, environmental factors

Conclusion

• Understanding economic sectors helps in analyzing global production
• Weber's theory provides basic insight despite limitations

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