good morning afternoon evening night whenever you're watching this welcome back to the Mr sin Channel today we are going to review not only the different economic sectors but also go over how the development of States impacts production review Weber's lease cost theory and talk about Break of bulk points as always if you find Value in these videos consider subscribing to start let's talk about the economy and break down economic activities into five different sectors each economic sector is characterized by specific characteristics and consists of different jobs and activity the first sector is the primary sector which consists of activities that are based around the extraction of Natural Resources Farmers coal miners fishermen Lumberjacks are all examples of people in jobs that are part of the primary sector notice that these occupations just involve the extraction of Natural Resources they are not processing the resources once the resources are extracted they will often be processed and changed into another good jobs that are in involved in the processing and manufacturing of goods are part of the secondary sector of the economy these jobs and activities use raw materials gathered from The primary sector and manufacture them into products of a greater value products that gain value as the production happens are sometimes referred to as value-added products for example processing wheat into flour strawberries into Jam or Lumber into plywood jobs in the secondary sector often locate near jobs in The primary sector to help reduce the cost of transporting raw resources lastly we can see since these jobs are often shipping products in and out of the facility it's often common to find them located near major Railways highways ports and other infrastructure that supports the shipping of resources and final goods now the next sector of the economy is the tertiary sector here jobs and activities are based around providing services for people jobs and activities in this sector are often located near consumers and are where there is a need for the that specific service however even this is starting to change thanks to advancements in technology as more services are being provided over the internet to different Geographic areas such as the case with this video I'm helping you review for AP human geography and there's a pretty good chance that we don't even live in the same state or maybe even the same country examples of jobs in the tertiary sector would be lawyers doctors servers Uber drivers real estate agents doordash drivers and that's only naming a few we can see that as countries continue to develop economically it's common to see more and more jobs move out of the primary and secondary sector and move into the tertiary sector of the economy in fact today the majority of the United States economy is located in the tertiary sector now the last two sectors of the economy are actually sub-sectors of the tertiary sector the first one being the quaternary sector which consists of jobs and activities that are all about acquiring processing and sharing information located in this sector would be teachers professors journalists people in finance insurance or other industries that are centered around information collection processing and distribution lastly there's the quinary sector which consists of jobs and activities that revolve around making decisions for example politicians of a country such as a senator or the president of the country or Executives of a company or the CEO of a company such as Steve Jobs or Elon Musk knows that both the quaternary sector and the quinary sector are still providing Services that's why they're part of the tertiary sector however these sectors are more specialized and are focused around specific aspects of what the service is ultimately setting them apart from other jobs in the tertiary sector now as countries develop economically we tend to see economic Transformations occur for example countries that have not yet industrialized or often have more jobs located in The primary sector with only a few jobs in the secondary and tertiary sector over time as economic development occurs we start to see the rise of jobs in the secondary sector and eventually the tertiary jobs in the secondary sector start to become more dominant once the economy becomes industrialized here we can see jobs in The primary sector drastically start to decrease as more jobs open up in the secondary sector and also the tertiary now as development continues we will eventually see a shift from an industrial society to a post-industrial society this is when de-industrialization often occurs and jobs in the secondary sector start to decline while at the same time jobs in the tertiary sector start to expand here the economy is becoming more focused around service jobs and less on manufacturing you can see this trend here when looking at Sweden and Finland notice how both countries originally had a fair amount of their GDP located in The primary sector and the secondary sector but over time each of those sectors decline with the decline first starting in The primary sector and then the secondary sector while at the same time the tertiary sector continued to account for more and more of the GDP in the country so we can see that countries that are less economically developed will tend to have more jobs in areas such as Agriculture and countries that continue to have an emerging economy as they experience industrialization we'll start to see more jobs open up in manufacture all of which connects back to our agriculture unit where we looked at food production around the world we will continue to explore these different development Trends further when we talk about Resto stages of economic growth in our unit 7 topic 5 video now since we've spent some time talking about the different economic sectors we also need to look at how we can classify countries based on their Economic Development throughout this course we will continue to reference countries as core countries semi-perfury countries and periphery countries core countries tend to have the most advanced economies typically have a higher standard of living and have more of their job jobs located in the tertiary sector semi-perfury countries are countries that have an emerging economy are experiencing an increase in their standard of living and have many jobs in the country located in the secondary sector as more industrialization continues to occur lastly there's periphery countries which tend to have a lower standard of living since industrialization has not yet happened yet causing many of the jobs in the economy to be located in The primary sector when looking at the world today we can see that the United States Canada and many European countries are considered core countries while countries like China Brazil Mexico and India would be examples of semi-perfury countries and we can see that many countries in Africa the Middle East and parts of Asia would be example of periphery country now if we take our understanding of economic sectors and development and look at Global Production we can gain even more insight into global patterns we can see that many multinational corporations often locate their production facilities in per free and semi-perfury countries in order to help reduce their costs and take advantage of Cheaper labor and more loose regulations in the area this trend has continued over the years partially due to advancements in transportation which now make it easier than ever to transport raw resources and finished products around the world allowing for the creation of complex Supply chains to form companies that produce products around the world often rely on break of bulk points to get the resources they need for their production and to transport their final product break of bulk points are places where goods are transferred from one mode of transportation to another for example parts are a break of ballpoint where cargo ships unload the goods they are carrying and place those goods on different trucks or trains the goods are then transported Inland to get to a distribution center or to one of the different places in which the goods will be sold companies that participate in the global economy often are able to reduce the cost of production produce more goods and lower prices for consumers all of which sounds good but at the same time these patterns have also led to unequal Economic Development around the world as countries that are in the periphery and semi-perfree often see disproportionately less economic gains from this global trade compared to the core countries we will explore these Global relationships more when we go into wallerstein's World System Theory later in this unit now since we're on the topic of production we also need to review Alfred Weber's least cost theory also known as the theory of industrial location the theory looks at how the location of an industry is influenced by three main factors Transportation costs labor costs and agglomeration transportation costs are shipping costs connected to the moving of resources and materials for producing a good and shipping the final product to the mark labor costs on the other hand are costs that come from workers producing the product itself lastly agglomeration is the clustering of different economic activities and industries in a specific geographic area which might sound weird at first but there's a reason why this happen it allows businesses to reduce their overall costs by taking advantage of larger labor forces benefiting from the existing infrastructure in an area and by allowing businesses to use the different services and knowledge base in a specific area for example we can see that many distribution centers are located near major interstates airports Rail Yards and ports this allows them to use the pre-existing infrastructure in the area instead of having to build it themselves which reduces their overall cost of production however's least cost theory states that the location of production should be located in an area where transportation and labor costs are minimized and the economic benefits of agglomeration are maximized for simplicity's sake let's say we are looking at producing a product that only needs two resources for the production of the final product if we look at Weber's Theory we can see that we have different resources a market and inside the region the optimal location for the production of our product now before we know exactly where we should have our production be located we have to determine if our product is a bulk reducing good or about gaining good bulk reducing goods are products that become lighter and easier to transport as they are produced these Goods have heavy and bulky raw resources that are used in the production of the good but while the resources that are used in the production are bulky and heavy the final product is often lighter and more maneuverable that's why these are known as bulk reducing Goods as production happens the weight and bulk of the product reduces on the other hand ball gaining goods are products that get heavier and more difficult to transport as the production occurs these goods are often made up of resources that are actually lighter and more maneuverable compared to the final product that's why these are known as bulk gaining Goods as production happens the weight and bulk of the product increases understanding if a good is ball gaining or bulk reducing allows us to better determine where the production of a good should occur when using Weber's Theory we can see that bulk gaining goods are more likely to have their production be closer to the market this ends up decreasing the amount of money that the company spends on shipping since now they won't have to ship the heavier final product as far while on the other hand Goods that are bulk reducing are more likely to have their production be located near the raw resources instead of near the market this is because it's cheaper to ship the final product farther distances than it is to ship the raw resources that are used to make the product now just because a good is bulk reducing doesn't mean we'll locate our production facility in the middle of the two resources if one of the resources is heavier and bulkier than the other one meaning that it'd be more expensive to transport it's more likely that the facility will be located near the heavier and bulkier resource this is because it's in the company's best interest to locate near the resource that is heavier to transport that way it reduces the amount of Transportation needed for that resource all of which helps reduce the cost of production and minimize the transportation costs that the company has so we can see that by using Weber's lease cost theory companies can reduce their overall costs and maximize their profit all by locating in an area that optimizes their transportation costs labor costs and the benefits they get from agglomeration now today Weber's lease cost theory has been criticized for oversimplifying the different factors that influence the location of production it also fails to consider other factors such as Government policies cultural preferences and environmental concerns however the underlying idea of his theory helps us better understand how different factors can impact the decisions of companies and the location of different businesses and just like to add another topic review video is done now comes the time to practice what we have learned answer the questions on the screen and when you're done check your answers in the comment section down below and while you're down there don't forget to hit that subscribe button and check out my ultimate review packet it's a great resource that'll help you not only in your AP human geography class but the national exam as well as always I'm Mr sin thank you so much for watching and I'll see you next time online