Transcript for:
Understanding Economic Sectors and Patterns

good morning evening afternoon night whenever you're watching this geographers welcome back to the mr sin channel today we're gonna be continuing our conversation with unit seven of ap human geography today we're gonna be going into unit seven topic two economic sectors and patterns when looking at the economy we can see that we have different classifications for production the first classification is primary activities these are jobs that deal with natural resources fishermen farmers coal miners are all example of jobs that are located within the primary sector the next classification is the secondary sector these are jobs and activities that use raw materials gathered from the primary sector and produce and manufacture them into a products of greater value an example here would be processing wheat into flour or using lumber from cut down trees to make plywood the location of where this production will happen will vary depending on the cost of transporting the raw resources and the final product to the market next we have the tertiary sector here activities are based on services these are located in areas where there is a need for the service examples of activities in this sector would include lawyers doctors or people in sales as countries develop and their economies start to advance with them we see more and more people work in the tertiary sector and eventually the tertiary sector can be broken up into two other categories as well we can look at the quaternary sector and also the quinary sector the quaternary sector is about acquiring processing and sharing information examples of activities in this sector include journalism people in finance insurance real estate or other industries that focus on information collecting and processing the quinary sector deals with activities and jobs that are involved in making decisions examples of activities and jobs in this sector would be executives people in government roles such as the president of the country or the ceo of a company one thing to notice here is that the quaternary and the quinary sector are still services so they're part of the tertiary sector however the quaternary and quine area are more specialized and focused so they're a sub-category of the tertiary sector when looking at countries around the world and the development of society we can see that countries that are less economically advanced are more likely to have primary activities as their main economic production and as they develop they move into the secondary sector tertiary and eventually the quinary and quaternary speaking of economic development as we look at the world we can see different trends and patterns and economies in core countries semi-perferary countries and also periphery countries core countries have the most advanced economies and traditionally have a higher standard of living here we see more jobs located in the tertiary quinary and quaternary sector examples here would be the united states canada and many of the european countries semi-periphery countries are seeing their standard of living increase with more industrialization occurring more jobs now are located in the secondary sector and also starting to see some jobs opening up in the tertiary examples of these countries would be mexico brazil china and india just to name a few lastly we have periphery countries here the standard of living is low with most of the production being exported to more developed countries the majority of the jobs in these countries are located within the primary sector with some starting to move into the secondary sector today we can see that many per free countries are located in africa and asia another trend that we can see when looking at the world economy is that companies in core countries are offshoring production to developing countries they're moving production into the semi periphery and also the perfori countries and the reason is because of labor costs labor is significantly less expensive in these developing countries and so when companies move their production over to these countries they're able to reduce their production costs and increase their profit margin and we can see that due to advancements in transportation it's now even easier and also cheaper to produce in other countries around the world as now the cost of shipping has significantly come down making it easier to transport raw resources and finish goods around the globe this has lowered the cost of production for companies which has decreased the price of goods and increased company profit margins this has led core countries and businesses around the world to continue to move production and use raw resources from countries that are located in the periphery and semi periphery now with this focus on global trade and company shipping products around the world we're starting to see break of bulk points get used more and more break of bulk points are when we're transferring goods from one mode of transportation to another mode of transportation this happens when we are transporting things over long distances an example of a break of bulk point would be when a cargo ship comes into a port the cargo ship will be unloaded those containers will be taken off the ship and then loaded onto a different mode of transportation most of the time it'll be a train or a truck and then that train or truck will take those goods and distribute them throughout the state and since we're on the topic of production we have to talk about alfred weber's lease cost theory weber's lease cost theory looks at resources the production and also the markets in which the final goods will be sold at the goal of this is to be able to understand where a company should locate its production in order to minimize their cost and in order to do this a company needs to understand if their product is about gaining good or a bulk reducing good bulking goods will often see production located near the market in which they're going to be sold and that's because as production happens these goods become heavier they're more difficult to transport and so by locating your production near the market companies are able to reduce their costs and will then increase their profit margin on the other hand we can see that bulk reducing goods will be more likely to locate near the raw resources that's because as production happens here the goods get lighter they're easier to transport so it makes more sense to do the production near the raw resources since that's where the transportation costs are and if one of the resources was heavier or bulkier than the other we would locate production closer to that resource another aspect that weber looked at when trying to determine the location of production was the cost of labor and agglomeration agglomeration is when businesses cluster together to share services to share customers or infrastructure to help reduce costs this allows them to be more efficient be able to produce more and also maximize their profit margins we can see that the least cost theory ends up creating a triangle and inside this triangle would be the location of production we can see that we have the location of raw resources that would be used to be able to produce our product and also the market in which our products will be sold and again remember this theory is using bulk reducing bulk gaining agglomeration and cost of labor to determine the ideal location for our production with inside this model all right geographers today we reviewed break of bulk points the different economic sectors we talked about bulk gaining bulk reducing weber's lease cost theory and also agglomeration we covered a bunch of stuff so let's make sure you understand everything and review answer the questions on the screen right now and when you're done check your answers in the comments below also if you need a little bit more help in your ap human geography class check out my ultimate review packet it is a great resource that covers all seven units of ap human geography and it'll help you get an a in your class and also a five on that national exam you can find a link to the packet in the description of this video thank you so much for watching geographers i'm mr sin and as always i'll see you next time online [Music] you