so why are some countries Rich while other countries are poor or to put an even finer point on it why are the rich countries where they are and why are the poor countries where they are and that is a fine question my budding human geographer and the answer comes down to how industrialization has shaped our world and the development of distinct economic sectors and I reckon we should talk about it so if you're ready to get them brain cows milked let's get to it okay now before we get to those juicy economic sectors that explain so much I want to define a term that is super important for you to understand I've talked about it in plenty of other videos but I really want to make sure you understand it because you will most certainly see this term in your class and on your National exam the term is development which refers to a country's relative level of economic well-being or you might say how rich or poor a country is but and here's the little secret a country's level of development is nearly always an indicator of its level of industrialization so while a country's economic development is definitely a way of talking about that country's relative wealth you also have to realize that the reason a country is either going to be rich or poor or somewhere in between depends almost exclusively on how industrialized that country is what I'm stepping in well I hope you are because without that Foundation everything I'm about to say about the five economic sectors present in our world will not make much sense oh and by the way if you want no guys to follow along with this video and all my videos check the link in the description okay so as industrialization has progressed over the last few hundred years and as globalization has increasingly knit the world's economy into an interdependent hole we can observe uneven patterns of spatial Economic Development Across the world and in order to understand this you'll need to know that this reality has created five different economic sectors across the world and by definition an economic sector refers to the kind of products produced in a place and the kind of jobs available to its Workforce okay so the first economic sector to know is called The primary sector and in countries whose economies are characterized by The primary sector they mainly focus on the extraction of raw materials through activities like Mining and fishing and farming and logging Etc and then we have the secondary sector which refers to economic activity that focuses on processing the raw materials extracted from the primary sector so for example a country in The primary sector might be responsible for cutting down trees that's the raw material but unless you're just a trendy YouTuber in the early 2020s nobody is building structures out of cut down trees so that Timber is then transferred to countries in the secondary sector and it's those countries which process that Timber into usable and uniform Lumber which normal people who aren't YouTubers can use to make houses so all that to say countries in the secondary sector do most of the world's manufacturing and then there's the tertiary sector in which you'll see economic activity primarily devoted to providing services to businesses or consumers that's why you'll often hear the tertiary sector called the service sector because they aren't primarily making tangible goods but instead providing intangible service services to customers so for example tertiary jobs include things like teaching or legal services or shipping and storing Goods or entertainment or media Etc in other words these are jobs whose output you really can't touch like a movie is a real thing that creates real economic activity but it's not tangible in the sense that a chair or a computer is tangible or to bring it back to our lumber example once a piece of furniture is made then tertiary service workers and retail stores are responsible for selling it to customers and moving right along we have the quinary sector which like tertiary economies also provides services but these services require a much higher degree of education and expertise than tertiary Services what that means is the quinary sector focuses on research and development includes the high-tech industry and the biomed industry and stock Brokers Etc so still intangible services but those workers need to be real thinky thinky on a higher level and finally some countries are characterized by the quinary sector which includes the most influential economic influencers like top government officials and Powerful CEOs of the world's largest corporations and to be clear the quinary sector will always be found within the quary sector it's like a specialized subcategory of quinary jobs and as small as this sector is it's super important because the decisions made by those people at that level can have significant Global effects okay now before I give you more specific examples of these sectors and why they are located where they are let me just round out the big picture here first if your brain just got all swimmy trying to remember words like quinary and quinary don't worry you probably already have a spot in your brain for them primary through quinary are just fancy words for one through five tertiary is like triple quadron areas like quadruple and Quin are is like quintuple and then second these sectors run from poorest countries to richest countries or if you like least developed to most developed okay so now that you know what these sectors represent let me show you how those sectors are spread around the world in general economies based on the primary sector are considered the least developed countries for example The primary sector largely characterizes the Ethiopian economy which specializes in Mineral extraction and Mining although certainly not exclusiv and then because manufacturing work in the secondary sector requires sophisticated machinery and Engineering economies in these countries are considered more developed than primary sector countries on the other side there are relatively few countries that have become wealth and sophisticated enough to develop tertiary quadrin and quinary sectors but those that have are considered the most developed countries for example the bulk of the United States's economy is largely made up of tertiary service jobs and that has created the occasion for the development of quinary and quinary sectors that are among the most influential in the world so the point is as countries progress through the various stages of industrialization their economies tend to move along the Spectrum from primary to quinary and so in terms of spatial distribution it's a general rule though there are exceptions that primary and secondary economic sectors will be found in place that have a colonial past like for example much of subsaharan Africa and then those countries that have tertiary through quinary sectors tend to be found in countries who were themselves colonizers of other nations not to mention early adopters of industrialization just to make sure you're getting this let's make a connection all the way back to unit 2 with our friend the demographic transition model so as countries move through different levels of development which is to say the various economic sectors they are also becoming more industrialized and as a consequence more urban and that's just another way of saying that they're moving through the various stages of the DTM so you know that's nice okay so I just gave you one sort of macro factor that explains the spatial distribution of economic sectors throughout the world but you didn't think there wasn't a model in all sorts of other factors did you don't be crazy and these factors really explain economic activity on a smaller scale like within a country or region itself so the main model you need to know that attempts to predict the geographical distribution of a country's economic activity is the least cost theory it was developed in the early part of the 20th century by our boy Alfred vber and it tries to predict where factories will choose to locate now it's similar to Von tun's model but this model applies to Industrial activity instead of agricultural activities so vaper's model suggested that factories would locate themselves in the places that would be most cost efficient for their business operations or if you're sassy you might say factories will be located in places that require the least cost for doing business and as you can see Vaper depicted his model as a triangle two points represent access to raw materials needed for the factory and the other represented the market where Goods could be sold and so by Vapor's Reckoning there were two determining factors for the location of a factory namely distance and weight you see because Transportation costs were a key factor in profitability for manufactured goods Factory owners had to decide whether it would be more profitable to locate near the raw materials or the market so if the raw materials weighed less than the finished product which is what we call bulk gaining products then locating near the market would be more cost effective but if the raw materials were heavier than the finished product which is what we call Bulk reducing products it would be more cost effective to locate near the raw materials for example what raw materials do we need to make paper trees yes indeed me from behind the cabinet So based on your experience which item do you think is heavier a tree or paper it's not a trick question tree are much heavier than paper so according to least cost theory since the raw materials are heavier than the finished product we can pretty reliably predict that a paper manufacturer will locate themselves closer to the raw materials than the market and why well because it's going to cost way more to transport a stack of heavy trees and it will cost to transport a bunch of paper but sorry to say I've got to complicate this a little more yet another factor that determines Factory placement is the fragility of finished goods so for example think of a potato chip which in my opinion is always a good use of time chips are made from potatoes and as you probably know potatoes are heavier than a bag of chips so according to everything I've just said a chip factory would locate closer to the raw materials in order to cut down on cost but in this case chip manufacturers know that ain't nobody want a bag full of crumbly chips so in light of that they're going to locate closer to the market okay so like any model we've considered in this course least cost theory has its limitation just like Von tunin vber developed this model based on abstractions instead of the way real land and societies are built and thus it isn't as applicable in all scenarios okay so the second factor that can predict the location of economic activity is access to energy not surprisingly in order to manufacture Goods abundant and reliable power is needed and therefore factories are most likely to locate in close proximity to their energy source and then the third factor to consider is access to materials because the input of raw materials is the most basic necessity of manufacturing factories that require specific raw materials will likely locate close to those materials as we saw in the least cost theory however even if factories aren't located near the raw materials they use for manufacturing Goods they will be at least located near break of bulk points which include C ports and other major transportation hubs like airports and railroad stations that ship and deliver bulk quantities of unpackaged goods like coal or Timber and then the fourth Factor you need to know is transportation so with the introduction of cargo planes in the middle of the 20th century some Industries have found it best to locate themselves near major airports or break of bulk points so that they can take advantage of those bulk air ship Additionally the increasing use of shipping containers for worldwide Commerce has affected where manufacturing outfits are located as well shipping containers are standardized metal boxes that could be stacked uniformly for shipping non-bulk cargo like food or clothing or in some cases raw materials and to be honest the rise of using shipping containers for worldwide Commerce a process known as containerization gets human geographers all kinds of Giddy and that's because today almost all consumer goods are transported across the world in shipping containers and this development created the conditions for major businesses to relocate their manufacturing sectors to countries in the periphery which has significantly altered the spatial distribution of economic activity across the world and why would major businesses do such a thing says you well says I because in peripheral countries labor costs are lower and thus businesses save money by manufacturing their goods in places where wages are cheap and Goods can be easily shipped in containers and that development has fundamentally restructured the global economy in the last century and as this Arrangement became the norm it created a kind of economic hierarchy that has three layers which demonstrate the uneven spatial distribution of economic development in the world and want you know the levels of this hierarchy have names core periphery and semi- periphery and I know you've heard these terms before but now let's combine them with the various economic sectors that we talked about earlier in order to get the full picture so core countries are characterized by the highest level of Economic Development as the Industrial Revolution took hold in Britain and then diffused to other European countries and then to the United States those economies transition from primary sectors to secondary and then tertiary and today core countries still major in tertiary work but many have also developed quary and quinary sectors as well countries in the periphery are those characterized by the least level of development whose economies are dominated by primary sector work and it was the Industrial Revolution that created this Division and the result was that the world became dominated by a few powerful economies in core countries while the rest of the world in many cases colonies of the industrial Powers remained in The primary sector but then in the late 20th century as a global economy continued to develop a new category was developed to describe a country that was neither core nor periphery namely semi- peripheral and as you might expect semi- peripheral countries are kind of a matchup of both which is to say they have significant economic characteristics of both core and peripheral countries so as core countries increasingly Outsource manufacturing to peripheral countries some of them like Mexico and India developed beyond the primary and secondary sectors and have seen a rise in tertiary jobs thus they are kind of an in between developmental entity Okay click here to keep reviewing other topics in 7 and click here to grab my video note guides which are going to help you get all the contents of this course firmly crammed into your brain fold glad you came around and I'll catch you on the flipflop I'm lur out