Industries Class Notes

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IndustriesClass Notes
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The Modern Economy

• Primary Sector
• Secondary Sector
• Tertiary Sector

https//www.youtube.com/watch?v4UJmB3EqhU0
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1. Primary Sector(NATURAL RESOURCES)

• The primary sector involves the extraction of raw
  materials from the Earth.
• This extraction results in raw materials and
  basic foods, such as coal, wood, iron and corn.
• The types of workers in this sector include
  farmers, coal miners and hunters.

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2. SECONDARY SECTOR(TRANSFORMATION FROM RAW
MATERIALS TO FINISHED PRODUCTS INVOLVES MANY
STEPS)

• The secondary sector involves the transformation
  of raw materials into goods.
• This transformation results in wood being made
  into furniture, steel being made into cars or
  textiles being made into clothes, as examples.
• The types of workers in this sector include a
  seamstress, factory worker or craftsmen.

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3. Commerce (tertiary Sector)

• The tertiary sector involves the supplying of
  services to consumers and businesses.
• This sector provides services to the general
  population and business, including retail, sales,
  transportation and restaurants.
• The types of workers in this sector include
  restaurant bartenders, accountants and pilots.
• The service industry makes up 80 of the labour
  force today.

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The 19th (1800s) century brought change

• Production of items became mechanized.
• Factories produced a growing number of goods.
• Quantities of goods produced increased.
• People left the countryside to move closer to the
  factories in towns and cities (urbanization).

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During the 20th (1900s) century

• Industry (mass produced in factories) replaced
  farming and hand manufacture (goods made by
  hand).

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An activity is industrial when

1. Transforms a natural resource into mass-produced
   good.
2. Costs money to manufacture these items.
3. Requires skilled workers.

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What do industries produce?

• Almost everything around us is manufactured
  industrially, from airplanes to clothes,
  including medicines and computers.

https//www.youtube.com/watch?v2NzUm7UEEIYlistP
L32FA477549932530
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4 Types of Industries

• 1. Heavy industry
• It involves extracting metals or valuable
  minerals (ex iron, aluminium, copper, tin and
  lead) from ore.
• (Ore a naturally occurring solid material
  rock- from which a metal or valuable mineral can
  be profitably extracted.)
• It also includes chemical plants and oil
  refineries.

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2. Processing industry

• Transforms materials (metal, food, wood, etc.)
  into goods (motors, plastic, paper, etc.).

3. Hi-tech industry

• These include all products manufactured in
  pharmaceuticals, biotechnology, computers and
  electronics, aerospace, and telecommunications.

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4. Consumer goods industry

• Manufactures products such as processed foods,
  clothing, house-hold appliances, cars, furniture
  and toys (for individual consumption).

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What is a industrial park?

• It is an area of land developed as a site for
  factories and other industrial businesses.

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Characteristics of industrial parks

• 1. Cluster (group) of industries in this area.

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2. Roads (18-wheelers) and a rail network
(trains) for transporting raw materials and
finished products to and from the factories.
3. A seaport and an airport are nearby for
exporting and importing products.
4. Hydro lines that reach the factories to
provide energy.
5. Enough people to operate the factory.
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Are industries in the North or the South?

• Some of the wealthy countries that are usually
  present at G7 or G20 meetings
• United States
• Japan
• Germany
• United Kingdom
• France
• Canada
• Italy

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G8

• List of G8 leaders. This is a List of the heads
  of government of the Group of 8 nations at each
  G6, G7, G8 summit since the organisation's
  inception in 1975. The Group consists of the
  6-7-8 largest industrialized democracies, Canada,
  France, Germany, Italy, Japan, Russia, the United
  Kingdom and the United States.

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Which company ranked first place in the highest
sales 2013-4? Fortune 500 (source)
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Industrialization around the world

• The European Union, North America and Japan are
  highly industrialised.

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• Other countries, like China, India, South Korea,
  Singapore and Taiwan are considered emerging
  industrial powers.

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American Toys Made in China

• Case Study
• Barbie dolls are made by Mattel.

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• Mattel is a multinational company.
• This type of company operating in several
  countries.
• The dolls, however, are made in Chinese
  factories!
• Why?
• 1. Reduce production costs
• 2. Increase profits by cutting on production
  costs

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• These multinationals relocate to other countries
  where the cost of production is lower than in
  developed countries like Canada or U.S.A.

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Why move U.S.-based companies to China?

• Chinese workers are paid less.

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• 2. Chinese government offers better rates on
  buying and transporting raw materials and energy.
• 3. American companies pay less taxes and do not
  pay any duty fees.

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• Making dolls is an international effort!
• China offers manufacturing site, labour, and
  electricity.
• Japan provides nylon (doll's hair).
• Saudi Arabia offers oil.
• Taiwan transforms oil to ethylene to make
  plastic.
• U.S.A. and Japan manufacture most of the
  machinery and tools used to produce goods.

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• Is off shoring good for everyone?
• Relocating production to another country is
  called off shoring/outsourcing.
• Off shoring is closing down a manufacturing plant
  in America and reopening it in a foreign country.

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• FAVOR
• Companies like Mattel (investors, CEO, etc.)
  benefit from off shoring because it increases
  their profits.
• Chinese government is in favor of it because it
  has created millions of jobs.

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• American employees are against off shoring
  because it means job losses in the United States.
• The Mattel factory in Kentucky closed down in
  2002.
• Humanitarian organizations have noted that off
  shoring to developing countries can sometimes
  lead to bad working conditions.

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This is outsourcing

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• Imagine you have a company that sells mobile
  phones, and you have a help center. People can
  call if they have a problem, and they will get
  answers to how to use their phone.
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• Where you live, the minimum wage is 12 an hour.
  That means the people who answer the phones and
  give help have to be paid at least 12 an hour to
  answer the phones and give help to people who
  call.
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• What if, instead of having those people in the
  same city as the people who call for help, you
  have them in a city in India? When people who
  call for help dial the HELP number, their call
  goes to India. The person who answers the call
  speaks good English, knows all the answers, and
  the customer is satisfied. As far as the customer
  is concerned, it could have been a local number.
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• The thing is, you are only paying the person in
  India 4 an hour. Everyone is happy, but you are
  saving 8 an hour. Your business is running
  smoothly, but it is being handled somewhere else,
  somewhere cheaper.
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• http//answers.yahoo.com/question/index?qid201103
  19200655AA7MlHa

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The Great Lakes automotive industry What of its
future?
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• American car companies are concentrated in the
  Great Lakes region.
• Detroit is home to General motors, Ford and
  Chrysler.

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Canada's automotive industry

• Most factories are in Ontario between Windsor and
  Oshawa.

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En route to relocation

• Japan is a fierce competitor in the automotive
  industry.
• Since the 1960s, the rise of Japanese car
  companies (Toyota, Nissan and Honda) has affected
  the sales of American made cars.
• Japanese cars were more compact (smaller) and
  consumed less gas.

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• GM, Ford and Chrysler made the decision to
  offshore (relocate its companies to Mexico in
  order to remain competitive with Japan by
  lowering their production costs).
• Relocating to Mexico meant closing many factories
  in the United States and Canada.

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• General Motors, Ste-Thérèse (the end)A monthly
  union meeting of former GM employees, TCA local
  1163, in their spaces in the town of Boisbriand
  despite the plants closing, bringing thirty
  years operation and Quebecs automotive industry
  to an end. The parking lot storing the last
  Impalas, the only view one has of the production
  as access to the manufacturing premises was
  denied. Were on the outside, and thats where
  well stay, the factory having been torn down.
  2004 Working, Mercer Union, Toronto.

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The case of Detroit

• It was once the automotive capital of the United
  States.
• Relocating factories to Mexico really affected
  the Great Lakes region.
• The region still manufactures cars however, it
  has reorganized production by installing
  technology that reduces the number of employees
  (labor) and making cars that sell really well in
  America.