Location of Economic Sectors (Edexcel IGCSE Geography)
Revision Note
Written by: Bridgette Barrett
Reviewed by: Jenna Quinn
Factors Influencing Location of Economic Sectors
Every type of economic activity has a particular location
The location is affected by both physical and human factors
These factors relate to the needs of the economic activity
Physical factors include:
Raw materials: industries require raw materials to produce goods
Land: how much land costs and how much is available
Energy: where the industries get their power supply from
Climate: some industries benefit from particular climates
Human factors include:
Capital: the money that is available to set up and run the economic activity
Transport and communications—accessibility by road, air and rail is important to many industries
Market: how close the industries are to the market
Labour: all industries need workers
Government policy: tax incentives, cheaper rent
The Importance of Location Factors in Different Economic Sectors
Primary economic activities include agriculture, mining, forestry and fishing
Distance from the market and cost of transport would be particularly important for mining due to the bulky products
Climate would be more important for agriculture
Factors affecting location | Primary |
|---|---|
Climate | Precipitation, sunshine hours and temperature all affect the type of crops grown or livestock |
Land | The amount of land available, cost, soil type and resources (coal, gold) |
Market | Some crops need to be very close to the market, such as soft fruits (strawberries) |
Government Policies | Whether subsidies are available |
Labour | In developed countries, there are few workers needed due to mechanisation |
Transport | Access to roads to transport crops, animals, quarried/mined materials, timber |
Secondary economic activities involve manufacturing such as cars, food processing, and shipbuilding. The importance of the location factors depends on:
The weight of raw materials and the finished product as heavier, bulky products cost more to transport
The size of the factory required for car manufacture needs much more space than food processing or clothing production
Factors affecting location | Secondary |
|---|---|
Raw materials | How close the activity needs to be to raw materials and the types of raw materials will depend on the industry |
Land | Large areas of land often required, so the cost and amount of the land is important |
Market | Access to the market is important to be able to sell the goods made |
Government policies | Tax incentives, grants, and loans may be available if the economic activity is located in a particular area |
Energy | A power source is needed; this used to be coal or water but is now electricity, which can be accessed in many areas |
Labour | Mechanisation means that not as many workers are required |
Transport | Access to roads is essential to bring in raw materials and send out the product |
Tertiary economic activities involve providing a service such as healthcare or retail. The most important factor for location is usually:
Proximity to the customers
Factors affecting location | Tertiary |
|---|---|
Land | The amount of land depends on the type of economic activity; large retail parks need lots of land |
Market | Needs to be close to the customers |
Energy | A power source is needed—electricity, which can be accessed in many areas |
Labour | Workers needed both skilled and unskilled |
Transport | It needs to be accessible for customers, workers and in the case of retail, to bring in the products |
Quaternary economic activities involve high technology, such as research and development. The most important factors in their location:
Proximity to skilled workers and universities
Pleasant working environment
Factors affecting location | Quaternary |
|---|---|
Land | Science parks need large areas of land, usually near a university on the rural-urban fringe |
Energy | A power source is needed—electricity, which can be accessed in many areas |
Labour | Skilled labour needed often university graduates |
Transport | Needs to be accessible to the workers |
Worked Example
Using evidence from the photograph, suggest three reasons why the location shown in figure 1a was chosen for the retail park.
(3 Marks)
Bexhill Retail Park - Dr-Mx licensed under CC BY-SA 4.0
Figure 1a: Retail park
Answer:
Any three of the following:
Close to a main road for accessibility (1)
Flat land (1)
Houses nearby for workers/customers (1)
Space for car parking (1)
Examiner Tips and Tricks
Remember, if a task asks for evidence from the map, photo, or graph in a question, then you can only use information that you can see on the source. You would not get a mark for stating 'cheap land' in the worked example because there is no evidence of this in the photograph.
Changing Location of Manufacturing
The location of economic activities do not stay same but changes over time
The location of primary industry may be affected by a number of factors:
Drought, soil erosion, flooding and other events may lead to decreased growth of crops/raising of livestock
Raw materials may run out in an area or become economically unviable
Climate change may affect the types of crops which can be grown
The location of manufacturing activities or secondary economic activities has changed significantly:
Transport is faster and cheaper, which means products can be moved around the world
An increase in transnational corporations (TNCs) with factories and offices in many countries
Factories were once tied to a power source of coal supplies or water. Electricity is now available almost anywhere
The internet means instant communication with factories and offices around the world is possible
Government policies in emerging and developing countries are aimed at attracting manufacturing, often using tax incentives
Cheaper labour, less strict health and safety, cheaper land and more workers are all available in developing and emerging countries. These reduce costs and increase profits
Raw materials may no longer be available in the area
These changes have led to a reduction in secondary economic activities in developed countries such as the UK
This is known as deindustrialisation
The location of tertiary and quaternary economic activities is increasingly located in rural (greenfield) areas on the rural urban fringe due to a number of factors:
There is more open space for expansion and car parking
Land is cheaper
More accessible
Located near the suburbs and commuter village, good access for workers and customers
Increase in science parks, business parks and retail parks where similar businesses are located together
This process is known as decentralisation
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