Changes in Economic Sectors (Edexcel IGCSE Geography)

Availability of raw materials

• Raw materials may have run out or be economic unviable to obtain

• Crop production and livestock may be reduced due to drought, flood, pest/disease or soil erosion

• Improvements in technology may reduce the amounts of raw materials needed

Globalisation

• Transnational corporations (TNCs) have factories and offices in many countries 

• Lower costs tend to be in developing and emerging countries 

• The internet and improved communication mean that service activities such as call centres can be located anywhere in the world

• Industries such as textiles and steel manufacturing are increasingly located in emerging countries

Technology

• There are fewer jobs in farming, mining and many factories due to mechanisation

• The Internet means companies can manage factories and offices located in many different countries

• Improvements in transport have reduced the friction of distance

Demographic changes

• An increasing population means that there is a greater demand for products and services 

• People have more disposable income to spend on leisure and other services

• The demand for goods and services is affected by the age structure of the population

• An increasing population means there are more workers available

Government policies

• Government policies target particular economic activities to locate in their country using tax incentives, infrastructure improvements (new railways, airports) and grants/cheap rent