Changes in Economic Sectors (Edexcel IGCSE Geography)

Revision Note

Written by: Bridgette Barrett

Reviewed by: Jenna Quinn

As countries develop, the numbers of people employed in each economic sector changes
This can be seen in the Clark Fisher Model and in the pie charts below
In developing countries, such as Kenya, more people are employed in the primary sector because:
- Often, a significant percentage of the rural population are subsistence farmers
- The countries depend on raw material exports to developed and emerging countries
In emerging countries, such as China, the dependence on secondary economic activity increases because:
- Factories are located in emerging countries due to lower costs
- More raw materials may be available in these countries
- Government policies aim to attract companies to locate there
In developed countries, such as the UK, there is dependence on tertiary economic activities because:
- Education levels are higher so people want tertiary sector jobs, which are, on average, higher paid than secondary and primary jobs
- Deindustrialisation means there are fewer jobs in secondary economic activities
- Mechanisation means there are fewer jobs in primary and secondary economic activities

Reasons for Changes in the Numbers of People Employed in Economic Sectors

Reason	Explanation
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

Last updated: 14 October 2024

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