IGCSE Geography 0460

Topic 3: Economic Development

Objective 3.3: Industry: Explain types of industry and factors influencing industrial location.

This section explores the different types of industry found globally and the various factors that influence where these industries are located. Understanding these aspects is crucial for analyzing economic development.

Types of Industry

Industry can be broadly classified into three main types:

• Primary Industry: This sector extracts raw materials directly from the natural environment.
• Secondary Industry: This sector processes raw materials into finished goods.
• Tertiary Industry: This sector provides services to consumers and businesses.
• Quaternary Industry: This sector involves intellectual activities such as research and development, information technology, and consultancy.

Detailed Explanation of Industrial Types

Let's delve deeper into each industrial type:

Primary Industry

• Agriculture: Growing crops and rearing livestock.
• Fishing: Catching fish and other seafood.
• Forestry: Managing and harvesting timber.
• Mining: Extracting minerals like iron ore, coal, and gold.

Secondary Industry

• Manufacturing: Using raw materials to produce finished goods (e.g., cars, textiles, electronics).
• Construction: Building infrastructure like houses, roads, and factories.
• Energy Production: Generating power from sources like coal, gas, and nuclear energy.

Tertiary Industry

• Retail: Selling goods to consumers (e.g., shops, supermarkets).
• Transport: Moving people and goods (e.g., airlines, railways, shipping).
• Communication: Providing information and connection (e.g., telecommunications, internet).
• Finance: Managing money and investments (e.g., banks, insurance companies).
• Hospitality: Providing services to travelers (e.g., hotels, restaurants).

Quaternary Industry

• Research and Development: Creating new products and technologies.
• Information Technology: Developing and managing computer systems and software.
• Consultancy: Providing expert advice to businesses and governments.
• Education: Teaching and training people.
• Healthcare: Providing medical services.

Factors Influencing Industrial Location

The location of industries is not random. Several factors influence where industries are established. These factors can be broadly categorized as:

Factor	Description	Impact
Proximity to Raw Materials	Industries that use bulky or heavy raw materials benefit from being located close to their source.	Reduces transportation costs. Example: Iron and steel industries near iron ore deposits.
Proximity to Markets	Industries that produce goods for mass consumption often locate near large markets.	Reduces transportation costs and allows for quicker delivery. Example: Food processing industries near urban areas.
Transport Links	Good transport infrastructure (ports, railways, roads, canals) is essential for moving raw materials and finished goods.	Facilitates efficient distribution and reduces transportation costs. Example: Industries located near major ports.
Availability of Labour	Industries require a workforce. The availability of skilled and unskilled labour is a key consideration.	Reduces labour costs and ensures a steady supply of workers. Example: Manufacturing industries in areas with a large workforce.
Availability of Power and Water	Many industries require a reliable supply of power and water.	Ensures smooth operation of machinery and production processes. Example: Energy-intensive industries near power plants.
Government Policies	Government policies such as tax incentives, subsidies, and infrastructure development can influence industrial location.	Attracts investment and encourages industrial growth. Example: Special economic zones.
Land Availability and Cost	The availability of suitable land at an affordable cost is important for industrial development.	Reduces initial investment costs. Example: Industrial estates.
Climate	Climate can influence the type of industry that is located in an area.	Example: Tourism industries in warm climates, agricultural industries in temperate climates.

The relative importance of these factors can vary depending on the type of industry.

Case Study Example

Consider the location of the automotive industry. It often locates near sources of iron ore (for steel), large markets (urban areas), and good transport links (ports and motorways). Germany's Ruhr Valley is a classic example, benefiting from its proximity to coal and iron deposits, a large population, and extensive rail networks.