Secondary economic activities Flashcards
Examples of secondary economic activities.
Baker, butcher, carpenter, chef, tailors.
Define ‘Secondary Economic Activities’
The changing of a raw material into a finished product.
What is a factory?
A factory may be described as a system of inputs, processes and outputs.
Examples of inputs, processes and outputs.
Wood, cutting, table.
wool, sewing, clothing.
wheat, baking, loaf.
milk, pasteurising, milk.
lead, shaping, pencil.
Factors that affect the location of factories.
Labour/workforce, capital, services, transport, government policy, EU policy, markets, raw materials/resource materials.
Factors affecting factory location:
Labour/workforce
Cheap labour found in Asia,
or
if you need a highly skilled workforce, you may locate near universities/colleges, etc.
Factors affecting factory location:
Capital
Some countries may offer grants to help start up your factory eg IDA in Ireland (Industrial Developmental Agency)
Factors affecting factory location:
Services
A lot of factories locate in Industrial estates to get access to water/electricity and broadband, etc.
Factors affecting factory location:a
Transport
Factories tend to locate in areas where there are good road networks, ports and airport.
Factors affecting factory location:
Government tax
Some governments will offer low corporation tax rates to encourage factories to locate there. Eg in Ireland the rate of Corporation tax is 12.5%
Factors affecting factory location:
EU policy.
If a factory locates within the EU, they can have free trade with other member states. Also 18 of the 28 members use the same currency.
Factors affecting factory location:
Markets.
Some products gain volume after they have been processed, eg baking. For that r ason, bakeries choose a market location, this they are located in or beside cities. In this way, the transport cost of bread to local shops and supermarkets is kept low.
Factors affecting factory location:
Raw materials/resource materials.
Factories locate near where they can get the resource material that they need. Eg dairy processing factories locate near dairy farms.
Case study: Intel
- Light industry: uses moderate amounts of raw materials.
- Location: Leixlip, Co. Kildare
- Makes microchips for computers.
-Located there because of:
Tax incentives and grants offered by the government.
By having a factory in Ireland, they have free trade with other EU countries.
Ireland is an english-speaking country.
Links with NUI Maynooth (70% of workers have a 3rd level qualification.)
Good transport links as factory is located near m4/m50/m1 airport.
Earthquake-free zone.
Case Study: Rusal Aughinish
- Heavy industry: uses heavy machinery and huge plants.
- Located in Aughinish Island, 28km downstream from Limerick City on the Shannon Estuary.
- Alumina refinery that extracts alumina from the resource material bauxite.
-Located because:
Bauxite is a bulky material that comes mainly from West Africa by ship, and the product (alumina) is re-exported. Therefore, it is on a coastal location.
Good transport as the Shannon Estuary is deep enough to take very large ships known as bulk carriers
The island is large enough to store the waste material. (an inert mud)
Many of it’s workers live in nearby towns such as Foynes, Askeaton and Newcastle West.
They are provided services such as water, telecommunications and electricity.
