Name: John Zhang Date: Jun.

16th
IB Geography 11 Period: AM

The Four Categories of Industry

Primary Industries: involve the extraction of raw resources.
e.g., logging, mining, fishing, agriculture

Secondary Industries: involve taking raw resources and making them into
something (i.e. manufacturing).

Tertiary Industries: involve the selling of goods and services e.g., retail
stores, restaurants, etc.

Quaternary Industries:
Complete the Table below.
involve the professions and services that require a high
level of skill, expertise, and specialization. They include
education, research and development, administration,
and financial services such as accountancy.

Primary Secondary Secondary Tertiary Quaternary

(basic (value added
manufacturing) manufacturing)
Cutting Down Making Lumber Building Selling it at New Furniture Design
Trees Furniture Ikea
Extracting Oil Taking initial Further Refining Selling it at Developing gasoline
from the impurities out of into Gasoline Chevron that produces less air
Ground the oil (e.g., pollution
sand)
Catching Taking out the Cutting the fish Selling it at Design biologically
Salmon internal organs into store supermarkets heavier salmon
desired sizes
Growing and Removing Baking it to Selling it at Find a method to
Harvesting defected wheat bread bakeries harvest more wheat.
Wheat
Mining Iron Removing rocks Casting the raw Giving to local Producing alloys to
Ore from the around the iron material into constructor increase in strength
Ground iron beams but lighter in weight
Read and highlight the following information:
Over time, a country such as Canada has made a transition from a primary based
economy to secondary to tertiary, etc. For instance, think about what first attracted the
Europeans to this part of the world – fish and furs. Then as more people settled, logging
and agriculture grew in importance. All of these are primary activities. However, to
truly gain wealth, a nation does not want to simply sell raw resources but rather sell
manufactured goods. One of Canada’s first secondary industries was ship building. As
time progressed, and Canada’s economy diversified, more secondary industry was
created generating more wealth for the nation and its people. With more individual
disposable income, people can afford to buy consumer goods and take advantage of the
service industry. Consequently, today the tertiary sector employs the most Canadians.
This would not happen though without the underlying support of the secondary and
primary sectors. Furthermore, with continued wealth generation, monies have been made
available to support research and development in several fields including medicine,
aerospace technology, and computers. This is part of the quaternary sector.
Within Canada, the level of economic diversification varies considerably from
one part of the country to another. For example, Ontario has a well-diversified economy
with a strong primary base including minerals from the Canadian Shield and agriculture
in the Great Lakes / St Lawrence Lowlands region. In terms of secondary, southern
Ontario is the industrial heartland of the country with car manufacturing as a leading
activity. In turn, the wealth from these industries supports a large population which can
afford numerous consumer goods and services in the tertiary sector. As for quaternary,
Toronto is the financial headquarters for corporate Canada. A number of these
corporations, support research and development projects. Ottawa, being the nation’s
capital, is the center for government administration. As well, the city supports many high
tech. jobs.
It should be noted that there has been a major decline in the manufacturing sector
in the traditional industrial heartland of North America around the Great Lakes for both
the United States and Canada as manufactures have moved production to newly
industrialized countries (i.e., NICs) such as China and India where labor costs and
environmental standards (e.g., air and water quality protection) are significantly lower.
President Trump was elected in 2016 due in part to his promise to bring manufacturing
jobs back to the United States through lower corporate and personal taxes, reduced
businesses regulations, and to put pressure on countries to re-negotiate trade deals with
the United States to open their markets to more US manufactured goods by lowering their
trade barriers (e.g., tariffs) on US products. One aspect of this re-negotiating pressure is
to impose retaliatory tariffs on select foreign goods (e.g., steel and aluminum). Canada
was impacted by these tariffs and retaliated on July 1, 2018 with tariffs on a series of US
products coming into the Canadian market. In the specific context of re-negotiating
NAFTA (the North American Free Trade Agreement), President Trump criticized
Canada’s trade barriers in the dairy industry. As of May 2019, the US dropped the steel
and aluminum tariffs on Canada and Mexico, and Canada dropped its retaliatory tariffs.
A deal to replace NAFTA called The United States-Mexico-Canada Agreement
(USMCA) was signed in Nov. 2018 and came into effect on July 1, 2020.
A risk of a trade war is job losses in sectors hit by tariffs due to less sales outside
of the country and higher prices for consumers. In Jan. 2020, the United States and China
did sign a Phase One Trade Deal potentially easing tensions. But with the COVID-19
pandemic in the Spring and Summer of 2020, more countries are seeking to bring
manufacturing back to their nations so that they are not as reliant on foreign powers for
things such as medical supplies. For example, the government of Japan in June 2020
earmarked $2 billion to get manufacturers to shift production from China back to Japan.
 Back in the Canadian context, for a province such as Newfoundland and
Labrador, it has never had a strong manufacturing / secondary base. Instead, the province
has traditionally depended upon cod fishing as a main wealth generator. With the
dramatic drop in cod stocks since 1992, the province has diversified into new areas such
as offshore oil extraction (i.e. Hibernia).
Western Canada had seen the lowest unemployment rates in the country for much
of the first decade of the 21st Century, particularly in Alberta, Saskatchewan, and
Manitoba, with most people employed in services but supported by strong development
of natural resources (e.g., oil and minerals) aided by growing demand from Asia.
However, unemployment rates spiked upwards dramatically especially in Alberta when
oil prices dropped significantly during The Great Recession during the latter part of 2008
through 2009 and when a glut of oil supplies started to emerge on the world market in
2014-2015. The COVID-19 economic lockdown in the Spring of 2020 also caused oil
prices to plummet to record low prices hurting oil-producing provinces and federal
government revenues.
Globally, these contrasts in economic development are also apparent. As
evidence, complete the table below for your assigned countries using information from
the UN Human Development Index World Rankings and the CIA Factbook for the
remaining information.

Country and GDP GDP – Labor Force Economy Overview (five key points)
Rank (UN per composition by Note: Focus on strengths / opportunities and / or weaknesses /
Capit by sector Occupation
HDI** 2020) a*
challenges for each country’s economy rather than just more
(US statistics.
dollar
s)

A: 3.6% A: 3.6% -Australia is a significant exporter of natural resources, energy, and food.

-Australia's abundant and diverse natural resources include extensive reserves of coal, iron, copper,

I: 25.3% I: 25.1% gold, natural gas, uranium, and renewable energy sources.

-Australia had benefited from trade as export prices increased faster than import prices, the economy

Australia $49,854 S: 71.2% S: 75.3% experienced continuous growth.

8 -Until 2017 Austria has low unemployment, contained inflation, exceptionally low public debt, and a

strong and stable financial system.

-Australia has growth problems in 2018, driven by the sharp fall in global prices

A: 1.6% A: 2% -Growth of the manufacturing, mining, and service sectors has transformed Canada from a rural

economy into one industrial and urban economy

I: 28.2% I: 13% -Canada has a large oil and natural gas sector with most of the oil production in the west.

-The 1989 Canada-US Free Trade Agreement and the 1994 North American Free Trade Agreement

Canada $49,031
S: 70.2% S: 6% dramatically increased trade and economic integration between the US and Canada.

16 -Over three-fourths of Canada’s merchandise exports are destined for the US each year and Canada is
I&S: 76% the largest foreign supplier of energy to the US

-The global economic crisis of 2007-08 moved the Canadian economy into sharp recession by late
M: 3% 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus.
 A: 2.4% A: 1.1% -Israel has a technologically advanced free market economy. Cut diamonds, high-technology

equipment, and pharmaceuticals are among its leading exports.

I: 26.5% I: 17.3% -Its major imports include crude oil, grains, raw materials, and military equipment.

-Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle

Israel $40,145 S: 69.5% S: 81.6% East insulated the economy from spillover effects.

19 -Private consumption is expected to drive growth through 2018, with consumers benefitting from low

inflation and a strong currency.

-Israel faces structural issues including low labor participation rates for its fastest growing social

segments- the ultraorthodox and Arab-Israeli communities.

A: 5.5% A: 14% -Exports of bananas, coffee, sugar, and beef are the backbone of its commodity exports.

-Various industrial and processed agricultural products have broadened exports in recent years, as have

I: 20.6% I: 22% high value-added goods, including medical devices.

-The US-Central American-Dominican Republic Free Trade Agreement, which became effective for

Costa Rica $19,642 S: 73.9% S: 64% Costa Rica in 2009, helped increase foreign direct investment in key sectors of the economy.

62 -However, poor infrastructure, high energy costs, a complex bureaucracy, weak investor protection, and

uncertainty of contract enforcement impede greater investment.

-Costa Rica’s economy also faces challenges due to a rising fiscal deficit, rising public debt, and

relatively low levels of domestic revenue.

--Mexico has become the US' second-largest export market and third-largest source of imports. In 2017,
A: 3.6% A: 13.4%
two-way trade in goods and services exceeded $623 billion.

I: 31.9% I: 24.1% -Mexico's $2.4 trillion economy has become increasingly oriented toward manufacturing

-Mexico's current government emphasized economic reforms, passing, and implementing sweeping

Mexico $19,796 S: 64.5% S: 61.9% energy, financial, fiscal, and telecommunications reform legislation.

74 -Growth is predicted to remain below potential given falling oil production, weak oil prices, structural

issues such as low productivity, high inequality, etc.

-Mexico’s economy remains vulnerable to uncertainty surrounding the future of NAFTA because the

United States is its top trading partners and the two countries share integrated supply chains,

A: 15.4% A: 47% - India's diverse economy encompasses traditional village farming, modern agriculture, and handicrafts

- India has capitalized on its large educated English-speaking population to become a major exporter of

I: 23% I: 22% information technology services, business outsourcing services, and software workers.

- India's economic growth slowed in 2011 because of a decline in investment caused by high interest

India $6,700 S: 61.5% S: 31% rates and rising inflation.

131 - India has a young population and corresponding low dependency ratio, healthy savings, and

investment rates, and is increasing integration into the global economy.

- Potential problems include India's discrimination against women and girls, an inefficient power

generation and distribution system, ineffective enforcement of intellectual property rights

 A: 20% A: 17% - The government has struggled to fully address the effects of international sanctions, widespread

infrastructure damage, diminished domestic consumption and production, reduced subsidies, and high

I: 19.5% I: 16% inflation, which have caused dwindling foreign exchange reserves, rising budget and trade deficits, a

decreasing value of the Syrian pound, and falling household purchasing power.

Syria $2,900 S: 60.8% S: 67% - In 2017, some economic indicators began to stabilize, including the exchange rate and inflation.

151
- However, economic activity remains depressed, and GDP almost certainly fell.

- The number of Syrian refugees increased from 4.8 million in 2016 to more than 5.4 million.

A: 50% A: 82% - Guinea-Bissau is highly dependent on subsistence agriculture, cashew nut exports, and foreign

assistance.

I: 13.1% I&S: 18% - Guinea-Bissau has substantial potential for development of mineral resources, including phosphates,

bauxite, and mineral sands.

Guinea
$1,989 S: 36.9% - Cashews generate more than 80% of export and are the main source of income for rural communities.
Bissau
175 - The government was deposed in August 2015, then, a political stalemate has resulted in weak

governance and reduced donor support.

- Diversification of the economy remains a key policy goal, but Guinea-Bissau’s poor infrastructure

and business climate will constrain this effort.

A: 43.2% N/A - Subsistence agriculture, together with forestry and mining, remains the backbone of the economy of

the Central African Republic (CAR).

I: 16% - Timber and diamonds account for most export earnings, followed by cotton.

Central - Distribution of income is highly unequal and grants from the international community can only
African $945 S: 40.8% partially meet humanitarian needs.
Republic
- In 2012, the World Bank approved $125 million in funding for transport infrastructure and regional
188
trade, focused on the route between CAR's capital and the port of Douala in Cameroon.

- The World Bank in late 2016 approved a $20 million grant to restore basic fiscal management,

improve transparency, and assist with economic recovery.

*GDP per capita: Is the money value of all goods and services produced within a
country each year per person.
**United Nations Human Development Index: World ranking of countries based on
life expectancy, educational attainment, and GDP per capita / Purchasing Power
Parity. **Remember LEG**

 In approximately 700 to 800 words, compare and contrast the

economies and UN HDI rankings of these countries utilizing:
o the information and statistics that you have collected
o the Introductory notes provided with this assignment
o and the “Development” packet
o Note – For your analysis, decide which countries are
MEDCs, NICs, and LEDCs and include statistics that you
have found in this assignment which clearly show the
differences.
Many methods can be used to assess a country's development. For example, the HDI
ranking (Human Development Index), and the national economy are the most used
methods to assess a country's development. While the HDI evaluates a country's life
expectancy, level of education, and per capita income, the economy evaluates aspects
such as GDP, employment, and government deficit; however, there are certain
consistent patterns for these two indexes shared by a group of nations characterized by
their similar status in economic and social development.

A country can be classified into three categories based on its level of development:
MEDC (More Economically Developed Countries), NIC (Newly Industrialized Countries),
and LEDC (Less Economically Developed Countries). MEDCs typically have an annual GDP
per capita of more than $40,000 and an HDI score of more than 0.8, indicating
extremely high human development. Because of their relative affluence social
background and advanced social development level, Australia, Canada, and Israel fall
into the category of MEDCs. NIC nations are countries that are undergoing rapid social
progress, ongoing industrialization, and improved living conditions. NICs are less
developed than MEDCs, and citizens in NIC have lower living standards than their MEDC
counterparts; Costa Rica, Mexico, and India are examples in this category; Syria, Guinea
Bissau, and Central African Republic are considered LEDCs, and people living in LEDC
nations are generally deprived of economic prosperity or social welfare. The whole
nation is subjected to economic vulnerability and poverty.

The three categories of countries demonstrate conspicuous features in their economic

performance and statistics. For MEDCs, their economic indexes are generally healthy.
GDP per capita for Australia is $49,854, for Canada is $49,031, and for Israel is $40,145.
When it comes to the GDP composition, all these developed nations show that the
agricultural sector takes up a significantly proportion of the GDP, the industrial sector
accounts for one fourth of the GDP, but the service sector contributes the most. For
example, in Canada, agriculture only accounts for 1.6%, industry takes 28.2% and service
yields 70.2%, indicating the advanced market structure of the country. For NIC nations,
all the indexes are not as positive as those for MEDC. GDP per capita for Costa Rica is
$19,642, for Mexico is $19,796, and for India is $6,700. Additionally, in GDP
composition, they are already leaning to industrial and service sectors, but still retain 4-
15% of GDP contributed by agriculture. LEDCs have the worst economic performances.
GDP per capita of countries like Syria, Guinea Bissau is around $2000. Central African
Republic has an even worser score with GDP per capita at only $945. Their GDP
composition shows that these nations still heavily rely on agriculture, which takes up
about 20-50% of their GDP. An interesting fact here is that Central African Republic’s
labor force by occupation is not even available which leaves a mystery that the
unemployment rate might be astonishingly high.

Accompanying the varying level of economic performance is the striking disparities

between HDI indexes of different groups of countries. For MEDCs, the high HDI rankings,
attest to their high life qualities. The life expectancies for MEDC nations, such as
Australia, Canada, and Israel, are over 80, indicating the easy accessibility to medicine
and excellent medical facilities. For education, mean years of schooling for MEDCs are
around 12 years because most MEDCs have established a 12-year compulsory
education. Australia’s expected years of schooling reaches 22.0 years which is the
highest among all countries. Based on the fact, MEDC also has a relatively lower birth
rate. For example, the birth rate for Australia is 13 babies born per 1000 people, for
Canada is 10 babies born per 1000 people, and for Israel is 18 babies born per 1000
people. MEDCs usually have their HDI ranks around the top 10% as well. For NICs, all
these indexes show their relatively backward social conditions. The life expectancies in
countries like Costa Rica, Mexico, and India are around 72; The compulsory education
for NICs is not as prevalent as that in MEDCs, and Mexico only has 6-year compulsory
education; the birth rate is higher than that in MEDCs, averaging 20 babies born per
1000 people. The average HDI ranking for NIC is around the 60-80th place with India a
significant outlier as India has large population and relatively smaller area. For LEDCs,
the medical availability is extremely limited, thus the average life expectancy is only
around 50-60 years old. The education system in LEDCs is mostly poorly funded, and
many areas do not have a school. For example, in Central African Republic, the mean
year of schooling is only 4.3 years, and it is just one third compared to MEDCs. LEDCs
countries tend to have a larger birth rate compared with other categories of countries, a
staggering 25-45 babies per 1000 people. A larger birth rate with lower average life
expectancy indicates for lack of accessibility to medicine and medical facilities.

In conclusion, MEDC, NIC, and LEDC differ in numerous ways, from their economic status
to the life qualities of their citizens. MEDC countries have more developed,
industrialized economies, whereas NIC countries are still transitioning to an
industrialized state. Agricultural industries, on the other hand, predominate in LEDCs.
Furthermore, the readily available medicines ensure the high quality of life in MEDC. NIC
and LEDC are both short on medicine, with LEDC having the most limited access to
medical care.