11 Production, location and change
The advantages of the informal sector (when there are not enough formal sector jobs) are that it: l provides jobs l alleviates poverty l bolsters entrepreneurial activity l facilitates community cohesion and solidarity
Now test yourself
Tested
11 Distinguish between fixed transport costs and line-haul costs. 12 Distinguish between wage rates and unit costs. 13 What are external economies of scale? 14 What is industrial agglomeration? 15 What are export processing zones?
Answers on p.221
11.4 The management of industrial change: India India is a newly industrialised country where the transformation of the economy has been based more on the service sector than on manufacturing. This has been at least partly due to a low level of foreign direct investment in manufacturing, a situation that began to change in the early 1990s. The service sector accounts for 52% of India’s GDP, with manufacturing industry and agriculture respectively responsible for 28% and 17% (Figure 11.4). l Textiles is the largest industry in the country, employing about 20 million people and accounting for one-third of India’s exports. l The car industry has expanded significantly in recent times and is now the seventh largest in the world. l However, it is in the field of software and ICT in general that India has built a global reputation.
Foreign direct investment is overseas investment in physical capital by transnational corporations.
% GDP
60 50 40 30 20
Typical mistake
10 0 1970
1975
1980
1985
Agriculture, value added (% of GDP)
1990
1995
2000
Manufacturing industry, value added (% of GDP)
Services, etc., value added (% of GDP)
Figure 11.4 The main economic sectors’ share of Indian GDP
164
2005 Year
Students should take care with the use of the word ‘industry’ as it can be applied to all sectors of the economy, for example the agricultural industry and the service industry. If you use it with reference to the manufacture of goods then state clearly that this is ‘manufacturing industry’.
Cambridge International AS and A Level Geography Revision Guide
