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Secondary industries in developing countries. Definition of secondary industries. Definitions. Manufactured goods . Product elaborated from an industrial process. Industry transforms raw materials into new goods. Natural resource. Resource provided by nature
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Secondary industries in developing countries Definition of secondary industries
Definitions • Manufactured goods. Product elaborated from an industrial process. Industry transforms raw materials into new goods. • Natural resource. Resource provided by nature • Raw materials. Substances transformed in an industrial process • Energy sources. Any substance, animal or human being capable of providing energy.
Secondary industries in developing countries Industry in LEDCs
Industry in LEDCs • In many LEDCs , there are few industries and they don’t offer too many jobs. • We can classify industry in “formal” and “informal” sectors. • The “formal” sector offers jobs with regular waged employment (regular salary). Normal wages are low. Employees work a lot of hours. • The “formal” sector is usually manufacturing. Often transnational enterprises are the ones that export all products and invest lots of money • The “informal” sector is usually work in small scale manufacturing (family enterprise located at home). Low investment and irregular wages . Provide local demand (builders, dress and furniture repairs...). Not secure
Industry in LEDCs • LEDCs can’t increase the “formal” sector due to lack of money, investments and infrastructure (power supplies and transport networks). As a result of that, the “informal” sector increases a lot due to population growth. • In conclusion, LEDCs are trapped in this cycle and it’s difficult to improve the secondary activities and many people try to migrate to a rich country
Secondary industries in developing countries NICs and BRIC
NICs • After the Second World war, several countries of South East Asia promoted industrialization (cars, electronics...) with foreign investments (from developed countries). They have become NICs (newly industrialised countries). • These countries were Singapore, Taiwan, South Korea and Hong Kong (they were called the “four tigers”). They are small countries and they don’t have energy sources or raw materials • In recent years you can add Vietnam, Thailand, Malaysia and Indonesia .
BRIC • BRIC means Brazil, Russia, India and China • They all are big countries and have a lot of inhabitants. • They have raw materials and energy sources • Their economy has increased a lot in recent years (e.g. China grew by 10% in 2005) • Foreign enterprises (transnational) and the State invest in the energy sector and manufacturing.
BRIC • China produces clothes , shoes... And has a great reserves of coal • Brazil has oil • India produces electronics and has started making cars. • Russia exports gas