Economic Geography. Grade 12 term 3 topic prep examination

Economic Geography lesson description of a lesson with learner activity to include a clear understanding of the topic and videos with images that support the topic. This is a guidelines for learner understanding. Economic Geography lesson description of a lesson with learner activity to include a clear understanding of the topic and videos with images that support the topic. This is a guidelines for learner understanding

1. ECONOMIC GEOGRAPHY The economy is a system of activities and people depending on each other to supply their needs.

2. Concepts Imports - goods bought from other countries. Exports - goods sold to other countries. Balance of trade - the balance of value between imports and exports. Positive trade balance – when the value of exports outweigh the value of imports. The country has progressive economy. More jobs. Negative trade balance – When the value of imports outweigh the value of exports. This country will face inflation / recession. – job losses

3. Economics : is the study of how people produce goods and services. Economic Geography : looks at where economic activities are carried out and why certain locations are chosen. Gross Domestic Product (GDP): the total value of the goods and services produced in a country in a year. GROSS NATIONAL PRODUCT (GNP): the value of goods and services produced by permanent citizen of a country in a year

4. Concept continued: Income per capita / Human development index – equal dividend that each member of the population would get. Balance of payment – money owed by the country to the rest of the world. Import substitution – goods manufactured locally to replace imported goods.

5. ECONOMIC SECTORS Primary sector : the exploitation of natural resources e.g. farming , mining, fishing, forestry and hunting. Secondary sector : change raw materials into something more useful and valuable e.g. processing and manufacturing. Tertiary sector : The provision of services, profession, trade and transport. Quaternary sector : Intellectual services, e.g. research, espionage, IT Quinary Sector. High decision making that involves millions e.g. cabinet minister.

6. Learners must be able to analyse and group activities according to sectors

7. The structure of South Africa’s economy Contribution of different sectors : - Primary sector : 1,6 million workers Mainly agriculture and mining Secondary sector : 2,6 million workers Mainly manufacturing and construction Tertiary and Quaternary sector: 6,8 million workers Mainly wholesale and retail

8. Explain why the S.A. economy is poor given the percentage of the tertiary sector. SOUTH Africa needs to increase the activities in the secondary sector to generate exports by manufacturing or processing raw material to finished goods that will earn the country foreign income. The value of exports need to outweigh the value of imports so that the country achieves positive trade balance.

9. Contribution by the provinces to the GDP

10. Changing economic structure

11. PRIMARY SECTOR

12. Importance of the primary sector It provides food It provides raw materials for factories It provides valuable export products It provides employment It stimulates the development of infrastructure It stimulates the development of industries

13. Importance of Agriculture It provides food It provides raw materials for factories It provides valuable export products It provides employment It stimulates the development of infrastructure It stimulates the development of industries To the economy: Stimulates foreign income. Jobs are created and government collect tax. Stimulates development of industries. Provides raw material foe secondary industries. Contributes to the GDP.

14. Factors that favour Agriculture Diversity of climates enable different crops. Most land is flat in South Africa. Research makes it easy to decide. Fertile floodplains makes crops do well. Workers are available. High demand for crops.

15. Factors that hinder Agriculture Low rainfall S. Africa is a dry country. Soil erosion. Natural disasters floods and drought . Pests and insects. Farm killings.

16. Small scale and large scale farming Small scale farming – Subsistence that is farming to eat with family. Intensive Farming – farming that is market orientated (to sell) Large scale farming – Commercial that is farming to sell. Extensive farming – farming to sell.

17. Small scale farming Subsistence Farming. Farming at a small scale. Manual labour is done. Irregular farm patterns. Old farming methods are used. Intensive farming Farming at a small scale Specialises in one crop or animal. Has high yields than the small size of the farm. Uses scientific (modern) methods of farming.

18. Large scale Farming Commercial Farming Farming at a large scale Work is done by machines. There is regular farm patterns. Scientific methods are used. – Observe on topo maps – Farm names, large scale, dams are present, transport routes are present & regular pattern Extensive Farming Farming at large scale. Mixes crops and stock(animals) Market orientated

19. Commercial and Extensive

20. FARMING TWO TYPES : Subsistence farming : farmers produce sufficient crops for the needs of their families. small farms, communal land ownership, traditional techniques, irregular farm pattern. Commercial farming : farming that is conducted in order to sell the produce. Specialize in fewer products, large farms, new techniques, more infrastructure, farm names and private landownership.

21. SUBSISTENCE FARMING Traditional methods. No capital Manual labour . Irregular farm methods. Small farms

22. COMMERCIAL FARMING Modern machinery . Scientific methods. Market orientated Large scale farming.

23. Extensive farms are large farms using low inputs per hectare. M echanisations reduces labour use. Stock and crops mixed.

24. Intensive farming: smaller farms with high yields compared to the farm itself. Specialises in one animal or crop and market orientated.

25. Commercial farming

26. Main products Beef Area of production : Eastern Cape, Free State, KwaZulu Natal, Limpopo and Northern Cape provinces. Problems / Challenges Foot and mouth diseases. Changing prices of beef. Limited grazing land. Snowfall limit stock food. Stock theft and farm violence. Factors favouring cattle farming: Variety of climate-lots of the sun. Large market. Less labour intensive. Flat land and fertile soil. Water transfer schemes.

27. Areas of beef production E.C. F.S KZN L N.C.

28. Additional factors Home market and export market. Home market – where goods and services are sold within the country. Export market – when goods and services are exchanged beyond the borders of the country. Ongoing research brings more information. Consistence rainfall. Labour supply is present. Large grassland region. Good infrastructure.

29. Typical exam questions Explain how agricultural products contribute to the economy. Discuss physical factors that hinder agriculture. Explain the causes of the increase in beef demand in South Africa. Explain how beef farming can have negative effect on the environment.

30. Food Food security: when the population has access to a balance diet (nutritious food) Food insecurity: when the population does not have access to a balanced diet.

31. Food security continued Importance of food security: Maintains good health. It prevents social uprising. It prevents hunger and famine. Prevents stunted growth and death. Food must be available , accessible and affordable

32. Factors influencing food security: Positive factors: Diversity of climate allows variety of crops. Government incentives to small scale farmers. Improved trade relations. Land redistribution programmes. Planting genetically modified crops. Promoting co operative farming. Negative factors: Soils are thin and infertile. Pests and diseases. Lack of capital. Drought and floods. Soil erosion.

33. Strategies to improve food security Ensure storage of surplus food. Support small scale farmers. Improve water availability during droughts. Better farming methods. Speed up Land Reform policies. Have self help gardens. Use of genetically modified foods.

34. Mining in South Africa - Coal Areas of production: Coal is mined in Mpumalanga province around Witbank. Coal is formed when remains of plants and animals trapped under rocks for a million of years ends up forming coal because of pressure.

35. Coal – from underground and opencast The coal anthracite is best quality that is used for different purposes including generating electricity, producing cement and many other things. Coal is mined from underground (costs are higher and more accidents risks and opencast mining where it is cheaper to mine and less accident risks.

36. Factors that - favour coal mining in S.A. Large reserves of coal. Cheapest way t generate electricity. Coal regions well known and explored. Has lot of investors. hinder coal mining in S.A. Strict laws that prevent the release of green house gases. Reduced capital from investors. Not enough infrastructure for new coal mines. Competition with Agriculture for mining land.

37. Contribution of coal to the S. A. economy Provides energy (electricity ) for industries to function. Creates employment. Contributes to GDP. Generates income through exports. Develops infrastructure for economic development

38. Secondary sector This sector is concerned with manufacturing a finished good or commodity. Or Is concerned with processing of raw material into a finished good or commodity. Or Adding value to the raw material by crushing it to a finished good. ( benefication )

39. TYPES OF INDUSTRIES Light Industries : Factories that use light or small machinery. process small amounts of raw materials Do not cause a lot of pollution, bad odours and noise pollution. Small semi-skilled labour . Near to cities / CBD to cut transport costs. Examples: Clothing, printing, bakeries, soft drinks etc

40. Typical exam questions In a paragraph explain why are light industries accommodated next to the CBD. Key to answers: Road transport Pollution Market Light machinery In a paragraph explain the factors that could increase the price of products from the light industries. Eg clothing, bakery etc

41. Heavy industries They use heavy machinery process large quantities of raw materials. They require railway and harbour facilities – bulk transport. Cause noise, air and land pollution. Examples: Iron and steel works, petroleum. They need large land for further development. Located next to the river – need water to cool machines.

42. Raw material orientated industry : is found close to the source of the raw materials. The raw material could be bulky and expensive to transport. Market Orientated industry : located close to the market. The product could be perishable. Footloose industry : technology allows these industries to be located anywhere (Vodacom) Ubiquitous industry : not located at a particular space on a landscape (Telkom – cables cover entire country) Bridge (break-of-bulk) industry : located between the raw materials and the market.

43. Industries continued Capital intensive industries where jobs are done by machines, they require skilled and or semi skilled labour . Labour intensive industries where jobs are done manually, no training and education needed. Link industries these are industries that are attracted to complement / support the main industry.

44. GAUTENG KWAZULU-NATAL EASTERN CAPE WESTERN CAPE SOUTH AFRICA’S INDUSTRIAL REGIONS

45. Core industrial areas in S.A.

46. GAUTENG (PWV AREAS)

47. Gauteng(PWV) Region Over 10 million people live in Gauteng Formerly known as the PWV (Pretoria Witwatersrand Vereeniging) This industrial region produces 43% of all of South Africa’s manufactured goods. Key factor: the discovery of gold The mining industry and the presence of a fast -growing population provided an immediate market for a huge range of manufactures

48. Factors influencing the location and development of manufacturing in Gauteng Huge gold resources Wide range of markets. Huge resources of coal for energy not far to the east. Many skilled and unskilled members of the labour force. Many raw material available. Water is drawn from the nearby Vaal dam. Good transport links to ports by road and rail. Capital provided by European investors. Support by S. A. governement

49. Factors hindering development Overconcentration – high rentals, traffic congestion and high salary demands. HIV and Aids – needs large labour replacement when sick or fetching medication. Distance from foreign markets – more costs. Brain drain – more skilled people look for greener pastures. Cheap imports and counterfeit goods. Air pollution Water scarcity.

50. Main industrial activities in Gauteng Gold mining Iron and steel Related metal industries Explosives Chemical industries Sasol Denel aviation Glass Food and beverages

51. Cape Town was the first western style city in South Africa. (INDUSTRIAL INERTIA) Cape Town has over 3 million inhabitants. RAW MATERIALS like fruit, wheat , fish and wool are found in abundance. ENERGY is obtained from the Koeberg nuclear power plant. It is situated on an important sea route around Africa. Local and international markets. Political influence Factors influencing the location of South Western Cape

52. Fruit and canning Viticulture (cultivation of grapevine) Textiles Fishing Furniture Explosives Petroleum refinery Link industries Main industrial activities in South Western Cape

53. Factors that Favour development in South Western Cape Hinder development in South Western Cape Market- High purchasing power Coastal - access to large overseas markets Transport Table bay for overseas trade Dense railway network for local links Labour : Dense population of skilled and unskilled Raw materials : • Deciduous fruit • Grape • Fish Relief : Flat land Electricity is expensive since coal fields are far away Water shortages - located on the western half that receives less rainfall Few mineral resources

54. Case Study on Western Cape

55. South Western Cape

56. Strategies for Industrial Development The Good Hope Plan (Pre 1994) - Post Apartheid (after 1994): Reconstruction and Development Programme The wide programme introduced by present government aimed at improving the quality of life for the previously disadvantaged comminites

57. GEAR Growth Employment and Redistribution An economic policy aimed at creating employment and redistribution of wealth

58. Spatial Development Initiatives SDIs Definition: These are corridors or infrastructure aimed at attracting investment and convey development from country to country and region to region so that previously disadvantaged communities can benefit.

59. West coast DSI Factors influencing the location f the SDI: Situated on the coast, has a harbour and easily links Sub Saharan countries as well as the whole world.

60. Main Industrial activities Steel processing/manufacturing Fish processing and fishmeal industries Gas power plant Ship repair

61. Factors that Favour development Rich in Resources: Rich in avian resources- Lambert’s Bay Waterfront Cultural heritage Fish Rich in biodiversity Fruit Good labour supply Large market area Sufficient flat land available Sufficient energy supply - through renewable energy Good transport links to the South Western Cape Industrial region Access to the Ports and harbours in the Western Cape Hinder development lack of technical skills inadequate marketing growing informal settlements xenophobia sand mining decreases tourism

62. Impacts / Effects / Results Economic: Transportation networks improve accessibility for trade to the SDI Communication networks enable growth of the SDI through technology Generates economic growth where local communities are able to sell their wares Generates employment opportunities in local communities Social: Greater income for local communities Money generated is used to develop community projects Develop ethnic/cultural pride. Better standard of living.

63. Case study on West Coast SDI

64. Industrial Development Zone Saldahna Bay Definition: an area identified with potential for industrial development for export purposes.

65. Factors influencing location Saldanha Bay ideally geographically positioned – its location creates a linkage point for both Sub-Saharan Africa and International Markets.

66. Main industrial activities Oil and Gas, ship building and repairs, renewable energy, steel production

67. Factors that Favour development The port of Saldanha Bay geographically positioned as a linkage point for both Sub-Saharan Africa and International Markets. Existing relationships with neighbouring African countries. home to boundless opportunities as an oil, gas and marine repair services hub. Good labour supply Sufficient land available Hinder development lack of technical skills  

68. Impacts / Effects Economic generates economic development Industries are located more close to resources and raw materials allow people to move around; create more access to jobs, labour mobility is freed, up etc. Focus on skilling and re-skilling people, through education and training programmes Social Greater income for local communities Money generated is used to develop community projects Better standards of living for local community

69. Case study on Saldahna IDZ

70. Concepts Industrial centralisation: when industries are concentrated in one core area. Advantages of centralisation: Market is nearby. Infrastructure well developed. Skilled / unskilled labour is more than enough. Industrial decentralisation: Moving industries away from the core area to underdeveloped areas. Advantages of decentralisation: Keeps people in rural areas. Improves infrastructure in rural areas. Brings balance in level of development.

71. Disadvantages of Centralisation: Shortage of housing. Traffic congestion. Water shortages. Air pollution. Environmental degradation. Over concentration of activities. Decentralisation: Transport costs increases. Distance from markets.

72. The Informal Sector Business Definition: a business that is not registered and does not pay tax. Examples of such businesses – backyard mechanic, backyard day care, backyard salon, street vendor, beadwork makers. Formal business is registered and pay tax by SARS ( South African Receiver of Revenue) Has steady jobs and have fixed salaries / wages.

73. Challenges of informal sector Exposed to theft. Exposed to diverse weather. Refused loans by banks capital. Harassed by police. Have no storage. No business skills. Income is not guaranteed.

74. Importance / Role of informal sector Creates employment. Can put food on the table. Supports formal business. Goods sold at lower prices. Contributes to GDP. One owner hires others. Able to feed their families. They buy from formal business

75. How can the government assist informal sector Issue permits. Demarcate areas for trade. Give them loans. Put shelters for them. Create foreign market for them. Teach them business skills.

76. Reasons for the development of Informal sector / why do third world countries have high rate of informal sector Decrease in economy leads to job losses. Mechanisation of farms. Natural disasters. High rate of unemployment. Easy to start. Does not need larger amount of capital.

77. How can the government assist Informal sector busness Give them permits. Assist them with loans. Dermarcate areas for trade. Built shelters for them.. Establish export market for them. Teach them business skills.