Global Economic Structure: Raw Materials, Energy, and Industrial Production

Raw Materials and Economic Sectors

Raw materials are fundamental economic assets derived from primary activities:

• Animal Resources: Lead to Livestock and Fisheries (Primary Sector). Examples: Skin (used in industrial textiles), fish (used in industrial canning).
• Plant Resources: Derived from Agriculture and Forest Exploitation (Primary Sector). Examples: Cotton (textile industry), wood (industrial property/construction).
• Mineral Resources: Extracted through Mining (often classified within the Secondary Sector). Types: Metallic, non-metallic, and energetic minerals.

Global Consumption of Raw Materials

Economic Differences Between Nations

• Developed Countries: Are large consumers of raw materials due to their high level of industrial production and development. They have reduced domestic raw material production (often relying on imports).
• Underdeveloped Countries: Are small consumers of finished goods due to less developed industries. They have a high level of raw material production (which they must export).

Energy Sources Classification

Classification by Origin (Training)

• Renewable Energy: Sources that are practically inexhaustible. Examples: Sun, water, and wind.
• Non-Renewable Energy: Sources available in limited quantities that may run out. Example: Coal and petroleum.

Classification by Production and Use

• Traditional Energy: The most widely used sources, covering the majority of global needs. Examples: Coal and petroleum.
• Alternative Energies: Used sparingly, but investment is increasing for future needs. Examples: Wind, solar, and hydraulic power.

The Secondary Sector

This sector is defined by the transformation of raw materials into other products. It comprises mining, energy production, manufacturing industry, and construction.

Industry Classification

Industrial Production by Destination

• Intermediate Goods Industry (Real Production): Produces unfinished products that are not consumed directly, but serve as raw materials for other industries. (Often associated with Heavy Industry).
• Consumer Goods Industry: Produces goods that go directly to the market and consumers. Example: Industrial footwear. (Often associated with Light Industry).

Note on Public Ownership

A company is considered public when its property is divided into shares (stock).

Industry Classification by Scale and Technology

Industry has very different characteristics and supports many classifications:

Heavy Industry

Requires large dimensions for facilities, a significant labor force, and substantial capital investment.

Light Industry

Facilities are generally smaller, requiring less labor and less capital compared to heavy industries. Goods are typically produced in smaller volumes.

High-Tech (Punta) Industry

Industries utilizing the most recent and advanced technologies, including microelectronics, biological engineering, space technology, and renewable energies.

Summary of Industry Types

• By Destination: Intermediate Goods Industry (Heavy) and Consumer Goods Industry (Light).
• By Technology: Traditional and High-Tech.

Industrial Location Factors

These are the aspects considered by industrialists when installing and locating their businesses in a specific area of the territory. Location factors have changed significantly since the 19th Century to the present day.

Key Location Factors

• Availability of energy sources and raw materials.
• Availability of labor force.
• Existence of financial centers.
• Availability of cheap land.
• Availability of technology.
• Availability of tax advantages.

Global Industrial Areas

Industrial Regions

These are very large areas where industry is a crucial economic activity, generating significant employment and wealth.

Major Industrial Locations

• Core Regions: U.S., Western Europe, and Japan.
• Emerging Industrial Centers (Focos): Russia, Brazil, Mexico, and China.