Classification of business activity
Stages of production (levels of business activity)
1. Primary production
- This stage involves the extraction of natural resources from the earth.
- The activities in primary sector include fishing, farming, forestry and mining.
- This stage involves taking the materials and resources provided by the primary sector and converting them into finished goods.
- Activities in the secondary sector of industry include construction, manufacturing and baking.
3. Tertiary production
- This stage of production involves providing services to both consumers and other businesses.
- Activities in tertiary sector include shops, restaurant, bank, cinemas and airline.
Please Watch this video relating to the different business sectors
Chain of
production
The different sectors
of business activity are often dependent upon each other is known as chain of
production.
Example: oil
Primary sector
– oil is extracted from underground
Secondary
sector – oil is refined to produce other products such as petrol or gas.
Tertiary sector
– selling petrol or gas to final consumer through petrol or gas station.
Which sector of
industry is most important in your country?
This depends on
what is meant by ‘important’. Usually the three sectors of industry are compared
by:
· To the number of workers employed in each sector or industry
· The value of output of goods and services
In some
countries, primary industries are such as farming and fishing employ many more
people than manufacturing or service industries. Normally developing countries
concentrate more on primary sector. In these countries manufacturing industries
has recently established. As most people live in rural areas with low incomes,
there are little demand for services such as transport, hotels and insurance.
The level of employment and output in the primary sector in these countries are
likely to be higher than in the other two sectors.
In countries
which started manufacturing industries many years ago, the secondary and
tertiary sectors are likely to employ many more workers than the primary
sector. The level of output in the primary sector is often small compared to
the other two sectors. In very wealthy countries, it is common now that many
manufactured goods are bought from other countries. Most of the workers will be
employed in the service sector. The output of the tertiary sector is often
higher than the other two sectors combined. Such countries are often called the
most developed countries.
presentation
Comments
Post a Comment