![]() Examples of processing include breweries and bottlers of beer, milk, cola or wine, energy production companies, food canning or oil refining. ![]() The output produced in the secondary sector is then sold to customers who might be individual domestic or foreign customers, other businesses or governmentsĮxamples of manufacturing includes clothes manufacturers, car production companies, publishing firms, furniture making or electronics manufacturers. Value is added to the natural resources used during the production process. They take the natural resources from the primary sector activity and turn them into finished goods. ![]() It is because developed economies are able to generate higher added value while there is very little value added in primary production.īusinesses operating in the secondary sector are involved in manufacturing, processing and construction of products. Meaning, less Gross Domestic Product (GDP) comes from the primary sector and less percentage of the entire population works in the primary sector. In more developed countries, businesses that operate in the primary sector use mechanization and automation to conduct business activity – farming is done using advanced heavy machinery like tractors while enormous excavators are used for mining iron ore.Īs countries develop, there is less and less reliance on the primary sector of the economy when it comes to producing the national output and employment. For instance, tea leaves, cocoa beans, coffee beans are sold at relatively low prices in Brazil or Ethiopia. Primary sector activities tend to account for a large percentage of output and employment in less economically developed ( ‘poorer’) countries. Sometimes, companies in the primary sector also sell raw materials as final products directly to final customers – we can buy raw vegetables, fruits and fish directly from farmers. Primary sector business activity mainly provides raw materials for secondary sector business activity – turning raw materials into products. Examples of conversion includes oil which is used to produce petrol or plastics. Examples of harvesting industries include agriculture (farming rice or potatoes), fishing or forestry. Let’s take a look at specific business activities that happen in each of the five following sectors of the economy.īusinesses that operate in the primary sector are involved in taking natural resources from earth (land or sea), specifically, extraction, harvesting and conversion.Įxamples of the extractive industries include coal mining, gold mining or oil extraction. It includes all the things that a country and the world produce as well as all the goods and services that customers buy. ![]() The economy is a measurement of all the wealth and resources in a country and the world. A country and the world where we all live both have an economy. The five sectors combined together create an economy. The goods and services which enterprises produce can be used to classify all of the country’s businesses into one of five different sectors: primary sector, secondary sector, tertiary sector, quaternary sector and quinary sector.īusiness organizations can also be categorized according to the stage of production that they are engaged in, as those five sectors are also the five stages involved in the production process – turning natural resources such as timber into the finished good such as table. ![]() This article includes classification of businesses based on sectors of the economy.īusinesses produce a wide range of products (goods and services) to meet the needs and wants of their customers.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |