DP1 - B.M - U1.1 AO2 Business sectors Flashcards

primary sector

sector with extraction, harvesting and conversion of natural resouces

examples of primary sector

agriculture, fishing, mining, forestry and oil extraction

where do businesses in the primary sector primarily operate?

low income countries

secondary sector

sector with manufacturing and construction

examples of the secondary sector

clothing manufactureres, publishing firms, breweries and bottlers

what is done with the output of secondary sector businesses?

it is sold to customers such as other businesses, governments, foreign buyers or domestic customers

where do businesses in the secondary sector primarily operate?

medium income countries

why do economists argue that the secondary sector is the wealth creating sector?

manufactured foods can be exported worldwide to earn income for the country. value is also added to the natural resources used during the production process.

tertiaty sector

sector that provides services to the general population and other organizationsexa

examples of the tertiary sector

retailing, transportation and distribution, banking, insurance, healthcare, leisure and tourism

can physical goods be transformed in the process of providing a service?

yes

where do businesses in the tertiary sector primarily operate?

high income countries

gross domestic product

the value of the country’s output each year

quaternary sector

a subcategory of the tertiary sector which involves intellectual and knowledge based activities that generate and share information

examples of the quaternary sector

information communications technology, research and development, consultanty services and scientific research

what is an example of a company benifiting from a quaternary sector business?

pharmaceutical companies invest heavily in research and development to create innovative products, develop new promotion methods, improve efficiency and tap into markets

where do businesses in the quaternary sector primarily operate?

high income countries as it requires a highly educated workforce

why and how are the four sectors interdependant?

each sector relies on the other to remain in existence. raw materials would not be extracted if there was no need for oil refinery, there would be no oil refinery if there was no need by the customers like motorists and airline companies.