Sectors

Primary sector

involves acquiring natural resources, they are goods

Primary sector activities

agriculture, fishing, forestry, mining

secondary sector

focuses on transforming raw materials (products of primary sector) into finished products.

secondary sector activities

manufacturing and construction

tertiary sector

surrounds businesses that offer services rather than physical goods.

tertiary sector activities

retail, finance, healthcare

quaternary sector

it focuses on knowledge-based activities

quaternary sector activities

research and development, IT services, consulting

specialization

This allows businesses to focus on what they do best, improving efficiency and quality.

integration

Combine activities from multiple sectors instead of focusing on just one.

sectoral change

Refers to the shifting importance of these sectors within an economy over time.

S.C: primary to secondary

Economies invest in manufacturing and industrialization

S.C: Secondary to tertiary

As incomes rise, demand for services grows.

S.C: Tertiary to quaternary

Advanced economies focus on innovation and knowledge-based industries.