Chapter 2: Classification of business
Chapter aims
- [x] The difference between primary, secondary and tertiary production
- [ ] the reasons for the changing importance of business classification eg: in developed and developing countries
- [ ] the difference between public sector and private sector business enterprises in a mixed economy
==The primary sector in industry-== extracts and uses natural resources of Earth to produce raw materials used by other businesses.
==The secondary sector-== manufactures goods using raw materials provided by the primary sector.
==The tertiary sector-== provides services to consumers and other sectors of industry.
Stages of economic activity (wood table)
Primary- woodcutter. Earths natural resources
primary sector- farming, fishing, forestry and the extraction of raw materials (oil, copper, ore)
secondary- Furniture maker. Converting natural resources into goods.
secondary sector- baking. building and construction, aircraft and car manufacturing, computer assembly.
Tertiary- retailer. Stage of production.
Tertiary sector- transport, banking, retail, insurance, hotels and hairdressing.
| Business | Primary | secondary | tertiary |
|---|---|---|---|
| Insurance | x | ||
| Forestry | x | ||
| Coal mining | x | ||
| computer assembly | x | ||
| travel agent | x | ||
| Bakery | x | ||
| car showroom | x |
Relative importance of economic sectors
two ways of finding out which sector is more important country by country.
- Percentage of the country’s total number of workers employed in each sector.
2.value of output goods and services and the proportion this is of total national output.