THE MACRO ENVIRONMENT
Types of Industries
INDUSTRY
 The production of goods and services by converting the inputs into outputs and or creation of
utilities to the customers.
 Goods produced by an industry are used either by consumers to satisfy their wants and needs or
by other industries for further production.
 May refer to an extraction, generation, conversion or production of goods and services or
construction of building products for a certain price.
SECONDARY INDUSTRY
Sometimes referred to as Manufacturing Industry,
- Such industries convert raw materials and semi raw materials into finished products by way of
processing the materials, assembling components, constructing building products etc.
5 Types of Secondary Industry
1. Analytical Industry - this industry relates to the analyzing and separating different components from
a single materials.
4 TYPES OF INDUSTRY
1. PRIMARY INDUSTRY
2. SECONDARY INDUSTRY
3. TERTIARY INDUSTRY
4. QUATERNARY INDUSTRY
PRIMARY INDUSTRY
refers to the creation of utilities by extracting materials from natural resources or the growth and
development of vegetation and animals by means of reproduction process.
2. Synthetic Industry - This industry relates to the putting of various raw materials together to make a
final product.
2 Classification of Primary Industry
1. Extractive Industry- the extraction or drawing out goods from the natural resources like land, water,
air etc.
3. Processing Industry - An industry which produces the final products by using raw materials and semi
raw materials through different stages of production.
2. Genetic Industry- It is related to the growth and development of flora and fauna by multiplying a
certain species of plants and breeding of animals
.
4. Assembling Industry - It refers to that industry which assembles various component parts that are
already manufactured to make a new product.
5. Construction Industry - which are concerned to the engineering, erecting and construction of
building products.
TERTIARY INDUSTRY
-referred to as Service Industry
- Such industries do not produce physical goods but provide services.
Examples: Doctors, Teachers, Banking and Transportation
QUATERNARY INDUSTRY
- These industries incorporate a high degree of research & technology in their processes & employ
highly qualified people.
- It involves highly specialized, knowledge-based services (often involving technology)
Examples: Scientists, researchers
QUINARY INDUSTRY
- These industries are the decisions makers
- This is an extension of the quaternary sector, but here people have the power to make decisions for
the quaternary sector
THE MACRO ENVIRONMENT
Agribusiness and Manufacturing
The Macro Environment
Macro Environment is the condition of the economy as a whole. In the Philippine context, it refers to
every industry and other factors that contribute to the economy’s growth.
Among the industries that contribute to the country’s development are agriculture, manufacturing,
construction, and telecommunications.
WHAT IS AGRIBUSINESS?
Agribusiness is a term used to describe the sector that encompasses all economic activities that are
related to farming, i.e., chemicals, breeding, crop production/farming, farm machinery, distribution,
marketing, and sales.
According to Arangkada Philippines 2010: A Business Perspective, the agricultural sector comprised
19% of GDP in 2009 and provided work for 34% of the labor force.
(Other graphs found in other notes or ebook)
LANDBANK
1.PALAY ALAY SA MAGSASAKA NG LALAWIGAN
2. EXPANDED SURVIVAL AND RECOVERY ASSISTANCE PROGRAM FOR RICE FARMERS
3. RICE FARMER FINANCIAL ASSISTANCE PROGRAM
4. ACCESSIBLE FUNDS FOR DELIVERY TO AGRARIAN REFORM BENEFICIARIES
5. SULONG SAKA PROGRAM
6. SUSTAINABLE AQUACULTURE LENDING PROGRAM
7. GREENHOUSE FARMING SYSTEM FINANCING PROGRAM.
Manufacturing
In economic development, a structural transformation is needed for a nation to increase output. As an
emerging market, we already shifted from low-value agricultural products and services to high-value
manufacturing and exports.
(Other graphs found in other notes or ebook)
THE MACRO ENVIRONMENT
Retail Trade and Service
What is retail?
It is the process of selling consumer goods or services to customers through multiple channels of
distribution to earn a profit.
Retail Trade and Service
Tourism is the fourth biggest contributor to our foreign exchange with average annual earnings of 2.2
Billion dollars (2000 – 2009). We expect to increase our tourist arrivals by 5% to 7% each year. But a big
portion of the arrivals are local tourists.
Inflation is an uninterrupted increase in prices of goods and services for a period of time.
The two causes of inflation: Cost push inflation and Demand-Pull inflation
Cost push inflation comes from a continuous increase in the prices of production cost.
Demand pull inflation comes from an excess demand.
(Other graphs found in other notes or ebook)
INTERNATIONAL TRADE
Imports and Exports
What is International Trade?
Exchanging of goods and services between countries.
International Trade (Exports and Imports)
Trading started with barter where merchants and traders
Exchanged merchandise for other merchandise depending on their value.
Comparative advantage is true for two countries producing or making two products.
Country A has an advantage in making Product 1 and is not efficient in making Product2.
Country B has an advantage in making product 2 and is not efficient in making Product 1.
Table shows two countries producing both Integrated Circuits and Lithium Batteries using 100 units of
resources for each. Their total trade is 150.
Country A’s strength is in producing Integrate Circuits while its weakness is in producing Lithium
Batteries.
Country B’s strength is in producing Lithium Batteries and its weakness is in producing Integrated
Circuits.
Merchandise Export Performance (July 2015)
• In a recent preliminary release of figures from the Philippine Statistics Society,
• Merchandise which saw an increase in export performance includes: electronic products (at 34.6%
increase) and woodcrafts and furniture (at 5.9% increase).
• Export losers, on the other hand, were: other mineral products (at 66.6% decrease), machinery and
transport equipment (at 52.2% decrease), articles and apparel and clothing accessories (37.3 %
decrease), metal components (at 29.1% decrease), aircrafts and ships (at 26% decrease), coconut oil (at
14.7% decrease), ignition wiring sets used in vehicles, aircrafts and ships (at 7.4% decrease), and other
manufactures (at 4.6% decrease). An increase in exports increases our Gross Domestic Product and this
is a very good signal for foreign investors to open their businesses here.
Trading Partners (2015)
• The country’s top trading partner is Japan, getting a 19.3% share of total exports ($1.031 billion),
followed by People’s Republic of China with a 16.3% ($867.94 million), USA including Alaska is 3rd on
the list with 14.8% share ($787.94 million), Hong Kong ranked with 9.8% share ($520.46 million), and
Singapore placed 5th with 5.6% share ($300.85 million).
• Maintaining strong ties with other nations gives us a steady opportunity to export our products which
enables us to experience a positive GDP.
Top 5 Commodity Exports (November 2020)
1. Gold – $2 billion
2.Bananas – $1.8 billion
3. Coconut Oil – $1.3 billion
4.Refined Copper – $1.1 billion
5. Copper Ore – $670 million