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Economic sectors

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Economic sectors
Production can be classified into 4 broad
types of business activity or economic
sectors
(i) Primary- Deals with extraction of raw
materials e.g. farming, fishing,
quarrying
(ii) Secondary- Conversion of raw
materials e.g. computers , baking,
clothing
(iii) Tertiary- provision of
services e.g. banking, teaching,
insurance
(iv) Quaternary- Focused on IT
businesses and information
service providers e.g. research
& development, consultancy
(i) The importance of each sector in a
country’s economic structure changes
over time
(ii) The relative importance of each
sector varies significantly between
different economies.
Refer to page 6
Industrialization
The growing importance of the secondary sector
manufacturing industries in developing countries.
In developed countries there is a decline in the
importance of secondary sector activity and an
increase n the tertiary sector. This is referred to as
de-industrialization.
Activity 1
• Identify which business function is most likely to
undertake the following roles
Role
Setting prices of new products
Recruiting an new production manager
Allocating resources to purchase capital equipment
Deciding on the appropriate levels of stocks for raw materials
Finding out if customers prefer one product design to another
Determining the level and the number of employees the business
needs for future operations
Function
Assignment
• Research on four types of businesses (two local
and two international businesses). Identify the
sectors in which they operate in and their main
activities.
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