1 SKH Lam Woo Memorial Secondary School Form 3 E.P.A. 1 The Economic Structure of Hong Kong Types of production What is economic development? Before answering this question, you have to understand the following economic concepts first: Primary production (初級生產) Primary production refers to all production activities that include the extraction of natural resources (開採天然資源). For example, farming, fishing and mining (開礦) are primary production. Secondary production (二級生產) Secondary production refers to activities that turn raw materials (原料) into semi-manufactured products (半製成品) or finished products. For example, textile industry (製衣業), construction (建築) and manufacturing industries are secondary industries. Tertiary production (三級生產) Tertiary production refers to all production activities that provide services. For example, banking and retailing (零售業) are tertiary production. 2 The interdependent relationship between three types of production (三種生產的互相依賴關係) Primary, secondary and tertiary industries are interdependent (互相依賴), and each has its own importance. For example, the farming and fishing industries provide food for us. Also, primary production supplies raw materials for the secondary production. Secondary production provides all kinds of goods, tools and equipment. Tertiary production delivers (運送) these goods to the market for sale. Therefore, every society should have all these three types of production. The relative importance of each type of production The following pie charts show the total value of output and the number of people working in the three types of production. By referring to that information, we can decide the relative importance of the three types of production. The importance of primary production In Hong Kong, primary production mainly includes farming, fishing, mining and quarrying. Since Hong Kong is lacking in natural resources, primary production is relatively unimportance. It is the smallest sector in terms of the total value of output and employment. The importance of secondary production Secondary production includes manufacturing industries, construction and the supply of utilities like water, electricity and gas. Since the 1980s, the 3 percentage of the total value of output and employment for the secondary production has been declining. It is because of the expansion of the service industry and the shifting of manufacturing industries to the Mainland. The importance of tertiary production Hong Kong is an international financial center and a popular tourist destination. These have enhanced the development of Hong Kong’s service industries such as transportation, telecommunications (電訊業), finance and insurance. As a result, the tertiary industry becomes more and more importance. Today, Hong Kong is one of the largest service providers in the world. Activity In the last ten years, Hong Kong has experienced (經歷) a change in its economic structure. Tertiary production contributes (貢獻) the most the development of the economy. Ask your parents to find out which kinds of production do they belong to. Types Parents Mother Father Total Primary Secondary Tertiary production production production 4 Summary 1. We may classify all economic activities into three types of production: 2. The interdependent relationship between the three types production: 3. The development of different types of production in Hong Kong and their relative importance: Glossary Primary production (初級生產) extraction of natural resources (開採天然資源) mining (開礦) Secondary production (二級生產) raw materials (原料) semi-manufactured products (半製成品) textile industry (製衣業) construction (建築) Tertiary production (三級生產) retailing (零售業) interdependent (互相依賴), delivers (運送) telecommunications (電訊業), experienced (經歷) contributes (貢獻) of