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geography unit 2

5 Economic structure

the categories of economic activities Primary Secondary Tertiary Quaternary Quinary
primary economic activities refer to to those activities that involve the use and / or harvesting of resources directly from the earth
primary sector involves raw materials for further processing
primary economic activities rely heavily on on natural resources such as soils, water and minerals
primary activities provide the raw material for further processing within the secondary sector.
primary economic activities include Agriculture Mining Fishing Hunting forestry
the proportion of workers engaged in primary activities is on the decline in both LDCs and MDCs
economic activity the different way in which goods and services are produced, distributed and exchanged
goods and services may be exchanged for other goods and services (VAT) or paid for with money
economists divide the country's economic structure into various sectors in order to define the proportion of the population engaged in each sector.
the physical environment affect agricultural activity because it supplies the local resources available for use; is the source for raw materials
How culture may affect agricultural activity it may affect your food preferences and agriculture activity, the level of efficiency of the industry; government policy and economic factors, such as a market and demands for goods and services
the level of technological development in a country has indications for the production process
government policy may affect the location and types of economic activity in a country
primary activities activities are dependent on the location of the resources to be exploited
There is a heavy dependence on the primary sector in poorly developed countries with limiting linkages
Money earned from the primary sector is less than what could be earn if these are further processed
Products from the primary sector must be transported to other places for further processing to increase their economic value
primary products are usually the raw materials for secondary activities
Secondary Sector involves the processing of raw material and the manufacture of goods
Manufacturing, processing and construction are all secondary economic activities
Secondary economic activities include The production textiles (production of clothes) Brewing and buttoning (production of drinks) Baking Ship building Metal working and smelting Production motor vehicles Manufacturing chemicals
in the secondary sector economic value is added
Raw materials of the secondary sector are either ‘final products’ or part of a ‘final product’
Tertiary Sector is the the service industry, it provides services to the general population and to businesses.
Activities associated with the Tertiary Sector Retail and wholesale sales Retail – selling of 1 product Wholesale – selling of products in bulk Entertainment Provision of food Clerical services Tourism Medical and legal services such as: healthcare, law enforcement, transport
in the Tertiary Sector People are seen as a resource
Services related activities are given a high economic value
Quaternary Sector describes a knowledge based part of the economy that involves intellectual and intangible goods such as: E-commerce and Culture
e-commerce is the use of computers, software and the internet to transport businesses
The most important location factors in the Quaternary Sector are the availability of a communication network and a suitable skilled workforce
Firms engage in activities on a global scale because of advances in telecommunication
activities in the Quaternary Sector Government agencies Libraries Scientific research Education Creation of video games Writing Producing fiction films
The emergence of Quaternary sector reflects a highly specialized and developed economy.
Quinary Sector involves the highest levels of decision making in a society or economy.
Activities in Quinary Sector sector are often considered to be a subset of the quaternary sector, however they involve the creation, rearrangement and interpretation of new and old ideas and information as well as innovation of methods in data interpretation
Quinary economic activities consists of high level decision making for large cooperation or high level scientific research
activities in the Quinary sector include Research Financial innovation (money markets) Defense Top officials in governments and universities Aeronautics industry and space research
As countries become more industrialized, the distinctions between quaternary and quinary economic activities tend to be blurred
Primary economic activities such as agriculture and mining have traditionally played a major role in the economic development of all countries.
As society is developed and modernized, people seek to find more efficient and cost effective ways of producing goods and services
As goods and service move through the production of primary to tertiary and beyond high levels of skill are required in their production, and more people seek to obtain employment in these areas.
Reasons for changes in the relative importance of sectors in LDCs -Diversification -high oil prices of the 1970s
Created by: 868TOYA
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