5 Economic structure
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| the categories of economic activities | Primary
Secondary
Tertiary
Quaternary
Quinary
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| primary economic activities refer to | to those activities that involve the use and / or harvesting of resources directly from the earth
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| primary sector involves | raw materials for further processing
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| primary economic activities rely heavily on | on natural resources such as soils, water and minerals
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| primary activities provide the | raw material for further processing within the secondary sector.
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| primary economic activities include | Agriculture
Mining
Fishing
Hunting
forestry
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| the proportion of workers engaged in primary activities is on the decline in | both LDCs and MDCs
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| economic activity | the different way in which goods and services are produced, distributed and exchanged
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| goods and services may be | exchanged for other goods and services (VAT) or paid for with money
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| economists divide the country's | economic structure into various sectors in order to define the proportion of the population engaged in each sector.
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| the physical environment affect agricultural activity because | it supplies the local resources available for use; is the source for raw materials
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| 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
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| the level of technological development in a country has indications for | the production process
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| government policy may affect | the location and types of economic activity in a country
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| primary activities activities are dependent on | the location of the resources to be exploited
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| There is a heavy dependence on the primary sector in | poorly developed countries with limiting linkages
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| Money earned from the primary sector is less than | what could be earn if these are further processed
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| Products from the primary sector must be | transported to other places for further processing to increase their economic value
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| primary products are usually | the raw materials for secondary activities
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| Secondary Sector involves | the processing of raw material and the manufacture of goods
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| Manufacturing, processing and construction are | all secondary economic activities
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| 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
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| in the secondary sector economic value is | added
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| Raw materials of the secondary sector are | either ‘final products’ or part of a ‘final product’
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| Tertiary Sector is the | the service industry, it provides services to the general population and to businesses.
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| 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
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| in the Tertiary Sector People are seen as | a resource
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| Services related activities are given | a high economic value
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| Quaternary Sector describes | a knowledge based part of the economy that involves intellectual and intangible goods such as: E-commerce and Culture
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| e-commerce is the use of | computers, software and the internet to transport businesses
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| The most important location factors in the Quaternary Sector are | the availability of a communication network and
a suitable skilled workforce
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| Firms engage in activities on a global scale because of | advances in telecommunication
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| activities in the Quaternary Sector | Government agencies
Libraries
Scientific research
Education
Creation of video games
Writing
Producing fiction films
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| The emergence of Quaternary sector reflects | a highly specialized and developed economy.
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| Quinary Sector involves | the highest levels of decision making in a society or economy.
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| 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
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| Quinary economic activities consists of | high level decision making for large cooperation or high level scientific research
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| activities in the Quinary sector include | Research
Financial innovation (money markets)
Defense
Top officials in governments and universities
Aeronautics industry and space research
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| As countries become more industrialized, | the distinctions between quaternary and quinary economic activities tend to be blurred
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| Primary economic activities such as agriculture and mining have traditionally | played a major role in the economic development of all countries.
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| As society is developed and modernized, | people seek to find more efficient and cost effective ways of producing goods and services
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| 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.
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| Reasons for changes in the relative importance of sectors in LDCs | -Diversification
-high oil prices of the 1970s
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