Classification of Businesses (Copy)
- 3 stages of business activity
- Primary Stage
- Here, activities related to Earth’s natural resources happen
- Agriculture, forestry, fishing, mining, etc.
- Secondary Stage
- Here, we convert raw material into products
- Processing Industry
- Changes raw material to processed goods that are mostly used as input for manufacturing sector
- Manufacturing Industry
- Takes the processed goods and converts them to finalized products
- Assembly Industry
- Take manufactured goods and join them to make even more useful products
- Construction Industry
- Involves constructing
- Tertiary Sector
- Service sector
- Provides services to both the the other two sectors and the consumers
- Services are products that can not be touched, intangible products
- For example, banking, warehousing, education etc.
- Primary Stage
- Importance of Sectors
- Percentage of total workers employed in each sector
- Value of output of goods and services
- In under-developed countries, primary sector is the most important
- In developing countries, the secondary sector starts increasing in importance as industrialization happens
- Industrialization is the increase in the importance of the secondary sector
- In developed countries, secondary sector is at the peak and tertiary sector is growing
- Finally, in post-developed countries deindustrialization happens, which is fall in the importance of secondary sector
- Due to raising wages and costs, secondary industry shifts outside the country to other developing countries with cheaper costs and labor
- Here, the service sector gains maximum importance
- Mixed Economy
- An economy where the government based public sector and private sector (outside government sector) has relatively similar levels of importance
- Many economies becoming mixed.