Classification Of Businesses: Economic Sectors In Terms Of Primary, Secondary And Tertiary Sectors (Copy)
Cheat Sheet: 1.2.1 Economic Sectors (Primary, Secondary, Tertiary)
| Sector | Definition | Examples | Key Points |
|---|---|---|---|
| Primary | Extraction of natural resources | Farming, fishing, mining, forestry | Provides raw materials |
| Secondary | Manufacturing/processing of raw materials into goods | Car manufacturing, textile production, food processing | Adds value by turning inputs → outputs |
| Tertiary | Providing services | Banking, transport, retail, healthcare | Growing fastest in developed economies |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Basis of Classification
- By activity: What the business does (extract, produce, or serve)
- By industry: Sector in which resources are used
| Country Type | Sector Dominance | Example | Explanation |
|---|---|---|---|
| Developing economy | Primary sector dominant | Agriculture in Pakistan, mining in Nigeria | Large % of population in farming/extraction |
| Industrialising economy | Secondary sector growing | Manufacturing in China, India | Industrialisation = factory jobs + exports |
| Developed economy | Tertiary sector dominant | Services in UK/USA | Shift to knowledge-based & service jobs |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Reasons for Changing Importance
- Technology → mechanisation reduces need for labour in primary sector
- Higher incomes → more demand for services (tertiary)
- Globalisation → manufacturing shifts to lower-cost economies
- Government policy → investment in education, services, industry changes structure
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Quick Revision Bullets
- Primary = raw materials → Secondary = production → Tertiary = services
- Developing countries = primary heavy, Developed = tertiary heavy
- Structural change is natural as economies grow
- Services dominate modern economies due to technology + higher living standards