Factors of Production

Sectors 3 types of business sectors 0 Primary 0 Secondary 0 Tertiary As economies develop in countries, business sectors tend to gravitate from primary to tertiary changing the economic structures of countries. Primary raw materials and natural resources are extracted Primary Sector First stage of the production process Extraction of natural resources: Mining Fishing Forestry Agricultural Renewable vs..

Nonrenewable Secondary Sector Secondary output from primary is processed into manufactured goods Secondary Second stage of production Products from primary stage are processed into manufactured goods Consumer goods Producer goods Tertiary Sector Tertiary production of service rather than goods Tertiary Production/Provision of services rather than goods Provide support to the first 2 stages of production Can provide services to the public or the state Chains of Production Interdependence between industry sectors Relationship to Development As an economy/country develops, more of the workforce migrates to the higher sector In China there has been a steady migration of workers from agriculture to manufacturing As all the factories moved from Hong Kong to China, there has been a transition to services economy.

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Activity In a groups of 3 Select any product in your household Identify ALL the types of companies involved in chain of production For each company Classify the sector of the company Determine the factors of production and outputs Changes in Economic Structure Industrialization The growing importance of the secondary sector on the economy. ? When did this occur in our country ? What was the impact on our society ? What benefits have we enjoyed Did you say: Increase standard of living Reduced imports into our country and increased exports to other countries More Jobs More profits to companies, so more taxes to governments Raw materials worth more to other countries because they have been processed What are potential problems? Creates depopulation in rural areas as people gravitate towards Jobs in manufacturing Stresses on farming and agriculture Difficult to find enough qualified workers Imports may increase to satisfy needs of raw materials Pollution