Classification of
Classification of
A presentation by Hasini, Jeevana, Amrutha and Dhanvi
Business
Stage 1- PRIMARY SECTOR:
This stage involves the Earth’s
natural resources. Activities in
the primary sector of industry
include farming, fishing, forestry
and the extraction of natural
materials, such as oil and copper
ore.
Stage 2-SECONDARY SECTOR:
This stage involves taking the
materials and resources provided
by the primary sector and
converting them into
manufactured or processed
goods. Activities in the secondary
sector of industry include
building and construction, aircraft
and car manufacturing, computer
assembly, bread baking.
Stage 3- TERTIARY SECTOR:
This stage involves providing
services to both consumers and
other businesses. Activities in the
tertiary sector of industry include
transport, banking, retail,
insurance, hotels and
hairdressing.
Relative importance of economic
sectors
The three sectors are usually compared by:
• Percentage of the country’s total number of workers
employed in each sector
• Value of output of goods and services and the
proportion this is of total national output
Blue-Developed countries
or cities
Orange-Developing
Changes in sector
importance
The decline in the manufacturing/secondary
sector of industry is called de-industrialisation.
De-industrialization happens when the
importance of the secondary sector declines.
Sources of some primary resources become
depleted.
Developed countries are losing competitiveness.
Sources of some primary resources
become depleted.
Total wealth and living standards increase.
Developed countries are losing competitiveness.
Sources of some primary resources
become depleted.
Mixed economy
Total wealth and living standards increase.
Developed countries are losing competitiveness.
Sources of some primary resources
become depleted.
Mixed economy
Mixed economy
A mixed economy has both the private and public sector.
• Private sector: not owned by the government. They
make their own decisions and their main objective is
profit.
• Public sector: Owned by the government. The
government makes all the decisions and their main
objective is service. Some services are provided free of
charge to the consumer. The money used to provide
such services comes from the taxpayer, not the user.
Businesses usually in the public
sector
1. Education
2. Health
3. Defense
4. Water supply
5. Electricity supply
6. Public transport
Thank You
Recent changes to mixed
economies
Its often said that private sector businesses are more
productive than businesses in the public sector. This is because
of the difference in their objectives. Privatized businesses are
able to invest more capital than the government can afford.
Competition between the private sector businesses can help
improve product quality.
Businesses in the private sector may make more workers
unemployed in order to cut costs. They are less likely to focus
on social objectives.
Thank You
