Types of Economic Activity Essay Example
Types of economic activities
1. Primary industry * First stage in the production process * Major employer in poor countries * Involves the exploitation of natural resources * Includes activities such as agriculture, mining, fishing and forestry * Products are of low economic value * Products are either food for human consumption (e.g. fish) or raw materials for other economic activities (e.g. rubber for the tyre industry) 2. Secondary industry * Second stage in the production process * Also called the manufacturing industry * Involves processing raw materials from the primary industry to add value to them * Products are of higher economic value than those of the primary industry * Output is either a final product (e.g. computer) or a part of the final product (e.g. microchip for the computer) 3. Tertiary industry * Involves the provision of services to companies or final consumers * Includes the financial services, health care, education and tourism sectors * Contributes more to the economy as a country becomes more developed * People are the main resource * Output is of high economic value
Economic development in the Caribbean * The capital city is usually the single prosperous core while the hinterlands are less prosperous * Large and successful industries tend to be located in and around the capital * The rural areas will have fewer and less successful or even declining industries * Governments have set up industrial estates in poorer areas to reduce the income disparity * Disparities in economic wealth between Caribbean countries have made integration difficult * Organisation of Eastern Caribbean States (OECS) is a small group formed within the CARICOM to help with the economic development of member states
Measuring economic development 1. Gross Domestic Product (GDP) * Total market value of goods
1. Primary industry * First stage in the production process * Major employer in poor countries * Involves the exploitation of natural resources * Includes activities such as agriculture, mining, fishing and forestry * Products are of low economic value * Products are either food for human consumption (e.g. fish) or raw materials for other economic activities (e.g. rubber for the tyre industry) 2. Secondary industry * Second stage in the production process * Also called the manufacturing industry * Involves processing raw materials from the primary industry to add value to them * Products are of higher economic value than those of the primary industry * Output is either a final product (e.g. computer) or a part of the final product (e.g. microchip for the computer) 3. Tertiary industry * Involves the provision of services to companies or final consumers * Includes the financial services, health care, education and tourism sectors * Contributes more to the economy as a country becomes more developed * People are the main resource * Output is of high economic value
Economic development in the Caribbean * The capital city is usually the single prosperous core while the hinterlands are less prosperous * Large and successful industries tend to be located in and around the capital * The rural areas will have fewer and less successful or even declining industries * Governments have set up industrial estates in poorer areas to reduce the income disparity * Disparities in economic wealth between Caribbean countries have made integration difficult * Organisation of Eastern Caribbean States (OECS) is a small group formed within the CARICOM to help with the economic development of member states
Measuring economic development 1. Gross Domestic Product (GDP) * Total market value of goods