Introduction to Economic geography

This notes about Introduction to Economic Geography. Which helped to Geography & Environmental Science department students.
In this note I will discourse about:
1) The concept of Economic Geography
2) Historical Vs Modern economic geography

1. Concept of Economic Geography
Some of the other definitions of economic geography are as follows:
“Economic geography is the study of influence exerted on the
economic activities of man by his physical environment and more
specially by the form and structure of the surface of land, the
climatic conditions which prevail upon it, and the place relations in
which its different regions stand to one another.”
—J. McFarlane
“Economic geography has to do with similarities and differences
from place to place in the ways people make a living.”
—R.E. Murphy
“Economic geography is that aspect of the subject which deals with
the influence of the environment – inorganic and organic – on the
activities of man.”
—R.N. Brown
“Economic geography is concerned with problem of making a living,
with world industries, with basic resources and industrial
commodities.”
—E.B. Shaw
“Economic geography is concerned with the distribution of man’s
productive activities over the surface of the earth.”
—N.J.G. Pounds

2. Richard Hartshorne (1899-1992), a prominent American geographer who specialized in
economic and political geography, once said: “The border position of geography between the
natural and the social sciences is fairly generally recognized. Concerned primarily with
differences in the different areas of the world, geography studies both natural and cultural
features. In some universities, it is included among the natural sciences, in other among the
social scientists. In England and America, geographers have particularly cultivated that
portion of their field which leads naturally into economics, i.e. economic geography.”

Economic geography examines the impacts of globalization on people’s livelihoods and jobs
across the globe, and tries to explain the causes and consequences of uneven development
between and within different regions.

Economic geography has been defined by the geographers as the study of human's economic
activities under varying sets of conditions which is associated with production, location,
distribution, consumption, exchange of resources, and spatial organization of economic activities
across the world

What is the scope and the nature of the economic
geography?

Economic Geography is the study of the place, distribution and spatial organization
of economic actions across the world. It represents a traditional subfield of the
discipline of Geography. However, in recent decades, also many economists have
approched the field in ways more typical of the discipline of economics.
Economic Geography has taken a variety of approaches to many different subjects
matters, including but not limited to the place of industries, economic
agglomeration, transportation, economic development, real estate, gentrification,
ethnic economies, gendered economies, core periphery theory, the economics of
urban form, the relationship between environment and economy and globalization.
Economists, such as Paul Krugman and Jeffery Sachs have also analysed many traits
related to economic geography. Krugman has gone so far as to call his application of
spatial thinking in international trade theory the “new economic geography”, which
directly competes with an approach within disciplines of geography that is also called
new economic geography.
Economic geography is sometimes approached as a branch of anthropogeography
that focuses on regional system of human economic activity. Study may focus on
production, exchange, distribution and consumption of item of economic activity.
Allowing parameter of space time and item to vary, a geographer may also examine
the flow of material, commodity, population and information from different parts of
the economic activity system.

3. Thematically economic geography can be divided into these subdisciplines:-
1. Geography of Agriculture
2. Geography of Industries
3. Geography of International Trade
4. Geography of Resources
5. Geography of Transport & Communications
6. Geography of Finance.
With the rise of the New Economy, economic inequalities are rising spatially. The
new economy generally characterized by Globalization, rising of Information and
Communication Technology, growth of knowledge goods, feminization has enabled
economic geographers to study social and spatial division caused by the arising of
New Economy including the emerging digital divide.
Economic Geography: Definition, Scope and Importance

Definition of Economic Geography:
Economic Geography is the study of man and his economic
activities under varying sets of conditions. Geographers are of
different opinions as regarding the definition of the subject.
In fact, different authorities have defined Economic Geography in a
variety of ways but their opinions converge at a common point of
accord, where it means the study of the spatial distribution of man’s
economic activities in relation to its environment, be it physical or
non-physical.

According to Dudley Stamp, Economic Geography “involves
consideration of the geographical and other factors which
influence man’s productivity, but only in limited depths,
so far as they are connected with production and trade.”
Professor E. W. Zimmermann pointed out that, Economic
Geography deals with the economic life of man with relation to
environment.

4. R. S. Thoman in his book ‘The Geography of Economic Activity’ has
remarked, “Economic Geography may be defined as an
enquiry into the production, exchange and consumption
of goods by people in different areas of the world.
Particular emphasis is placed on the location of economic
activity — upon asking just why economic functions are
situated where they are in this world.”
J. MacFarlane describes Economic Geography as the study of
“influence exerted on the economic activity of man by his physical
environment, and more specifically by the form and structure of the
surface of the land, the climatic conditions which prevail upon it
and the spatial relations in which its different regions stand to one
another.”
In the words of Hartshorn and Alexander: “Economic Geography is
the study of the spatial variation on the earth’s surface of activities
related to producing, exchanging and consuming goods and
services. Whenever possible the goal is to develop generalizations
and theories to account for these spatial variations.”
Surpassing all, Chisholmes says that Economic Geography is
presumed to “form some reasonable estimate of the future course of
commercial development,” as determined by geographical factors.

Aims and Scope of Economic Geography:
We may consider the Earth as the abode of Man and its resources
are his legacy. Being most dynamic, man is never satisfied with
mere living. He has always tried to refine his living conditions and

5. environment. He is; never satisfied with the simple food, nature has
provided him; he has devised ways for preparing food.
His shelters are not merely designed for simple protection, but
should also be comfortable in every aspect and must match with the
modern style. In fact, man satisfies not only his physical needs but
also his cultural needs.
These inclinations or intentions of human mind have led to the
exploitation of the earth’s resources in a number of ways down from
days of Paleolithic society till the present time, but always within
certain limits imposed by Nature. One unique feature of man is that,
he understands the laws that govern the functioning of Nature and
makes use of them in his own way of life.
The study of the manner of exploitation of the earth’s resources and
the limits set by physical environment is the proper scope of
Economic Geography. It ‘deals with the productive occupations and
attempts to explain why certain regions are outstanding in the
production and exportation of various articles and why others are
significant in the importation and utilization of these things’.
In this study of interdependence of production, emphasis should be
given upon the degree of human initiative and the nature of physical
forces enacting to shape certain life-patterns. They should be
studied not in isolation but as a comprehensive system of
interaction between man and Nature.
However, it is not content only with the analysis of the present
pattern of productive occupations, it also studies their dynamics, for
global resources change not only in response to increasing

6. knowledge, improved skills and techniques, but also, perhaps more
importantly, in relation to changing socio-political objectives. Thus,
Economic Geography is a much-embracing subject.
It not only aims at the understanding of different natural phenom-
ena but also takes cognizance of racial traits and customs,
advantages of an early start, availability of capital and labour,
accumulated technical knowledge and skilled management, stability
of governments, government aids or hindrances in the form of
tariffs, subsidies or urbanization schemes and so on.
The fundamental differences in the life-styles of various societies in
different parts of the world largely stem from the diversity in the
physical environment, especially climate. Climatic condition differs
quite distinctly from one region to another with the resultant differ-
ences in human needs. People living in cold countries, thus, require
warm clothes; those in hot countries require scanty and light
clothing.
People of monsoonal countries of South-East Asia take rice and fish
as their staple food, those in temperate regions prefer wheat. The
inhabitants of the temperate regions are more energetic and
industrious than those of the warm tropical countries. Such
differences in man’s basic life patterns can be explained only in
terms of their varying natural conditions.
Initially, at the dawn of human civilization, man’s needs were
certainly very limited and so easily supplied by his habitat. Even at
present, a primitive man’s needs remain few. He satisfies his needs
by the articles which are easily obtainable from his immediate

7. surroundings. In contrast, a ‘civilized’ man’s needs are great and
complex. They cannot be satisfied near-at-hand; they need to be
supplemented from far and wide.

In fact, none of the modern countries of the world are self-
sufficient. The civilized man, therefore, depends a lot on the
supplies of far-away regions. This gives rise to commerce. So, we
may comment that the function of Economic Geography is to study
the manner in which trade and commerce are related to the earth
on which they are transacted.
‘Thus, Economic Geography investigates the diversity in basic
resources of the different parts of the world. It tries to evaluate the
effects that differences of physical environment have upon the
utilization of these resources. It studies differences in economic
development in different regions or countries of the world. It
studies transportation, trade routes and trade resulting from this
development and as affected by the physical environment.
The problem of economic resources has become more complex
today with millions starving and unemployed. Such problems are
more acute in the countries and among people who believe in
material rather than spiritual progress. A man born and brought up
under western civilization believes in creature comforts. He tries, by
all means, to improve his life-style which is based on competition.
This competitive attitude gives rise to socio-economic problems.
Economic Geography, therefore, also aims at resolving such
problems by better and efficient utilization of limited resources
through rational, systematic, scientific and long-term planning.

8. Humboldt, a famous 19th century German geographer, remarked
that, ‘the diversified riches of the earth are a vast source of human
enjoyment, and, therefore, man’s highest development requires that
we put these riches into a common world stream of understanding
and use.’ This can only be achieved through the study of Economic
Geography.
H. H. McCarty has aptly remarked:
Economic Geography concerns with the solution of economic
problems.
Hence, the student of Economic Geography must be
trained along four principal lines:
1. Recognize problems and state them in a manner.
2. Develop hypotheses that promise solutions to those problems.
3. Test the adequacy of these hypotheses in providing solutions for
these problems.
4. Relate tested hypotheses to other generalizations in the body of
theory.
In this way Economic Geography contributes to international
understanding. It, undoubtedly, broadens our knowledge and
outlook to a great extent and enables us to acquire a humanistic
view-point. It is essential for the liberalization of our education
system for the future citizens of the modern world, so that, with its
help and under its influence, he might work for true global
understanding between different nations.

9. Importance of the Study of Economic Geography:
The main objective of Economic Geography is, as expounded, to
examine man’s economic achievement in terms of production and
consumption in the light of his environment. To assess the relative
importance of the study of this branch of geography, we have to
evaluate the purposes that it serves.

Economic Geography, fundamentally, maintains a very close rela-
tion with man’s economic welfare as other social sciences do; but
the approach is radically different. Through various stages of
interpretation and analysis it, in the final stage, attempts to point
out the potential for development of a region, occupied by a certain
group of people.
Disparity in the state of economic well-being and level of production
is a common phenomenon. In order to eliminate such disparity,
mobilization of resources is imperative. A careful study of the
situation has to be undertaken before any move is initiated to
mobilize resources to resolve problems. Economic Geography
accomplishes this job.
The above condition may further be elaborated. The idea of the
Damodar Valley Corporation was inherited from the Tennessee
Valley Authority of USA. But the DVC failed to maximize the
relative benefits as the TVA did.
At the time of installation of the multipurpose river valley project in
the Damodar Valley area only the aspects of physical setting were

10. compared, ignoring totally the cultural elements like the level of
technology, industrialization, capital availability etc.
Thus, due to lack of proper cultural setting, the DVC failed to reap
the same degree of benefit as the TVA. Because of latitudinal
locations, climatic conditions in parts of Canada are almost similar
to those of the CIS. The level of technological development also
bears identity.
Under this identical framework, introduction of a more cold-
resisting variety of wheat, developed in either of these countries can
also meet with a similar degree of success. On the other hand, the
early British colonial settlers in Ceylon (presently Sri Lanka)
committed a great mistake in their attempt to introduce oat, barley,
and wheat cultivation in the country while both the climatic as well
as the pedogenic conditions were, by no means, conducive to those
crops.
Drastic transformation of the existing pattern of culture by another
is not scientifically justified. A pattern of culture evolves out of the
dynamic interaction between man and nature. Despite the physical
identity between two countries, culture of one country may not fit
that of another.
Stages of past growth or heritage plays a very decisive role in
shaping the present destiny of man. It is, therefore, important to
note that the factor of heritage, be it natural or cultural or human,
should not be overlooked since any enforced evolution or
imposition of culture may bring disastrous results.

11. Economic Geography makes a comparatively humble and integrated
approach to such problems. It describes a country or region in
terms of its natural, human and cultural environments with relation
to man’s economic way of life. A certain set of geo-economic
conditions led to the development of the Japanese method of
cultivation.
Prior to the introduction of such productive system of agriculture in
India a careful examination of India’s agrarian infrastructure is
necessary; otherwise, mere adoption of such system may not
produce fruitful results.
Economic Geography serves the purpose of identifying the influence
that the environment exerts on man through the preservation of the
multiple geo-economic conditions of different parts of the world.
Any attempt that aims at the balanced development of economy
could not succeed without the complete understanding of the man-
environment inter-relationship.
Without any such knowledge economic relationship is bound to end
up in a fiasco. It is a fait accompli. Economic Geography, therefore,
serves as an essential tool for reducing and finally eliminating world
societies’ disparity gaps by scientific study of their economic re-
sources, modern needs and cultural heritages.

Studying Economic Geography:
Top 4 Approaches

12. Approach # 1. Regional Approach:
This is one of the popular approaches of study of Economic
Geography that attempts to study the economy of the different
geographical regions in a country, a continent or the world as a
whole. ‘The term region’, as Dickinson has put it, ‘is undoubtedly
one of the catch-words of our day among both popular and scientific
writers.’ By region we mean a suitable areal unit with some degree
of homogeneity.
To geography, it is summum bonum. Taylor has rightly
remarked “the concept of a region as a well-integrated
whole, characterized as regards its parts by first class
accessibility to and from the regional capital, and well
balanced as regards its resources, economic development,
commerce, culture and occupations is one that so far has
not spread outside the ranks of the geographers and the
planners.”

So, some authors prefer this regional approach in dealing with the
contents of Economic Geography. A region which is determined
purely on the basis of any geographical phenomenon has certainly
some advantages over a political area which is dynamic in nature.
It should be pointed out clearly that a econo-geographical region
does not necessarily coincide with the geo-political units. But, for
the sake of convenience, economic geographers have often
considered political units for regional studies of geo-economic
conditions as well:

13. “The basic advantage of the regional approach is that it gives a
better and comprehensive knowledge of the different parts of a unit,
their relationship to each other and to the units as a whole. This is
true whether the unit is a country, a continent or the world.”
Approach # 2. Systematic or Commodity Approach:
This approach provides a systematic description and interpretation
of the distributional pattern of individual resources or commodity
(e.g. wheat, rice) or an industry (e.g. cotton textile). As Wildfred
Smith has observed: ‘it analyses the whole sequence of their
development and catches them on their march to progression or
retrogression.’ This systematic or commodity approach is very
popular.
Approach # 3. Activity Approach:
This aims at dividing man’s basic economic activities into suitable
categories — Primary, Secondary and Tertiary.
Primary activity includes activities like agriculture, forestry, fishing,
hunting, collecting and mining. These functions are, virtually,
connected with Nature. Secondary activities include the activities
which depend on the process of converting the primary products
into more usable ones.
All the branches of manufacturing industries are to be considered as
Secondary Activity. Tertiary Activities are generated out of the
necessity to set up a link between primary and secondary activities,
such as transportation, trade etc.

14. Approach # 4. Principles Approach:
In this approach, generalizations are made about man and his
environment on the basis of analysis of facts at a specific time point.
We often consider, as a general rule, ‘Plains invite occupancy,
mountains repel settlement’ or ‘Deserts are regions of privacy.’ Such
generalizations are often harmful. Yet, this approach has an
importance of its own, it enhances the clarity of reasoning and
depth of analysis.
It is quite difficult to make any assortment from the four important
methods discussed and rely on any particular method to evaluate
the economic condition of a country. Regional approach depends
heavily on the regional aspect of Economic Geography; it neither
relates regional diversity of development nor considers the relative
importance of different sectors or commodities.
The other approaches also have their own merits and demerits. Any
single approach is, therefore, incompetent to give a complete
picture of the economy of a country or a region.
Approaches to Study Economic
Geography (3 Approaches)
The approaches to study economic geography can be
divided into three categories:
1. Traditional Approaches
2. Philosophic Approaches
3. Modern Approaches

15. 1. Traditional Approaches:
These are the approaches which are common in geography
and frequently used in economic geography. These are:
(i) Regional Approach,
(ii) Commodity or Topical Approach, and
(iii) Principles Approach.

(i) Regional Approach:
The term ‘region’ is very popular in geographical literature and
refers to a suitable areal unit, e.g., a climatic region, a natural
region, an industrial region, an agricultural region, an
administrative or political region and so on. A region is having
common geo-economic characteristics, a resource base, economic
development and to some extent similarities in culture and
demographic structure.
Therefore, several geographers have chosen this region approach in
economic geography. An advantage of the regional approach is that
it gives a better knowledge of different parts of a unit, their
relationship to each other and to the unit as a whole.
(ii) Commodity or Topical Approach:
This approach provides a systematic description and interpretation
of the world distribution pattern of a commodity (wheat), or an
industry (cotton textile industry), or a human occupation (fishing).
It analyses the whole sequence of their development, and catches
them on their march to progression or retrogression.

16. This topical or commodity approach is very popular. The systematic
economic geography, if we choose this appellation, is the legitimate
child of this very conception.
(iii) Principles Approach:
In every sphere of human activity certain fundamental truths or
principles hold good: indeed, they provide the rock-foundations
upon which the varied and varying superstructures rest. The
concepts of Economic Geography are through and through
permeated with the same spirit whether we talk of Regional
Economic Geography or Systematic Economic Geography.
Economic regions are based on certain fundamental principles; and
similar is the case with the extraction of minerals (coals, iron ore or
diamond), or the localisation of industries (metal fabricating or
textile industries), or the exchange of commodities.
At least four principles, viz., the principle of genomics relationship,
the principle of optimum location, the principle of regional
specialisation and the principle of geonomic succession appear to be
valid generalisations under all conditions.
That is why it seems to be a sound proposition if we enunciate
certain fundamental principles in the discussion of geonomic
problems. This approach has two distinct advantages: firstly, it
provides an analytical method which promotes critical acumen; and
secondly, it does away with parrot learning of factual material.

17. 2. Philosophic Approaches:
The 1990s research in economic geography may be
characterised by three major philosophic approaches.
These are:
(i) Positivism,
(ii) Structuralism, and
(iii) Humanism.
(i) Positivism:
It employs the scientific method to interpret and understand issues
in economic geography. The scientific approach is based on empiri-
cally verifiable and commonly agreed upon evidence through
replication of analytical results.
It involves informed hypothesis testing leading to empirical
generalisations and law-like statements. GIS (Group Information
System) is central to analytical and positivist approaches to
geography in general and with especially numerous applications in
economic geography.
(ii) Structuralism:
In economic geography, structuralism, posits that what we see in
the world does not reveal the causes of what we see. The structure of
the economy cannot be directly observed, and we should therefore,
develop ideas and theories that will help us understand what we see
and experience. While there is no way to directly test such theories,
we can debate about them to achieve better understanding.

18. (iii) Humanism:
It is a part of critique of positivism. Humanistic economic
geographers object to both positivism and structuralism on the
basis that these approaches view people as responding mechanically
to spatial and structural forces.
3. Modern Approaches:
In economic geography, three approaches have been
developed during last three decades that can be
considered as modern approaches. These are:
(i) System analysis,
(ii) Behavioural approach, and
(iii) Institutional approach.
(i) System Analysis:
A system is a set of identified elements so related that together they
form a complex whole. System analysis is an approach or
methodology rather than a philosophy or scientific paradigm.
Economic geographers utilise the system concept in order to better
understand the component elements of some part of reality, and the
relations between them. The use of such a conception stresses the
study of the whole as well as of the parts. Thus, the world economy
can be regarded as a set of interlocking parts and sub-systems.
(ii) Behavioural Approach:
Incorporation of the behavioural science outlook in geography is
known as behavlouralism. In economic geography behavioural
approach now has become very common. Economic geographers
study the overall results of economically-oriented behaviour as they

19. appear in the landscape. In economic geography, the study of
decision-making process is an important aspect.
The type of decision-making, which is the concern of economic
geography, can be classified as problem-solving or behavioural
decision-making with such results as new locations for shops, farms
or factories.
Similarly, the studies of consumer behaviour, movement or trip
behaviour, etc. are considered to be important. The decision-
making process and other aspects of behavioural analysis.
(iii) Institutional Approach:
Ron Martin (2003) has emphasised the need of institutional
approach in economic geography. He stated that the form and
evolution of the economic landscape cannot be fully understood
without giving due attention to the various social institutions on
which economic activity depends and through which it is shaped.
In other words, economic activity is socially and institutionally
situated and it cannot be explained by reference to atomistic
individual motives alone, but has to be understood as enmeshed in
wider structures of social, economic and political rules, procedures
and conventions. It is the role of these systems, both formal and
informal, which is the focus of an institutional approach to
economic geography.
What is economic geography, and what is its
importance?
Economic geography means the study of the location,distribution of economic
activities spatial in the different regions of the world . It represents a traditional
subfield of the discipline of geography.

20. It allows researchers to understand the structure of the area's economy and its
economic relationship with other areas around the world.
It can be more of discipline of economics than the geography
IMPORTANCE:
1. One can study easily about the economic activities of a particular region
2. It is easy to find out the best way to set up an economic activity in a suitable
region
3. Identification of geographical benefits in terms of an economic activity can
be made easier through this i.e. India receives large benefit of sunlight than
any other countries in Asia which helps to set up a solar power panels
manufacturing industry
4. From which place it is most beneficial to get the maximum resources can be
surveyed through it
Geographical location played a vital role in economic activities of the region through
which one can plan which type of business is suitable or not. So, it can be said that
economic geography is oriented with economics .
Difference between E.G & C.G
(PDF Follow)
The study matter of economic geography and commercial geography is almost
same. But these two are different from each other. The difference is in their
approaches. The environment and human occupations are considered
fromeconomic, point of view in economic geography and trade point of view
incommercial geography.



Major Economic Activity

Economics Activities

Economic activity is the activity of making, providing,
purchasing, or selling goods or services. Any action that

21. involves producing, distributing, or consuming products
or services is an economic activity.
Economic activities exist at all levels within a society.
Additionally, any activities involving money or the
exchange of products or services are economic
activities.
According to Raich, “Economic activity is the
production, distribution, and consumption of
commodities.”

This definition was criticized and rephrased by O’
Connor- “Any economic activity involving the
production, distribution, and consumption of
commodities, depending on the level of generality.





Classification of economic activities:
In terms of the national economy, a basic
classification of economic sectors, broken into four
basic sectors is used:
1. Primary Sector (Raw Materials)
2. Secondary Sector (Manufacturing and Industry)
3. Tertiary Sector (Service Sector)
4. Quaternary Sector (Knowledge Sector)
5. Quinary Sector (Decision Making Sector)

22. 1. Primary Sector:
Simply speaking primary sector refers to that sector
of the economy which uses natural resource to
produce goods. Natural factors play crucial role in
the production process. Agriculture and allied
activities like mining, fishery, forestry, dairy and
poultry are included in this sector. Primary sector
dominates in underdeveloped countries.

2. Secondary Sector:
Secondary sector is also called as manufacturing
sector or industrial sector. The primary sector
cannot satisfy all human requirements.
We need certain industrial goods to make our lives
comfortable. The sector which transforms one
physical good into another is called secondary sector.
The manufacturing, electricity, gas, water supply etc.
are included in this sector.

3. Tertiary Sector:
The service sector of the economy is called tertiary
sector. Services of various kinds like education,
health, banking, insurance, trade and transport are
included in this sector. In advanced countries, the
contribution of tertiary sector to national income is
the highest.

23. 4. Quaternary Sector: The quaternary sector of the
economy is a way to describe a knowledge-based part
of the economy, which typically includes services
such as information technology, information-
generation and -sharing, media, and research and
development, as well as knowledge-based services like
consultation, education, financial planning, blogging,
and designing.







5. Quinary Sector
Some consider there to be a branch of the
quaternary sector called the quinary sector, which
includes the highest levels of decision making in a
society or economy. This sector would include the top
executives or officials in such fields as government,
science, universities, nonprofit, healthcare, culture,
and the media.

24. Features of Primary Economic Activity:
i. Primary economic activity involves taking natural
resources from the land or the sea.
ii. Primary economic sectors are-
Farming
Fishing
Forestry
Mining
Quarrying
iii. In developing countries, most people (75%
average) work in primary sectors.
iv. In developed countries, very few people (10%
average) work in primary sectors.




v. Natural sources can be 2 types-

1. Renewable resources (resources that can be used
over and over again. With careful management, they will
not run out)
2. Non-renewable resources (can only be used once.
Each time such resources are used less of that resource
is left for the future. Nonrenewable resources will
eventually run out)
vi. People who are involved in primary economic
activity is called red collar worker.

25. vii. Frequency of primary economic activity indicates
the initial stage of economic development of a
country.
viii. It has a great role in earning foreign remittance.

Features of Secondary Economic Activity:
i. The secondary sector involves the transformation
of raw materials into goods.
ii. Secondary activity is mainly associated with
manufacturing and industry.
iii. Example of secondary sectors are- textile,
leather industry, ceramic industry, cash crop
industry etc.
iv. In developing countries, very few people (5%
average) work in secondary sectors.
v. In developed countries, moderate number people
(25% average) work in secondary sectors.
vi. It includes the processing of raw materials.
vii. Secondary activity ultimately leads to
industrialization.

viii. Frequency of secondary activity indicates the
median period of economic development in a state.
ix. When an economy moves into the second sector,
new farm techniques are used, and industrialization
changed how goods can be transformed, distributed
and sold.
x. It has a great role in earning foreign remittance.

26. Features of Tertiary Economic Activity:
i. The tertiary sector involves the supplying of
services to consumers and businesses.
ii. This sector provides services to the general
population and businesses, including retail, sales,
transportation and restaurants.
iii.The types of workers in this sector include
restaurant bartenders, accountants, pilots etc.
iv. Frequency of tertiary activity indicates the
matured period of economic development in a state.
v. In developing countries, few people (10% average)
work in tertiary sectors.
vi. In developed countries, most people (65% average)
work in tertiary sectors.
vii. The tertiary sector indicates a competition in
international business sector.

Features of Quaternary Economic Activity:
i. It is a knowledge based sectors.
ii. Computing knowledge, ICT expertise, scientific
research etc. are included in this sector.
iii. The developing countries have almost 1 or less
than 1 percentile of this sector.
iv. The developed countries have a notable
percentage of quaternary sectors.
v. It indicates a permanent stability and richness of
economy of a country.

27. vi. Decision making and planning activities are
enhanced in this sector.
vii. The development of this sector leads to quinary
economic activity which is based on decision making
actions.