Types of Industry for economics stu.pptx

For Economic Students

1. App l ied Economics Types of Industries Prepared by : Gino G. Lacandula Jupi National High School Gubat , Sorsogon

2. Objectives You will learn To classify industries according to the four different types: primary, secondary, tertiary and quaternary

3. Agribusiness Agriculture – has been defined as the science and art of cultivating plants and producing livestock.

4. In the 1970s, 28% of the country’s Gross Domestic Product (GDP) has been contributed by agriculture. After more than four decades, its share in the economy GDP has slid down to only 11% from 54%.

5. Agriculture in the Philippines employs 30% of the Filipino workforce as of 2013, according to World Bank statistics. Agriculture accounts for 12% of Filipino GDP as of 2013, according to the World Bank.

6. As the producer of food grains it devotes more than 50% of farm lands in the planting of rice and corn. Aside from this, the agricultural sector is also the source of raw materials supplied to the industrial sector as well as the producer of export products for the world market.

7. a lso There are p r od u c ti o n of other fruits and vegetables bu s in ess op p o r t u ni ti es i n the a n d varieties of rice and corn that cater to the changing tastes of Filipino consumers. These crops are rice, corn, coconut, sugarcane, mango, camote, tomato, abaca, calamansi, among others.

8. The long coastlines of the Philippines are endowed with marine resources for fisher folks to harness for fish production. But aside from commercial fishing for seafood production, there p r o spec t s and i n munic i pa l fis h in g , c a g e/pen o pe r a ti o ns are business aquaculture, o pportun iti e s .

9. What is an Industry? Industry broadly refers to any form of economic activity that has the purpose of making money.

10. Types of Industries Primary industries Directly involved with natural resources. Examples include fishing, farming, etc. Secondary industries Involves processing and transforming of raw materials obtained from primary activities or that of packaging manufactured goods Tertiary industries Involves selling and exchanging of goods and services Quaternary industries Involves handling and processing of information and knowledge

11. Primary industries are directly involved with natural resources. The following are some examples of primary industries: Primary Industries https:// www.google.com/url? sa=i&source=images&cd=&ved=2ahUKEwjNjc3qpJjlAhV_7XMBHXSRBzoQjRx6BAgBEAQ&url=http%3A%2F %2Fstream.aljazeera.com%2Fstory%2F201506092339-0024813&psig=AOvVaw3JC- jSmU10Cc3GeqJeab9w&ust=1571023482887967 Fishing industry Involves the catching of sea produce from oceans, rivers, seas and lakes for sale. Some examples of produce are fish, prawns, crabs and mussels.

12. Primary Industries Farming industry Involves the cultivation of crops and rearing of animals for sale . Some examples include vegetable farming, cattle ranching and poultry rearing. https:// www.google.com/url? sa=i&source=images&cd=&ved=2ahUKEwjg18DIp5jlAhU86nMBHc SlBbIQjRx6BAgBEAQ&url=http%3A%2F %2Fwww.filipinopoultry.com%2Findex.php % 2 F 2016 % 2 F 05 % 2 F 2 1 % 2 F l a y e r - f arm i n g - i n- t h e -ph i l i pp i nes- achieving-optimal-lighting % 2 F &p s i g = AO v V aw 2 V G b A n N 3 8 R S 2 x pC R I U B X L t&us t = 1571024212 4 08321 https:// www.google.com/url? sa=i&source=images&cd=&ved=2ahUKEwiExvSaqJjlAhVkguYKHfnIC bcQjRx6BAgBEAQ&url=https%3A%2F%2F www.youtube.com %2Fwatch%3Fv%3D4Euc8cT- UhA&psig=AOvVaw2VGbAnN38RS2xpCRIUBXLt&ust=157102421240 8321

13. For animal production , there are two types that can be pursued: Livestock and poultry production. This can also a c tiv i ties th a t c a n u n de r t a k e c o m me r cial p r o v ide i n c o me a n d employment opportunities to poor household.

14. Primary Industries https:// www.google.com/url? sa=i&source=images&cd=&ved=2ahUKEwj42ef7qJjlAhW0gu YKHZBVAuIQjRx6BAgBEAQ&url=https%3A%2F %2Fwww.newscientist.com%2Farticle%2F2215913-logging- study-reveals-huge-hidden-emissions-of-the-forestry- industry%2F&psig=AOvVaw2HzLapi1- bL9T9X_WKzpB7&ust=1571024607705666 Forestry industry Involves the felling of trees in forests for resources, especially timber. Timber is used for shipbuilding, paper-making and construction work.

15. For forestry resources the main source of income is logging. But because of the environmental implications of this type of agribusiness the commercial opportunities are becoming limited with the implementation of the log ban.

16. Primary Industry Mining industry Involves the extraction of minerals , such as iron and diamonds. Also involves the extraction of fossil fuels, such as petroleum and natural gas. https:// www.google.com/url? sa=i&source=images&cd=&ved=2ahUKEwiQ58aCqpjlAhXc73MBHYqMD8YQjRx6BAgBEAQ&url=https%3A%2F %2Fwww.nozominetworks.com%2Fblog%2Fthe-three-most-common-mining-industry-cyber-threats %2F&psig=AOvVaw3V5JYuhlCAQYpQIJdrtiMd&ust=1571024874762753

17. • Secondary industries involve the processing and transforming of raw materials obtained from primary activities or packaging of manufactured goods. • They are also known as ‘ manufacturing industries’. Secondary Industries

18. Industrial sector and Manufacturing industries The industrial sector is composed of manufaturing, construction, mining, and utilities, which includes electricity, gas and water. https:// www.google.com/url? sa=i&source=images&cd=&ved=2ahUKEwj0x4XBvZjlAhW zH7cAHT_aBeYQjRx6BAgBEAQ&url=https%3A%2F %2Fwww.choosenj.com%2Fkey-industries %2Fmanufacturing %2F&psig=AOvVaw0aDprCyEUnGA0i8KbAtvK5&ust=1571 030128817781 https:// www.google.com/url? sa=i&source=images&cd=&ved=2ahUKEwjyw87GvpjlAhVo73MBHeOXBaAQjRx 6BAgBEAQ&url=https%3A%2F%2Funsplash.com%2Fs%2Fphotos %2Fconstruction&psig=AOvVaw3GEWigXzegy1CmauezXJbu&ust=15710303678 38113 https:// www.google.com/url? sa=i&source=images&cd=&ved=2ahUKEwi6zuKBv5jlAhVRIbcAHdmODekQ jRx6BAgBEAQ&url=https%3A%2F%2F www.vox.com %2F2016%2F6%2F29%2F12038074%2Fpower-utilities- suck&psig=AOvVaw0xBeO0u8f_S4MOy3dI2fE5&ust=1571030529630386

19. More than 70% of production of the sector comes from manufacturing industries. Because of the prominence of the manufacturing sector, there are numerous subsectors within this type o f i ndu s t r y t h a t c a n o f f e r busine ss opportunities to budding entrepreneurs.

20. Secondary Industries Primary industry Logging Secondary industry Processed into paper Secondary industry Shipbuilding Secondary industry Construction

21. Secondary Industries • Primary and secondary industries are closely linked together because they depend on each other for future growth. Secondary industries can be described as light industries or heavy industries, mainly based on the amount of raw materials used and the nature of goods produced.

22. Light and Heavy Industries • Light industries use few raw materials to produce relatively lightweight goods. • Heavy industries use bulky machinery and large quantities of raw materials to produce large and heavy goods. E.g. M a nu f act u r e of garments E.g. Steel i n du st r i es

23. Labour-intensive and Capital-intensive Industries • Labour refers to people in an industry, while capital refers to money used to set up and maintain a business. Labour-intensive industries and capital-intensive industries are differentiated by the number of people employed and amount of capital used in the industry. • A shoe factory (A labour- intensive industry) Oil refinery (A capital- intensive industry )

24. Manufacturing establishments can be classified as: Shop/factory Bakery Food establishments Distillery Refinery Cannery Abattoir B r e w e r y Foundry Tannery

25. Tertiary Industries • Tertiary industries are also known as ‘service industries’. Some examples include banking, education, tourism, entertainment, transportation, and sale or distribution of food. Tertiary industries may be classified as those providing basic services (e.g. medical services at a polyclinic) and those providing premium services (e.g. specialist clinics and private hospitals).

26. Tertiary Industry Service Sector and Retail Services Service are products that are consumed when they are produced.

27. r ap i d i mp r o v e m e n t s of i n With the i n f o r m a tio n a n d communication technology, services are increasingly traded internationally through various modes of supply including cross border transactions, consumption abroad, commercial presence, and movement of natural persons.

28. Services cover a host of industries including wholesale and retail industries, transportation, communication, and storage including warehousing, hotels and restaurants, financial intermediation, real estate and business activities, education, and other social services, private and government services.

29. Quaternary Industries • • Quaternary industries involve handling and processing of information and knowledge (e.g. research and development (R&D), education or consultancy) Companies in the other types of industries may engage the services of quaternary industries (e.g. a manufacturing company may engage a consultancy firm to seek advice on cost cutting, market research, etc) Quaternary industries also work towards developing new products and services to meet the needs of consumers (e.g. R&D in a pharmaceutical company to develop new drugs and medicine)

30. Industrialisation of a Country • Industrialisation is the process whereby the machine-assisted production of goods develops greater importance in an economy or a country. Industrialisation is often synonymous with the rapid growth of the secondary industries or manufacturing industries. •

31. • International Trade

32. An export in international trade is a good or service produced in one country that is bought by someone in another country. An import is a good or service brought into one country from another.