Primary sector of industry extract and uses the natural resources of earth to produce raw materials used by other businesses.
eg: woodcutter
Secondary sector of industry manufactures goods using raw materials provided by the primary sector
eg: furniture maker
Tertiary sector of industry provides services to consumers and the other sectors of industry
eg: retailer
De-industrialisation occurs when there is a decline in the importance of the secondary, manufacturing sector of industry in a country
Tertiary sector in the UK now employs over 75% of all workers, many lost jobs s factories closed and have found it difficult to obtain work in the service industries.
Reasons why there are chances in the relative importance of the three sectors over time:
Sources of primary product become depleted
Most developed economies are losing competitiveness in manufacturing to newly industrialised countries
As a country's total wealth increase and living standards rise, consumer tends to spend their income on service ( travel ) than on manufacture products
Mixed economy has both private and public sector
Private sector:
business not own by the government
where business own by private individuals and runs the business ventures
main aim is to make profit
Public sector:
government own and control the business
aim is to provide essential public goods and service in order to increase the welfare of the citizens
funded by citizens tax
Privatisation: when government sell the public sector businesses ( owned and control by the government ) to private sector businesses
This is because private business are more efficient than public sector businesses since there main objective is to earn profit.
Also private sector invested more capital into the business
However
private sector might make workers unemployed as they need to cut off cost
They are less likely to focus on social objectives
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