Business M2 Sectors

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  • Topic: Tertiary sector of the economy, Three-sector hypothesis, Industry
  • Pages : 1 (325 words )
  • Download(s) : 92
  • Published : January 27, 2013
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The primary sector is declining because it is running out of natural materials such as oil for example, this could mean that people would start to lose their jobs in this sector and it would be increasing growth in the tertiary sector. Although the secondary sector is also declining. These two sectors are declining due to a few reasons such as it is cheaper to import resources and materials such as coal, darming products etc, and there is an increase on the use of technology. The primary sector is focused extracting raw materials. The reason that this sector is declining is because businesses are stuggling to find the materials to extract. Natural resources are running out and the profit available to these businesses in the past has been decreasing rapidly. This is because companies are now buying from developing countries, where the cost of extraction is cheaper. Automation and machinery has replaced many jobs in the primary sector, causing the number of workers in the primary sector to move over into work in the tertiary and partly secondary sector as the jobs in those sectors are more secure and safe. This is why the employment in the primary and secondary sector are declining and in the tertiary is is increasing. The secondary sector involves manufactoring the products which are then sold to companies in the tertiary sector; this involves using machinery and new technology to make daily products. They manufacture almost everything sold in the tertiary sector from simple foods to computers and housing goods. However, to do this the companies require a lot of raw materials which are provided from the primary sector and as the primary sector is decreasing, less materials are available for the manufactoring companies. Businesses in the secondary sector are finding it difficult to compete with other markets which manufacture products of the same purpose as most of the manufactoring of existing products takes place in other developing countries.
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