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Types of Economic Activity

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Types of Economic Activity

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  • December 1, 2010
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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 and services...