Primary Economic Sector
• Primary Activities involve gathering raw materials such as timber for immediate use or to use in the making of a final product
• Predominate sector in less developed regions
• Includes agriculture, hunting-gathering, mining, fishing, farming, ranching, timber, etc.
Secondary Economic Sector
• Secondary Activities involve adding value to materials by changing their form.
• Predominately located in more developed regions than primary activities
• Includes manufacturing automobiles, refining petroleum, construction, shipbuilding, etc.
Tertiary Economic Sector
• Tertiary Activities involve providing business or professional services.
• Predominately located in more developed to highly developed regions
• Includes service industry = salespeople, teachers, doctors, banking, tourism, etc.
Quaternary Economic Sector
• Quaternary Activities involve highly intellectual positions
• Predominately located in highly developed regions
• Provide information, management, and research services by highly-trained persons
• Includes libraries, college professors, culture, government, etc.
Levels of Development (1)
• The more developed a region is, the more variety of economic activity
• Less Developed – high poverty, high birth rate, high infant mortality rate, low literacy, poor health care, low life expectancy, low GNP/GDP etc.
• Example: several countries in Africa south of Sahara/north of South Africa
Levels of Development (2)
• More Developed (compared to less developed) – less poverty, lower birth rate, lower infant mortality rate, increased literacy, better health care, higher life expectancy, increased GNP/GDP etc.
• Examples: China, Jordan, South American countries
Levels of Development (3)
• Highly Developed - low poverty, low birth rate, low infant mortality rate, high literacy, good health care, high life expectancy, high GNP/GDP etc.
• Examples: USA, Canada, Western European countries, Japan
Industrialization
• Farming machinery has industrialized nations– Less subsistence farming (growing just
enough for family’s basic needs)– Less farm workers – migrated to other places
for job opportunities– Led to more market-oriented agriculture
Infrastructure
• Basic support systems needed to keep an economy going
• Includes power, communications, transportation, water, sanitation, and education systems.
• The more sophisticated the infrastructure, the more developed the country.
Cottage vs. Commercial Industry
Cottage Industry Commercial Industry
Home-based Factory-based
Unique products Mass-produced products
Small-scale production Large-scale production
Small-Scale Agriculture Examples
• Kibbutz – communal farming in Israel
• Hippie Communes – existed in the 60s
• Subsistence Farming
Market-oriented Agriculture Examples
• Dole Pineapple plantations
• Chiquita Banana plantations
Traditional Economy
• Goods and services are traded without exchanging money. Also called “barter.”
• Families produce food through subsistence farming.
• Sons typically learn the same type of jobs their fathers work in.
• Examples– Tribes of the Amazon rain forest – The Amish culture of the United States
Command Economy
• Production of goods and services is determined by a central government, which usually owns the means of production.
• Production does not necessarily reflect the consumer demand.
• Also called a planned economy.• Examples
– North Korea– Cuba
Market Economy
• Production of goods and services is determined by the demand from consumers.
• Also called a demand economy or capitalism.
• Example – United States