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UNIT 4: TYPES OF PRODUCTION

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PRIMARY INDUSTRY , where raw materials are extracted, grown or cut down.

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Examples : Fishing, mining and oil extraction  

Primary industry 

Tertiary or Service industry 

 

In secondary industry raw materials are turned into manufactured goods 

Secondary or Manufacturing Industry

 This is where services are provided. 

It includes retailing ( mailnly shops) , hairdressing, education, health, financial services and hotel accommodation.

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PRIMARY INDUSTRY

In primary industry raw materials are extracted, grown or cut down.

  • Examples of primary industry are: Fishing, mining and oil extraction are also examples of primary production.
  • Some primary industry activities are: mining, growing, collecting, and cutting down raw materials.

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SECONDARY INDUSTRY

In Secondary industry manufacturing industry primary products are turned into manufactured goods.

  • An example of secondary or manufacturing industry, is when meat is processed to make a finished product like a meat pie or a sausage roll.

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TERTIARY INDUSTRY

Tertiary or service industry is where the services are provided.

  • Examples of tertiary industry are: retailing (mainly shops), hairdressing, education, health.

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CHAIN OF PRODUCTION

  • Primary, secondary, and tertiary industries are linked together in a chain of production.
  • The chain of production shows that businesses and their customers are interdependent.
  • Interdependence is where economies, businesses, consumers and workers are linked together and where they all rely on each other for their welfare.

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THE CHAIN OF PRODUCTION 

  • The various production rages through which a product passes before being sold to a consumer
  • Primary, Secondary and tertiary industries are linked together in a chain of production. 
  • Businesses add value at each stage of production.

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Tertiary/Service Industry

The  pastries might then be sold to a catering company which serves them at a buffet for business executives. This service is part of tertiary industry.

Secondary/Manufacturing Industry

It then processes them into a variety of foods, such as sausage rolls, pastry products and frozen foods

Primary Industry

Farmers rearing cows ,they also collect milk from cows , These ingredients are bought by the food processing division of the Global Group

Chain of Production for pastry product

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SPECIALIZATION & THE DIVISION OF LABOUR

  • Independence has lead to SPECIALIZATION that means businesses as well as individuals & whole economies concentrate on just a few products

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WHY ARE BUSINESSES TODAY SO EFFICIENT

Specialization explains why businesses today are so efficient and can produce so much.

  1. It allows knowledge and skills to be built up
  2. Specialist machinery & equipment are used for specific manufacturing
  3. It also permits businesses to employ specialized workers.
  4. This specialization of workers is called THE DIVISION OF LABOUR.

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PRODUCTION THE U.K.

  • Since 1960 businesses in UK have gotten up. Businesses are now producing more than before, however there has been a faster growth in services, than in production of manufactured goods
  • This relative growth of businesses has occurred for three reasons:
  • Wages are going up overtime.
  • Many manufactured goods are imported from aboard
  • The prices of services have gone up much faster on average than the prices of manufactured goods

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THE LABOUR FORCE

  • Changes in what is being produced in the economy are bound to lead to changes in where & how people work.
  • There has been a growth in jobs, in service industries & fall in those primary and manufacturing industries.
  • Manufacturing industries has been revolutionized over the past thirty years. Machines replaced workers.
  • Now more machines are replacing older ones.

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