Sectors of the Economy

What are the three major economic sectors?

Sectors of the Economy

What are the three major economic sectors? 1. Primary 2. Secondary 3. Tertiary [tur-shuh-ree]

Sectors of the Economy

1. Primary Sector
Acquiring raw materials E.g. Mining metal ores and coal, drilling for oil, tapping rubber from trees, farming foodstuffs and trawling for fish. Sometimes known as extractive production.

Sectors of the Economy

2. Secondary Sector
Manufacturing and assembly. Converting raw materials into components, for example, making plastics from oil. It also involves assembling the product, e.g. building houses, bridges and roads.

Sectors of the Economy

3. Tertiary Sector
Commercial services that support the production and distribution process, e.g. insurance, transport, advertising, warehousing and other services such as teaching and health care.

Sectors of the Economy

The chain of production shows interdependence: firms rely on other businesses in different sectors for raw materials, components or distribution.

Sectors of the Economy

4. Quaternary Sector Sometimes included with the tertiary sector, as they are both service sectors.

Sectors of the Economy

4. Quaternary Sector Industries providing information services, such as computing, ICT (information and communication technologies), consultancy (offering advice to businesses) and R&D (research & development, particularly in scientific fields).

Sectors of the Economy

Discussion p.45 Do you agree or disagree with the seven statements? Do you think most governments would agree?
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Thomas Friedman
1. What does Thomas Friedman say has happened over the last ten years? 2. What does Friedman say is happening to the production chain? 3. What does Friedman say about American companies?

Thomas Friedman
What does Thomas Friedman say has happened over the last ten years? The world has gone from gone from connected to hyper-connected.

Thomas Friedman
What does Friedman say is happening to the production chain? It is being divided internationally.

Thomas Friedman
What does Friedman say about American companies? They hover over America. They look like American companies and are headquartered in America but their products are made in the world. They will go for opportunities wherever they see them.

Production
Discussion
What do production and quality managers do? What skills do production and quality managers need? What are the usual objectives of a production department? What trade-offs are normally considered in production?

Production
Trade-off - a balance between two or more
opposing things, that you are willing to accept in order to achieve something. E.g. price - quality - flexibility
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Production
Definitions Outsourcing - contracting out of a business process to a third-party. Offshoring - relocating a business process from one country to another.

Production
Discussion
The Dell Theory of Conflict Prevention P. 50 Comprehension Qs 1-4

Homework Unit 9 - Logistics Reading p.51-54 and exercises on ISIS