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Primary, secondary, tertiary & quaternary sectors
Watch this short video clip to recap/review this topic of the IB Business Management syllabus. You can read the transcript of the video by clicking on the eye icon below the video.
Business Sectors for IB Business Management and IGCSE Business Students.
Business activities take place in a number of different areas. Though there are different ways of classifying them, the one best method is, classification according to the stage of production they are engaged in. Hence business activities are divided into four sectors: the primary, secondary, tertiary, and quaternary sectors. The primary sector acts as a foundation for all other businesses. It creates the raw materials that go on to support every other sector. A few examples that fall within the primary sector include, Agriculture, Farming, Fishing, Forestry, and Mining. Once the primary sector produces the raw materials, the secondary sector transforms them into various products.
The secondary sector includes the manufacturing industry, construction firms and energy production companies. Economically developing countries tend to have that output comes from the secondary sector.
Businesses in the tertiary sector provide services to general population and other business organisations. Each of these sectors relies on the products produced in the secondary and primary sectors. A few examples that fall within the tertiary sector include, Hotels, Retail industry, Restaurants, Sales, Banking, and Insurance.
The quaternary sector is a sub sector tertiary sector. This sector is a knowledge-based part of the economy, which typically includes knowledge-oriented economic sectors such as information technology; media; research and development; information-based services such as information-generation and information-sharing; and knowledge-based services such as consultation, education, financial planning, blogging, and designing.
These sectors are typically linked in what is referred to as the chain of production. To, summarise, there are four sectors: namely, primary, secondary, tertiary and quaternary sectors.
Now, it’s time to think! Be a THINKER!! Think of some everyday products that use and identify their production chain. You may consider: Bread, Smart Phone, and your Classroom Furniture. What primary, secondary, tertiary and quaternary businesses are involved in the production, distribution and marketing of these products?
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