Categories of Industry Flashcards
Name the factors of production
Land
Labour
Enterprise
Capital
Explain land as a factor of production and name its reward
This comprises of everything supplied by nature (e.g land, forests, sea) to the development of businesses.
The physical land and other natural resources used to make products
ex: For tayto potaos would be “land”
Reward: Rent
Explain labour as a factor of
production and name its reward
This refers all the human work that is needed to operate a business.
Human effort to make products
ex: bakers in a cake factory would be the “labour”
Reward: Wages
Explain capital as a factor of production and name its reward
This is all the finance, machinery, equipment that is invested in the company by the investors.
The human -made goods used in the production process
ex: in cake factory the ovens are “capital”
Reward: interest & dividends
Explain enterprise as a factor of production and name its reward
This is the human activity and initiative that is required for a business to succeed.
Skill of combining all factors to make a product
Involves person thinking of an idea, combining factors of production and taking the risk to set up a business to make a product
Eg: Joe Murphy provided “enterprise” for tayto
Reward: Profit
Name the three categories of industry
Primary Sector – Natural based industries
Secondary Sector –
Construction sector and manufacturing industries
Tertiary Sector – Service industries
Give the importance of the primary sector in Ireland
Employment
Major Consumers
Exports
Provider of Consumer Goods
Explain the primary sector with examples
Consists of all businesses that are engaged in taking raw materials from nature. Also called extractive industries.
EX: Agriculture, Fishing, Forestry, Mining, Energy (oil/gas)
Explain four changing trends and important issues in the primary sector in Ireland at the moment
Abolition of EU Quotas - irish farmers can sell more in emerging markets ex: africa, asia, south america
Less dependence on foreign oil - extracting our own natural resources. wind farms are now popular
Grants to encourage planting and maintaining of forests- has few forests, but with grant forestry on increase
Increase in the demand for organic food- farmers produce organic foods to cater for market. Farmers are capitalizing on Irelands green image ex: farmers markets
Explain the manufacturing industry with an example
Manufacturing takes the output from the primary sector and changes it into a different finished product.
Made up of agri-businesses, indigenous firms, and transnational companies
Ex: A carpenter takes wood and makes it into furniture
Explain an agri-business with example
Takes farm produce and turns it into food for consumption. ex: glanbia
Explain an indigenous firm with example
Irish businesses, set up by Irish people to produce goods in Ireland ex: lily o’ brians
Explain a transnational company with example
Foreign businesses that set up factories in Ireland to manufacture their products here. EX: dell
Explain the importance of the manufacturing industry in Ireland
Employment- thousands of jobs. Less social welfare more payroll taxes, government have more money to improve the country
Exports - exports lots of product manufactured here. brings money in and manufacturing businesses and country are richer
Consumer of Raw Materials- buy output ofprimary industry and turn it into finished goods. provides income to primary sector ex: Tayto buys Irish potatos
Give some changes in the manufacturing industry In Ireland
Competition from low wage economies
Reduction in energy costs
Increase in the use of machinery
Transnational manufacturing
Explain the construction sector
This industry consists of all those businesses involved in designing, producing and maintaining the built infrastructure of the country.
Icludes those involves in building houses schools, roads etc
Badly affected by the economic downturn but growing again and creating more employment in Ireland.
Explain what is the importance of the construction sector
Labour-intensive industry - More people than machine. provides thousands of jobs. With taxes on workers wages government have money to improve economy
Major consumer of raw materials- buy sand, gravel, wood from primary sector. Increases sales and profit of businesses in selling those products
Builds infrastructure - Builds roads, airports, ports etc essential for irish business to transport products
Explain the trends in the construction sector in Ireland
Economic Growth / Shortage of Skilled Workers- in certain key trades since economic crisis, growing again so workers needed
Government investment - Allocate billions to new infrastructure projects. Boost the construction industry ex: linking the two luas lines in Dublin
Explain the tertiary sector with examples
This sector is made up of all businesses that provide a service to consumers and other businesses.
Do not take things from nature or make a product
Also known as the ‘services sector’.
Ex: Lawyers provide a legal service offering expert legal advice and representation
Explain the importance of the tertiary sector in ireland
Largest Employer in Ireland - employees pay taxes giving government more money to improve irelands economy by reducing taxes. improving infrastructure
Large Exporter- billion s euro worth exports (financial and software services). This improves balance of payments, makes country and service providers richer
Attracts Transnational Companies to Ireland - Irelands telecommunications and transport services play big role in this
What are some trends in the tertiary sector in ireland
Thriving Financial Services Sector Increase in Popularity of Discount Retailers e.g Dealz Growth of Tourism Sector Impact of Increase in Shopping Centres Increase in Minimum Wage
Explain employment as an importance of the primary sector to the economy
Creates a lot of employment
Less claims on social welfare and more people paying tax on wages
Government have more money to spend on imporving the country
Explain consumer of irish products as an importance of the primary sector to the economy
Major consumer of Irish products and pumps money into the economy. ex: farmers buy large amount of farm machinery, fertilisers etc
Primary sector increases the profits of Irish businesses involved in selling these products
Explain exports as an importance of the primary sector to the economy
Export massive amounts
Improves Irelands balance of payments
Brings a lot of money into the country
This money makes, farmers or energy workers and overall the country richer
