Cathegories Of Industry Flashcards
What are the factors of production?
Land, Labour, Capital, Enterprise
Define ‘Land’ in the context of factors of production.
Raw materials used to produce goods/services; taken from natural resources (wind, water, land, air, climate, animals)
What does ‘Labour’ refer to in the factors of production?
All human effort that goes into producing goods/services
What is meant by ‘Capital’ in production?
Anything man-made used to produce goods/services (machines, computers, equipment, buildings; money)
What is ‘Enterprise’ in the context of production?
Involves using initiative to take on risk, combining the other factors of production to produce a good or service to make a profit
What defines the primary sector of industry?
Based on the natural resources of a country, e.g. agriculture, forestry, fishing, mining, energy
What is the importance of the primary sector?
Provides premium produce used in the secondary sector; can provide alternative energy sources (solar/wind) to importing oil/gas/petrol
List some trends affecting the primary sector.
- Investment in wind/solar energy
- Trends in veganism impacting demand for Irish beef/chicken
- Pressure on beef farmers to lower prices
- Increase in dairy output
- Reliance on direct payments
- Brexit uncertainty and weakening sterling
- New EU trade deals
- Increase in forestry
Define the secondary sector of industry.
Takes raw materials from the primary sector, processes them and produces finished goods to sell
What is the importance of the secondary sector?
Direct employment (e.g. factory workers, architects, builders, managers); indirect employment (e.g. farmers, insurance companies, banks)
What are some trends in the secondary sector?
- Growth of whey products
- Growth of automation and robotics
- Increase in minimum wage, insurance, rent
- Recovery of construction sector since recession
What defines the tertiary sector of industry?
Provides services to business and the public rather than producing goods and services for sale (banking, insurance, retail, communications; health)
What is the importance of the tertiary sector?
Provides support services to primary and secondary sectors so other businesses can operate (legal, financial and management services)
List some trends affecting the tertiary sector.
- Poor broadband in rural areas
- Expensive commercial rates
- Brexit uncertainty
- Wage demands/increases
- Online sales negatively impacting retail stores
- More discount retailers (Aldi)
- Increased automation
