chapter 19 Categories of industry Flashcards
industry
economy is formed by diff industries
primary or extractive: natural resources
secondary: construction and manufacturing
tertiary: hotels, gvt services etc
factors of production
the resources available to help you produce consumer goods
together they govern the standard of living
list factors of production
1 Land
2 Labour
3 Capital
4 Enterprise
Land
fixed supply
reward- rent
refers to physical land and other natural resources extracted from land, sea, air
eg wind power, forestry
labour
size and age of population, skilled or unskilled
no. and type of people used to produce goods/ services
reward- wage
capital
anything that is man-made that helps in the production of goods and services eg machinery, equipment, money
reward- interest
enterprise
human willingness to take on a financial and personal risk in setting up a business in return for a profit
combines all factors
reward- profit
renewable resources
will not run out if carefully managed
solar power
wood
wind
non-renewable resources
limited supply- become extinct
oil
natural gas
coal
primary sector
take raw materials from nature
extractive industry
good for balance of trade and balance of payments(reduced imports increased exports)
receive financial support from EU to help with competitiveness
agriculture industry
major industry
valuable raw materials
agriculture employment
4%
agriculture exports
6% largest beef exporters in the EU
agriculture problems
farms are small farmers are old cyclical industry -income CAP extreme weather conditions
fishing industry
small
fishing employment
11,000
fishing exports
to Europe, Africa, and Far East
fishing problems
overfishing
CFP- quotas
licensing system
pollution disease
forestry industry
3rd lowest cover in Europe
Coillte
forestry employment
1,100
forestry exports
none
forestry problems
grants needed to encourage growth
rely on imports
list importance of primary sector
1 employment
2 export thus improving balance of payments
3 consumers Irish products
4 provide food for the country
importance of primary sector
1 employment
pay wages
pay taxes to the gvt.
helps standard of living
importance of primary sector
2 export thus improving balance of payments
wood and beef
brings in revenue
importance of primary sector
3 consumes Irish products
farmers buying machinery
fishermen buying boats
importance of primary sector
4 provides food for the country
heat for Irish citizens- peat
4 changing trends in the primary sector
1 increased investment in wind and solar energy
2 growth in veganism- Irish beef and chicken affected
3 EU milk quota abolished in 2015
4 increased pressure for beef prices to fall- Lidl and Dunnes, isn’t viable for farmers
secondary sector
takes raw materials from the primary sector, processes these raw materials and produces finished goods to sell
15% of the total global market for infant formula is supplied by Irish businesses
importance of manufacturing
1 employment workers receive wages 2 exports balance of payments 3 consumer of Irish raw materials purchases from the primary sector provides important income for farmers, fishermen etc taxes to gvt.
changing trends in manufacturing
1 competition from low wage economies TNCs leaving Ireland 2 capital intensive fewer employees 3 TNCs have established in Ireland to gain access to EU trading bloc 4 increase in minimum wage and insurance
fun fact🤪🤪🤪🤪🤪
in 2014 Ireland was the 7th largest exporter of pharmaceutical products in the world😮
list importance of construction
1 employment
2 consumes Irish raw materials
3 builds infrastructure
4 capital investment
importance of construction
1 employment
labour intensive
gvt. receives taxes
importance of construction
2 consumes Irish raw materials
primary sector
importance of construction
3 builds infrastructure
Irish citizens and businesses
importance of construction
4 capital investment
new schools
linking the Luas lines
provides a boost to Irish economy
trends in secondary sector
1 growth of Irish PLSs eg Glanbia, Kerry Group in the agri- food sector
2 recovery of construction sector since the global recession
3 large presence of pharma firms eg Pfiser, Johnson and Johnson
4 growth of automation, increased production levels
services/ tertiary
gives a service not a product
employs almost 75% of ppl in the Irish economy
90% of Irish businesses are in the service industry
tourism is an important tertiary industry
provides taxes (corporation tax, PAYE, eyc) to exchequer
trends in tertiary service
1 poor/ limited broadband in rural areas 2 expensive commercial rates 3 Brexit uncertainty 4 higher wage demands 5 online sales negatively impacting retail stores 6 more discount retailers eg LIDL 7 increased automation eg self checkout
importance of tertiary
1 employment
2 invisible exports eg financial services, brings revenue
3 attracting TNCs, need services to set up
