Chapter 23 - Categories Of Industry

Question 1

What are the four factors of production?

Answer 1

Land
Labour
Capital
Enterprise

Question 2

What are the economic rewards of each factor of production?

Answer 2

Land - rent
Labour - wages
Capital - interest
Enterprise - profit

Question 3

What is the primary sector?

Answer 3

Refers to the extraction of raw materials from the earth

Question 4

What are the trends and challenges of the farming industry?

Answer 4

Trends:
Changes in consumer demand - organic / GMO free foods
Job vacancies - in the dairy sector encourage people to start careers in it.
Free trade - free trade agreement with Japan
Modernization - EU offers grants to modernize farming methods and machinery
Challenges:
Farm loans - pay more interest on loans as they are deemed a higher risk
Reduce greenhouse gases - they are under pressure to reduce their emissions
Brexit - border tariffs
Farm accidents - spend more on safety to reduce deaths

Question 5

What is Brexit?

Answer 5

The exit of the UK from the EU

Question 6

What does GMO stand for?

Answer 6

Genetically modified organism

Question 7

What are the trends and challenges in the fishing industry?

Answer 7

Trends:
Growing demand - growth in demand for seafood products due to increase in disposable income
Growth of new business - increase in businesses selling nutritional supplements e.g. fish oils
Movement of species - due to climate change species migrate to new areas, opens up new markets
Traceability - consumers want greater traceability. Fishing industry needs to spend more on technology to trace where they get their fish from
Challenges:
Increased regulation - strict quotas, led to people leaving the industry
Brexit - fishing boats won’t be able to fish off the coast of the UK
Price of fuel - highly dependent on oil for fuel, higher prices affect the industry
Aquaculture - can have a negative impact on environment, spread disease

Question 8

What is aquaculture?

Answer 8

Breeding and harvesting plants and animals in water environments

Question 9

What are trends and challenges in the forestry industry?

Answer 9

Trends:
Government incentives - training Programmes have helped to improve planting and harvesting methods
Environmental impact - more aware of environment, use sustainable methods
Increased employment - demand for timber increase so more job are made
Increased investment - require investments for trails and pathways
Challenges:
Forest certification - difficult to encourage forests because you have to get a certification
Landowners - it can take up to 25 years to make a profit
Disease - trees can be affected by disease
Brexit - tariffs make exports more expensive

Question 10

Where do you get a forest certification?

Answer 10

Forest stewardship council

Question 11

What is the secondary sector?

Answer 11

Involves the transformation of raw materials into finished products

Question 12

What are the trends and challenges of the manufacturing industry?

Answer 12

Trends:
Highly educated employees - government must invest in education to allow people to gain qualifications
Increased consumer demand - increased demand for machinery and technology give opportunities to export
Environmental sustainability - they can use sustainable methods to attract consumers
Growth of pharmaceutical firms - pharmaceutical companies have joined with Irish colleges for research
Challenges:
Low cost economies - find USP for product to compete with price of other competitors
Job losses - automated machinery results in less jobs
Investment in infrastructure - airports, roads need to be made to attract foreign companies to locate in Ireland
Brexit - exports become more expensive due to tariffs

Question 13

What is the construction sector?

Answer 13

Consists of all individuals and businesses involved in the design and construction of buildings

Question 14

What are the trends and challenges in the construction sector?

Answer 14

Trends:
Graduates - must ensure there are jobs available in order to reduce emigration
Increased disposable income - increase for housing which creates job opportunities
Employment - improvement in the economy led to an increase in direct employment
Brexit - offices need to be built for offices moving to Ireland after Brexit
Challenges:
Shortage of housing
Access to finance - difficult to obtain finance
Shortage of skilled employees - may need to recruit employees from abroad
Protection of migrant workers - not exploited

Question 15

What is agribusiness?

Answer 15

Refers to the manufacturing businesses that make products from raw materials from the agricultural sector

Question 16

What are the trends and challenges of the agribusiness?

Answer 16

Trends:
New products - increase profits and sales
Mergers and acquisitions - small companies find it difficult to compete with larger ones so they could merge
Food waste - created innovative products so that less food ends up in landfill
Growth in indigenous Irish firms - government encourages irish people to set up businesses in order to increase employment
Challenges:
Lower price for suppliers - lower their price for national supermarkets
Extreme weather condition - destroys crops and decreases sales and profits
Exports - exports will cost more due to Brexit
Higher operating costs - face increasing costs e.g. wages so they need to find ways to reduce costs

Question 17

What is the tertiary sector?

Answer 17

Includes firms that provide services to businesses and individual consumers

Question 18

What are the trends and challenges of the tertiary sector?

Answer 18

Trends:
Tourism - large number of tourists, businesses must ensure tourists get value for money to protect reputation
Growth of e business - websites are used to sells services to larger markets
Transnational companies - many tncs located in Ireland due to low corporation tax
Increased employment - rising income has increased demand for services thus increasing employment
Challenges:
Consumer loyalty
City Centre Locations - many city Centre locations have closed down due to less consumers shopping in city because of new shopping centers
Access to finance - difficult to obtain finance
Exploitation of worker - unaware of employment rights

Question 19

What are the benefits of categories of industry?

Answer 19

Employment - increases
Government revenue - increases
Food - less co2 emissions, reduces global warming
Exports - bring in foreign currency
Raw materials - secondary sector uses the raw materials from the primary sector