mr b 5.1.1 Flashcards
sectors of industry
primary, secondary, tertiary, quaternary
primary sector
involves activities related to the extraction or cultivation of raw materials directly from natural resources, such as agriculture, mining, and forestry
primary sector pros and cons
PROS
-brings in a lot of money so it’s good for a country’s economy
-can be managed by local workers
-can attract foreign direct investment
CONS
-production depends on weather and climate (even disease) so if the weather is not good everything else crumbles
-resources are limited so they may run out at any point
secondary sector
involves the manufacturing and processing of raw materials into finished goods
such as car manufactures food production or building companies
secondary sector pros and cons
PROS
-Enables higher income
-Diversifies economy away from relying on primary products
-Economies of scale (the cost advantage experienced by a firm when it increases its level of output)
CONS
-Pollution
-Work in factories boring and repetitive
tertiary sector
refers to the service industry, which includes activities related to providing (non physical) intangible goods such as services, expertise, and support. such as hairdressers banks, supermarkets or cinemas.
tertiary sector pros and cons
PROS
-Lower start-up cost
-Don’t need to worry about manufacturing products
-Can easily adapt to new changes
CONS
-May need certain skill requirements that you may not be able to complete
-May have environmental impact such as carbon emission
quaternary sector
involves knowledge-based activities such as research, development, and information management (it is also sometimes included with tertiary sector) such as financial planning, research and development.
quaternary sector pros and cons
Pros:
Innovation: Quaternary businesses are at the forefront of innovation, contributing to the development of new technologies and solutions.
High Value-Added Services: Businesses in the quaternary sector often provide high-value services, leading to potentially higher profit margins.
Intellectual Capital: These businesses thrive on intellectual capital, attracting and retaining skilled professionals who drive creativity and problem-solving.
Cons:
High Operating Costs: Research and development can be expensive, making the quaternary sector vulnerable to financial pressures.
Uncertain Returns: Investments in innovation may not always yield immediate returns, and success is often unpredictable.
Rapid Obsolescence: Technologies in this sector can become obsolete quickly, requiring constant adaptation and updates.
sectors of economy
private, public, third
private sector
Owned and controlled by private individuals their primary aims are to survive and make a profit such as a sole trader, partnership and a LTD
private sector pros and cons
Pros:
Efficiency: Private businesses often operate with a focus on efficiency and profitability.
Innovation: Competition in the private sector drives innovation and the development of new products and services.
Flexibility: Private companies can adapt quickly to market changes without bureaucratic hurdles.
Cons:
Inequality: Private sector success can lead to income inequality among employees.
Lack of Regulation: Some argue that the private sector may prioritize profits over ethical considerations without proper regulation.
Short-Term Focus: Pressure to deliver short-term results may discourage long-term sustainability initiatives.
Public sector
Owned and controlled by the government they aim to provide a service to the public and are funded by taxes such as national/local government, health, education, housing and social work
public sector pros and cons
PROS
-They are less likely to become redundant
-Offer good better salaries and benefits such as; medical cover, better work hours and retirement plans
CONS
-Lack of job growth
-Some need specialized skillsets needed for a certain task
-Harder to get in If you don’t have connections e.g., relative or friend who works in the organisation. Possible harder even if your cv looks good
Third sector
Set up to help a cause or provide a service to members they aim to raise money and increase awareness for good causes. E.g. Oxfam(charity for the poor),and local youth clubs
third sector pros and cons
Pros:
Social Impact: Focus on addressing social issues and making a positive impact on communities or causes.
Mission-Driven: Organizations are often driven by a clear mission rather than solely profit motives.
Tax Benefits: Nonprofits may be eligible for tax exemptions and donations to them are often tax-deductible.
Volunteer Engagement: Access to passionate volunteers who are dedicated to the organization’s mission.
Grants and Funding: Eligibility for grants and donations from foundations, government, and individuals.
Cons:
Financial Challenges: Dependence on donations and grants can result in financial instability.
Limited Resources: Often operates with limited financial and human resources compared to for-profit businesses.
Bureaucracy: Nonprofits may face bureaucratic challenges and regulatory requirements.
Income Dependency: Reliance on external funding sources can make organizations vulnerable to economic downturns.
Limited Compensation: Staff may receive lower salaries compared to their counterparts in the for-profit sector.
