THE ECONOMY OF THE EUROPEAN UNION THE ECONOMIC SECTORS 1.
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Transcript of THE ECONOMY OF THE EUROPEAN UNION THE ECONOMIC SECTORS 1.
THE ECONOMY OF THE EUROPEAN UNION
THE ECONOMIC SECTORS1
INDUSTRY AS A SYSTEM
INPUT•Labour•Capital•Land or natural
resources•Entreprise
PROCESSES•Assembling•Maintenance•Packaging•Transport
OUTPUT•Product•Profit
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INPUTS OR FACTORS OF PRODUCTION
• INPUTS are the things that go into the system. The main four inputs are:• Labour either skilled or unskilled.• Capital is the name given to items necessary to
produce a good or service. Examples of capital are machines, buildings and money.
• Land. These include sun, soil and water in primary industries and raw materials such as cotton, steel, coal, wood…
• Enterprise is the most important factor of production as this is the process of bringing together the other factors to produce a good or service.
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PROCESSES
• PROCESSES are all things that happen to those inputs to help turn them into outputs. These include:• Production for example the manufacturing of
cars or the sewing of textiles.• Factory maintenance, which is necessary to
keep machines in working order.• Packaging, which protects products during
transit and presents them in a way that makes customers want to buy them.
• Transport, which is needed to move products from the factory to the warehouse and then on to the shops.
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FEEDBACK
• FEEDBACK includes anything that improves the system, such as:• Customer feedback. Companies find out
what consumers think of their products through market research.
• A profit is the money left over after inputs (staff wages, raw materials…) have been paid for. Profits need to be high enough to make it worthwhile for the company to continue investing in making the product.
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THE ECONOMIC SECTORS
Economic activities can be classified into 4 areas according to what they do
PRIMARY •Businesses that extract raw materials from natural resources.
SECONDARY•Businesses that turn raw materials into finished products.
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THE ECONOMIC SECTORS
TERTIARY• This sector involves
the provision of services to consumers and businesses.
QUATERNARY• This sector consists of
those industries providing information services and R&D
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THE PRIMARY SECTOR
Examples of primary businesses include:
AGRICULTURE•Includes:
• Production of crops.• Rearing of animals.
FORESTRY•Includes:
• Planting and taking care of trees.
• Tree felling.• Christmas tree growers.
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THE PRIMARY SECTOR
Examples of primary businesses include:
MINING•Includes the extraction of:
• Valuable minerals.• Coal mines.• Oil and gas extraction.• All types of quarrying.
FISHING•Includes:
• Fishing fleets.• Salmon farms.• Trout farms.
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THE SECONDARY SECTOR
Secondary sector
includes:
EngineeringThis includes the design and use of equipment such as telecommunications
ConstructionThis includes all types of building aswell as the people who work on building sites.
ManufacturingThis includes the production of goodsin large quantities.
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THE TERTIARY SECTOR
• Tertiary businesses can be classified into 3 types:
Private services Public services Voluntary services
Services sold by privately-owned businesses
Services provided by central or local government
Services provided by charity and voluntary organisations.
Examples: Examples: Examples:
• Banking• Distribution• Entertainment• Retailing• Tourism• Transport
• Health care• Education• Military activity• Social services
• Community Health• Social and
community care• Wildlife protection• Environmental
protection11
THE QUATERNARY SECTOR
• The quaternary sector consists of those industries providing:• Information
• Computing and Information and Communication Technologies (ICT)
• Consultancy
• Research and Development and Innovation
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THE EMPLOYMENT STRUCTURE
• It shows how the labour force is divided between the primary, secondary and tertiary sectors.
• According to economic development it can be distinguished between:• More Economically Developed Countries
(MEDCs)• Less Economically Developed Countries
(LEDCs)• Developing countries 13
ACTIVITY 1
Locate on the map five MEDC and five LEDC
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THE EMPLOYMENT STRUCTURE
• In the richest countries there will usually be more people working in the tertiary and quaternary sectors.
• In the poorest countries there tend to be more people working in the primary sector.
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ACTIVITY 2Look at the following statistics concerning the percentage distribution of the labour force by occupation
Primary Secondary Tertiary Total Continent
Afghanistan 80 10 100
Andorra 0,30 78,90 100
Australia 21,10 75,3 100
Bangladesh 11 26 100
Bolivia 40 43 100
Brazil 14 66 100
Burundi 93,60 2,30 100
Costa Rica 22 64 100
Egypt 17 51 100
Iceland 3 78 100
Japan 4,40 27,9 100
Maldives 22 18 100
New Zealand 7 74 100
USA 20,3 79 10016
ACTIVITY 2
• Complete the table of statistics.• Write down in last column the continent to which each
country belongs.• What are the three countries with a high percentage of their
labour force working in the tertiary sector? • Are they MEDC or LEDC?• Name three countries with a high percentage of their labour
force working in the primary sector?• Are they MEDC or LEDC?• Is there a Less Economically Developed Country with a high
percentage of its labour force working in the tertiary sector? Why?
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ACTIVITY 3
• Look at the diagram below. Based on the employment structures which countries do you think are the richest and the poorest?
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