Levels of Economic Activity

First a few terms Subsistence agriculture-consuming everything you produce to survive. Commerical agriculture-producing enough to sale for profit. Cottage industries: these are usually secondary activities that come from someone’s home.

Primary: Definition Harvest or extracting of natural resources

Primary: Example Hunting and gathering

Primary: Example Grazing

Primary: Example Agriculture

Primary: Example Mining

Primary: Example Fishing

Primary: Example Forestry

Primary: Locational Factors Close to natural resources

Secondary: Definition Add value to raw materials by making them useful Those that process, transform, fabricate, or assemble the raw materials derived from primary activities or that reassemble, refinish, or package manufactured goods

Secondary: Example Toothpick

Secondary: Example Fish Sticks

Secondary: Locational Factors Easy access to raw materials, energy sources and markets

Tertiary: Definition Provides services (don’t make anything) Those involving the sale and exchange of goods and services

Tertiary: Example Cell phone kiosk

Tertiary: Example Bank Teller

Tertiary: Example Starbucks

Tertiary: Locational Factors Close to markets

Quaternary: Definition Processing and dissemination of information Those concerned with information or the exchange of money and goods

Quaternary: Example Information processing

Quaternary: Example Computer Nerds

Quaternary: Locational Factors Good infrastructure and skilled labor

What is important to understand about this? Less developed countries depend on primary and secondary economic activities More developed countries have economies based on Tertiary, Quaternary and Quinary activities

Notice that over time the primary economic activities in more developed countries drastically decreases as those involved in tertiary economic activities increases. Secondary economic activities in LDC’s increased but later decreased. What is happening in LDC’s when the secondary activities begin to decrease in MDC’s? What is the trend/relationship you notice between what is occurring in the MDC’s and the LDC’s?