Structure of the Economy F Economic activities are divided into stages or categories of increasing complexity –Primary Sector –Secondary Sector –Tertiary Sector –Quaternary Sector Primary Secondary Tertiary Quaternary

Economic Sectors Structure of the Economy F Primary Industry - extraction of resources from the earth u farming, mining, lumber harvest, fishing

Primary Sector F The direct extraction of material from the earth. Generally, through agriculture, but also through mining, fishing and forestry. F Many developing nations still rely on the primary sector as a source of employment and export earnings.

Interesting Facts  It is estimated that as much as 75 percent of the people in India are working in agriculture.  Less than 5 percent (maybe 3) of the work force is involved in agriculture in the United States.

Rice Farming in Vietnam - primary industry

Vietnam

Costa Rica

Economic Sectors Structure of the Economy F Secondary Industry - processing and manufacturing of resources u manufacturing

Secondary Sector F The manufacturing or processing of primary products. F Associated with the Industrial Revolution.

Interesting Fact  Currently, only about 15 percent of manufacturing comes from developing countries, but this figure is rising due to policies set forth by the IMF and various multilateral agreements.

Sugar Refining Plant

Timber Processing -Humboldt

Mazarotti Plant - Italy

Economic Sectors Structure of the Economy F Tertiary Industry - distribution of goods and services u trucking, banking, retail store outlets, groceries

Tertiary Sector F Providing services, such as: financial, retail, government, transportation, marketing, legal, etc… F Employs most of the labor force in the developed world.  “Post-Industrial”

Hospital in Nepal

New York Stock Exchange - Trade & Finance

Mexico Trading Floor

Economic Sectors Structure of the Economy F Quaternary Industry - processing and dissemination of information u The “Information Economy”, services related to information and research. u education, research & development, cyber space

Servers/hubs - note exclusion of S. Hemisphere

Satellite Connections - note leap frogging of Africa

China, the birthplace of your Nike's

Port of Hong Kong China, the birthplace of your Nike's

Unloaded at the port of Long Beach, near LA

To Wholesale Center in Midwest by Rail To Distribution Center by Truck and Eventually the Retail Outlet Price: $80 (or one month of wages in China)

Alternative: Consumer action Students pressure universities to sign on to Workers Rights Consortium, to ensure that college apparel is not made in “sweatshops”