1. Levels of Economic Activity

2. 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.

3. Primary: Definition
Harvest or extracting of natural resources

4. Primary: Example
Hunting and gathering

5. Primary: Example
Grazing

6. Primary: Example
Agriculture

7. Primary: Example
Mining

8. Primary: Example
Fishing

9. Primary: Example
Forestry

10. Primary: Locational Factors
Close to natural resources

11. 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

12. Secondary: Example
Toothpick

13. Secondary: Example
Fish Sticks

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

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

16. Tertiary: Example
Cell phone kiosk

17. Tertiary: Example
Bank Teller

18. Tertiary: Example
Starbucks

19. Tertiary: Locational Factors
Close to markets

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

21. Quaternary: Example
Information processing

22. Quaternary: Example
Computer Nerds

23. Quaternary: Locational Factors
Good infrastructure and skilled labor

24. 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

25. 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?