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Describe what is meant by Industry

Extracts from this essay...

Introduction

Question: Describe what is meant by Industry Industry, the long-term changes in types and distribution of global economic activity. In everyday usage, the term "industry" refers to large manufacturing companies, such as the big multinational car companies. In this article a broader definition of industry will be used, which includes all economic activities, in all sectors, and groups them into three broad categories; primary, secondary, and tertiary. Types of Industry Primary Industries These are the industries responsible for the extraction of natural resources. They comprise agriculture, hunting, fisheries, forestry, mining, and quarrying. A distinction is often drawn between those primary industries concerned with renewable resources such as forests and those concerned with non-renewable ones, such as minerals. Secondary Industries Secondary industries engage in the manufacturing and production of goods. The word "secondary" implies that such companies are engaged in the second stage of economic activity. They use the natural resources of the primary industries (and possibly the goods of other secondary industries) to make products. Secondary industries include house-building and the manufacture of clothes, food processing, shoes, luggage, furniture, packaging, chemicals, metal products, machinery, electrical products, electronic products, computers, cars, trains, and aeroplanes. They also include utilities, which provide services such as gas, water, and electricity. Tertiary Industries Tertiary industries comprise those companies involved in services, as opposed to those providing an extractive or manufacturing function.

Middle

After the Depression, the older-established industries resumed their growth. Recent Trends Since World War II the existing industries in the developed world have become much more sophisticated in their products and their manufacturing processes. Miniaturization is only one aspect of this sophistication. At the same time new technologies have encouraged the creation of many new industries, including jet aircraft, computers and electronics in general, satellites, nuclear power, new composite materials, carbon fibre, robotics, telecommunications, and data-processing equipment. In the latter half of the 20th century there have been continued developments in manufacturing, but also a shift in employment in the advanced economies away from secondary and towards tertiary activities. Higher levels of wealth in the developed world have encouraged the growth of many service industries, such as retailing, the hotel business, tourism and leisure services, and financial and business services. Over the past 20 years the most advanced economies have been forced to re-evaluate their position in the face of competition from newly industrializing economies. Many of the so-called Asian Tiger economies such as Hong Kong, Malaysia, and Singapore, recorded rates of economic growth that are two or three times those of developed countries over the decade 1985-1995. However, this does not mean that competition from the developing world is responsible for unemployment in the developed world.

Conclusion

There is also the possibility that certain goods and services will have no appeal in other nations. This could be a result of, for example, the contrasting cultures of Western and Islamic nations. Future Prospects The 1990s may be the most significant of the century for growth in world trade. Much of the 20th century has been characterized by war, the threat of war, or economic depression. In contrast, in the 1990s there have been the completion of the fall of communism and the Uruguay round of GATT talks on free trade. This ended with the formation of the World Trade Organization, a development that should provide encouragement to future trade in goods and services. What is unique about the most recent developments is the speed and intensity of change. Across the globe larger and larger countries are industrializing and they are doing so at a faster rate. To take but a few examples, China maintained economic growth rates of 10 per cent per annum over the decade to 1996. If these rates of growth were to be maintained, then China would overtake the United States as the largest economy in the world before 2021. Moreover, countries such as India, South Korea, and Indonesia could also grow to join the ranks of the largest economies. However, in order to predict the identities of the future largest economies, many factors need to be considered-it is not enough simply to extrapolate present-day trends.

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