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Unit 7

7.2 Economic Sectors and Patterns

2 min readmarch 31, 2020

harrison-burnside

Harrison Burnside


AP Human Geography 🚜

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The World Economy

The world economy can be separated into distinct categories called sectors. The easiest ways to group sectors are by their stage in the production process or through the types of services or products that they create.
🥦Primary production is the most basic economic activity that deals with the extraction of natural raw materials from the earth. Examples include agriculture, mining, energy, forestry, and fisheries.
🏭Secondary production deals with the processing of the raw materials that are from the primary activities, and making them into finished goods/products. Examples include MANUFACTURING!!!!!!
🚚Tertiary production includes the retailing and transportation of the finished goods to the people who buy them or consumers. Most tertiary activities are the sale of goods that fall into more specialized quaternary and quinary activities.
💰Quaternary production includes standard business services for research and administration. Examples include finance, insurance, marketing, and wholesaling.
🏛Quinary production is the highest level that includes consumer services that consist of the highest level of decision making and large scale research. Examples include high-paying and high-role jobs like government officials, CEOs, healthcare, and higher education leaders.
https://firebasestorage.googleapis.com/v0/b/fiveable-92889.appspot.com/o/images%2FThe-contribution-of-the-most-prominent-economic-sectors-in-Jordans-GDP-during-2014.png?alt=media&token=29886956-cc33-499a-b814-ef9691c3e9c1

Courtesy of ResearchGate

The commodity chain is what analyzes the whole process that it takes to turn raw materials into the final and finished consumer product. Raw materials and finished products get traded around the world by many different forms of long-distance transport. A break-of-bulk point is where cargo is transferred from one mode of transportation to another (e.g. from cargo ship to train).
In world trade, core (a.k.a MDCs, First World, etc.) countries have the advantage in trade over semi-periphery and periphery countries. Deindustrialization is a process happening in many core countries to have a service (vs manufacturing) based economy since they can get cheap raw materials from the periphery countries. These resources can be processed and manufactured in periphery or semi-periphery countries and then exported to core countries for cheaper wages and overall costs for the core countries.

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