Levels of Economic Activity Primary Definition Harvest or
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Levels of Economic Activity
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
Quinary: Definition • Scientific research and high level management • Tied to research or higher education
Quinary: Example • scientists
Quinary: Examples • CEOs
Quinary: Examples • Doctors
Quinary: Locational Factors • Tend to cluster around government centers and universities
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
Economic Development
• Economic development refers to the process of change involving the nature and composition of the economy of a particular region as well as to increase the overall prosperity of a region.
Involves 3 Types of Change 1. Changes in the structure of the regions economy (ex: agriculture to manufacturing) 2. Changes in forms of economic organization within the region (ex: shift from socialism to free-market capitalism) 3. Changes in availability and use of technology within a region
• Levels of economic development should improve basic conditions of life (housing, healthcare, social welfare system
• Economic development should also improve the infrastructure on which the economy rests
Levels of economic Development • Usually measured by economic indicators such as: Gross Domestic Product Gross National Income