Definition of Industry

DEFINITION OF INDUSTRY
Industry can be defined as:

Any type of Economic Activity producing GOODs or SERVICES
It is part of a chain from raw materials to finished product, finished product to service sector, and service sector to research
and development.
It includes AGRICULTURE, MANUFACTURING and SERVICEs
Industry varies over time and between different countries
Industrial Linkage is:

When one Industry depends on the output of another
This can cause problems if one industry has production problems or closes down
The CAR INDUSTRY is a good example each component (engine parts, lights, body etc) may be produced by a different company
before it goes to the ASSEMBLY PLANT
TYPES OF INDUSTRY
There are four types of Industry:
Primary
Secondary
Tertiary
Quaternary
Primary Industry
This involves RAW MATERIALS or NATURAL RESOURCES (before PROCESSING)
Raw Materials can be:
- Quarried
- Mined
all below the earths surface
- Drilled for
- INCLUDING: Coal Mining, Oil Drilling, Gold Mining
- Grown
-INCLUDING: Farming and Forestry
- Collected
- INCLUDING: Fishing
Secondary Industry
This involves a PRODUCT from Primary Industry which is PROCESSED or MANUFACTURED into another product
Processing of Raw Materials (where raw materials are changed into something different)
- Oil refined to make Petrol
- Fish is processed to make Fish Fingers!
- Wheat ground to make Flour
- Trees are sawn to make Timber
Manufacturing of Raw Materials (different parts assembled to make a finished product)
- Steel Making
- Making Ships/Cars/Televisions
- Building Roads and Houses
(the FINISHED PRODUCT from one Secondary Industry may be the Raw Material from another e.g. One factory may make tyres
which are then sent on to be used in a Car Plant)
Tertiary Industry
This provides a SERVICE
It involves a wide range of services INSTEAD of making anything and is the LARGEST group of industries in MEDCs
Examples of so-called Service Industries
- Teaching
- Nursing
- Civil Service
- Police Force
- Retail
- Transport
Quaternary Industry
This involves a small group of RESEARCH and DEVELOPMENT industries
It is the newest industrial sector (often linked with Tertiary) and is growing rapidly due to developments in INFORMATION
TECHNOLOGY and COMMUNICATION
It focuses on the LATEST TECHNOLOGY
Examples of Quatenary Industries
- Designing new computers/writing computer software
- Researching new medicines and medical equipment
- Genetically modifying plants and animals for farming
- New forms of communication through satellites and fibre optics
SYSTEM DIAGRAM OF A SHIRT FACTORY

A factory system has INPUTS, PROCESSES and OUTPUTS
INPUTS
all the items that go into making the product

anything needed before the production process can take place
PROCESSES
are factory activities that transform raw materials into the finished product
everything needed to make the product
OUTPUTS
are what comes out of the factory after the production process
Some OUTPUTS are fed back into the system as inputs:

e.g.
PROFIT will be put back in as investment capital
INPUTS
Dyes
Cloth
Thread, buttons etc
Power supplies
Labour
Machinery
Buildings
Capital
Packaging
PROCESSES
Dyeing
Cutting
Sewing
Packaging
Administration
Factory Maintenance
PROFIT
OUTPUTS
Shirts
Cloth Remnants
Seconds garments
PROFIT
LOCATION OF INDUSTRY
LOCATION OF INDUSTRY where industries will establish themselves, is based upon a number of factors:
PRIMARY FACTORS:
-
RAW MATERIALS*
distance from raw materials affects transport costs
LABOUR*
employees with different skills are needed
TRANSPORT*
road, rail, sea and air networks are needed for the import and export of goods
MARKET*
access to people who will purchase the goods or services
SECONDARY FACTORS:
-
Energy*
proximity to supplies of electricity (or coal/water in the past) to power the industry
Site
modern factories require large areas of flat land (esp. for assembly lines)
Communications
reliable telecommunications are increasingly important
Capital
money needed to up the industry
Government Policy
industry is restricted/encouraged in certain areas by the use of grants, low taxes, rent allowances
Environment
attractive surroundings with good leisure facilities can be important to a workforce
Other
sometimes (as not all bosses are rational) industries are established in places that someone just thinks is nice!

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Definition of Industry

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DEFINITION OF INDUSTRY

Industry can be defined as:

Industrial Linkage is:

SYSTEM DIAGRAM OF A SHIRT FACTORY

all the items that go into making the product

Some OUTPUTS are fed back into the system as inputs:

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