LESSON 2: Types of Industry

Learning Competency: Distinguish the different services/products of business and industry in the
locality.
What are some business industries do we have in our country? In your locality? Can you
identify what types of industry are they? If you can’t, then, let me help you learn about different
services/products of business and industry in your locality. But before that, please encircle the
word/s in the box that you are familiar with.

Toyota
Poultr animal Goldilock
Cars
y production s
cocoa
Palawan
Pawnshop Ranchin
Financing g
firm
SM Car
mall wash
Rice Rural Bank

The words in the box are some examples of the different types of industry and the
products/services that they sell/offer. There are lots of industry classifications which are typically
grouped into larger categories like the International Trade where we import and export products.
Rice is one of the products where Philippines imports and exports from other countries.
Another sector in industry is the Agricultural Business. This business sector involves
with farming and farming-related commercial activities like ranching, piggery and poultry. This
business includes all the steps required to dispatch an agricultural products to market:
production, processing and distribution. It is an essential component of the economy in
countries with land that suitable for growing crops and agricultural products which can be
traded abroad like rice, cocoa, banana and the like.
Another sector that can be classified in the business industry is the Service where it
offers intangible products like financing services that being offer in the banks and other
financing firms. Another example of a service business is the car wash where you can see in
almost all places in the country. These service industries are also turning into larger
component of economic output like the other industries such as agriculture and manufacturing.

Manufacturing refers to any industry that produces products from raw materials by the use of
human labor or machinery and that is normally carried out orderly with division of work. Aside
from huge manufacturing firms, we can also consider Bakeshops as one of the manufacturing
industry where they make finished product like cakes and pastries.

WHAT’S NEW
Think of some businesses that you can see in your locality. Write them down in the column
where they belong.
INTERNATIONAL
AGRIBUSINESS SERVICE MANUFACTURING RETAIL
TRADE
 LET US KNOW THE TYPES OF INDUSTRIES

There are five types of industries. These are;

1. AGRIBUSINESS

Agriculture has been defined as the science and art of producing livestock and
cultivating plants and . The agricultural sector has been an important component of the
Philippine economy. It has been a major source of employment to millions of Filipino
workers and it contributed one third of the of the country’s Gross Domestic Product in
1970’s but it declined to 8.74% in 2016.Because of this,a number of initiatives have been
implemented to enhance the sector’s productivity. One of these is the development of the
production of food grains and crops like rice, banana, pineapple, coffee, camote, monggo,
corn, coconut and calamansi. The development of fish and animal production have been
implemented too. For animal production, there are two types that can be engaged to one
is livestock and the other is poultry. These two are commonly engaged by the small
entrepreneurs which provide livelihood that can provide income and employment
opportunities to poor households.

2. RETAIL

Retail includes the sale of merchandise from a one point of purchase directly to a
consumer who tends to utilize that product. The single purchase could be a brick- and-
mortar retail store, a catalog, an internet shopping website, or even a mobile phone.
The retail activity is at the last point of the chain. Manufacturers sell huge
quantities of goods to retailers, and retailers tends to sell those same quantities of goods
to customers.

3. SERVICE

A service industry is any industry that produces value that is primarily intangible
such as advice, consultation, customer service, knowledge, management, data and
experiences. Advanced economies are undergoing a long term shift whereby service
industries are turning into a larger component of economic output similar to other
industries such agriculture and manufacturing.

The following are common examples of service industries.

SERVICE INDUSTRY EXAMPLES

HOSPITALITY Hotel, Restaurant

TRANSPORTATION Flight and Tour

MEDIA/ENTERTAINMENT Newspaper, Cinema

 HEALTHCARE Hospital, Clinic

FINANCE Bank Loan/Investment Agency

HEALTHCARE Hospital, Clinic

Service industry offers services rather than tangible objects.

4. MANUFACTURING
Manufacturing is the processing of raw materials into finished goods
through the use ofequipment,tools and processes. Manufacturing is process that allows
enterprises to sell finished products at a price over the cost of the raw materials used.
Manufacturing, any industry that produces products from raw materials by the use of
human labor or machinery and that is normally carried out orderly with division of work. In the
common sense, manufacturing denotes the assembly of parts into finished products on an
equal large scale. Among the most essential manufacturing industries are those that make
aircraft, computers, chemicals, refined petroleum products, consumer electronic, clothing,
electrical equipment, furniture, heavy machinery, ships, steel, automobiles, and tools and dies.

INTERNATIONAL TRADE International trade is the exchange of services and goods from
one country to another. This type of trade gives opportunity to a world economy, in which
prices, or demand and supply, affect and are affected by global events.
Trading worldwide gives consumers and countries the chance to be exposed to goods
and services that cannot be found to their own countries. Most of the products that can be
found on the international market: food, water, stocks, clothes, spare parts, oil, jewelry,
currencies, and wine. Services are also traded like consulting,tourism, transportation and
banking. A product that is sold to the international market is an export, and a product that is
bought from the international market is an import.

What is an 'Import'?
An import is a good or service that brought from the other countries. The word "import"
comes from the word "port" since goods are often travelled via ships or boats to foreign
countries. Countries are often like to import goods that their local industries cannot produce as
effectively or at low price as the exporting country. Countries can also import raw materials that
cannot be found within its borders.
For instance, many countries import oil because they cannot produce it locally or
insufficient to meet demand. Free trade policy and tariff schedules often tells which goods and
materials are cheap to import.
What is an 'Export'?
Exports are goods and services made in one country and sold to buyers in another.
Exports are important to modern economies, because they provide opportunities to people and
firms many channels of distribution for their goods. One of the major functions of diplomacy
and foreign policy between countries is to improve economic trade, encouraging imports and
exports for the advantage of all trading parties. It is a way o sending products to another
country in return of payment. If you are on a plane and you bring 3 bags of chocolates from
your country to another, it is not exporting. You are just taking goods with you.
Exporting is done on a huge scale. The opposite of it is importing,which was mentioned
earlier, that means a country is receiving goods from another country. It is an essential part of
an economy. It permits the residents of the country to produce employ people goods, , and
earn money. The country that will receive, on the other hand, will benefit from the goods
because they have a short supply of it.
For example, there may be places abroad that have a high demand for rice. But since
their locations are not ideal for planting, they have to ask another country to supply them with
it.
The country that ordered the rice is the importer and the country that supplied it is the exporter.
Directions: Identify which type of industries are the following statements can be associated with.Write the letter
that corresponds to your answer in the space provided for.

a. Agriculture b. International trade c. Manufacturing d. Retail e. Service

1. My friend, Lorna, owns a boutique. She buys her stocks in bulk and sells it by piece.
2. Anna works in a Spa and Beauty Salon in the city.
3. San Miguel Corporation is the largest corporation in the Philippines in terms of revenue.
4. Minda bakes cupcakes and sells them at a reasonable price.
5. My parcel was delivered by LBC on time.
6. Production of livestock and poultry are done mostly by poor households as backyard and
livelihood ventures.
7. The long coastlines of the Philippines are endowed with marine resources for fisher folks to
harness for fish production.
8. The import of auto parts from Japan is considerable.
9.Vegetable oil is one of the Philippines top export.
10.7 Eleven continues to boom year after year.

WHAT I HAVE LEARNED

I- Direction: Written below are some of the businesses and industries that we can find in the Philippines. Write the
product/s or service/s that they sell/offer.
BUSINESS/INDUSTRY PRODUCT/SERVICE
1. Real estate Ex. Houses,buildings,land…
2. Travel and Tourism
3. CD-R King
4. Prince Hypermart
5. San Miguel Food and Beverages Inc.
6. Integrated Microelectronics Inc.
7. Ana’s Breeders Farm Inc.
8. Del Monte Fresh Produce Inc.
9. Agua Amigo Trading Co.
10. Rayne’s Textile Fabric

II - Direction: Identify the following of what type of industries that they do belong to.Draw the figure before
its number that corresponds to the correct answer
Agriculture Manufacturing Service International trade Retail

1. Philippine Airlines 6.Furniture and Fixtures

2. Gaizano Mall 7.Ford Cars

3. Piggery 8. Western Union

4. Crops 9. Fish production

5. Iphone products 10.Ayala Mall