DAPDAP HIGH SCHOOL

BAMBAN, TARLAC

Applied Economics
Types of Industries
Prepared by :

Efrileen Muico
Irish Kim Tolentino
Jerlyn Cauguiran
Objectives

You will learn

• To classify industries according to the four

different types: primary, secondary, tertiary
and quaternary
Agribusiness
• Agriculture – has been defined as the science and art
of cultivating plants and producing livestock.
 In the 1970s, 28% of the country’s Gross
Domestic Product (GDP) has been
contributed by agriculture.
After more than four decades, its share
in the economy GDP has slid down to only
11% from 54%.
 Agriculture in the Philippines
employs 30% of the Filipino workforce
as of 2013, according to World Bank
statistics. Agriculture accounts for 12%
of Filipino GDP as of 2013, according to
the World Bank.
 As the producer of food grains it devotes
more than 50% of farm lands in the planting of
rice and corn. Aside from this, the agricultural
sector is also the source of raw materials
supplied to the industrial sector as well as the
producer of export products for the world
market.
 There are also business opportunities in the
production of other fruits and vegetables and
varieties of rice and corn that cater to the changing
tastes of Filipino consumers.
These crops are rice, corn, coconut, sugarcane,
mango, camote, tomato, abaca, calamansi, among
others.
 The long coastlines of the Philippines are
endowed with marine resources for fisher folks to
harness for fish production. But aside from
commercial fishing for seafood production, there
are business prospects in municipal fishing,
aquaculture, and cage/pen operations
opportunities.
 What is an Industry?

• Industry broadly refers to any form of

economic activity that has the purpose of
making money.
Types of Industries
• Primary industries
• Directly involved with natural
• resources. Examples include
• fishing, farming, etc.
Tertiary industries
Involves selling and exchanging
of goods and services
Secondary industries
Involves processing and
transforming of raw materials
obtained from primary activities
or that of packaging manufactured
goods
Quaternary industries
Involves handling and processing
of information and knowledge
Primary Industries
• Primary industries are directly involved with natural
resources.
• The following are some examples of primary industries:

Fishing industry
Involves the catching of sea
produce from oceans, rivers,
seas and lakes for sale. Some
examples of produce are fish,
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Primary Industries

Farming industry
Involves the cultivation of
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 For animal production, there are two types
that can be pursued: Livestock and poultry
production.
This can also undertake commercial
activities that can provide income and
employment opportunities to poor household.
Primary Industries

Forestry industry
Involves the felling of trees in forests
for resources, especially timber. Timber
is used for shipbuilding, paper-making
and construction work.

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 For forestry resources the main source
of income is logging. But because of the
environmental implications of this type
of agribusiness the commercial
opportunities are becoming limited with
the implementation of the log ban.
Primary Industry

Mining industry
Involves the extraction of
minerals, such as iron and
diamonds. Also involves the
extraction of fossil fuels, such as
petroleum and natural gas.

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Secondary Industries

• Secondary industries involve the processing and

transforming of raw materials obtained from primary
activities or packaging of manufactured goods.

• They are also known as ‘manufacturing industries’.

Industrial sector and Manufacturing industries

• The industrial sector is composed of manufaturing,

construction, mining, and utilities, which includes
electricity, gas and water.

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 More than 70% of production of the sector
comes from manufacturing industries. Because
of the prominence of the manufacturing sector,
there are numerous subsectors within this type
of industry that can offer business
opportunities to budding entrepreneurs.
Secondary Industries
Primary industry
Logging

Secondary industry Secondary industry Secondary industry

Processed into paper Construction Shipbuilding
Secondary Industries
• Primary and secondary industries are closely linked
together because they depend on each other for
future growth.
• Secondary industries can be described as light
industries or heavy industries, mainly based on the
amount of raw materials used and the nature of
goods produced.
 Light and Heavy Industries
• Light industries use few raw
materials to produce E.g.
relatively lightweight goods. Manufacture
of garments

• Heavy industries use bulky

machinery and large
quantities of raw materials E.g. Steel
industries
to produce large and heavy
goods.
Labour-intensive and Capital-intensive Industries

• Labour refers to people in an industry, while capital

refers to money used to set up and maintain a business.
• Labour-intensive industries and capital-intensive
industries are differentiated by the number of people
employed and amount of capital used in the industry.
A shoe factory Oil refinery
(A labour- (A capital-
intensive intensive
industry) industry)
Manufacturing establishments can be classified
as:
• Shop/factory • Cannery
• Bakery • Abattoir
• Food establishments • Brewery
• Distillery • Foundry
• Refinery • Tannery
Tertiary Industries
• Tertiary industries are also known
as ‘service industries’. Some
examples include banking,
education, tourism,
entertainment, transportation,
and sale or distribution of food.
• Tertiary industries may be
classified as those providing basic
services (e.g. medical services at a
polyclinic) and those providing
premium services (e.g. specialist
clinics and private hospitals).
Tertiary Industry

Service Sector and Retail Services

• Service are products that are consumed when
they are produced.
 With the rapid improvements of in
information and communication technology,
services are increasingly traded internationally
through various modes of supply including cross
border transactions, consumption abroad,
commercial presence, and movement of natural
persons.
 Services cover a host of industries including
wholesale and retail industries, transportation,
communication, and storage including
warehousing, hotels and restaurants, financial
intermediation, real estate and business
activities, education, and other social services,
private and government services.
Quaternary Industries
• Quaternary industries involve handling and processing of
information and knowledge (e.g. research and development
(R&D), education or consultancy)
• Companies in the other types of industries may engage the
services of quaternary industries (e.g. a manufacturing
company may engage a consultancy firm to seek advice on
cost cutting, market research, etc)
• Quaternary industries also work towards developing new
products and services to meet the needs of consumers (e.g.
R&D in a pharmaceutical company to develop new drugs
and medicine)
Industrialisation of a Country
• Industrialisation is the process whereby the
machine-assisted production of goods develops
greater importance in an economy or a country.
• Industrialisation is often synonymous with the rapid
growth of the secondary industries or manufacturing
industries.
• International Trade
• An export in international trade is a
good or service produced in one country
that is bought by someone in another
country.
• An import is a good or service brought
into one country from another.
Thankyou!!!