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Cambridge IGCSE and O level Business Studies Notes/ Summary Ch#2
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  • Cambridge IGCSE and O Level Business Studies Study and Revision Guide 3rd edition

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  • June 16, 2023
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BUSINESS STUDIES (7115)
CH#2
Stages of economic activity:
1. Primary
2. Secondary
3. Tertiary


 Primary: extracts and uses natural resources of earth to
produce raw materials used by other businesses
Fishing, farming, forestry
 Secondary: manufactures goods using the raw materials
provided by the primary sector
Building, baking, car manufacturing
 Tertiary: provides services to consumers and other sectors
of industry
Transport, banking, hair dressing
How to know whether a country is primary, secondary or tertiary
based?
o Value of output of goods and services and the proportion this
is of total national output
o Percentage of the country’s total number of workers
employed in each sector


 De-industrialization: when there is a decline in the
importance of the secondary sector I the country
Why de-industrialization happens?
o Sources pf primary sector has decreased
o Losing competitiveness
o As people’s income increases they tend to spend it on
services

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