Question 4: Define Industry. Explain various types of industries giving examples.
Answer:
Industry refers to economic activities, which are connected with conversion of resources into useful goods. The term industry is used for activities in which mechanical appliances and technical skills are involved. These include activities relating to producing or processing of goods as well as breeding and raising animals.
Different types of industries are as follows:
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Primary industry: Primary industry includes all those activities, which are connected with the extraction and production of natural resources and reproduction and development of living organisms, plants. These industries may be further sub-dived as follows:
a. Extraction Industries: These industries extract or draw out products from natural sources. Extractive industries supply some basic raw materials that are mostly the products of the soil. Products of these industries are usually transformed into many other useful goods by manufacturing industries.
b. Genetic Industries: The industries remain engaged in breeding plants and animals for their use in further reproduction. For the breeding of plants, the seeds and nursery companies are typical example of genetic industries.
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Secondary industries: Secondary industries are concerned with using the materials, which have already been extracted the primary stage. These industries process such materials to produce goods for final consumption or for further processing by other industrial units. Secondary industries may be further divided as follows:
a. Manufacturing Industries: These industries are engaged in producing goods through process of raw materials and thus creating for utilities. Manufacturing industries may be further divided into four categories on the basis of method of operation for production:
i. Analytical industry: Analytical industry which analyses and separates different elements from the same materials, as in the case of oil refinery.
ii. Synthetic industry: It combines various ingredients into a new product, as in the case of cement.
iii. Processing industry: It involves successive stage for manufacturing finished products, as in the case of sugar and paper.
iv. Assembling industry: It assembles different component parts to make a new product, as in the case of television, car, computer, etc.
b. Construction Industries: These industries are involved in the construction of buildings, dams, bridges, cock, roads as well as tunnels and canals. Engineering and architectural skills are important part in the construction industries.
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Tertiary Industries: Tertiary industries are concerned with providing support services to primary and secondary industries as well as activities relating to trade. These industries provide service facilities. As business activities these may be considered as a part of commerce because as auxiliaries to trade they assist trade.
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