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Classification of businesses, Change in sector importance, or - Coggle…
Classification of businesses
Mixed economic
An economy organized with some free market elements and some socialistic elements
Private sector
Not owned by the government
Can make their own decisions
Most businesses will aim to make a profit
Public sector
Owned by the government
Decisions need to controlled by the government, or other public sector authority
Some goods and services are provided free to the consumer
The money for these comes from the taxpayer
Stage of economic activity
Tertiary
Provide services to both consumers and other businesses
Examples: transport, banking, retail, insurance, hotels and hairdressing.
Secondary
Covert the resources from the primary sector into manufactured or processed goods
Examples: building and construction, aircraft and car manufacturing, computer assembly, bread baking.
Primary
Exploitation the natural resources
Examples: Forestry, fishing, farming and the extraction of natural material
Relative importance of economic sector
This depend on what is mean by the "important" of sector in the country and usually the three sector are compare by
Percentage of the country’s total number of workers employed in each sector
Value of output of goods and services and the proportion this is of total national output
There is two way that the countries can change the sector Industrialization and De-industrialisation
Industrialisation: the period of social and economic change that employees move from primary into secondary sector for the purpose of manufacturing
De-industrialisation: occurs when there is a decline in the importance of the secondary manufacturing of industry in a country
Mixed economies - recent changes
Selling public sector businesses to private sector businesses (privatisation)
Private sector businesses are more efficient than the public sector
The private sector owners might invest more capital in the business
Competition between private sector can help to improve the product
The private sector might make more worker unemployed to cut cost
The private sector less likely to focus on social objectives
Change in sector importance
or