7115 · 1.2
Classification of businesses flashcards
Revision flashcards for Cambridge 7115 Classification of businesses (syllabus 1.2). Flip, recall, then mark a real past-paper question.
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Primary sector example?
Wheat farm, oil extraction, commercial fishing.
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Secondary sector example?
Car factory, house builder, food processor.
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Tertiary sector example?
Supermarket, airline, hotel, school.
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Quaternary sector?
Software R&D, university research, data analytics.
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Sectoral shift?
Developed economies: declining primary/secondary share, rising tertiary/quaternary.
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Why shift occurs?
Higher incomes demand services; automation reduces manufacturing jobs.
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Link to 9.1.1?
Manufacturing may relocate to lower-cost countries.
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Multi-sector firm?
Vertical integration spans sectors — e.g. oil firm extracts and refines.
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What is the Quaternary sector?
A sub-sector of the tertiary industry focused on knowledge-based and information-based services. Examples include Research & Development (R&D), information technology (IT), and consultancy.
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Define de-industrialisation.
The decline in the relative importance of the secondary (manufacturing) sector in a country's economy in terms of employment and contribution to GDP.
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What is structural change in an economy?
The long-term shift in the relative importance and contribution of each economic sector (primary, secondary, tertiary) to a country's GDP and employment.
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How does the secondary sector add value?
By taking raw materials from the primary sector and transforming them through manufacturing and construction processes into finished goods with a higher market value.
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What is a key risk for businesses in the primary sector?
Volatility in global commodity prices, which can dramatically affect revenues and profitability. Other risks include weather events and resource depletion.