5.1.1

Economic Activity

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Types of Economic Activity

Economies can be classified in different ways. Different economies all have different features. Economic activity is split into four main economic sectors:

Illustrative background for Primary economic activityIllustrative background for Primary economic activity ?? "content

Primary economic activity

  • Primary economic activity usually involves some kind of raw materials.
  • Some examples of primary economic activity are farming, cutting down trees for making paper and mining (extracting things like iron ore).
  • Finland is famous for its pulp (used to make paper) industry. It produces €17bn in its forestry industry each year. The company Nokia started out as a pulp mill.
Illustrative background for Secondary economic activityIllustrative background for Secondary economic activity ?? "content

Secondary economic activity

  • Secondary economic activity involves the next stage of activity after primary, usually doing something to the raw materials.
  • Manufacturing the paper after the trees have been chopped down would fit in the category of secondary economic activity.
  • In the UK, James Cropper in the Lake District produces paper from the raw material, pulp. This is secondary economic activity.
Illustrative background for Tertiary economic activityIllustrative background for Tertiary economic activity ?? "content

Tertiary economic activity

  • Tertiary economic activity involves providing services to other people in the economy.
  • Transport companies like taxi drivers, doctors working in healthcare and restaurants like Nando's are all in the tertiary sector of the economy.
Illustrative background for Quaternary economic activityIllustrative background for Quaternary economic activity ?? "content

Quaternary economic activity

  • Quaternary economic activity involves services like IT software and scientific research and development.
  • Pension fund/asset management companies and design consultancies may also be classified in the quaternary sector.

Economic Activity in the UK

Rural and urban areas of the UK generally do different types of economic activities. There are also specific clusters of heightened economic activity that have developed.

Illustrative background for Rural areasIllustrative background for Rural areas ?? "content

Rural areas

  • Rural areas usually have more primary activity in the UK.
  • Agriculture usually takes place in the countryside in places like Cumbria and Somerset.
  • Jobs in these places and industries are often low paid and involve manual work.
Illustrative background for Urban areasIllustrative background for Urban areas ?? "content

Urban areas

  • Urban areas usually have higher proportions of secondary and tertiary activity.
  • Employment in services industries makes up over 80% of all employment in the UK.
  • Urban areas like London do not have much primary economic activity (e.g. mining or farming).
Illustrative background for Specific areas/clustersIllustrative background for Specific areas/clusters ?? "content

Specific areas/clusters

  • Quaternary employment in the UK is concentrated in specific areas.
  • In the UK, most quaternary employment happens around important universities and in the M4 corridor (London, Reading, Bristol, Bath and Cardiff).
  • There are also clusters of activity around the universities of Oxford and Cambridge because there are often spillover effects that make it good for firms to locate there (e.g. access to good talented workers).

Jump to other topics

1Tectonic Processes & Hazards

2Option 2A: Glaciated Landscapes & Change

3Option 2B: Coastal Landscapes & Change

4Globalisation

5Option 4A: Regenerating Places

6Option 4B: Diverse Places

7The Water Cycle & Water Insecurity (A2 only)

8The Carbon Cycle & Energy Security (A2 only)

9Superpowers (A2 only)

10Option 8A: Health & Human Rights (A2 only)

11Option 8B: Migration & Identity (A2 only)

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