The production of goods and services occurs in one of three industrial sectors. It is almost like a chain; each sector will pass its output to the next sector, these sectors are primary, secondary and tertiary.
Primary Sector (Extractive industries)
These are industries that produce goods using resources in the environment. For example
As the use the environment they need to be based near the areas they take their goods from. For example the majority of farmers live on the farm that they carry their business (farming) activity at.
This sector is known as the secondary sector as they use the goods that primary sector businesses have produced. They will take the raw materials from the primary sector and turn them into finished goods. They can be summed up as businesses that refine, manufacture or construct goods. For example
Carpenters will use wood from forestry businesses to make things out of wood e.g. furniture, kitchen cabinets, ornaments
Steel works will drill and cut steel to size ready for construction
Car manufacturers will use metal to make cars
Builders will use things that have been mined or wood from forestry businesses
The tertiary sector provides services for consumers or businesses. For example