Primary Sector

The primary sector of the economy extracts or harvests products from the earth. The primary sector includes the production of raw material and basic foods. Activities associated with the primary sector include agriculture (both subsistence and commercial), mining, forestry, farming, grazing, hunting and gathering, fishing, and quarrying. The packaging and processing of the raw material associated with this sector is also considered to be part of this sector.

In developed and developing countries, a decreasing proportion of workers are involved in the primary sector. About 3% of the U.S. labor force is engaged in primary sector activity today, while more than two-thirds of the labor force were primary sector workers in the mid-nineteenth century.

Secondary Sector

The secondary sector of the economy manufactures finished goods. All of manufacturing, processing, and construction lies within the secondary sector. Activities associated with the secondary sector include metal working and smelting, automobile production, textile production, chemical and engineering industries, aerospace manufacturing, energy utilities, engineering, breweries and bottlers, construction, and shipbuilding.

Tertiary Sector

The tertiary sector of the economy is the service industry. This sector provides services to the general population and to businesses. Activities associated with this sector include retail and wholesale sales, transportation and distribution, entertainment (movies, television, radio, music, theater, etc.), restaurants, clerical services, media, tourism, insurance, banking, healthcare, and law.

In most developed and developing countries, a growing proportion of workers are devoted to the tertiary sector. In the U.S., more than 80% of the labor force are tertiary workers.

Quaternary Sector

The quaternary sector of the economy consists of intellectual activities. Activities associated with this sector include government, culture, libraries, scientific research, education, and information technology.

Quinary Sector

Some consider there to be a branch of the quaternary sector called the quinary sector, which includes the highest levels of decision making in a society or economy. This sector would include the top executives or officials in such fields as government, science, universities, nonprofit, healthcare, culture, and the media.

by Matt Rosenberg

Now answer the question:

What activities are associated with

1) the primary sector:

2) the secondry sector:

3) the tertiary sector:

4) the quartenary sector:

5) quinary sector ?

Part 2

Manufacturing and services

Assignment 1. Read the text, answer the questions and express your own opinion about the problem raised in the text

Two hundred years ago, the vast majority of the population of virtually every country lived in the countryside and worked in agriculture. Today, in what many people call 'the advanced industrialized countries', only 2-3% of the population earn their living from agriculture. But some people already talk about 'the post-industrial countries', because of the growth of service industries, and the decline of manufacturing, which is moving to 'the developing countries'.

Is manufacturing industry important? Is its decline in the 'advanced' countries inevitable? Will services adequately replace it?

Assignment 2. Read this extract from an interview with the well-known Canadian economist, John Kenneth Galbraith, and answer the questions.

1. Why do people worry about the decline of manufacturing?

2. Which activities are as important as the production of goods?

3. Should people worry about this state of affairs?

We worry about unemployment and the loss of manufacturing industry in the advanced industrial countries only because we don't look at the larger social developments. The US, for example, no longer depends on heavy industry for employment to the extent that it once did. This is related to a larger fact that has attracted very little discussion. After a country's people are supplied with the physical objects of consumption, they go on to concern about their design. They go on to an enormous industry persuading people they should buy these goods; they go on to the arts, entertainment music amusement - these become the further later stages of employment. And these are things that are extremely important. Paris, London, New York and so on do not live on manufacturing; they live on design and entertainment. We do not want to consider that this is the solid substance of economics, but it is. I don't think it is possible to stop this progressive change in the patterns of human consumption. It is inevitable.

(J.K. Galbraith in conversation with Steve Platt, New Statesman and Society)

Assignment 3. Here is a short interview with Denis MacShane, a British Member of Parliament for the Labour Party. Does he hold the same view as J.K. Galbraith? Do you agree with either of these views?

Interviewer Denis MacShane, do you agree with the people who say that manufacturing industry will inevitably decline in what we call the industrialized countries?

Denis MacShane I think manufacturing will change, convert itself. There are many new products that have to be invented to serve new needs, and they can be made in the advanced countries because in fact the technology of production means you need very little labour input. I'm holding in my hand a simple pen that British Airways gives away to its passengers. It is made in Switzerland, a pen, a low-tech product, made in Switzerland, with the highest labour costs in the entire world, and British Airways, a British company, having to pay in low value pounds, is buying from Switzerland a manufactured product. Now what's going on here? It seems to me that the Swiss — and they also manage to do it with their watches, the famous Swatch - have stumbled on a new secret, which is how to make low-tech products, sell them profitably, but actually make them in a country where in theory there should be no more manufacturing, and if you look at any of the successful economies of the 1990s, they all have a strong manufacturing component.

Interviewer Which countries are you thinking of?

Denis MacShane I'm thinking of the dynamic Asian economies, all based on manufacturing, I'm thinking indeed of the United States which now has created for example a new computer, high-tech computer industry, its car industry is coming right back in America. America is a giant manufacturing economy, which is why it is still the richest nation in the world, so I am extremely dubious of the theorists who say that manufacturing has no future in the advanced industrialized countries.

British Member of Parliament, Denis MacShane

Assignment 4. Answer the following questions.

1. Why does MacShane think that manufacturing has a future?

2. Why does MacShane think that manufacturing has a future in the advanced countries?

3. Why, however, is this manufacturing unlikely to solve the problem of unemployment?

4. What does MacShane mean by 'in theory there should be no more manufacturing' in Switzerland? (It is this theory that makes many people argue that manufacturing must move to 'less-developed' countries.)

5. Why does he say it is surprising for a British company to be buying Swiss goods?

6. What is the reason he gives for the United States still being the richest nation in the world?

7. Match up the following expressions and definitions:

A manual work

B to change from one thing to another

C to be uncertain, disbelieving

D to satisfy people's desires or requirements

E to discover something by accident

1. to convert itself

2. to serve needs

3. labour input

4. to stumble on

5. to be dubious

Assignment 5. Summarize both Galbraith's and MacShane's arguments in a short paragraph of fewer than 50 words.

Assignment 6. Read the following statements about manufacturing and services in advanced countries. Which of them do you find the most convincing and why?

1. A lot of service sector jobs depend on manufacturing industry. Manufacturing companies provide work for accountants, lawyers, designers, salespeople, marketers, IT specialists, etc.

2. Advanced countries have expertise in higher education, R&D, ICT, business consulting, etc. They should concentrate on these strengths, rather than trying to make things more cheaply than less-developed countries.

3. Manufacturing industry will inevitably decline in advanced countries and be replaced by services, because labour costs are too high. Companies will delocalize their manufacturing to low-cost countries.

4. Depending on service industries is dangerous; after the financial crisis in 2008, New York and London didn't only lose financial jobs, byt also lots of jobs in all the related service industries: law firms, real estate, expensive restaurants, etc. Big cities need factories too.

5. Service functions such as call centers , accounting, writing software , can all be outsoursed to companies in cheaper countries. Consequently, advanced countries should concentrate on high-quality manufacturing, which requires skills that cannot be outsourced or delocalized.

Assignment 7. Study the Active vocabulary and give the Ukrainian equivalents of the words and word combinations:

1. industrialized countries

2. developing countries

3. to earn one’s living from agriculture

4. service industries

5. consumption

6. manual work

7. to convert oneself

8. to serve the needs of smb

9. labour input

10. to be dubious of smth

11. to stumble on smth

12. manufactured product

13. low value pounds

14. low-tech product

15. labour costs

16. inevitable

17. decline of manufacturing

Assignment 8. Translate the sentences:

1. Зазвичай, виробництво низькотехнологічних продуктів потребує незначних затрат на виробництво, що робить його особливо привабливим для країн, що розвиваються.

2. Ця машина – низькотехнологічний продукт, але вона задовільняє потреби більшої частини населення Лівії.

3. Ринок продуктів харчування задовольняє потреби споживачів.

4. На мою думку, секрет зростання виробництва в країнах, що розвиваються – невеликі затрати на робочу силу.

5. Я дуже сильно сумніваюсь, що в Зімбабве високі затрати на оплату праці.

6. За таких умов неминуче буде спостерігатися спад на інформаційному ринку.

7. Для того, щоб задовольняти потреби країни потрібно повністю трансформувати виробничу сферу.

8. Під час рецесії у Британії, коли в обігу перебували дешеві фунти, чимало закордонних компаній наштовхнулися на неочікувану можливість більш вигідно збувати там свої товари, що було неможливим до цього через жорстку політику імпорту в Англії.

9. Припущення урядових аналітиків щодо економічного росту на наступний рік є дуже сумнівними.

Assignment 9. Read and translate the text:

Manufacturing industry

Manufacturing industry refers to those industries which involve the manufacturing and processing of items and indulge in either creation of new commodities or in value addition. The manufacturing industry accounts for a significant share of the industrial sector in developed countries. The final products can either serve as finished goods for sale to customers or as intermediate goods used in the production process.