1. Try to reconstruct the text using the key words and word combinations listed above.

2. Answer the following questions to the text.

1. What is the purpose of production?

2. Is there any difference between manual and mental work?

3. What is the difference between direct and indirect production?

4. Can we distinguish between specialization and division of labour?

5. Which of the advantages of division of labour do you consider to be the most important?

6. What are the ways to overcome the disadvantages of division of labour?

7. What are the social implications of division of labour?

8. What is the price of acquiring expertise?

9. Is labour interdependence inevitable?

10. What are the drawbacks of mass-production?

Classification of trades

The most common and accepted classifications take three stages in the production of goods and services:

1. Primary activities

2. Secondary activities

3. Tertiary activities.

Primary Activities

Most commodities or goods that we buy start their life as raw materials in the ground, the seas or the fields.

All the activities concerned with extracting ores, oil, other basic materials; growing grain, fruit and vegetables; breeding animals for meat and fishing are called primary activities, and this part of the production chain is called the primary sector. The industries that make up this sector include mining and quarrying, agriculture, forestry and fishing.

Secondary Activities

Converting these raw materials into useful products, either by manufacturing or processing, is called secondary activity. For example, converting iron ore into steel, and then using the steel for manufacturing cars; or purifying water and pumping it to homes for drinking; or milling wheat to make flour, and then baking it for bread – all these are secondary activities, and together these industries constitute the secondary sector.

Tertiary Activities

Distributing these goods to make it convenient for the consumer to buy them - transportation, wholesaling, retailing, direct mail - are tertiary activities. So, too, are all the supporting services to industry: banking, insurance, travel, street lighting, refuse collection and any other supporting activities (such as holidays, health services, education and training). All these make up the tertiary sector.

Products

In the simplest terms, a market is the place where seller meets buyer to exchange products for money. ("Products" include services as well as goods.) Traditional markets still function in many parts of the world. Even in the United States, during summer month, there are farmers' markets where direct selling and buying take place between producers and consumers. Most service industries still operate at this market level.

Manufacturing industries and most agricultural enterprises are more remote from the consumer. Their products pass through several hands truckers, warehouse workers, wholesalers, and retailers before reaching the final consumer.

Products or commodities are usually divided into two types: consumer and industrial. (Manufacturers are consumers as well as makers of products.) Consumer goods are those that are sold to final users, the customers. These goods include food, clothing, automobiles, television sets, appliances, and all those things people go to stores to purchase.

Industrial goods are those that are sold to companies or other businesses for use in manufacturing or other purposes. Automobile makers buy many of the parts used to assemble cars. A tire manufacturer buys rubber, synthetic or otherwise, with which to make tires. Eventually these materials will end up in the hands of final users the owners of the cars. The nature of industrial goods depends on the nature of the goods to be made for final users. The price of industrial goods and raw materials will influence the price of final goods, those that the consumer buys.

Agricultural and manufacturing enterprises are also final customers of some goods. Farmers buy seed, machinery, pesticides, animal feed, and other goods. Factories need machinery, fire protection, meal services, computers, paper and other office supplies, heating and air conditioning, janitorial services, and other goods to keep operating. Service industries also are final customers for many goods. Doctors and dentists need offices, medicines, and equipment. Insurance companies need desks and chairs, office machines, and computers.