Industry Theory (2023)

How can industry be classified?

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There are four types of industry. These are primary, secondary, tertiary and quaternary.

Primary industry involves getting raw materials e.g. mining, farming and fishing.

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Secondary industry involves manufacturing e.g. making cars and steel.

Tertiary industries provide a service e.g. teaching and nursing.

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Quaternary industry involves research and development industries e.g. IT.

Industrial Systems

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Factories have inputs, processes and outputs. Inputs can be the raw materials need to make something. Inputs can also be labour, buildings, capital and machinery. Processes are the things which go on within the factory. This is usually the manufacturing of goods. It can also be design and research - anything needed to make something. Outputs are the things which leave the factory. This can include the finished product, profit or even waste.

What affects the location of industry?

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There are many factors which affect the location of industry. These include raw materials, labour supply, markets, transport and Government Policy.

Multinational Companies

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MNCs or Multinational companies are large companies which are located in more than one country. Examples include Coca Cola and Nike.

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