The Economy

THE ECONOMY

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THE PRIMARY SECTOR

Primary sector activities

Arable Farming

Framers use land to produce plant products (crops). Dry crops grow well tith rainwater (potatoes, olives, grapes). Irrigated crops need more water (rise, vegetables and fruit)

Livetock Farming

Framers use land to rise animnals. Intesive farming is when many animals live together in an enclosed space. Extensive farming is when the animals spend a lot of time outside.

Fishing

Most fishing is done at sea. Boats can stay close to the land (coastal fising) or gou out on the high sea for many weeks (deep-sea fishing).

Forestry

Forestry is growing trees for their wood or other products, such as pine nuts and cork. The number od trees on Earth has decreased dramatically because of human activity. This is called deforestation.

Mining

Mining is taking natural materials, for examples, minerals and metals, from the Earth´s crust. There are two types: underground and open-cast mining.

Primary sector in Spain

The primary sector produces raw materials that we get directly from the Earth or from living things. We use raw materials in their natural form and sometimes we transform them into other things.

Farmers grow different types of crops in different parts of Spain. For instance, Andalucía has many olive groves.

THE SECONDARY SECTOR

Secondary sector activities

Secondary sector in Spain

Processing Industries

Processing industries transform raw materials into intermediate products.

Construction Industries

Contruction industries make building and also carry out public works like roads and bridges. They use raw and processed materials.

Energy Industries

Energy industries produce energy and supply homes and businesses with the power they need.

Consumer goods industries

Consumer goods industries use raw materials and the intermediate materials, o take final products that individuals or companies can buy.

Capital goods industries

Capital goods industries take intermediate materials from the processing industries and use them to manufacture machinery, equipment or parts.

Many of the raw materials from the primary sector are used to make products to sell. Manufactures sell some products directly to the public, but others are transformed into different materials.

The secondary secotr in Spain employes 20% of the active population. Most industries are located around big cities.

THE TERTIARY SECTOR

Tertiary sector activities

Secondary sector in Spain

Social and support services

Some services do not generate money. Often the goverment pays the workers. Some examples are: education, healthcare, security services.

Entertaiment and leisure services

These are services people want to buy because thy improve their quiality of life.Some examples are: tourist industry, media and comunication.

Sale of commercial goods

The direct sale of goods to an individual is called retail. Trade is when goods are bouht and sold between businesses. We can find domestic trade and international trade.

Transport and logistcs services

People need to move from their home to other places such as work or school.

Tourist in Spain in 2017 according to their contry of origen

The tertiary sector provide services to consumers. This sector is sometimes called the service sector.

Spain´s principal exports are chemical products, fruit, vegetable and shoes. The main imports are machinery, food and textil. Spain earns a lot of money from tourism.

TYPES OF BUSINESS

Economic sector

Geographical area

Size

Primary sector

Secondary sector

Tertiary sector

Local

Regional

National

Multinational

A business is an organitation that offer goods or services to customers.

​Primary Sector businesses produce or extract raw, through activities such as mining, forestry, agriculture and fishing.

Secondary sector businesses process raw materials or use them to make products in factories.

Tertiary sector businesses offer a wide variety of services.

A local business usually operates in a small area, such as a neighbourhood, town or city.

A regional business operates in a larger geographical area.

A national business operates in more than region of a country

A multinational business operates in more than one conuntry.

BUSINESS ORGANISATION

Chief exucutive officerr (CEO)

Director

Manager

Supervisor

Team

Many businesses have a

Production

The action of making or manufacturing from components or raw materials, or the process of being so manufactured.

Marketing

Department is responsible for advertising the business

Sales

Department is responsible for selling the products or services

Finance

Control the money that is earned and spent

Human Resources

Finds, hires and trains the employees.

Smalls businesses do not usually have many levels of organisation. The CEO is often the owner of the company

Business often organise their employees or staff into department and levels. Such an organisation can be showed in an organogram

COST RUNNING A BUSINESS

COST RUNNING A BUSINESS

Fixed Costs

Variable Costs

Saving money

Variable Costs

Keeping a money jar

Opening a savings account

Opening a savings account

People who start their own business are called entrepreneurs. Starting a business can be expensive because there are often start-up cost. Some entrepreneurs get a loan from a bank or a grant from the government. The profit is the extra money that a business has after it has paid all its running costs.

The movement of money is called cash flow. Many people spend it or put it into investments or a bank account. The money in a bank account is called capital. You recive a small percentage of that profit as interest.

Fixed cost include rent fot the physical space a business uses, salaries to employees, utility services such as: telephone, internet and insurance in case there is an accident.

Variable cost include materials. Shipping costs cover the cost of delivering products to customers. Some businesses pay their employees a bonus (extra money). Promotional cost will depend on the type and the amount of advertising that businesses do.

Shops often have special offers and sales when prices are reduced. You can find bargains, which are good quiality products at low prices.