Economy Sectors Overview

Economy and Economic Sectors

• An economy refers to the systems and procedures put in place in a country to help people satisfy their needs and wants.
• The economy is divided into three sectors: primary, secondary, and tertiary.
• Primary sector involves collecting or extracting raw materials from the Earth through farming, fishing, mining, and forestry.
• Secondary sector involves turning raw materials into finished products for people to buy, also known as the manufacturing or processing sector.
• Tertiary sector involves providing services to people to make their lives easier or improve their quality of life, also known as the service sector.

Stages of Economic Development

• Stages of economic development were created by Walt Rostow to describe the pattern followed by globalized countries as their economies advance.

Colonialism and Economic Systems

• Colonialism is when one country rules another and develops trade with that country for its own benefit.
• Mercantile system is an economic system of trade in which colonies are considered to exist for the economic benefit of the mother countries.
• In a mercantile system, colonies cannot operate their own economy or trade with other countries, and cannot compete with the mother country.
• Concession companies are created by a country to develop trade in its colonies and often trade in particular products.
• Under colonialism, land became privately owned by concession companies.

Land Tenure

• Land tenure refers to the manner in which land is held.