Types of Production in Commerce

Production and Commerce

Types of Production

• Primary Production: Involves the extraction or harvesting of natural resources, such as:
  • Agriculture (crops, livestock)
  • Mining (coal, iron, gold)
  • Forestry
  • Fishing
• Secondary Production: Involves the transformation of raw materials into finished goods, such as:
  • Manufacturing (textiles, steel, automobiles)
  • Construction
• Tertiary Production: Involves the provision of services, such as:
  • Wholesale and retail trade
  • Transportation and storage
  • Finance and insurance
  • Tourism and hospitality

Aids to Trade

• Transportation: Enables the movement of goods and people, including:
  • Roads and highways
  • Railways
  • Airports and airlines
  • Seaports and shipping
• Communication: Facilitates the exchange of information, including:
  • Postal services
  • Telecommunications (phone, internet)
  • Media (newspaper, radio, television)
• Insurance: Provides protection against risk and uncertainty, including:
  • Life insurance
  • Property insurance
  • Liability insurance
• Advertising and Marketing: Promotes goods and services to potential customers, including:
  • Print and digital media
  • Event marketing
  • Public relations
• Banking and Finance: Facilitates transactions and provides financing, including:
  • Commercial banks
  • Investment banks
  • Credit and debit cards

Production and Commerce

Types of Production

• Primary Production involves extracting or harvesting natural resources, including agriculture, mining, forestry, and fishing.
• Agriculture involves crops and livestock.
• Mining involves extracting coal, iron, gold, and other minerals.
• Secondary Production transforms raw materials into finished goods, including manufacturing, construction, and textile production.
• Tertiary Production provides services, including wholesale and retail trade, transportation, storage, finance, insurance, tourism, and hospitality.

Aids to Trade

Transportation

• Roads and highways enable the movement of goods and people.
• Railways facilitate long-distance transportation.
• Airports and airlines provide international transportation.
• Seaports and shipping enable global trade.

Communication

• Postal services enable mail delivery.
• Telecommunications facilitate phone and internet communication.
• Media includes newspapers, radio, and television.

Insurance

• Life insurance provides financial protection for individuals.
• Property insurance covers damage to buildings and assets.
• Liability insurance protects against financial losses.

Advertising and Marketing

• Print media includes newspapers and magazines.
• Digital media includes online advertising.
• Event marketing promotes products through events.
• Public relations maintains a company's image.

Banking and Finance

• Commercial banks provide basic banking services.
• Investment banks facilitate investments.
• Credit and debit cards enable transactions.