The primary sector is about changing natural resources into primary products such as agriculture. In developing countries, primary industry plays a large part in economic development. As the goods are sold in commodity markets this forms the basis of the economy. Examples of this can be found in Africa Vietnam and South East Asia.
What is supposed to happen is, as the economy develops, the primary sector should become less important and secondary and tertiary sector should become more prominent. The secondary sector concerns itself with goods that are sold to the consumer, industrial markets and capital; this is most noted in developed economies such as the USA and the UK. The tertiary sector sells its services in the consumer, industrial and capital markets this is far the biggest part of the economy in a developed economy.
The primary sector plays an important role in the Gross Domestic Product (GDP) within a developing country as it lays the foundation to build economically. It is not always plain sailing in the commodity markets for these goods and markets can be unstable and change frequently. The primary sectors’ products will have less money spent on them as the Global economy grows which will make it difficult for developing countries to increase their prices. The competition will be high, many countries produce primary products and it is near to impossible to control the market and set a price.
One of the main products in developing countries within the primary sector is agriculture, especially in places like Africa where farmers would find it impossible to predict the environmental conditions, let alone predict just how much they can produce for the markets. One of the biggest problems the primary sector faces is the non-renewable products as unfortunately once they are depleted they are gone for good. More sustainable resources need to be sourced inexpensively.
What is supposed to happen is, as the economy develops, the primary sector should become less important and secondary and tertiary sector should become more prominent. The secondary sector concerns itself with goods that are sold to the consumer, industrial markets and capital; this is most noted in developed economies such as the USA and the UK. The tertiary sector sells its services in the consumer, industrial and capital markets this is far the biggest part of the economy in a developed economy.
The primary sector plays an important role in the Gross Domestic Product (GDP) within a developing country as it lays the foundation to build economically. It is not always plain sailing in the commodity markets for these goods and markets can be unstable and change frequently. The primary sectors’ products will have less money spent on them as the Global economy grows which will make it difficult for developing countries to increase their prices. The competition will be high, many countries produce primary products and it is near to impossible to control the market and set a price.
One of the main products in developing countries within the primary sector is agriculture, especially in places like Africa where farmers would find it impossible to predict the environmental conditions, let alone predict just how much they can produce for the markets. One of the biggest problems the primary sector faces is the non-renewable products as unfortunately once they are depleted they are gone for good. More sustainable resources need to be sourced inexpensively.
