2/03/2022

POB

TYPES OF PRODUCTION

There are four main types of production

TYPES OF PRODUCTION DETAILS

Extractive (agriculture, mining and fishing) Extractive industries “extract’ or take out
natural products from the environment ,
such as fruit and vegetables, coal, gas and
fish.

Construction ( building) Building is more important in creating the

infrastructure of an economy and might
involve building roads, bridges, tunnels,
houses and factories

Manufacturing ( assembling, refining) This involves making products of raw

materials and includes factory work such as
bottling and processing.

Eg- Crude oil into petroleum

Sugar cane into refined sugar
Nutmeg into packaged nutmeg spice

Service ( transport, communication, Today in many countries service industries

tourism) account for most employment and
production. They include banking,
insurance and tourism
LEVELS OF PRODUCTION

As societies develop they go through four recognised levels of production, as outlined below
QUESTIONS:

1. How does capital help goods to be produced more efficiently?

 2. Distinguish between types of production and levels of production.
3. Why are subsistence economies not able to export?

Cottage industries benefit an economy by using local raw materials, they provide a source of
income for local people and may attract tourists who want to buy craft products as souvenirs.
QUESTION

DESCRIBE SOME KEY FEATURES OF COTTAGE INDUSTRIES

WHAT ARE SOME FUNCTIONS OF SMALL BUSINESSES

WHAT ARE SOME ADVANTAGES AND DISADVANTAGES OF SMALL BUSINESSES

The effects of growth on a business

1) Organisational structure
2) Capital
3) Labour
4) Use of Technology
5) Potential for export