Compiler/Contextualizer: Reymar R.

Sarsoza

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 Senior High School

Applied Economics
Second Quarter– Modules 3-4:
Various Types of Industries in the Locality

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 2ND QUARTER - MODULES 3 AND 4
VARIOUS TYPES OF INDUSTRIES IN THE LOCALITY

CONTENT STANDARD :The learner demonstrates an understanding

of industry analysis, its principles, tools, and
techniques leading to the identification of
business opportunities

PERFORMANCE STANDARD :The learners shall be able to conduct a

survey of macro and micro environments
affecting business in a locality.

LEARNING OUTCOMES :Cite the different challenges of a Filipino

Entrepreneur through a comical skit/poster

COMPETENCIES/CODE :Apply business principles, tools, and

techniques in participating in various types
of industries in the locality

ABM_AE12-Ia-d-9

TOPICS : Various Types of Industries in the Locality

Multiple Choice: Write your answer on a separate sheet of paper.

1. What is an industry?
a. An economic activity concerned with manufacture of raw materials
b. Hardwork on a job well done
c. Machineries
d. All of the above

2. What are these industries that used plants and animal-based products as their raw
materials?
a. Forest based c. Mineral based
b. Agro based d. Marine based

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3. What are these industries that have less capital and often manual labor?
a. Forest based c. Mineral based
b. Small scale d. Large scale

4. What are these industries that are owned and managed by the government?
a. Private sector c. Public sector
b. Joint sector d. Cooperative sector

5. What industry that has a large capital investment and uses a high technology?
a. Cooperative sector c. Joint sector
b. Small scale d. Large scale

6. What are these industries that use raw materials from sea or ocean?
a. Forest based c. Mineral based
b. Marine based d. Agro based

7. What is being measured by how much money is invested, employee count and goods
produced?
a. Raw material c. Ownership
b. System d. Size

8. What are these industries that are famously known as feeders of all other
industries?
a. Iron and steel c. Textile
b. Information technology d. Garment

9. What industry is the service sector?

a. Primary c. Secondary
b. Tertiary d. Quaternary

10. What industries related to production and retrieval of raw materials?

a. Primary c. Quaternary
b. Secondary d. Tertiary

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 Lesson
INDUSTRY: AN OVERVIEW
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This module was designed to help you understand the principles, tools and
techniques in participating in various types of industries but we can only do so if we can
identify the various industries according to the types, location and characteristics.
At the end of this lesson, you are expected to:
1. Identify the categories of industries.
2. Compare and contrast the various types of industries in the locality
through a collage.
3. Apply the principles, tools and techniques in participating in various
types of industries by conducting a survey in the locality.

An industry is the whole of all economic activities by companies, people and

organizations involved in the production of goods and services for a particular field.
Industries are usually categorized by the goods and services they produce.

On a separate sheet of paper, give at least 2 industries in your locality and provide
at least 2 sentences as description or background of each industry.

Industries are affected by this global pandemic. A battle in the arena or stiff
competition is the situation that most industries are facing at these times.

A quote of Charles Dickens says:

How will you explain this quote of Charles Dickens in the situation today? How will you
explain prosperity at this time of pandemic?

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INDUSTRY VERSUS SECTOR

INDUSTRY refers to a series of companies that operate in a similar business sphere and
created by breaking down into sectors.

SECTOR is one of a few general segments in the economy within which a large group of
companies can be categorized.

All industries use material inputs from other sectors and factor inputs from the general
economy and convert them into a finished product using the production process.

In the Philippines, industrialization started in 1946 after acquiring political

independence from the United States. The main industries in the Philippines include
manufacturing and agribusiness. The focus areas are manufacturing, mining and mineral
processing, pharmaceuticals, shipbuilding, electronics and semiconductors.

Industries are organized under different categories:

1. Heavy versus Light

This category describes how much capital is required to set up a business in the
industry.

The heavy industry includes business that often employs a capital intensive
production process that requires a large initial investment such as for operating
equipment and machinery. Examples would be most natural resource harvesting
sectors such as steel, coal and other mining related sectors. Others are aviation
sector or the automobile sector.

A light industry sector would have much lower capital requirements for a business
to set up. These sectors usually have labor intensive production processes. Examples
are the restaurant and fastfood sector.

2. Domestic versus Foreign

This category describes whether the sector operates and produces goods and
services within a certain country’s borders.

A country’s domestic industries are those that are located within its borders
whereas foreign sectors are those that are not located within a country’s borders.

3. Durable versus Non-durable

This category describes whether the sector produces goods that last a significant
amount of time and amortize over long periods.

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 A durable industry is one that produces goods that last a long time. For example, the
automobile and aviation sector both producing goods like cars and planes.
Alternatively, a non-durable sector produces goods that usually do not last very
long, require consumption and are perishable. For example, the agriculture industry
as it produces food and easily perishes if it is not stored properly or appropriately.

4. Manufacturing versus Construction

This category describes whether the sector produces a final product or raw
materials and intermediate goods that are used in other sectors production
processes.

Manufacturing industries are those that produce final consumption goods. These are
products that end up in the customers hands for consumption. Conversely,
companies that produce intermediate goods (goods to be used by other companies to
produce final consumption goods) would be considered a construction industry.

In a whole sheet of clean paper. List down your reasons on the box provided
for you. Limit your answer up 5 minimum to 10 maximum only.

If you were to start a business, will you prefer a labor intensive industry or
a capital intensive industry?

Labor intensive

Capital intensive

INDUSTRY: CLASSIFICATION,
Lesson
CHARACTERISTICS, LOCATION AND
2 SIZE

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 This module was designed to help you understand the principles, tools and
techniques in participating in various types of industries.

At the end of this lesson, you are expected to:

1. Identify the classification, characteristics, location and size of
industries.
2. Compare and contrast the various types of industries in the locality
through a collage.
3. Apply the principles, tools and techniques in participating in various
types of industries by conducting a survey in the locality.

Answer the question on a whole sheet of clean paper. Differentiate the categories of
industries in your own words through a Venn diagram or a graphic organizer. Limit your
answer on a minimum of 5 to a maximum of 10 sentences.

Cut out a picture of the industry or industries in your locality into a collage form.
Provide a profile or background or description of the industry and what it contributes to
the economy. Be ready for a video presentation of your output.

In economics, industries are classified as primary, secondary, tertiary and

quaternary.

PRIMARY INDUSTRY is one sector of the nation’s economy that includes agriculture,
forestry, fishing, mining and quarrying and the extraction of minerals. An industry
concerned with extracting the natural resources on the earth so that it can be converted
into consumable products. Renewable and non-renewable resources are good examples of
this industry. It is concerned with the removal and collection of resources that are natural.

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Figure 1: https://www.marketing91.com/primary-industry/

TYPES OF PRIMARY INDUSTRY

1. FARMING – agriculture is one of the businesses that belong to the primary industry.
It is the art of creating raw food. More than 1/3 in the earth is still employed in
agriculture or farming.

2. FORESTRY – it is conserving, managing, repairing, using and harvesting of

woodlands, forests and associated resources for environmental and human
advantage.

3. MINING – deals in extracting raw materials like clay, silt, rock, metals, gemstones
and minerals from the earth.

4. FISHING – one of the most important primary industries in the world.

SECONDARY INDUSTRY deals with the raw materials effectively collected by the primary
industry. In an economy, the industrial sector is dominated by producing and manufacturing
products. It includes steel production, automobile manufacturing and telecommunications.

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Figure 2: https://www.marketing91.com/secondary-industry/

The secondary industry is responsible for acquiring the raw materials and making them
into viable goods that can be consumed by consumers in the market. It deals with the output
produced by the primary industry for sales and export purposes.

TYPES OF SECONDARY INDUSTRY

1. LIGHT – a labor intensive industry does not require a large area or large quantity
of raw materials. Like textiles, tobacco and beverage, distilleries and breweries.

2. HEAVY - refer to the manufacturing and production process on a large scale that
involves heavy and large facilities, equipment and the like. It needs high capital
investment. Examples are chemical manufacturing, concrete and cement, steel and
iron mills, transportation, and etc.

ADVANTAGES and DISADVANTAGES

ADVANTAGES:

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1. Generate employment opportunities.
2. Making our life easier.
3. Helps growth and prosperity of countries.
4. Encourages better income via foreign exchange.
5. Helps the countries to benefit and specialize from the economies of scale.

DISADVANTAGES:
1. Increase the level of pollution.
2. Tend to attract workers because of job opportunities and pay-cheque.
3. Preference and shifts of workers from rural to urban due to opportunities thus
creating housing problem, amenities and health problem.
4. Creating huge gap between the rich and the poor.

CHARACTERISTICS:
1. Labor and capital intensive
2. Light industries in an urban area.
3. Heavy industries in a rural area.
4. Its existence is dependent on primary industries

TERTIARY INDUSTRY is a technical name for the service sector of the economy and as a
nation’s economy grows and develops the largest sector of the global economy.
Examples, shipping and transportation industry, hospitality and personal services like
haircut and salons, services for animals and other medical service facilities too.

CATEGORY:

1. FOR PROFIT – made up of businesses of making money or in the financial industry.

2. NON-PROFIT – includes services such as education.

The figure below [figure 5] shows the ranking of countries in terms of tertiary
industries that are producing billions of dollars and are contributing to the country’s
Gross Domestic Product (GDP). The first three countries are labeled as the economic
super power countries, which means, these are the countries that dominate the
economies globally.

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 Figure 3: https://www.investopedia.com/terms/t/tertiaryindustry.asp

QUATERNARY INDUSTRY is an economic activity based on the intellectual or knowledge

based economy. This involves work that conceives, creates, interprets, organizes, directs
and transmits with the help and support of scientific and technical knowledge.

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Figure 4: https://www.economicactivity.org/2017/07/quaternary-sector.html

CHARACTERISTICS
1. Led by the developed countries and big companies
2. Research and capital intensive
3. Works with other sectors in the economy
4. Disrupts many labor markets

Whats More

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 Figure 5: https://pidswebs.pids.gov.ph/webportal/CDN/PUBLICATIONS/pidsdps1432.pdf

Based on the medium term development plan, the Philippine government assured the
competitiveness of the industry. This year, the world experiences the most challenging
and unimaginable scenario. By looking at the figure above [figure 5], suggest a
governments move to make 2021-2025 long run goal achievable in this time of
pandemic. You may provide at least 3 suggestions which you think might be achievable
for the government in this time of pandemic.

Guide questions:

1. What is the economic standing of the manufacturing industry in the Philippines?

2. What type of competition is our manufacturing industry?
3. Which manufacturing industry is moving forward in this time of pandemic?
4. What government programs are in place or should be in place in order to help the
surviving manufacturing industry in a pandemic?

What I Have Learned

Identify at least one type of each of the industries in your locality and describe how
these industries can help boost the Philippine economy in this time of pandemic. You may
use a graphic organizer or a comic skit in your presentation.

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 What I Can Do

Choose one of the industries in the list and produce a research output. Which of
those industries would you be interested to help in this time of pandemic? Conduct a
research study and provide your introduction and statement of the problem. You may write
this on a clean sheet of paper. Prepare a video presentation.

LIST:
1. CLOTHING AND FASHION
2. STEEL
3. AIRLINE
4. PHARMACEUTICAL
5. TOURISM AND HOSPITALITY
6. TELECOMMUNICATION
7. SHIPPING
8. MANUFACTURING
9. HEALTH CARE
10. BUSINESS PROCESS OUTSOURCE
11. FOOD
12. WEAPONS AND TACTICS
13. FURNITURE
14. HOUSEWARES
15. PERSONAL SERVICES

NOTE: (PLEASE
)

Assessment

Multiple Choice Questions: Write your answer on a separate sheet of paper.

1. Which of the industry that is characterized through research and capital intensive?
a. Primary b. Secondary

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 b. Tertiary d. Quaternary

2. Which of the industry that is characterized that its existence is dependent on the
primary industry?
a. Primary b. Secondary
b. Tertiary d. Quaternary

3. What industry that is based on intellectual, scientific and technical knowledge?

a. Primary c. Secondary
b. Tertiary d. Quaternary

4. Which part of the Philippine history that paved our country to industrialization?
a. In 1948, after acquiring independence from Japanese colonization
b. In 1944, after World War II
c. In 1946, after acquiring political independence from USA
d. In 1943, after the Economic Depression

5. What is the disadvantage of the secondary industry?

a. Allows mobility of workers
b. Motivation of wage increase
c. Increase in the level of pollution
d. Environment friendly

6. Which industry that is more popular even before and during the Spanish
colonization?
a. Farming c. Steel
b. Mining d. Automobile

7. What industry that focuses more on services?

a. Primary c. Secondary
b. Tertiary d. Quaternary

8. What is considered to be the most important primary industry in the world?

a. Farming c. Steel
b. Mining d. Fishing

9. What industry is considered to be the largest industry in the world?

a. Primary c. Secondary
b. Tertiary d. Quaternary

10. What industry that requires lower capital to set up?

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 a. For profit c. Heavy
b. Light d. Non-profit

11. What industry that does not require a large area or large quantity of raw materials?
a. For profit c. Heavy
b. Light d. Non-profit

12. What industry that is characterized through research and scientific or technical
knowledge?
a. Primary c. Secondary
b. Tertiary d. Quaternary

13. What industry that requires high capital investment?

a. For profit c. Heavy
b. Light d. Non-profit

14. What industry that creates a huge gap between the rich and the poor?
a. Primary c. Secondary
b. Tertiary d. Quaternary

15. What industry that helps countries specialize in their economies of scale?
a. Primary c. Secondary
b. Tertiary d. Quaternary

Aldaba, Rafaelita M. (2014).

. DISCUSSION PAPER SERIES NO. 2014-32. Retrieved from

[Figure 5]
https://pidswebs.pids.gov.ph/webportal/CDN/PUBLICATIONS/pids
ps1432.pdf

Arnold, R. A. (2015). . 11th ed. Cengage Learning.

Bajpa, Prableen (2020).

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 Retrieved from [Figure 3]

https://www.investopedia.com/articles/investing/091815/emergin
markets-analyzing-philippines-gdp.asp

Bhasin, Hetish. (2020). . Retrieved from

[Figure1] and [Figure 2]
https://www.marketing91.com/19-types-of
businessindustries/#:~:text=%2019%20Types%20of%20Business%20Industris%20
%E2%80%93%20Different,The%20computer%20industry%20hs%20boomed%20dras
tically...%20More

Langager, Chad (2020). . Retrieved from

https://www.investopedia.com/ask/answers/05/industrysector.asp

Mankiw, G. N. (2015). . 7th ed.Cengage Learning

Ofreneo, Rene E. (2014).

. Retrieved from
https://www.tandfonline.com/doi/abs/10.1080/13547860.2014.97
335?mobileUi=0&journalCode=rjap20

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