2 production_stages - In the secondary production sector,...

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tutor2u GCSE Business Studies Stages of production Production within an economy can be divided into three main stages: primary, secondary and tertiary. Primary Production Primary production involves the extraction of raw materials (e.g. coal, iron, agricultural commodities). Raw materials can be: f Extracted – e.g. coal, iron ore, oil, gas and stone f Harvested / collected – e.g. fish f Grown – e.g. timber, cereal crops There is little value added in primary production. The aim is usually to produce the highest quantity at lowest cost to a satisfactory standard. Secondary Production Secondary production involves transforming raw materials into goods. There are two main kinds of goods: f Consumer goods – e.g. washing machines, DVD players. As the name implies, these are used by consumers f Industrial / capital goods – e.g. plant and machinery, complex information systems. Industrial and capital goods are used by businesses themselves during the production process.
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Unformatted text preview: In the secondary production sector, value is “added” to the raw material inputs. For example, foodstuffs are transformed into ready meals for sale in supermarkets; metals, fabrics, and plastics are transformed into motor vehicles. There are many different industry sectors in secondary production. For example: f Construction f Electronic instruments f Pharmaceuticals (drugs) f House-building Tertiary Production Tertiary production is associated with the provision of services (an intangible product). As with the secondary sector, there are many tertiary production markets. Good examples include: f Hotels f Private healthcare and education f Accountants f Tourism tutor2u GCSE Business Studies Key Links for GCSE Business Studies http://www.tutor2u.net/ Discussion Board for GCSE Business Studies Other GCSE Business Studies Revision Notes and Resources from tutor2u Tutor2u GCSE Business Online Store...
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This note was uploaded on 05/20/2010 for the course BUSINESS 6 Producti taught by Professor N/a during the Spring '10 term at Open Uni..

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2 production_stages - In the secondary production sector,...

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