Primary Activities

These are the basic, foundational activities that involve the extraction or production of raw materials from the Earth. This is the initial step in the economic production chain. When the farmer is tilling the land and planting wheat, he’s engaging in a primary activity. Other examples include fishing, forestry, and mining. Essentially, any activity that sources raw materials directly from nature falls into this category.

Secondary Activities

Once the raw materials have been extracted, they move on to the next stage of production, where they are processed or transformed. These activities include manufacturing and processing. Turning wheat into flour, flour into bread, or iron ore into steel are all secondary activities. They add value to the raw materials by transforming them into something more useful or consumable.

Tertiary Activities

These are the services that support the primary and secondary sectors. Without transportation, the wheat wouldn’t reach the factories, and without factories, there would be no bread for the market. Similarly, banking, insurance, and advertising all help facilitate the production, sale, and distribution of products. These activities don’t produce physical goods but offer necessary services that keep the economic machinery running smoothly.