Sector

Definition

A sector is a distinct part or subdivision of an economy, typically classified into three main categories: primary, secondary, and tertiary. Each sector represents different types of economic activities, with the primary sector focusing on natural resources, the secondary sector involving manufacturing and processing, and the tertiary sector centered around services. Understanding these sectors helps to analyze how infrastructure supports urban development and economic patterns.

5 Must Know Facts For Your Next Test

1. The primary sector often employs more people in developing countries, where economies are heavily reliant on agriculture and resource extraction.
2. As economies develop, there's a general shift from the primary and secondary sectors to the tertiary sector, indicating a move towards service-oriented industries.
3. Infrastructure plays a crucial role in supporting all three sectors by providing necessary facilities like transportation, communication, and utilities.
4. Economic sectors can be influenced by globalization, where outsourcing can shift jobs between sectors in different countries.
5. In urban areas, the growth of the tertiary sector often leads to increased demand for infrastructure improvements to accommodate services such as retail, healthcare, and education.

Review Questions

• How do the three economic sectors interact with urban infrastructure development?
  • The three economic sectors—primary, secondary, and tertiary—interact with urban infrastructure development by creating specific needs for facilities that support each sector. For example, the primary sector requires transport routes for raw materials, while the secondary sector benefits from manufacturing plants near major infrastructure. The tertiary sector depends heavily on service infrastructure like hospitals, schools, and retail spaces to function efficiently. Urban planning must consider these interactions to ensure sustainable development.
• Analyze how shifts between the economic sectors can impact job creation in urban areas.
  • Shifts between economic sectors can significantly impact job creation in urban areas. As economies transition from agriculture (primary) to manufacturing (secondary) and eventually to services (tertiary), urban centers often see an increase in service-related jobs. This shift may lead to a decline in traditional agricultural roles but can create new opportunities in healthcare, education, and technology sectors. The growth in service jobs requires urban infrastructure to adapt to higher population densities and changing demands.
• Evaluate the implications of globalization on the distribution of jobs across economic sectors within urban environments.
  • Globalization has profound implications on the distribution of jobs across economic sectors within urban environments. It often leads to outsourcing of manufacturing jobs (secondary sector) to countries with lower labor costs while increasing demand for service-based jobs (tertiary sector) in urban centers. This shift can result in job losses in some regions while fostering economic growth in others, necessitating adaptive urban policies that address disparities in employment opportunities. Furthermore, it highlights the importance of robust infrastructure that supports both local industries and global trade.

Related terms

Primary Sector:

The part of the economy that extracts and harvests natural resources, such as agriculture, fishing, and mining.

Secondary Sector:

The segment of the economy that transforms raw materials from the primary sector into finished goods through manufacturing processes.

Tertiary Sector:

The section of the economy that provides services instead of goods, including retail, entertainment, healthcare, and education.