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Question
What does the history of developed countries indicate about the shifts that have taken place between sectors?
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Solution
The history of most developed countries demonstrates that in the early phases of development, the primary sector was a major source of economic activity. As modern technology was introduced into the agricultural system, the agricultural sector became more lucrative, production increased, and people got interested in other occupations. The number of craftsmen and traders expanded, as did the purchasing and selling activities. People also became interested in transportation, administration, and military activities. At this point, the majority of the commodities produced were natural products sourced from the primary sector, where people worked. As industries emerged and developed, individuals began to labour in factories rather than on farms. People began to consume good products created in factories at low prices. As a result, the secondary sector steadily became more important in terms of total production and employment. In developed countries, there has been a shift from the secondary to the tertiary sectors over the last 100 years. As a result, the service sector has grown in importance in terms of overall production.
