Production means producing goods and services so that we can satisfy our wants. Any type of production is an economic activity. It is useful to classify the economic activities according to the nature of production they do.
Primary Economic Activities
Also known as the extractive industry, primary economic activities involve in extraction of natural resources. Firms which produce natural resources are called primary firms. Fishing and agriculture are good examples of primary economic activities in Maldives. Other examples in this sector include, mining, extraction of crude oil and logging. The output of the primary industries are usually input for the secondary industries.
Secondary Economic Activities
Secondary sector involves in the use of raw materials to make other goods. Secondary production is also known as ‘manufacturing’. While the normal fishermen catching fish from the sea is a primary economic activity, the fish cannery in Felivaru is in secondary sector of the economy. Any firm which manufactures by using primary goods or secondary goods from another firm as raw materials is doing secondary production. Other world examples include, manufacturing cars, ship building and refining oil etc.
Tertiary Economic Activities
Once primary and secondary industries complete their production of goods, there are activities necessary to bring them to the consumers. These activities are also called services. For example, travel boats from the agricultural islands bring farm products to the local market.
There are also support services which support the primary and secondary sector. For example, banking and insurance.
Tertiary sector involves in giving services. This is also called service sector. Tourism, which is the major economic activity in Maldives is a tertiary economic activity. Other tertiary economic activities in Maldives include, shipping, teaching, wholesaling and retailing.
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