Table of the chain of production.

What is meant by the chain of production?

The chain of  production is the various stages  through which the production of goods passes to reach the consumer.

Who are producers and consumers?

Producers provide goods and services to consumers. Consumers are the final users of goods and services.

What are direct services?

These services are of a personal nature and are given directly to the person receiving them.

What are commercial or indirect services?

These services change the location of the goods and make them more available to those who wants them.

Write some of primary industries and their occupations.

Primary industries                  Occupations

Mining                                     Coal miner

Prospecting                           Gold prospector
Farming                                  Farmer
Forestry                                  Lumberjack
Fishing                                     Fisherman
Quarrying                               Stone blaster

What is indirect production?

Most kinds of production-when a person concentrates on one occupation and produce a surplus. For example, a Canadian wheat farmer who trades his wheat for goods and services produced by other people. He will use money as a medium of exchange.

Define Primary Production?

This is the first stage in any production process. It is concerned with obtaining or extracting natural resources from the Earth? Such as minerals, fuel, raw materials or food.

Primary Industries may be further divided into two kinds.

1)-Exhaustive Industries

            Those industries that take resources from nature and these resources are not replaced e.g. mining, quarrying.

2)-Non-Exhaustive Industries

            Those industries that take resources that are renewed from time to time, e.g. farming, fishing.

* Primary industries are dependent on geological and climatic condition.

What is direct production?

When a person tries to provide all he needs by his own efforts. For example, an African farmer who has a small area of land and farms it to support his family.

How many kinds of productions are there?

There are three kinds of productions:

1. Primary Production
2. Secondary Production
3. Tertiary Production.

We may define it as below in detail.

Production

Primary Production (extractive industries)

                          Exhaustive Production

                          Non-exhaustive Production.

Secondary Production

                          Manufacturing

                          Construction or Processing.

Tertiary Production

                           Commercial Services

                           Non-commercial Services (Direct Services).

Production may also be divided into two branches:

1. Industry
2. Services.

Production

Industry

                Primary Industry

                Secondary Industry.

Services

                Commercial Services

                Non-Commercial Services (Direct Services).

What is Production?

Production is the act of producing of making something that was not there before or was not in the same from. Economists might describe production as the 'creation of utility' i.e. making something useful such as clothing from something that was not so useful such as cotton fiber.

What is Insurance?

Insurance is the method by which people obtain protection by payment of premium against losses which result from risks.

What is Warehousing?

Warehousing provides storage of goods after processing or manufacturing and after purchase. It enables goods to be stored until they are required.

What is Transport?

Transport is the movement of goods, raw materials, equipment and people from one place to another. It may be between primary producers and manufacturers.

What is Advertising?

Advertising is an important part of marketing goods and services. It may be used to introduce new products and services, to inform people of the new change in products or to persuade them to buy.

What is Communication?

Communication enable people to contact one another both at home and abroad and to transmit and receive commercial information. Buyers and sellers can make transactions over short or long distances using a variety of telecommunications and postal services.

What is Banking and Finance?

Banking and Finance is concerned with methods by which payments are made. Banking allows sellers to receive their payments into their bank accounts and deposits are stored safely.

What is Aids to Trade?

Aids to Trade are commercial services which assist the functioning of the trade. There are six aids to trade.

What is Import Trade?

Import Trade is the buying of goods and services from sellers in other countries.

What is Export Trade?

Export Trade is the sale of goods and services to buyers in other countries to earn foreign currency and to dispose of surpluses.