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Btec Business Level 2 Unit 1 P5

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Changing the importance of the three sectors
1. What are the 3 sectors of business activity?
There are three sectors and they are:
• The Primary Sector- this is the sector where raw materials are collected for example, farming, fishing and mining.
• The Secondary Sector- In this sector the raw materials are manufactured and turned into a selling product, for example making a plastic bottle from oil.
• The Tertiary Sector- this is the retail sector where the manufactured products are sold but also is where some businesses provide a service.

2. Copy the graph on pg 108 to show the changing employment levels in the different sectors over the last 20 years in the UK. This graph is showing us that in 1985 there use to be more employees in the more labour jobs like mining and quarrying, textiles and motor cars but in 2000 these had fallen instead there were more jobs in hotels and restaurants, recreation and sport than in 1985.
3. Explain 2 reasons why there has been a decrease in the primary sector in the UK:
The primary sector has decreased because of advanced technology and everything is becoming automated. For example, in farms where raw materials were usually dug up by hand, they are now using machines to do it instead. This is because it is cheaper to buy machines as it is faster and more efficient. The result therefore is that costs are reduced and profits are increased, but also fewer people are needed to work in these sectors.
4. Explain 2 reasons why there has been a decrease in the secondary sector in the UK.
Companies now use more machines in factories, as the machines make the products better and much faster, they are also cheaper in the long run to buy the machine then to employ a worker, as this would make it more efficient. Also foreign imported products are cheaper as the labour is cheaper in some other countries this means we import lots of products, and don’t make many in the UK.

5. Explain why there has been a big rise in the tertiary sector in the UK.
Due to most employee’s leaving the primary and secondary sector they have no other choice but to join the tertiary sector, where they are in retail for selling the manufactured product from the other sectors or to provide a service. Also there is now more free time and more disposable income then before so there is more demand in these sectors from consumers so they need more employees in the tertiary sector.

6. Create a pie chart to show the proportions of people employed in each sector.

7. Copy out the key terms on pg. 112
Interdependence The way in which business in different sectors of business activity depend on each other. The primary sector depends on the secondary sector to make products from the raw materials it produces. In turn, the primary and secondary sectors depend on the tertiary sector to provide the necessary services for the business.
Specialisation Where a business concentrates on one particular activity.
Added value when a business increases the value of a product- for example, making a car from pieces of metal or making a meal from various ingredients.
De-industrialisation The reduction of importance of the secondary sector of business activity in a country.

8. Use the data below to create a graph which compares employment in the different sectors between Crawley, the southeast and UK. Then describe what the graph is showing. Percentages of people employed in each sector: Crawley Southeast UK
Primary 0.8 1.7 1.5
Secondary 11 12.6 15
Tertiary 88.2 85.7 83.5 Total 100 100 100

This graph is showing that the total figures for the UK show that the highest amount of people work in the tertiary sector. The secondary sector has quite a low percentage but this is higher then the primary sector which UK has only a small percentage between 1-2% amount of the workforce. In Crawley it is interesting to note that there is an even higher percentage of people that work in the tertiary sector than the UK overall. This is most likely due to Crawley benefiting from thousands of jobs at Gatwick airport.

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