IGCSE, A Level Business Student Forum

Q8 Analyse the reasons of shifting a focus from secondary to tertiary sectors. [6]

Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[KN] Economy Improvements
[AN] As an economy matures and its income levels rises and there is an increasing demand for services. People have more disposable income to spend on services such as healthcare, education, entertainment, and professional services.
[AN+] thus peoples living standards increases and they can afford high quality goods

[KN] Education and Skill Development
[AN] The shift to the tertiary sector is often accompanied by investments in education and skill development to support a more service oriented economy. Skilled professionals are needed to provide a wide range of services.
[AN+] thus wide range of services being available for people for investments

[KN]Economic Advancements
[AN]The tertiary sector typically generates higher value-added services, which can result in increased income and economic growth.
[AN+]This shift can lead to a more prosperous economy as services often command higher prices than manufactured goods.

[KN]Technological Advancements
[AN]Advances in technology have made it easier for businesses to provide and access services remotely, leading to the growth of the tertiary sector.
[AN+]With the internet and digital tools, services like online education, e-commerce, and telemedicine have become more accessible and efficient.

[KN]Employment Opportunities
[AN] The tertiary sector typically generates more employment opportunities than the secondary sector. [AN+] This shift can help reduce unemployment and underemployment, especially in countries with a growing labor force.
[KN] Higher Productivity
[AN] Tertiary sector jobs often require higher skills and education, leading to increased productivity.
[AN+] This can drive economic growth and innovation, contributing to higher GDP per capita.

(Kn) changing consumer preferences (an) as the economy grows the people also evolve and get more interested in services eg entertainment (an+) due to this rise in demand many firms will become tertiary to take advantage of this opportunity
(Kn) to increase employment opportunities (an) tertiary sector being a labour intensive sector needs high amounts of labour which can increase employment due to more availability of jobs(an+) this Will increase employment and further improve the standard of living as more people get jobs

[KN]more value added goods being sold in tertiary
[AN] this helps generate higher revenue and sales
[AN+] which leads to more economic growth

[KN]it increases employment opportunities
[AN] the tertiary sector requires more human labour and less machinery
[AN+] this gives people more incomes and helps them improve their living standards

[KN] Higher scope of employment opportunities.
[AN] Since tertiary sector is mainly about services so it needs labor more than the machinery which increases the rate of labor force
[AN+] This means people now earn which leads to improved SOL with a reduction in poverty rate.


[KN] People becoming more skilled and educated.
[AN] Tertiary sector includes healthcare, hotels, teaching etc so when people become qualified enough to work in these industry's so they avoid playing with the toys of secondary sector and directly focuses towards tertiary sector.
[AN+] Thus this leads to an awareness in people and so they start working according to their abilities which increases the total productive capacity of the economy leading to economic growth.

[KN] job opportunities
[AN] the employs who have skills according to the tertiary sector have more opportunities for their job
[AN+] this would lead to lower unemployment

[KN] Technological advancements are driving automation in manufacturing.
[AN] Automation reduces the need for manual labor in factories.
[AN+] This can lead to cost savings, increased production efficiency, and potentially job displacement, depending on the industry and region

[kn] tertiary sector businesses do not usually rely upon raw materials, nor physical infrastructure like factories
[an] reduces cost of production
[an+] allowing businesses to charge lower prices
kn] tertiary sector businesses pollute less and have lower external cost
[an] therefore government does not impose barriers to production niether imposes excise duties to internalize externalities
[an+] no unnecessary increase in cost of production and leads to flexible operations without government regulations

KN: Globalization
AN: The globalization of markets and increased cross-border trade in services have expanded opportunities for service providers to reach a global audience
KN: Economic Stability
AN: Tertiary sector activities often provide a degree of stability to an economy, as they are less subject to fluctuations compared to manufacturing or agriculture
AN+: This can help in economic stability and resilience

[KN] changing consumer preferences
[AN] as the economy grows the people also evolve and get more interested in services eg entertainment
[AN+] due to this rise in demand many firms will become tertiary to take advantage of this opportunity

[KN] to increase employment opportunities
[AN] tertiary sector being a labour intensive sector needs high amounts of labour which can increase employment due to more availability of jobs
[AN+] this Will increase employment and further improve the standard of living as more people get jobs

[KN] Provision of better education and training
[an] this means workers will be more skilled thus if they donot find any job they may emigrate to find better opportunities
[an] thus a country may shift to tertiary sector to provide employment opportunities and produce at its full productive potential.


[KN] Developed countries often operate in tertiary sector
[AN] this is because SOLS improve due to better services thus profits for firms rise
[AN] leading to greater incentives to invest,MNCS may also set up leading to high international competiton

(Kn) To decrease unemployment (an) the tertiary sector, requires more labor, compared to the secondary sector, therefore, shifting from secondary to tertiary, will decrease unemployment (an+) can increase economic growth.

(Kn) people are becoming more qualified (an) people are becoming more trained and educated, and capable to work in the territory sector (an+) and can take up jobs like teaching, healthcare etc.

[KN]Increase in employment
[AN]shift form secondary to tertiary may create more jobs
[AN+]Thus unemployment decreases and people's standard of living improves

[KN]higher productivity
[AN]as more skilled workers are required in tertiary sector productivity increases
[AN+]leads to economic growth

Q8 Analyse the reasons of shifting a focus from secondary to tertiary sectors. [6]

[KN]development in skill
[AN]when shifting to tertiary, investments in edu and skill commonly occur to help support the service based economy, which is why more skilled labor is in demand
[AN+]Therefore, people focus on their ability, improving the productive capacity of the economy

[KN]a rise in employment/job opportunities
[AN]the tertiary sector requires more labor than the capital sector, resulting in a rise in demand for labor in general
[AN+]thus, unemployment falls, incomes rise, and living standards improve