IGCSE, A Level Business Student Forum

01 Analyse the importance of Primary Sector Business. [4]

Possible Structure:
KN >> APP
KN2 >> APP2

Sample Response:
Point 1: It Supplies Raw Materials to Other Sectors
KN (Knowledge): The primary sector is the foundation of the economy because it supplies the essential raw materials required by the secondary (manufacturing) sector.

APP (Application): A cotton farmer in Sindh (Pakistan) provides the raw cotton for textile mills to make fabric. A mining company in the UK extracts iron ore needed for steel production. An oil company like Saudi Aramco (Saudi Arabia) drills for the crude oil that is later turned into petrol and plastics.

AN (Analysis): Without this supply of raw materials, factories would have nothing to process. This leads to the entire chain of production being halted, which would shut down the manufacturing industry.

AN+ (Further Analysis): A strong primary sector makes a country more self-sufficient and less reliant on importing raw materials. This improves a country's trade balance and supports overall economic growth by providing a stable foundation for its industries.
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Point 2: It is a Major Source of Employment
KN (Knowledge): In many developing economies, the primary sector provides jobs for a huge proportion of the population, especially in rural areas.

APP (Application): Agriculture is the single largest employer in Pakistan, giving jobs to millions. While its overall share is smaller, the fishing industry provides thousands of jobs in coastal towns across the UK. Date farming is a significant employer in agricultural regions of the UAE.

AN (Analysis): This provides a vital source of income for millions of families, which in turn leads to them spending money in their local economies on other goods and services.

AN+ (Further Analysis): By providing widespread employment, the primary sector helps to reduce poverty and inequality. This contributes to social stability and ensures the long-term survival of many rural communities that depend on it.
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Point 3: It Generates Export Revenue
KN (Knowledge): Countries that are rich in natural resources can sell these raw materials to other countries to earn valuable foreign currency.

APP (Application): Pakistan is a major exporter of rice and mangoes. The UK exports high-value products like salmon and barley. The Middle East, particularly countries like the UAE and Saudi Arabia, exports vast quantities of crude oil, which is the backbone of their economy.

AN (Analysis): This inflow of foreign money (like US dollars or Euros) from exports improves a country's financial position and strengthens its currency.

AN+ (Further Analysis): These export earnings are crucial for economic development. They allow the government to earn the money needed to pay for vital projects like building new schools, hospitals, and roads, improving the standard of living for the entire population.

[KN] Primary sector provides raw material to the secondary sector.
[APP] For instance; cotton farmers will extract cotton & provide it to the clothing factories. If the quality of cotton is good, this would help clothing business maintain a high quality of its clothing.

[KN] Primary sector can be a major source of exports
[APP] For example; if a country has good reserves of oil they can export it to other countries, earn revenue and use this money to start factories / provide services to the people. This would improve the living standards and the country don't have to import other products as well.

KN : Primary sector businesses extract natural resources like farming and fishing.
APP : it is important to extract natural resources as without Raw materials the factories cannot produce goods as the economy depends on the primary sector to start.

KN : Primary sector helps in creating jobs for people.
APP : It is important because jobs in farming,mining and fishing help people to start getting financially stable and reducing poverty which leads to more spending in the economy.