This is the first stage of production and is called the extractive stage. In this stage, raw materials are extracted from the surface of the earth or from the sea. Examples of this stage of production are: mining, fishing, quarrying, forestry and farming. Even though some produce from farmers are usable, most of the raw materials from this stage of production are unusable and have to be sent to the manufacturing industries to be changed into goods that can be used.
In this stage, raw materials are transformed into semi-finished or finished products. In this stage, goods are made ready for sale to the final consumers. Textile industry, building and construction industry, and chemical industry are some of the examples of secondary production.
Transfer of goods from factories to the final consumers is the work that is carried out in tertiary stage. Activities in this stage are broadly divided into two:
Commercial Services: This includes workers in communications, finance, insurance, wholesaling, and retailing. These workers are involved in getting the goods to the final consumer.
Direct Services: People in this group work to provide direct service rather than delivering the goods to the consumers. Teachers, doctors, nurses, lawyers, policemen are examples of people providing direct services.