Transition from primary sector to secondary sector to tertiary sector?

Answer 1

Primary sector is agrilture and mineral extraction.
Secondary sector is general manufacturing.
Tertiary sector is high value added services and specialised manufacturing.

As an economy gets more developed and advanced first the secondary, then the tertiary sectors expand rapidly. Consumers spend a smaller percentahe of their income on necesities like food and housing and more on services.

The US is an advanced economy and so high value added services (tertiary) like financial services, law, software etc and specialised manufacturing form a relativly high percentage of GDP.

As the global economy developed many manufactured goods like consumer white goods, cars and TV's are manufactured more cheaply in the Far East or other lower wage economies These manufactured goods become commodities with a low profitability as advanced manufacturing techniques are passed to these lower wage countries..

So the terms of trade of an advanced economy improve and it can afford to buy primary and secondary goods that are manufactured by less developed, lower wage economies.
At the same time primary and seconday industries become more efficient and employ a smaller percentage of the workforce.

Current US split is: primary 1 %, secondary 20 %, tertiary 79%.

Since US independence the whole global economy has developed very rapidly with the US and the UK in the forfront.
The US received massive capital investment from the UK, for most of the last 300 years the most advanced global economy, before and after independence and developed manufacturing and services very rapidly



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Answer 2

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