CH19Mindmap

Ch19 Categories of Industry – Gavin Duffy Business

Tap any card to reveal its definition

⚙️ Factors of Production

Land

Raw materials used to produce goods and services, taken from natural resources — wind, water, land, air, climate, animals.

Labour

All human effort — physical and mental — that goes into producing goods and services.

Capital

Anything man-made that is used to produce goods and services — machines, computers, equipment, stock, money.

Enterprise

Uses initiative to take on risk and combine the other three factors of production to produce a good or service in order to make a profit. The entrepreneur is the driving force.

🌾 Primary Sector

Definition

Based on the natural resources of a country — agriculture, forestry, fishing, mining, energy. Also called the extractive sector. E.g. farmer, fisherman, miner.

Importance

• Provides premium produce used in the secondary sector
• Can provide alternative energy sources (solar/wind) to replace imported oil and gas

Trends

• Investment in solar and wind energy
• Veganism and changing consumer tastes impacting demand for beef and chicken
• Large retailers pressuring farmers to lower beef prices
• Climate change — sustainable farming methods and emissions targets
• Rising operating costs (fertiliser, machinery, energy)
• Reliance on direct payments from the EU

🏭 Secondary Sector

Definition

Takes raw materials from the primary sector, processes them and produces finished goods to sell. Includes manufacturing, agribusiness and construction. E.g. builder, factory worker.

Importance

• Provides direct employment (factory workers, architects, builders)
• Provides indirect/spin-off employment (banks, insurance, farmers supplying factories)
• Ireland exports significant volumes of pharmaceuticals and food products
• Construction vital for increased housing to cope with shortage

Trends

• Growth of Irish PLCs like Glanbia and Kerry Group in agrifood
• Large presence of pharma firms (Pfizer, Amgen)
• Boom in construction but with large price inflation — can't match housing demand
• Skills shortages in manufacturing and pharma
• Move toward automation and digitalisation (Industry 4.0)
• Energy costs and sustainability pressures under EU Green Deal
• Supply chain disruptions — Brexit paperwork, global shipping delays

🏦 Tertiary Sector

Definition

Provides services to businesses and the public, rather than producing physical goods. Also called the service sector. E.g. banker, teacher, insurance broker, doctor.

Importance

Provides support services so other businesses can operate — insurance, banking, couriers, hospitality, transport, financial services. Ireland has a significant aviation leasing and financial services sector.

Trends

• Online sales negatively impacting physical retail stores
• Increased automation (in-store banking machines, self-checkouts)
• Growth of discount retailers (Aldi, Lidl) squeezing traditional retailers
• Rising wage costs and minimum wage increases
• Brexit causing disruption for cross-border service businesses
• Poor broadband in rural areas
• Expensive commercial rates

🔄 Distinguish Between Sectors

Primary vs Secondary

Primary: Extracts raw materials from nature (e.g. farming, fishing).
Secondary: Takes those raw materials and processes/manufactures them into finished goods (e.g. turning milk into cheese).

Primary vs Tertiary

Primary: Extracts natural resources — produces physical raw materials (e.g. agriculture, forestry).
Tertiary: Provides services — no physical product is made (e.g. banking, insurance, transport).

Secondary vs Tertiary

Secondary: Manufactures or constructs physical goods (e.g. building a house, producing a phone).
Tertiary: Provides a service — no tangible product results (e.g. selling the house, insuring the phone).

Tap card to flip · ✓ removes from deck · ✗ goes to bottom

Tap to reveal

2024 Q2(B) Illustrate the primary sector + discuss three current trends. (20) ▼

(i) Illustrate your understanding of the term the primary sector. (5 marks)
(ii) Discuss the current trends in the primary sector of the economy. (15 marks — 3 trends)

✏️ Part (i) — Illustrate = definition + example

Primary sector: The primary sector refers to industries based on extracting raw materials from natural resources. E.g. farming, fishing, mining, forestry and energy production.

✏️ Part (ii) — Three current trends

Climate change and sustainability: Primary sector businesses face increasing pressure to adopt more sustainable methods of farming and energy production to reduce emissions and meet EU environmental targets. Farmers in Ireland are now required to reduce nitrous oxide and methane outputs under national climate action plans.

Changing consumer tastes — veganism and organic food: Growth in veganism and demand for organic produce has led to changes in what the primary sector produces. Some Irish farmers have shifted from beef and dairy to plant-based crops or organic farming to capture this growing market.

Rising operating costs: The cost of machinery, fertiliser and energy has increased significantly, putting pressure on profit margins for primary sector businesses. Some farmers have invested in renewable energy sources such as solar panels and wind turbines to reduce energy bills.

📌 Illustrate = definition + example. Trends questions require you to state the trend AND explain its impact — don't just name it. Use current, relevant trends.

2022 Q2(C) Distinguish primary vs tertiary + trends in the tertiary sector. (20) ▼

(i) Distinguish between the primary sector and the tertiary sector of the economy. (10 marks — MS: (2+3)(2+3))
(ii) Outline the current trends affecting businesses in the tertiary sector of the Irish economy. (10 marks — 2×5m(2+3))

✏️ Part (i) — Distinguish (two definitions showing the key difference)

Primary sector: Based on the natural resources of a country — involves extracting raw materials such as agriculture, forestry, fishing and mining. The output is a physical raw material. E.g. a farmer producing beef.

Tertiary sector: Provides services to businesses and the public rather than manufacturing or extracting goods. No physical product is produced — the output is a service. E.g. a bank providing financial services.

✏️ Part (ii) — Two trends in the tertiary sector

E-commerce increasing: The rise of e-commerce has negatively impacted physical retail stores. Consumers increasingly shop online, forcing retailers to invest heavily in digital platforms and online marketing to remain competitive.

Inflation and rising costs: Shortages and increased energy prices are pushing up costs of production, making firms less competitive and reducing profits. Rising minimum wage puts further pressure on service businesses in hospitality and retail.

📌 Distinguish means show how they DIFFER — not just define each one in isolation. The clearest distinction: primary extracts physical raw materials from nature; tertiary provides services with no physical output. The sample script (shown in the workpack) earned full marks using this approach.

2020 Short Q3 Explain tertiary sector + outline two trends. (10) ▼

Eight of the top ten aviation leasing companies in the world are based in Ireland. The aviation industry is part of the tertiary sector.
(a) Explain the term tertiary sector. (4 marks)
(b) Outline two trends in the tertiary sector in Ireland. (2×3 marks)

✏️ Suggested Answer

(a) Tertiary sector: It refers to the services industry. The aim of the sector is to provide a range of services to businesses and consumers. E.g. financial services, medical services, transport services, leisure services.

(b) Trend 1 — Growth of online services: Many service businesses have been forced to offer online options — click and collect, online banking, streaming services. This requires investment in IT and staff training.

(b) Trend 2 — Rising wage demands: Higher minimum wage and growing wage demands have raised operating costs for service businesses, particularly in hospitality and retail, squeezing profit margins.

📌 Short Q pattern: Definition (4 marks) + two trends explained (3 marks each). State the trend AND explain its impact — naming the trend alone won't earn full marks.

2009 Short Q6 Define secondary sector + outline two current trends. (10) ▼

Define the 'secondary sector' and outline two current trends affecting this sector in Ireland.

✏️ Suggested Answer

Secondary sector: Takes raw materials from the primary sector, processes them and manufactures finished goods to sell. Includes manufacturing, agribusiness and construction. E.g. Glanbia processing milk into cheese and whey powder.

Trend 1 — Skills shortages: Irish manufacturing firms, especially in pharma and medtech, are struggling to recruit staff with specialist skills. This increases wage costs and can delay production.

Trend 2 — Automation and digitalisation: Investment in robotics and smart factory technology (Industry 4.0) is now mainstream. Firms that do not invest in automation risk higher costs and reduced competitiveness.

📌 Trends must be CURRENT. Don't use outdated examples from old past papers — the examiner wants to see trends relevant to the current economy. Skills shortages, automation, energy costs and supply chain disruptions are strong current trends for the secondary sector.

2019 Short Q2 / 2015 Short Q4 Name three categories of industry / True-False on sectors & FoP. (10) ▼

2019: Name the three categories of industry and give one example of an occupation in each.

2015: True/False — Factors of production, sectors, indigenous firms.

✏️ 2019 — Three categories

(i) Primary — E.g. Farmer
(ii) Secondary — E.g. Builder
(iii) Tertiary — E.g. Banker

✏️ 2015 — True/False

1. Factors of production refer to the resources required for the generation of goods and services. — True
2. The secondary sector refers to the construction and manufacturing industries. — True
3. Service industries manufacture physical products for sale to consumers. — False (they provide services)
4. Industries such as agriculture, fishing and forestry are based on a country's natural resources. — True
5. Indigenous firms are foreign owned firms located in Ireland. — False (indigenous = Irish-owned)

📌 Indigenous vs Foreign: Indigenous firms are Irish-owned businesses. Foreign-owned firms located in Ireland are called multinational or FDI firms. This distinction appears regularly in True/False and MCQ short questions.

🔥 HOT Secondary Sector — Definition, Importance & Trends

The 2026 workpack flags Secondary Sector as a must-know. The primary sector was asked in 2024 Q2(B) and the tertiary sector in 2022 Q2(C) and 2020 Short Q3. The secondary sector has not appeared as a long question since 2009 Short Q6 — making it 17 years overdue. Know the definition, importance (direct + indirect employment, exports), and current trends: skills shortages, automation/Industry 4.0, energy costs, construction demand, supply chain disruptions.

Secondary sector last asked: 2009 SQ6 (17 years ago). Strong candidate for 2026.

🔥 HOT Factors of Production — Short Question

The 2026 workpack flags Factors of Production as a must-know for short questions. The FoP appeared in the 2015 True/False Short Q4 and are a classic short question target. Know all four definitions precisely — especially the common traps: Capital ≠ just money (it means man-made production resources) and Enterprise = the person who takes the risk, not the business itself.

Last tested: 2015 Short Q4 (T/F). Due for a definition-based short Q.

⚡ WARM Distinguish Between Two Sectors

The 2022 paper asked Primary vs Tertiary. A Distinguish question between Secondary vs Primary or Secondary vs Tertiary has not been asked recently and could appear in 2026. The key to a Distinguish question is showing how the two sectors differ: one extracts/manufactures, the other provides services or extracts raw materials. Always include an example for each sector.

Last distinguish Q: 2022 (Primary vs Tertiary). Secondary hasn't been part of a distinguish pair recently.

📅 DUE Importance of Categories of Industry

The 2007 Q2(A) asked about the importance of categories of industry — a 19-year gap. A question asking you to outline the importance of each sector to the Irish economy is overdue. Know: Primary = raw produce + alternative energy; Secondary = direct + indirect employment + exports; Tertiary = support services enabling other businesses to operate.

Last asked: 2007 Q2(A) — 19 years ago. Very overdue.

🎯 Command Words in Ch19 Questions

Illustrate = State + Explain + Example. You MUST include a named example for the illustration mark. E.g. "The primary sector extracts raw materials such as agriculture. For example, an Irish farmer producing beef in Tipperary."

Distinguish = Two separate definitions that show how the concepts DIFFER. Don't just define each one — highlight the contrast. E.g. "Primary extracts physical raw materials; tertiary provides services with no physical output."

Outline = State + Explain. Give the keyword definition (2 marks) then develop it (3 marks).

Discuss = State + Expand. Go beyond the definition — give depth, consequences, real-world impact.

⚠️ No ABQ in Chapter 19

Ch19 is in Unit 6. The ABQ technique (State → Explain → Quote from passage) does NOT apply to Units 6 and 7 (Chapters 19–26). Do not reference the ABQ technique in any Ch19 answer. Focus instead on clear definitions, Irish examples, and current trends.

🪤 The Capital Trap

Students often lose marks by defining Capital as "money". The correct definition:

Capital = Anything man-made that is used to produce goods and services — machines, computers, equipment, stock, vehicles. Money is only ONE form of capital. The examiner is looking for "man-made resources used in production".

Similarly, Enterprise ≠ a business. Enterprise is the person (entrepreneur) who takes the initiative, accepts financial risk, and combines the other three factors. If asked to define Enterprise, always mention: initiative, risk, and combining the other factors.

📊 Trends Must Be CURRENT

The workpack explicitly warns: "Trends must be current, don't just use old past paper examples." Avoid outdated references. Strong current trends for each sector:

Primary: Climate change / emissions targets, veganism, renewable energy investment, rising input costs

Secondary: Skills shortages (pharma, construction), Industry 4.0 / automation, energy costs / EU Green Deal, supply chain disruptions (Brexit, global shipping)

Tertiary: E-commerce growth impacting physical retail, automation (self-checkouts, banking machines), rising wages / minimum wage, discount retailers (Aldi, Lidl)

Always state the trend AND explain its impact on the sector. Naming the trend alone earns only the state mark (2), not the explain mark (3).

🏢 Irish Examples That Earn Marks

Using named Irish businesses strengthens your answers and earns application marks:

Glanbia Kerry Group Ornua Pfizer Amgen Aldi Lidl Dunnes Stores Penneys Supermac's Ryanair AIB Bank of Ireland

Primary: Irish beef/dairy farmers, Bord Bia. Secondary: Glanbia, Kerry Group, Pfizer. Tertiary: AIB, Ryanair, aviation leasing companies.

🔑 Keywords That Earn the Marks

The MS awards marks for specific terminology. These are the keywords that earn the 3:

natural resources extractive sector man-made resources initiative and risk combine the other factors processes raw materials finished goods direct employment indirect/spin-off employment service sector no physical product support services economies of scale Industry 4.0 indigenous firm