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Distinguish between the primary sector and the tertiary sector of the economy - Leaving Cert Business - Question 2 - 2022
Question 2
Distinguish between the primary sector and the tertiary sector of the economy. The primary sector refers to working with the natural resources. The primary sector i... show full transcript
Worked Solution & Example Answer:Distinguish between the primary sector and the tertiary sector of the economy - Leaving Cert Business - Question 2 - 2022
Step 1
Distinguish between the primary sector and the tertiary sector of the economy.
Answer
The primary sector involves the extraction and harvesting of natural resources, including activities such as agriculture, fishing, forestry, and mining. Primarily, this sector is responsible for producing raw materials. On the other hand, the tertiary sector is focused on providing services rather than goods. It encompasses a wide range of activities, including healthcare, education, leisure, and transportation. The tertiary sector plays a crucial role in supporting the economy by facilitating transactions, providing information, and contributing to overall economic growth.
Step 2
Outline the current trends affecting businesses in the tertiary sector of the Irish economy.
Answer
Current trends affecting businesses in the tertiary sector include:
- Increase sales: The economic recovery has spurred growth in consumer spending, particularly in hospitality and retail sectors.
- Value Added Tax: The reduction of VAT in the tourism and hospitality sector to 9.5% has made services more affordable and competitive.
- Increased Competition: Traditional service providers face heightened competition from online service competitors, leading to challenges in market share.
- E-commerce Growth: The rise of e-commerce is transforming business models, compelling retailers to enhance their online presence.
- Staff Shortage: The demand for employment in the tertiary sector has risen, but challenges persist in staffing, particularly in sectors like hospitality.
- Access to Technology: Issues such as inadequate broadband access impact service delivery, particularly in rural areas.
- Commercial Rates: Increasing costs imposed by local authorities can affect small businesses, particularly retailers.
- Wage increases: Successful wage negotiations in transport and service sectors reduce profit margins but support employee livelihoods.