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Importance of productionDefinition:Creation of valueGoods and services are produced to satisfy needs and wants of the people.

Chain of productionThe chain of production involves a series of stages, which add value to the end product.Production chain is the steps taken to convert raw materials into goodsPrimary, Secondary and Tertiary

Branches of productionPrimary productionSecondary productionTertiary production

Primary productionPrimary sector involves changing natural resources into primary productsThe primary sector of the economy extracts or harvests products from the earth.

Examples: Fishing , mining Farming Forestry

Secondary productionSecondary sector converts the primary goods into manufactured goodsThe secondary sector of the economy manufactures finished goods.

Examples: Construction Textile production Processing

Tertiary productionTertiary sector is the service industry which only provides services to its customers.Examples:

Banking Haircutting Teaching

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Types of industries Extractive industries Manufacturing industries Construction industries Tertiary industries

Extractive industriesThe extractive industry is concerned with the physical taking out of metals and minerals from the EarthExamples:

Mining Quarrying Dredging

Manufacturing industriesThe industry where raw materials are converted to finished goods by the use of tools and machinesExamples:Car manufacturingTextile manufacturing

Construction industriesThe industry where land development is done.Repairing, building or renovatingExamples:

House building Plaza building

Tertiary industriesThe industries which are providing servicesExamples:

Banking Haircutting Doctors

Specialisation and Division of Labour

SpecialisationTo do something at which you are bestDivision of labourTo divide the work into stagesSeparation of work process into tasks, and each task is performed by a separate person or group

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