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ECONOMIC ACTIVITIES

INTRODUCTION –

Due to the development of civilization and for a better life the demand for

resources are increasing gradually, on the other hand people have to turn

natural elements into resources with their intelligence and advanced

technologies. People have to choose different professions for collecting and

producing resources. In different regions natural environment are also

different, so the method of making livelihood are also different. Economic

activities are those which directly or indirectly engage people in different

profession in order to utilize resources bring about production, distribution,

exchange and consumption of goods and services, generate income and satisfy

human wants.

CLASSIFICATION OF ECONOMIC ACTIVITIES –

Economic activities are classified into 5 sectors. These are Primary Sector,

Secondary Sector, Tertiary Sector, Quaternary Sector and Quinary Sector.

➢ Primary Economic Activities –

The primary sector of economy is that which involves direct utilization

and exploitation of nature and natural resources. i.e. – Agriculture,

Rearing, Fishing, Forestry, Mining and Hunting.

o CHARACTERISTICS –

1. Man collects natural resources for doing this activity.

2. Mainly basic demand can fulfil by this activity.

3. Highest portion of population in the world is engaged in

primary activities.

4. It is village centric activity.

5. This type of activity is labour centric so people who are

engaged in primary activities are called as Red Collar

Workers.

➢ Secondary Economic Activities –

Secondary activities are those where people involve in the processing of

raw material collected from primary activities. i.e. – Any type of

Industry.

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o CHARACTERISTICS –

1. Utility and value of produced material increase by this

activity.

2. The secondary sector consist of manufacturing and

construction works by various machines.

3. Developed technology and efficiency are needed in this

activity.

4. People who are engaged in this activity are known as Blue

Collar Workers.

➢ Tertiary Economic Activities –

The tertiary sector of economy involve the services that helps to activate

primary and secondary economic activities. i.e. – Trade Transport &

Communication, Banking, Tourism, Treachery, Health & Treatment,

Financing.

o CHARACTERISTICS –

1. This activity is used to help primary & secondary activity.

2. It is interrelated with primary & secondary activity.

3. It helps to increase production.

4. People who are engaged in these activities their per head

income also increased. So this type of people are known as

Pink Collar Workers.

✓ Tertiary activities include various service activities. These are …

o TRADE –

Exchange of commodities between different countries of the

world is known as Trade. It is 2 types .. Internal Trade & External

Trade.

INTERNAL TRADE – Internal trade takes place between the places

within the same country. i.e. – Jute materials from West Bengal

export to another state of India.

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EXTERNAL TRADE – External trade takes place between one

country and another country. i.e. – Trade of iron steel between

Japan & India.

o WORLD’S SOME MAJOR TRADE REGIONS –

WTO (WORLD TRADE ORGANIZATION) –

On 1995 after closing the GATT agreement WTO established. It is

the largest permanent trading organization in the world. The

headquarter of WTO located at Geneva in Switzerland. The works

of WTO are …

1. WTO resolves trade related disagreement.

2. WTO executes multiple contracts.

3. It keeps focus on foreign policy.

4. WTO removes all the barrier on tariff.

5. WTO assists with various international groups.

OPEC –

The full form of OPEC is Organization of Petroleum Export in

Counties. On 1960 OPEC established in Baghdad. It’s membering

countries are Algeria, Angola, Democratic Republic of the Congo,

Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia,

United Arab Emirates & Venezuela. The headquarter of OPEC

located at Vienna in Austria. The works of OPEC are … Extraction

of mineral oil, policy & pricing in International market.

OAPEC –

The full form of OAPEC is The Organization of Arab Petroleum

Exporting Countries. OAPEC established on 1968. The membering

countries of OAPEC are Kuwait, Libya, Saudi Arabia, Algeria,

Bahrain, Egypt, Iraq, Qatar, Syria, Tunisia, United Arab Emirates. It

is a multi-governmental organization formed for the cooperation

& coordination of energy policies among oil producing Arab. The

headquarter of OAPEC is located in Kuwait.

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NAFTA –

The full form of NAFTA is North American Free Trade Association.

USA, Canada, Mexico established NAFTA on 1994 to start open

trade by remove all barriers.

SEZ -

The full form of SEZ is Special Economic Zone. It is the zone where

applied economic barrier not effective for another place of a

country. So that foreign industrialist invests their capital easily. So

in this region produced materials are taken without tax.

EEC / EU –

The full form of EEC is European Economic Counties or Union. EEC

established on 1957. On 1995 EEC is changed as European Union.

The aim of EU are to ensure the free movement of people, goods,

services and capital within the internal market, enact legislation in

justice and maintain common policies on trade.

ASEAN –

The full form of ASEAN is Association of South East Asian Nations.

ASEAN established on 1967. The headquarter of ASEAN situated at

Jakarta in Indonesia. To increase trade and economic cooperation

Thailand, Singapore, Malaysia, Indonesia & Philippines are

established in a commercial group as ASEAN.

SAPTA –

The full form of SAPTA is South Asian Pre-Trade Agreement. It

established on 1993. India, Sri Lanka, Maldives, Bangladesh,

Pakistan, Nepal & Bhutan signed an agreement for joint trade

cooperation. For this agreement trade increased easily.

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SAARC –

The full form of SAARC is South Asian Association of Regional

Cooperation. It established on 1985 by India, Sri Lanka, Maldives,

Nepal, Bhutan, Bangladesh, Pakistan. It is a regional cooperation.

The objectives of SAARC are to build economic and trade

cooperation among the member countries. The headquarter of

SAARC is Kathmandu in Nepal.

o TRANSPORT –

The movement passengers, goods and services from one place to

another is defined as transport.

o IMPORTANCE OF TRANSPORT –

1. Transport helps to distribute natural resources.

2. Industrial materials can reach to the industry centre by

transport easily.

3. It helps for internal & external trade.

4. Tourism industry develops because of transport.

5. Export is possible due to transport medium & national

income increased.

6. Transport helps for supply of production according to

demand, population expansion.

The various mediums of transport are Roadways, Waterways,

Railways and Airways.

o ROADWAYS RELATED SOME INFORMATIONS –

1. National highways connect two or more states. At present

in India number of national highways are 228 .

2. India’s oldest and busiest national highway is Grand Trunk

Road or NH2 .

3. India’s longest national highway is Varanasi Kanyakumari

Highway or NH7 .

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4. India’s smallest national highway Kundanoor Wellington

Road or NH47A.

5. India’s highest roadway is Leh-Lasa Ladakh.

6. India’s longest corridor is North-South Corridor (From

Srinagar to Kanyakumari.

7. India’s highest national highway is NH44 .

8. India’s highway is known as National Highway.

9. In USA national highway is called as Highway or Expressway.

10. In Britain national highway is known as Motorways.

11. In Germany national highway is known as Autobahns.

12. In Italy national highway is known as Autostrade.

13. In France national highway is known as Autoroute.

GOLDEN QUADRILATERAL –

National highway development authority take a project is called

Golden Quadrilateral. It is a highway network connecting many

major industrial, agricultural and cultural centres of India such as

Chennai, Delhi, Mumbai and Kolkata.

o RAILWAYS RELATED SOME INFORMATIONS –

1. World’s longest railway is Trans-Siberian Railway, which is

located at north-west part of Russia.

2. Asia’s largest railway system is Indian Railway.

3. In India headquarter of eastern railway is situated in

Kolkata.

4. In India headquarter of northern railway is situated in Delhi.

5. In India headquarter of north east railway is situated in

Gorakhpur.

6. In India headquarter of north east border is situated at

Maligaon, Guwahati.

7. In India headquarter of central railway is situated in

Mumbai.

8. In India headquarter of southern railway is situated at

Chennai.

9. In India headquarter of central south railway is situated at

Secunderabad.

10. India’s longest railway is Northern Railway.

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DIAMOND QUADRILATERAL –

It is a project of Indian railways to establish a highest speed rail

network in India. It will connect the four mega cities such as Delhi,

Mumbai, Kolkata & Chennai.

o WATERWAYS RELATED SOME INFORMATIONS –

1. Waterway lead important role for goods transport in

international way. Heavy loaded materials easily can

transport by waterways. So it is known as life line.

2. World’s largest and busiest waterway is North Atlantic

Waterway.

3. World’s longest canal is Suez Canal. It is second busiest

waterway.

4. India’s longest canal is Indira Gandhi Canal.

5. Panama Canal is known as gateway of pacific.

6. SHIPPING LINE & SHIPPING LANE:-

SHIPPING LINE - Shipping line is a company that operates

the ships that actually carry the containers from load port

to discharge port.

SHIPPING LANE - Shipping lane is a regularly used route

for vessels on oceans from one port to another port.

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PANAMA CANAL SUEZ CANAL 1. Panama Canal was digged on 1904 & opened on 1914

1.Suez Canal was digged on 1859 & opened on 1869

2. The total length of this Canal is 80 KM 2. The total length of this Canal is 166 KM

3. The depth of Panama Canal is 12 meters to 26 meters

3. The depth of Suez Canal is 10 meters to 13 meters

4. In this way tariff rate is very low 4. In this way tariff rate is very high

5. It connects Pacific Ocean with Caribbean Sea 5. It connects Mediterranean Sea with Red Sea

6. North & South America and East & West part are connected by Panama

6. East & Western Countries are connected by Suez

7. Mainly internal trade occurred by it 7. International trade occurred by it

8. Nearest area of Panama Canal is undeveloped & less populated

8. Nearest area of Suez Canal is most populous

9. Number of ports are very low 9. Number of ports are very high

10. In this Canal 40,000 tons loaded Ships can pass through

10. In this Canal 20,000 tons loaded Ships can pass through

11. Panama Canal is used by China, Japan, USA, Canada & South America

11. Suez Canal is used by India, Malaysia, Sri Lanka, Bangladesh, Australia & New Zealand

SHIPPING LINE SHIPPING LANE 1. Companies that operate different nature in the transport of goods and passengers in International waterways is known as Shipping Line. i.e. - Panama, Norway, India's Shipping Line.

1. Vessels of the sea follow the specific route through which the ships move from one port to another port is called as Shipping Lane. i.e. - From East Coast of USA to West Coast of Europe specific route of ship.

2. There's no influence of physical environment in Shipping Line.

2. There're many barriers of Shipping Lane.

3. Shipping Line is not specific. 3. Shipping Lane is specific.

4. In this making of shipping infrastructure, maintenance, capital investment are needed.

4. There is no need for capital investment.

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o AIRWAYS RELATED SOME INFORMATIONS –

1. India’s first internal flight service started on 1911.

2. Airport authority of India established on 1995.

3. Air India established on 1953. It’s headquarters situated in

Mumbai.

4. The largest International airport of Japan is Tokyo.

5. India’s largest internal flight service organization is Indian.

6. India’s state helicopter organization is Pawan Hans Limited,

which established on 1985.

7. World busiest & largest airport is New York.

o COMMUNICATIONS –

Communication is a system that involves exchanging of

information by the use of words and messages. Various medium

of communication are Postal System, Tele-Communication

(Telephone, Mobile), Radio, Television, Newspaper, Satellite,

Internet, Ecommerce and Video Conference.

o COMMUNICATION RELATED SOME INFORMATIONS –

1. World’s largest postal system is seen in India.

2. On 1986 speed post system started in India.

3. India’s largest news agency is Press Trust of India (PTI)

which established on 1947.

4. TRAI established on 1997.

5. To develop tourism structure Indian Tourism Development

Corporation (ITDC) established on 1966.

6. India’s largest insurance organization is Life Insurance

Corporation of India (LIC).

7. With the help of internet which trade is occurred in online,

this is called Ecommerce.

8. Full form of BPO is Business Process Outsourcing.

9. Full form of BSNL is Bharat Sanchar Nigam Limited.

10. An example of agricultural bank is Agricultural Refinance

and Development Corporation (ARDC).

11. India’s largest space research centre is ISRO (Indian Space

Research Organisation).

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12. Outsourcing is an agreement in which one company’s

contract out a part of existing internal activity to another

company. It involves the contracting out of a business

process and operational to another party.

13. The first computer came in India on 1955 at Indian

statistical institute. It is Asia’s first computer.

14. GPS is the modern technology to calculate the location of

any place.

o INTERNET AND IT’S IMPORTANCE –

It is an electronic communication network that connects

computer network around the world.

IMPORTANCE –

1. Through the internet a person can send news information

from any part of the world in a few moments.

2. Internet system has reduced the distance and brought it

closer to the Earth.

3. By internet any information, data can easily conserve.

4. Rail, flight, bus tickets can be conserved from home via

internet.

5. From many books, data education related many

information are easily known by internet.

6. Doctors come to know modern & complex treatment by

internet.

➢ Quaternary Economic Activities –

Quaternary activities are knowledge-based activities that form the

higher services in the tertiary sector and information technology. i.e. –

Information Technology, Sharing, Research & Development.

o CHARACTERISTICS –

1. Collection of information research work are developed by

quaternary activity.

2. More foreign currency can be earned this activity.

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3. People who are engaged in this activity are known as White

Collar Workers.

4. In developed countries this activity are mainly seen.

5. It depends on International market.

✓ There are 2 types of quaternary activities –

1. Information service-based activities – People who are involved in

this type of activities known as Gray Collar Workers. In Silicon

Valley of USA is developed in information & service-related work,

so this region is known as Capital of World’s Information

Technology.

2. Research & Development based activity –

NASSCOM – Full form of NASSCOM is National Association of

Software & Service Companies. It established on 1988. It is a trade

association of Indian information technology & business process

outsourcing industry. It is a non-profit organisation. The

headquarter of NASSCOM is located at New Delhi.

➢ Quinary Economic Activities –

Quinary activities are those which an extension of tertiary activities

& quaternary activities in the service sector. i.e. – Scientist consultants

specialist and policy maker.

o CHARACTERISTICS –

1. Job opportunity so much increased by this activity.

2. In this activity innovative ability of talented people are

developed.

3. Economic infrastructure is developed by this activity.

4. In this activity there is no need of physical labour.

5. People who are involved in this activity their income are

very high. They are known as Golden Collar Workers.

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✓ Various types of workers in this activity –

1. SPECIALIST (Economist, Physicist, Specialist Doctor)

2. DECISION MAKER (Managing Director, Principal, Professor, Top

Executive)

3. CONSULTANT (Law Consultant, Income tax Consultant, Economic

Consultant)

4. POLICY FORMULATOR (Members of Planning Commission, Members

of Managing Committee)

✓ Definition of Digital Divide –

Digital divide is an economical and social in equality to the access of or

impact of information technology and communication or development

of quaternary and quinary economic activities.

✓ Definition of Think Tank –

A group of experts in an institute, corporation who are organised to

study of a particular subject and provide information, idea, advice

known as Think Tank.

QUATERNARY QUINARY 1. This is the fourth sector of economy. 1. It is the fifth sector of economy.

2. Number of involved workers are huge in amount.

2. Number of involved workers in this sector is very low.

3. People who are involved in this activity is known as White Collar Workers.

3. People who are involved in this activity is known as Gold Collar Workers.

4. Around of whole world it provides developed service.

4. Around the specific whole region it's provide developed service and then the service is spreading around the whole world.

5. This sector has less earning than the Quinary sectors.

5. This sector has more earning.

6. This sector are 2 types. i.e. - Information Technology Based and Research Development Based.

6. It is divided into 4 types. i.e. - Specialist, Consultant, Policy Maker, Policy Formulator.

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SR. NO S.A.Q (QUESTIONS & ANSWERS) 1 Write the full form of Modem? - Modulation - Demodulation

2

Definition of Offshoring? - It is the relocation of a business process from one country to

another typically and operational process such as manufacturing, supporting

processes.

3 What is Autobahns - National highway of Germany is known as Autobahns.

4 Rearing is which type of economic activity? - Primary Economic Activity.

5 Definition of Business Surplus? - In a country in a specific year the difference between

total import value and total export value is called as Business Surplus.

6 Where world's highest broad-gauge railway is situated? - China

7 In which organisation is established for Development of Tourism? - On 1996 Indian

tourism development corporation established for Development of Tourism.

8

Remote sensing and GIS are which type of economic activities & write the name of

Collar who are engaged in this type of activity? - Remote sensing and GIS are Quinary

Activity. People who are engaged in this activity known as Gold Collar Workers.

SR. NO M.C.Q (QUESTIONS & ANSWERS)

1 Fourth Stage Economic activity is... 1) Agriculture 2) Industry 3) Transport 4) Research

2 Which economic activity gives more income to the workers… 1) First Sector 2) Third

Sector 3) Fifth Sector 4) Fourth Sector

3 ATM service is... 1) Primary Economic Activity 2) Tertiary Economic Activity 3)

Secondary Economic Activity 4) Quaternary Economic Activity

4 Information Technology related workers are known as… 1) Red Collar Workers 2) White

Collar Workers 3) Blue Collar Workers 4) Golden Collar Workers

5 Specialist, Consultant are which type of works? 1) Secondary 2) Tertiary 3) Quaternary

4) Quinary

6 Headquarters of OPEC is situated at... 1) Vienna 2) England 3) Berlin 4) None of These

7 Asia's largest commercial group is... 1) ASEAN 2) WTO 3) SAPTA 4) SAARC

8 India's largest banking organisation. 1) SBI 2) RBI 3) UBI 4) BOI

9 Full form of GPS… 1) Geological Positioning System 2) Global Political System 3)

Global Positioning System 4) Geographical Positioning System

10 PTI is India's… 1) News Agency 2) Telephone Organisation 3) Transport Agency 4)

Internet Agency.

11 First mobile phone started on... 1) 1881 2) 1885 3) 1910 4) 1990

12 India's longest national highway is… 1) NH2 2) NH5 3) NH74 4) NH7

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India's busiest airport is… 1) Indira Gandhi International Airport 2) Rajiv Gandhi

International Airport 3) Chhatrapati Shivaji International Airport 4) None of These

14 India's longest railway is… 1) Eastern Railway 2) Northern Railway 3) Western Railway

4) Southern Railway

15 Diamond Quadrilateral Project is taken for… 1) Development of Railway 2)

Development of Waterway 3) Development of Roadway 4) Development of Airway