Completing the bar graph
Marjorie Henry, Contributor

The discussion on question six, which was started in the previous lesson, continues in today's lesson. Did you attempt the assignment given in the previous lesson, that of completing the bar graph? I trust that you did. Here on the right, is the completed graph.

I hope you remembered to do the shading of the bars to distinguish the different sectors.

Here is the remainder of the question:

(b) (i) Define, giving an example, EACH of the following:

a) Primary industry (2 marks)

b) Tertiary industry (2 marks)

State TWO benefits which countries can gain from the development of secondary economic activities. (2 marks)

List TWO ways by which governments in the Caribbean have encouraged industrial development. (2 marks)

(c) (i) Account for the widespread occurrence in the Caribbean of EITHER the garment industry OR food processing. Include THREE reasons in your response.
(6 marks)

Suggest THREE reasons why Caribbean manufacturers might find it difficult to compete in a global market. (6 marks)

Let me now share with you the possible responses:

(b) (i) a) Primary industry makes direct use of the Earth's natural resources. It includes agriculture, mining, forestry and fishing. Primary industries produce goods which can be used directly as they are, such as fruit or fresh fish; they may also produce raw materials for other industries.

A word of caution to you: Ensure that your answer does not imply that any processing occurs in this industry.

b) Tertiary industry produces services. It does not produce anything which you can pick up and take away. Transportation and retailing are service industries which make sure that goods are available in the right place, and when they are needed. Tertiary industry aids the activities in the other industries. Tourism is another tertiary industry.

(ii) Benefits which countries can gain from the development of secondary economic activities include:

• Creating employment which, in turn, alleviates the problem of unemployment
• Providing revenue for the country and, therefore, improving the country's balance of trade
• Providing revenue for the country and, therefore, improving the country's balance of payment
• Creating greater linkages with other sectors of the economy, such as agriculture
• The utilisation of local resources
• Greater value adding to local produce
• Reduction of imports which will allow for savings of foreign exchange
• Increase in exports to earn vital foreign exchange

Please note that you are asked to STATE TWO benefits. State these clearly. There is no need for any description or explanation.

(iii) Ways by which governments in the Caribbean have encouraged industrial development include the following:

• Providing export subsidies to local manufacturers
• Offering tax holidays to foreign investors
• Development of 'industrial estates' where the infrastructure is provided and the facilities rented at a reasonable rate
• Duty-free importation of raw materials, thus lowering the production cost
• The imposing of tariffs on some imports (or ban on some imports), thus providing a level of protection for the industry
• Providing training/ education in such areas as technology, business development and marketing.
• Establishment of 'free zones'.
• Improvement of port facilities.
• Providing loans at low rates of interest to manufacturers.

Like part (b) (ii) no explanation or development is needed. You simply LIST the points.

In part (c) (i), you are to account for the widespread occurrence in the Caribbean for two industries. Let us look at each separately.

GARMENT INDUSTRY

• Availability of workers - the industry can utilise persons of low-level skills. In addition,
• Many women are unemployed and are available and willing to work for low wages
  
• Many relevant skills are already available, for example, tailors and seamstresses
  
• Easy access to imported raw materials, namely, cloth, to make the garments
  There is a high demand for clothes, hence, there are available markets both locally and internationally, namely, the United States of America, Canada and Caribbean countries
  
• There is not much difficulty experienced in exporting to overseas market
  
• Government provides factory shells and infrastructure to set up the industry
  

The list is certainly not exhausted. Try to identify other reasons for yourself. The discussion of the question continues in the next lesson.

Marjorie Henry is an independent contributor.