Tri-regional Theory

Question: Explain tri-regional theory ?

Answer: The commercial sector includes for-profit organizations that produce goods and services. These organizations combine the services of four manufacturing components in the context of production, which are procured from the indigenous sector to ensure smooth running of production. The primary objective of the existing commercial sector is to produce goods to meet the needs and requirements of the domestic consumer sector. The economy generally consists of four high-level sectors, which are then subdivided into smaller sectors. The first of the four higher sectors of the economy is known as the Primary Sector, which includes land-based products such as extraction and harvesting. This area includes agriculture, mines and forests. The second sector after that is the secondary sector which includes areas like process manufacturing and construction. The Tertiary Sector covers various service providers such as retail, entertainment and financial services. The fourth sector is an alternative sector in terms of economy, it is the fourth sector (Quaternary Sector) and this sector includes the intellectual sector like educational business.

Three Sector Theory:

The tri-regional theory is an economic theory that divides the economy into three areas of work. Those are the three areas

(i) Exhaust (primary sector), (ii) Production / manufacturing (secondary sector) and (iii) Services (third sector). The triangular theory was developed by Allan Fisher, Colin Clark, and Jean Fourastie. According to the tri-regional theory, the outlook for economic activity changes from the primary sector to the secondary sector and finally to the tertiary sector. A survey by Jean Forrestie found the action to be "extremely positive" and said it would "improve the quality of life, social security, education and culture, higher levels of education, humanitarianism at work and prevention of unemployment".

1. Primary Sector

The primary area of ​​business is the area in which natural resources are incorporated. These include agriculture, forests, forests, fishing, mining, etc. Natural resources are included. In underdeveloped countries and in countries where industrialization has not developed, the primary sector is more important in the economy of that country. This sector includes primary industries / occupations related to primary manufacturers such as collection of raw material, processing of it, cleaning it, packing it properly and enclosing it. This area becomes more important at a time when it is not economically viable to transport the received raw material for processing. The primary sector is more important in developing countries. This area involves obtaining raw materials from natural resources. Such as: extraction of coal and metals from mines, extraction of oil from the ground, extraction of rubber from forest trees, extraction of food grains, fruits from agricultural land and fishing is a business / industry called Extractive Industry.

2. Secondary Sector

The secondary sector is related to the industrial sector of industries such as manufacturing of finished goods, manufacturing of consumer goods or construction. This sector generally makes it consumable by using the raw material produced from the primary sector as raw material, manufacturing process on it or producing it as raw material used for other businesses. This manufactured goods are either for the use of the consumers in the country, so it is sold to the consumers in the country or the goods are exported to another country. This sector is mainly divided into light industry and heavy industry. Many of these manufacturers consume a lot of energy because they consume a lot of energy. And large manufacturers need heavy machinery to convert raw materials into finished goods. Since these heavy constructions generate a large amount of area material and heat, they create many environmental problems or pollute the atmosphere. The secondary sector supports the primary sector as well as the secondary sector. These include industries such as making plastics from oil, making cloth from yarn, building roads, building houses, building machinery, etc.

3. Tertiary Sector / Service Sector

The third sector or service sector is the third and last sector in the commercial sector / financial sector. The service sector is an important part of the economy. In it, people use their knowledge to meet productivity, efficiency, feasibility and needs, which is defined as 'Affective Labor'. The feature of this sector is that services are produced in this sector instead of goods. Services which are also called untouchable goods, services include insurance, transportation, advertising, archiving and other services such as: teaching, healthcare, restaurant industry , Recreation area etc. are included. These services are of utmost importance for economic development. The third area / service area includes the following service areas:

 (1) Computer and IT services

 

(2) Hotel and tourism services

(3) Railways, buses, air, water transport

(4) Messaging

(5) Banking services

(6) Insurance services

(7) Pension service

 (8) Entertainment

 (9) Hospitality / Tourism Services

 (10) Education

(11) Professional services, such as: accounting, legal, management, etc.

Services. Modern economists have developed a new business / economic sector based on the classification of services in the third sector. This area is called 'Quaternary Sector'. So now the economic / business sector is divided into four sectors instead of three commercial sectors. Quaternary Sector is a knowledge based service sector. IT in this field. Information Technology, Media, Research and Development as well as knowledge based services such as education, financial planning (blogging), designing are included.