An integrated agro-industrial enterprise in Nigeria cultivates and harvests crude rubber latex from its plantations, processes the latex into vulcanized rubber sheets at its processing factory, and uses its commercial logistics fleet to deliver the rubber sheets to tyre manufacturing companies across West Africa. Which of the following correctly categorizes these sequential operations into their respective sectors of production?
- Harvesting crude rubber latex is primary production; processing latex into vulcanized rubber sheets is secondary production; and distributing sheets to factories is tertiary production.Answer
- BHarvesting and processing latex into vulcanized rubber sheets are both primary production, while distributing sheets to factories is tertiary production.
- CHarvesting crude rubber latex is primary production; processing latex is secondary production; while distribution to factories is classified under personal direct services.
- DHarvesting crude rubber latex is primary production, while processing latex and distributing the finished sheets are both classified as secondary production.
Answer
Harvesting crude rubber latex is primary production, processing latex into vulcanized rubber sheets is secondary production, and distributing sheets to factories is tertiary production.
Production is divided into three distinct sectors based on the stage of value creation. Primary production extracts raw materials directly from natural resources (harvesting rubber latex). Secondary production transforms these raw inputs into processed or finished goods (processing latex into vulcanized rubber sheets). Tertiary production provides commercial services and logistics to move goods from producers to industrial buyers or consumers (distributing rubber sheets via logistics fleets).
Step-by-Step Solution
Key Concept
Classification of Economic Production Sectors Across Integrated Value Chains
Estimated Time:2m 0s