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Difficulty: MediumPrimary, Secondary, and Tertiary Sectors of Production

A commercial enterprise based in Kano operates an integrated supply chain: it cultivates raw cotton on plantations, spins and weaves the cotton into textiles in processing factories, and distributes the finished fabrics to regional merchants. Which of the following activities in this production chain represents a commercial tertiary sector operation?

  1. A
    Harvesting raw seed cotton directly from the agricultural plantation
  2. B
    Spinning raw cotton fibre into yarn and weaving it into finished textile rolls
  3. Warehousing and distributing the finished textiles to regional retail tradersAnswer
  4. D
    Providing custom garment tailoring services directly to individual households for personal use

Answer

Warehousing and distributing the finished textiles to regional retail traders
Warehousing and distributing the finished textiles to regional retail traders belongs to the commercial tertiary sector because it involves commercial trade and auxiliary services (transportation and warehousing) that facilitate the distribution of manufactured products from producers to end markets.

Step-by-Step Solution

1
Classify the primary sector activity in the scenario
Cultivating and harvesting raw cotton represents the primary (extractive/agricultural) sector.
Primary production extracts or harvests natural resources provided by nature.
2
Classify the secondary sector activity in the scenario
Spinning cotton into yarn and weaving fabrics represents the secondary (manufacturing/processing) sector.
Secondary production transforms primary raw materials into usable manufactured goods.
3
Distinguish commercial tertiary services from primary, secondary, and direct services
Warehousing, wholesaling, and distributing fabrics facilitate trade and commercial exchange.
The commercial tertiary sector encompasses trade and auxiliaries to trade (transportation, warehousing, insurance, banking) that enable goods to move from factories to consumers.

Key Concept

Classification of Economic Sectors of Production (Primary, Secondary, Tertiary)
Estimated Time:1m 0s
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Topics

Primary, Secondary, and Tertiary Sectors of Production

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