Question

q

Why are the economies of developed countries predominantly engaged in the secondary and tertiary sectors, and less in the primary sector? Your response should be one paragraph in length

Answer 1

As countries develop they undergo structural transformation: mechanization, improved farming techniques and capital-intensive extraction raise productivity in the primary sector so far fewer workers can produce the same output, while industrialization, investment and higher human capital shift activity into manufacturing (secondary) where economies of scale and technology add more value, and into services (tertiary) as rising incomes create greater demand for finance, healthcare, education, logistics and other knowledge-intensive activities. Higher wages and strict regulations also make resource- and labor-intensive primary production less competitive at home, so many developed countries import raw materials or outsource agricultural and basic-extractive activities to lower-cost countries. The result is an economy dominated by secondary and especially tertiary sectors that generate most employment and GDP despite a relatively small primary sector.