The Concept of industrialisation

Introduction

Industrialisation is a terme that involves the delibrate government policy to creat many industries in a country irrespective of the sector of production

Definition of Key terms

1. Plant: A plant simply refers to a business establishment. Or still A plant is the actual place where production is being carried out. It could just be a certain branch of a production unit with its own geographical site and output.

2. A Firm: A firm is an administered independent business unit that carry out Production, Construction, or distribution activitied. A firm is usually composed of a group of plants.

3. Industry: This is a terme that consist of a groupe of firms involved in the production and distribution of similar goods or similar seevices. For example: The car manufacture industry, the cement producing industry, the rextile industry etc.

CLASSIFICATION OF INDUSTRIES

Industries can be braodly classified into four main sectors or division.

A. Primary Industries

Primary industries are industries which are involved in the extraction of the various resources or gifts of nature. The output of theses industries are called primary product. For example: Fishing, Hunting, Mining, Farming etc

B. The Secondary Industries or Manufacturing industries

These industries are concerned mainly with the transformation of raw materials into semi-finished and finished products. For example: Manufacturing of tire from rubber latex.

3. Tertiary Industries

They are concerned with the distribution of goods and the provision of services. For example: Banking, Retailing, and Insurance

4. The Quatenary Sector or Industries

This refers to industries with a high rate of advance in technology. An example is the manufacture of computers and cars

The importance (Role) of industrialisation to the economy

a). Creation of employment opportunities: Industrialisation creates employment as new industries are being created and the old ones expanded thereby creating more job opportunities thus reducing unemployment.

b). Increase in the standard of living: Industrialisation makes it possible for the production, distribution and the consumption of more quality goods thus increasing standards of living.

c). Improvement in technical skills: Industrialisation creats good opportunities for labour to acquire more training and skills which leads to the acquisition of new and better ideas

d). Increase in Infrastructure: Industries tend to improve on the road structure and other communication infrastructure to help evacuate the manufactured goods to the various consumers

e). Increase in government revenue: The government gets much money from industries through the imposition of taxes