This document defines and provides examples of different types of production including subsistence production, domestic production, surplus or export production, primary production, secondary production, and tertiary or service production. It also discusses cottage industries, linkages between industries including forward and backward linkages, and internal and external migration.

1. 9/9/2021 Ms. P. Scarlett

2. Subsistence
 This is the lowest level of production.
Subsistence productions refers to output from
the production process that is just enough for
the survival. This amount of production is
therefore not adequate to meet all needs and
wants of a family, community or a country.
9/9/2021 Ms. P. Scarlett

3. Domestic Production
 Domestic production refers to production that
is more than survival level. It provides output
that is enough to satisfy domestic needs and
wants. Excess is not available for export.
However, production is adequate to supply
local demand. Eg. 1. Use of local forest
resources to obtain lumber to produce
furniture for domestic use. 2. Use of daily
catchments of fish to prepare local dishes to be
consumed by the citizens
9/9/2021 Ms. P. Scarlett

4. Surplus or Export
 This level of production is adequate to supply
local demand and for export. Large industries
can produce large quantities of output to
satisfy local consumption and earn foreign
exchange from export, for example, the sugar
and banana industries. Eg. 1. Trinidad and
Tobago produces crude oil for export.2.
Jamaica and Guyana Produces bauxite for
export
9/9/2021 Ms. P. Scarlett

5. Primary Production
 This includes the extratcion from upon or
within the earths surface. To include all kinds
of extractive industries such as agriculture,
mining, forestry and fishing.
9/9/2021 Ms. P. Scarlett

6. Secondary Production
 It involves converting raw materials into
finished or semi-finished goods. This includes
manufacturing such as assembling, baking,
refining and construction (building) industries.
9/9/2021 Ms. P. Scarlett

7. Tertiary/Service Production
 This is the final stage which can be classified
into Direct Services such as hairdressing,
babysitting and secretarial work and
Commercial or Indirect services such as
banking, insurance and advertising. Service
industries include transportation,
communication and tourism.
9/9/2021 Ms. P. Scarlett

8. Cottage Industry
 Cottage industry is a generic term for any type
of home–based production business. The term
is specifically used to describe industries of a
craft nature e.g. basket weaving, carving and
pottery. . Examples 1. Food Items – pastries,
jams and jellies. 2. Personalized services-
sewing, hairdressing.
9/9/2021 Ms. P. Scarlett

9. Importance of Cottage Industries:
1. Provide employment
2. Satisfy psychological need of the producer
3. Adds to family budget
4. Provides an opportunity to use one’s skills
5. Uses local materials
6. Improves skill base
7. Help to boost foreign exchange
9/9/2021 Ms. P. Scarlett

10. Factors required for cottage industries to survive:
1. Materials must be readily available.
2. Training programs must be readily available to
pass on skills
3. Financial support through loans with low
interest rates.
4. Supported by trade shows.
9/9/2021 Ms. P. Scarlett

11. This refers to industries that are connected because
they depend on each other to obtain or to sell raw
materials that is the output of one industry
(finished product) is the input (raw material) of the
other industry.
9/9/2021 Ms. P. Scarlett

12. Forward Linkage
 If the final product or finished products of one
industry is used in another industry as its raw
material then a forward linkage occurs. For
example, sugar produced from a sugar factory
is used by a bakery to make pastries. Sugar is
therefore the end product of one industry and
used as raw material in another. Other
examples include agriculture and canning,
lumber and construction and cattle farming
and meat processing
9/9/2021 Ms. P. Scarlett

13.  A backward linkage occurs when the demands
of an industry leads to the establishment of
other industries to produce for the needs of this
industry. For example, the establishment of
several multinational fast food restaurants in
the Caribbean has led to new businesses being
established to supply these restaurants with
raw materials (vegetables, ground provisions,
meats and paper based products).
9/9/2021 Ms. P. Scarlett

14.  Weaknesses of Linkages:
1. Lack of Venture Capital for primary sector
development
2. Limited access to foreign markets
3. Investment in equipment and machinery can be
expensive.
9/9/2021 Ms. P. Scarlett

15.  Benefits of Linkages:
1. Economic ties creates more job opportunities
2. Promotes innovation and use of new technology
3. Encourages large scale production for local and
export demand.
4. Promotes cooperation
5. Leads to increased household incomes and
foreign exchange.
9/9/2021 Ms. P. Scarlett

16. Migration is the permanent movement of workers
from one location to the next in search of better
opportunities
9/9/2021 Ms. P. Scarlett

17. Internal Migration
 Migration within a country e.g rural –urban
migration. This is migration of persons from
rural communities to the city areas.
9/9/2021 Ms. P. Scarlett

18. External Migration
 Migration of persons from one country to
another – For example, the migration of
Caribbean people to developed countries such
as the United States and England.
9/9/2021 Ms. P. Scarlett

19. Effects of Migration: Internal (Rural –Urban
migration)
• The loss of persons from rural areas impacts on
the level of output and development of these areas.
• It also impacts negatively on the level of
commodities available for export form these
regions.
• The influx of workers in urban areas increases
competition for jobs, houses, health facilities,
schools.
9/9/2021 Ms. P. Scarlett

20. External Migration (Caribbean to developed countries)
• Professional and skilled workers who migrate
reduce the level of skills available in their countries
resulting in a brain drain effect. This will impact on
growth and development.
• They increase competition for jobs, houses, health
facilities and schools in their new territory.
• Money earned by Caribbean nations in foreign
countries is sent home to support their families
reducing poverty and making foreign exchange
available for their respective countries.
9/9/2021 Ms. P. Scarlett