What is industry?

Industry, or industrial activity, is the part of the economy oriented towards the transformation of raw materials into products that are subsequently consumed by citizens or economías domésticas. Originating in England in the industrial revolution, since then, the secondary sector has maintained its importance within the economy of each State. Industrial products also have the peculiarity that they are some of the most expensive products. Therefore, a country with a strong secondary sector, even if it lacks resources, may have a balance of payments favorable.

The reason is purely and simply that materials they are cheaper, as they require less added value to be extracted or obtained, and they become part of the production costs of the finished product. In addition, the development of the industry and the secondary sector implies the need for innovation, technology being fundamental. For cost reasons, industries are often established on a large scale. This requires, in turn, high inputs of capital and skilled labor, based on the specialization and division of labor, which characterizes the industrial sector.

Since cities, or many of them, developed under the protection of the industrial revolution, industry is unevenly distributed, being more present in urban areas. There is also a diversity in the implantation of the industry at a global level. Normally, the most industrialized countries correspond to the most powerful economies.

Although it is true that, with economic evolution, a third sector has emerged, that of services, whose growth is responsible for the wealth of many economies; It is no less true that a country that has a developed service sector, but lacks an important industrial sector, tends to constitute a less stable economy than one that has developed all three sectors, and, in particular, in which the industrial sector continues to be an important part, although not necessarily predominant.


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