Industry is the component of an economy that produces material goods that are supremely mechanized and automatized. Industry is the department in production that extracts resources and adjust it to people's needs on a large scale with labor distribution and using machines. The companies and activities involved in the process of producing goods for sale, especially in a factory or special area. The level of industry’s development has a large impact on the pace of economic development.
Types of industries
There are a lot of types of industries. The economic strength of a country often depends on the types of industries that a particular country has.
- Aerospace industry: it is one of the highest technology industries; wide-ranging activities – including aircraft manufacturing and commercial aviation; more than 50 countries own one or more aerospace company
- Transport industry: it is one of the biggest types of business industries; this industry includes air, land and water transportation; transport industry helps transport not only human but also things, animals or raw materials
- Computer industry/ IT industry: it has developed since the 21st century; almost every other industry have taken over by IT industry
- Telecommunication industry: it includes companies which enable to have a possibility to communicate by the use of mobile phones, Internet, cable or wirelessly
- Agriculture industry: it is one of the oldest type of industry but also very important in every country
The other types of industries are the construction industry, chemical/pharmaceutical industry, food industry or clothing industry. Nowadays the world create new and more specific industries.
Functions of industry
In the view of accumulated capital and trained manpower, the industry could fulfill the following functions, which are got from its good-producing activities:
- Research: it is the most important function; it is based on extraction knowledge of new materials, up-to-date laboratories, new processes, and products; it is a key function because of fact that good research guarantee established in the industrial ambiance
- Product Development: includes product assembly, changing in design and create functional characteristics of the product
- Planning for Production: includes processing rely on analysis and polish details; planning phase is important because products became is complex
- Manufacturing: to custom or to mass production, or continuous manufacturing
Organization of industry
George Joseph Stigler is a famous American economist, who won the Nobel Prize in economics for his research of the organization of industry. According to Stigler, at first, we have to analyze the essence of competition and monopoly. The second part should focus on determinants of industry’s structure size, consult factors that inhibit entry and include mergers. Then we should think of the main issues like profitability, systems of price’s delivery or the economics of information."
- Lasi H., Fettke P., (2014), p. 239-242
- Mahmood Z., (2019), p. 39-41
- Bateson W.M., Stern J., (2001), Volume 39, Number 1
- Stigler, G.J., (1983),
- Bateson, W. M., Stern, J., (2001). The Functions of Industry as the Basis for Industrial Education Programs, Volume 39, Number 1
- Lasi H., Fettke P., (2014). Industry 4.0, Bussiness&Information Systems Engineering, Volume 6, Issue 4, p. 239-242
- Mahmood Z., (2019). The Internet of Things in the Industrial Sector, Springer, p. 39-41
- Pasculat D.G., Daponte P., Kumar U.,(2019).Handbook of Industry 4.0 and SMART Systems, CRC Press, Boca Raton, Section 1.2. (1.2.1 - 1.2.5)
- Stigler, G.J., (1983). The Organization of Industry, University of Chicago Press Economics Books, University of Chicago Press
Author: Natalia Zajko