Question

Give An Example For Extractive Industry

Answer 1

Extractive Industry refers to the industrial sector which is primarily involved in the extraction of natural resources and essential raw materials from the earth.

Explanation:

• Extractive industrial sector engages in extracting various natural resources and endowments from the earth which are subsequently used or utilized for various production or commercial purposes.
• The natural resources and raw materials extracted by the extractive industry are used by the consumers and firms or companies for the production of other final goods and services which are again sold in the final consumer market.Therefore,extractive industry is also considered as a primary economic sector or supplier of intermediate goods.
• Some of the examples of economic activities under the extractive industry includes oil extraction,diamond or coal mining,fishing and so on.
• Extractive industry is an essential economic sector in many under developed and developing nations which prominently contribute to their economic growth and development.