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In
macroeconomics Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics Economics () is a social science Social science is the Branches of science, branch of science devoted to the study of socie ...
, an industry is a branch of an
economy An economy (; ) is an area of the production Production may be: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act of making products ( ...

economy
that produces a closely-related set of
raw material A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods In economics Economics () is the social science that studies how people interact with value; in par ...
s,
goods In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
, or
services Service may refer to: Activities :''(See the Religion section for religious activities)'' * Administrative service, a required part of the workload of Faculty (academic staff), university faculty * Civil service, the body of employees of a governm ...
. For example, one might refer to the
wood industry The wood industry or lumber industry is the industry concerned with forestry, logging Logging is the process of cutting, processing, and moving trees to a location for transport. It may include skidder, skidding, on-site processing, and loadi ...
or to the
insurance industry Insurance is a means of protection from financial loss. It is a form of risk management Risk management is the identification, evaluation, and prioritization of risk In simple terms, risk is the possibility of something bad happening. ...
. When evaluating a single group or
company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture of both, with a specific objective. Company members share a common pu ...

company
, its dominant source of revenue is typically used by
industry classification Industry classification or industry taxonomy is a type of economic taxonomy An economic taxonomy is a system of classification of economic activity, including products, companies and industries. Some economists believe that the study of economic po ...
s to classify it within a specific industry. However, a single
business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a business name A trad ...

business
need not belong just to one industry, such as when a large business (often referred to as a conglomerate) diversifies across separate industries. Industries, though associated with specific products, processes, and
consumer market A consumer is a person or a group who intends to order, orders, or uses purchased goods, products, or primarily for personal, , family, household and similar needs, not directly related to entrepreneurial or business activities. Consumer righ ...
s, can evolve over time. One distinct industry (for example, barrelmaking) may become limited to a tiny
niche market A niche market is the subset of the market on which a specific product is focused. The market niche defines the product features aimed at satisfying specific market needs, as well as the price A price is the (usually not negative) quantit ...
and get mostly re-classified into another industry using new techniques. At the same time, entirely new industries may branch off from older ones once a significant market becomes apparent (as the
semiconductor industry The semiconductor industry is the aggregate of companies engaged in the design A design is a plan or specification for the construction of an object or system or for the implementation of an activity or process, or the result of that plan or ...
became distinguished from the wider
electronics industry The electronics industry is the economic sector that produces electronic devices. It emerged in the 20th century and is today one of the largest global industries. Contemporary society uses a vast array of electronic devices built in automated or s ...
).
Industry classification Industry classification or industry taxonomy is a type of economic taxonomy An economic taxonomy is a system of classification of economic activity, including products, companies and industries. Some economists believe that the study of economic po ...
is valuable for economic analysis because it leads to largely distinct categories with simple relationships. However, more complex cases, such as otherwise different processes yielding similar products, require an element of
standardization Standardization or standardisation is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups, standards organizations and governments. Standardization ...
and prevent any one schema from fitting all possible uses. Economic theories group industries further into larger categories dubbed
economic sector Image:Economic sectors and income.JPG, 250px, Percentages of a country's economy made up by different sectors. Countries with higher levels of socio-economic development tend to have proportionally less of their economies operating in the primary a ...
s.


See also

*
Outline of industry The following outline is provided as an overview of and topical guide to industry: Industry Industry may refer to: Economics * Industry (economics) In macroeconomics, an industry is a branch of an economy that produces a closely related s ...
*
Industry classification Industry classification or industry taxonomy is a type of economic taxonomy An economic taxonomy is a system of classification of economic activity, including products, companies and industries. Some economists believe that the study of economic po ...
*
List of countries by GDP sector composition This is a list of countries by gross domestic product Gross domestic product (GDP) is a money, monetary Measurement in economics, measure of the market value of all the final goods and services produced in a specific time period. List of countri ...


References


External links

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