Passage: Manufacturing means ‘to make by hand’. However, now it includes goods ’made by machines’. It is essentially a process which involves transforming raw materials into finished goods of higher value for sale in local or distant markets. Conceptually, an industry is a geographically located manufacturing unit maintaining books of accounts and records under a management system.
As the term industry is comprehensive, it is also used as synonymous with ‘manufacturing’. When one uses terms like ‘steel industry’ and ‘chemical industry’, one thinks of factories and processes. But there are many secondary activities which are not carried on in factories such as what is now called the ‘entertainment industry’ and ‘tourism industry’, etc. So for clarity, the longer expression ‘manufacturing industry’ is used.
Q1: How has the definition of manufacturing evolved recently?
Ans: Manufacturing now includes goods ’made by machines’.
Q2: Explain how manufacturing involves adding value, with a relevant example.
Ans: Manufacturing is essentially a process which involves transforming raw materials into finished goods of higher value. Example: Raw cotton is transformed into more valuable threads, and then threads are further transformed into more valuable fabric. (Any other relevant example)
Q3: Identify two industries that focus on providing services instead of producing goods.
Ans: The ‘entertainment industry’ and ‘tourism industry’.
Q4: What is defined as an industry?
Ans: An industry is a geographically located manufacturing unit maintaining books of accounts and records under a management system.
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