Global Industrial Inputs and Business Structure

Sources of Raw Materials

Raw materials are often classified by their origin:

• Animal: Such as wool or fur.
• Vegetable (Plant): Agricultural products like cotton and forest products like wood.
• Mineral: Examples include iron.

Mining and Extraction Processes

Mining is the set of processes used to extract materials from the earth. Mining is usually categorized into two types:

• Surface mining
• Underground mining

Energy Sources: Traditional and Alternative

Traditional Energy Sources

These are the most widely used sources, covering most of a country's energy needs:

• Coal
• Oil
• Natural gas

Alternative Energy Sources

Alternative energy sources are being developed in response to the depletion of traditional energy reserves. They are often less utilized because they are still under research and development, or due to operational difficulties (e.g., solar, wind).

Specific Alternative Energy Types

• Photovoltaic Solar Energy: Uses the sun's radiation.
  • Solar energy is inexhaustible and environmentally friendly.
  • Challenges include dependence on geographical area, night cycles, and seasons.
  • Used for electricity and hot water. Photovoltaics convert solar energy directly into electricity.
  • Large installations are called solar farms.
• Wind Energy: Harnesses the power of the wind.
  • It is renewable and environmentally friendly.
  • Drawbacks include visual impact on the landscape and noise pollution.
  • Energy is obtained using wind turbines (windmills).
• Geothermal Energy: Utilizes the heat that exists inside the earth (e.g., near volcanoes).
• Tidal Power: Uses the movement of the sea (tides, waves, and currents).
• Biomass: Produced by the combustion of plant and animal matter.
• Biogas: Obtained by the fermentation of animal manure.

Industrial Classification and Business Structure

Classification by Product Destination

Industries are classified based on the destination of their products:

• Industrial Production Goods (Heavy Industry):
  • Produce intermediate products (raw materials or components).
  • Requires large facilities and significant capital investment.
  • Named "heavy" due to the raw materials used and the volume of the final product.
• Consumer Goods Industries (Light Industry):
  • Produce goods intended directly for the market or consumers.
  • Called "light" because their facilities are smaller and they produce less volume.

High-Technology Industries

These industries utilize the most advanced technology:

• Examples include microelectronics and robotics.
• Require highly trained staff.
• Need well-equipped facilities, demanding large capital investment.

Classification of Industrial Companies

The company is the basic unit of industrial activity. Companies can be classified by size, organization, and capital source.

Classification by Size

• Small: Less than 50 workers.
• Medium-sized: Up to 250 workers.
• Large: More than 250 employees.

Classification by Organization

• Limited Companies (SL): Ownership belongs to one or more owners.
• Limited Liability Companies (SA): Property is divided into shares.

Classification by Source of Capital

• Public: Capital is provided by the state.
• Private: Management takes a private stake.

Concentration of Industrial Companies

• Horizontal Concentration: A number of companies dominate a single sector.
• Vertical Concentration (Merger): Control is maintained across the entire production chain, from raw materials to the final product.

Key Elements of Industrial Production

The main elements required for industrial work are:

• Raw materials and energy sources
• Labor
• Capital
• Technology
• Business organization