What are basic good industries? How they are different from Consumer good industries?
Basic good industries or key industries are those who supply their products or raw materials for the manufacturing of other goods. Iron and steel industry is an important basic good industry.
BASIS | BASIC GOOD INDUSTRY | CONSUMER GOOD INDUSTRY |
Meaning | They are key industries are made up of machinery, manufacturing plants and equipment used by other industries. | They are ready for consumption and satisfaction of human wants. |
Classification | Production goods or support goods | Durable and consumer goods or consumer services |
Cost of establishment | Relatively higher when compared to other industries as these are set up on a large scale | Relatively lower when compared to basic good industries |
Number of buyers | Have only a limited number of buyers | A large number of buyers |
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