Local economy is consists of production, distribution and consumption of a community. These economic activities can also be interpreted into 3 different sectors of trade and commerce namely primary, secondary and tertiary sectors. The primary sector extracts or harvests products from the earth. This includes the production of raw material and basic foods. Activities associated with the primary sector include agriculture (both subsistence and commercial), mining, forestry, farming, grazing, hunting and gathering, fishing and quarrying. The packaging and processing of the raw materials associated with this sector is also considered to be part of this sector.
The secondary sector manufactures finished goods. All of manufacturing, processing and construction lies within the secondary sector. Activities associated with the secondary sector include metal working and smelting, automobile production, textile production, chemical and engineering industries, aerospace manufacturing, energy utilities, engineering, breweries and bottlers, construction and shipbuilding.
The tertiary sector is the service industry. This sector provides services to the general population and to businesses. Activities associated with this sector include retail and wholesale sales, transportation and distribution, entertainment (movies, television, radio, music, theater, etc.), restaurants, clerical services, media, tourism, insurance, banking, healthcare and law.