The three-sector model divides into three sectors of activity. These sectors are following-
1- Primary Sector- It is extraction of raw materials. It involves the retrieval and production of raw materials like mining, agricultural, fishing etc.
2- Secondary Sector- It involves the transformation of raw materials into goods, such as steel into cars, textiles into clothing, making buildings etc.
3- Territory Sector- It involves supplying of services to customers, such as shopkeepers, banking etc.