Final answer:
Basic industries attract buyers from outside the local region and bring wealth to the local area, while non-basic industries mainly serve the local population. Basic industries are better for assuring economic growth in a settlement as they attract revenue from outside and stimulate the local economy.
Step-by-step explanation:
Basic industries are economic activities that attract buyers from beyond the local region. They bring wealth to the local region from a more distant region. These industries are often export industries, such as oil extraction in Saudi Arabia or Texas. Non-basic industries, on the other hand, are economic activities that do not generate sales of goods or services to outsiders. Dentist offices, for example, are non-basic industries as they rarely attract customers from out of town. Most service sector jobs are non-basic in nature as they circulate money within the local economy. Non-basic industries are ultimately dependent on basic industries.
When considering economic growth in a settlement, basic industries are generally better due to their ability to attract buyers from outside the local region. These industries bring in revenue from beyond the settlement, creating economic stability and growth. Non-basic industries, on the other hand, mainly serve the local population and do not contribute as much to economic growth. By having a strong base industry that attracts buyers from outside the settlement, the local economy can remain independent and thrive.
An example of a basic industry that would assure economic growth in a settlement is a manufacturing plant that produces goods for export. This plant would attract buyers from other regions or even other countries, bringing in revenue and creating jobs within the settlement. The manufacturing process would fall under the secondary sector of the economy, which involves the processing of raw materials into finished goods. This type of industry is essential for economic growth as it generates revenue from outside sources and stimulates the local economy.