North American Industry Classification System - NAICS

A A A

DEFINITION

A new business classification system developed through a partnership between the United States, Canada and Mexico. This system allows statistics to be compared for all business activity across North America. All companies are separated into industries defined by businesses that use similar production processes.

INVESTOPEDIA EXPLAINS

The NAICS was created to replace the U.S. Standard Industrial Classification (SIC) system to modernize it, so that it would be able to relate to the constantly changing economy. The new system also allows for better comparability between all North American countries, which is important because of the increased trade between NAFTA countries. To ensure that the NAICS will be able to keep pace with changing economic conditions it will be reviewed every five years.


RELATED TERMS
  1. North American Free Trade Agreement ...

    A regulation implemented on Jan. 1, 1994, that decreased and eventually eliminated ...
  2. Quarterly Services Survey

    A survey produced quarterly by the Census Bureau that provides estimates of ...
  3. Macroeconomics

    The field of economics that studies the behavior of the aggregate economy. Macroeconomics ...
  4. Standard Industrial Classification ...

    A standard series of four-digit codes created by the U.S. government in 1937 ...
  5. Bureau of Economic Analysis - BEA

    A division of the U.S. federal government's Department of Commerce that is responsible ...
  6. Bureau of Census

    A division of the federal government of the United States Bureau of Commerce ...
  7. Globalization

    The tendency of investment funds and businesses to move beyond domestic and ...
  8. Industry

    A classification that refers to a group of companies that are related in terms ...
  9. Industry Bet

    A strategy whereby investors or portfolio managers increase or decrease holdings ...
  10. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico ...
Related Articles
  1. What Is International Trade?
    Personal Finance

    What Is International Trade?

  2. What Is The World Trade Organization?
    Economics

    What Is The World Trade Organization?

  3. A Guide To Conference Board Indicators
    Markets

    A Guide To Conference Board Indicators

  4. The Taylor Rule: An Economic Model For ...
    Economics

    The Taylor Rule: An Economic Model For ...

  5. Russian Interests
    Investing

    Russian Interests

  6. America The Youthful? Yes, On a Relative ...
    Investing

    America The Youthful? Yes, On a Relative ...

  7. Thoughts From The Frontline: Every Central ...
    Economics

    Thoughts From The Frontline: Every Central ...

  8. Sanctions Between Countries Pack a Bigger ...
    Economics

    Sanctions Between Countries Pack a Bigger ...

  9. Financialization
    Markets

    Financialization

  10. The Austrian School Of Economics
    Economics

    The Austrian School Of Economics

comments powered by Disqus
Hot Definitions
  1. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  2. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  3. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  4. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  5. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  6. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
Trading Center