Service Sector Essentials: Trade, Transport, and Tourism
The Tertiary Sector: Services, Trade & Tourism
Understanding the Tertiary Sector
The tertiary sector, also known as the service sector, provides essential services to people. These include vital areas such as healthcare, education, and transport. It is currently the fastest-growing economic sector globally.
Services and Economic Growth
The economic value and the number of workers employed in the tertiary sector have significantly increased, a phenomenon known as tertiarization. Developed countries typically have a higher proportion of their workforce employed in the tertiary sector compared to less developed countries.
Global Trade Dynamics
Trade involves the buying and selling of goods and services to satisfy the needs of the population. Its contribution to a country’s Gross Domestic Product (GDP) is generally proportional to the country’s level of development and wealth.
Types of Trade
There are two primary types of trade:
Domestic Trade
This occurs entirely within the borders of a single state.
- Retailers: Traders who sell directly to the consumer in small quantities.
- Wholesalers: Traders or companies that buy large quantities of goods to sell them to retailers.
Foreign Trade
This comprises the exchange of products and services between different countries.
- Imports: The purchase of products or services from foreign countries.
- Exports: The sale of products or services to other countries.
The trade balance represents the difference between a country’s total imports and total exports.
International Trade Organization
The primary objective of the World Trade Organization (WTO) is to achieve agreements that facilitate international trade by eliminating barriers and unfair practices. The European Union (EU) is another significant association established to promote trade among its member states.
Characteristics of Global Trade
Historically, the major commercial areas of the world have been the EU, the United States, and Japan. However, China has recently begun to play a key role in international trade, significantly altering global dynamics.
- Developed Countries: Primarily export manufactured and high-quality products.
- Less Developed Countries: Contribute to international trade with agricultural products and some basic manufactured goods.
Transport: A Core Tertiary Activity
Transport is a fundamental activity within the tertiary sector, essential for moving both people and goods.
Elements and Systems of Transport
Transport systems consist of two main types of elements:
- Means of Transport: The vehicles used for transfer (e.g., cars, trains, planes, ships).
- Infrastructure: The necessary elements to operate these means of transport (e.g., roads, railways, airports, ports).
The main systems of transport include:
- Road Transport
- Rail Transport
- Air Transport
- Maritime Transport
Tourism: Economic Impact & Effects
Tourism encompasses all displacement of people to places outside of their habitual residence. It is a highly significant activity for a country’s economy.
Positive and Negative Tourism Effects
Tourism has both positive and negative effects:
- Positive Effects:
- A large source of income for the country.
- Boosts the local and national economy.
- Creates numerous job opportunities.
- Negative Effects:
- Can lead to higher prices for locals.
- Often enriches large, international companies more than local businesses.
- May promote land speculation, driving up property costs.
Spain’s Tertiary Sector
Trade Activity in Spain
Commercial activity is one of the most important sectors in the Spanish economy, both for its contribution to GDP and the number of workers it employs. Regarding products, the most significant sectors are food, beverages, and tobacco.
Spain typically has a negative trade balance, meaning it imports more than it exports. Spain primarily conducts commercial exchanges with countries within the European Union.
- Main Imports: Oil, agricultural products, metallic products, and mineral products.
- Main Exports: Manufactured goods, agricultural products, minerals, and metals.
Transport Infrastructure in Spain
Here is the situation of each type of transport in Spain:
- Road Transport Network: Characterized by a radial configuration, with its central hub in Madrid.
- Railway: Spain has significantly developed its high-speed rail lines over the last few decades.
- Maritime Transport: Essential for Spain’s trade with other countries, given its extensive coastline.
- Airways: Major international airports are located in key cities such as Barcelona, Palma de Mallorca, and Madrid.
Tourism’s Role in Spain
Tourism is a fundamental economic activity in Spain, contributing almost 11% to its GDP and accounting for 12% of employment. Spain consistently ranks as one of the top global destinations, often occupying the second position worldwide by the entry of foreign visitors.
Traditionally, sun and beach tourism has been the dominant form. The main tourism destinations in Spain include the autonomous communities of:
- Catalonia
- Balearic Islands
- Canary Islands
- Madrid
- Valencia Community
- Andalusia