The Tertiary Sector: A Comprehensive Guide
The Tertiary Sector
The tertiary sector provides services to people and other economic sectors.
The Growth of the Service Sector
- A large number of activities such as healthcare, education, tourism, retail, transport and logistics, communications, culture, leisure, sports, etc.
- Developed countries: both the number of employed people and wealth generated have increased.
- Less developed countries: increased number of employed people.
- Growth coincided with the emergence of the information society.
- It causes many changes (technical and scientific developments, the globalization of the economy, and increased trade) = tertiary revolution.
The High-End Tertiary
- Activities associated with technology and science.
- Business services and jobs associated with managing large companies, advertising, sales strategies, etc.
- People have specialized training and are usually well paid.
Quaternary Sector
Provides knowledge that enables other sectors to grow. Associated with high intellectual content.
The Low-End Tertiary Sector
Jobs that require little training and are usually poorly paid, e.g., cleaners and street traders.
Services Today
- Greater life expectancy.
- Female participation in the labor force.
- Reduced working hours and paid holidays.
Diversity of the Sector (Characteristics)
- Diverse (number of services or worker qualifications, size of the companies).
- Intangible and immaterial.
- Activities that cannot be stored.
- Close to consumers.
- Low degree of mechanization.
- Unevenly distributed.
Healthcare and Education in Spain
- Healthcare: Sistema Nacional de Salud provides primary health services.
- Education: since the 1970s, it has been expanded.
Classification of Tertiary Activities
- Social services (public: education, healthcare, etc. / private).
- Distribution services: circulation of people, goods, information, and transport, telecommunications, and wholesale trade.
- Business services: advertising, research, banking and finance, insurance, etc.
- Consumer services: retail trade, hospitality (bars and restaurants), leisure (travel and tourism), repairs and installations, and individual services (domestic help, hairdressing, etc.).
Transport
Transport is an activity through which people and goods are moved from one place to another.
Road
- Densest and most structured transport networks.
- Most common infrastructure for people and goods, due to the mobility and range of vehicles (cars, motorcycles, etc.).
Rail
- Ideal for moving passengers and goods over medium and large distances.
- Current rail transport: greater speeds for passengers.
- High-speed rail: advantages but requires building expensive new tracks.
Air
- Transporting people and goods over long distances (fast and secure).
- Expensive, bad for the environment (noise and pollution and the impact of airports).
- Evolution: low-cost airlines.
Maritime
- Moving large quantities of goods (oil, grains, minerals, etc.) over long distances at low prices.
- Possible in rivers with a regular flow regime.
- It is slow.
Functions of Transport
- Moving people on a daily basis: growing distances between homes and places of work.
- Long-distance travel possible = tourism.
- Distributing goods and services = economic activities.
Transport Revolution
- Increased cargo capacity.
- Foreign transport intermodality (combine various means of transport).
- Increased speed.
- Improved road infrastructure (increases safety).
- Lower transport prices.
Transport Networks
- Organizing and exploiting a territory requires a good transport network (having infrastructures – roads, rail lines, etc.).
- Networks consist of axes or lines connecting two or more points, forming a grid.
- The central locations on these axes are known as transport hubs.
Public Transport
- Pollutes less.
- Reduces traffic jams.
- Reduces noise pollution.
- Cheaper and saves time.
Tourism
Tourism is the commercial activity surrounding holidays and visiting places for pleasure.
Economic Impact
- Helps create and expand companies and services (generates jobs and is a major source of income).
Social and Cultural Implications of Tourism
Positive Effects
- Source of income.
- Creates jobs.
- Improved infrastructure/transport.
Negative Effects
- Higher prices.
- Land speculation.
- Jobs (unskilled and poorly paid).
- Environmental impact.
- Pollution.
Types of Tourism
- Nature: natural parks and protected areas. Ecotourism attempts to put tourists in contact with nature in a sustainable way.
- Urban: cities (hotels, restaurants, transport, etc.).
- Cultural: historical and artistic features (museums) and cultural characteristics.
- Rural: countryside (agrotourism, green tourism, and environmental tourism).
Trade
Trade refers to the activities related to the buying and selling of products and services.
Elements of Trade
- Sellers: individuals or companies that have goods or services they want to sell.
- Buyers: individuals or companies who want to buy goods or services.
- Goods: products that are bought and sold for money.
- Markets: places where commercial transactions take place.
Characteristics of Trade
- Large quantities are in constant movement.
- Worldwide network of trading partners.
- Transportation provides jobs.
- Dominated by an ever-increasing number of large companies.
Factors Influencing Trade
- An efficient infrastructure and transport network.
- Purchasing power and consumer confidence.
- Business confidence.
- Large market + business confidence.
- Prices, taxes, advertising, discounts.
Domestic Trade
Domestic trade is the commerce that happens inside a state’s borders.
Types of Domestic Trade
Wholesale (Wholesalers)
Large distribution companies buy enormous quantities of goods from producers and sell them to shops.
Retail (Retailers)
Buy a small number of goods from wholesalers and sell them to the public.
Types of Retailers
- Traditional retailers: small family shops.
- Department stores: a huge range of products.
- Large shopping centers: located on the outskirts of cities.
- Street markets: stalls in the open air.
International Trade
International trade is the commerce that happens between different states.
International Trade Indicators
Balance of Trade
- Goods:
- Positive (+exports – imports).
- Negative (+imports – exports).
Balance of Payments
: goods(products and materials), services(tourism,transport),capital(infrastructure ·positive/surplus(+revenue -expenditure) ·deficit/negative(+expenditure -revenue) Types: -trade in visible goods and services: energy source(oil,gas),agricultural products(cereals,coffe), manufactured products(computers,cars) -trade in abstract goods and services: ·flow of capital ·flow of information