The Tertiary Sector: Trade, Tourism, and Transport
The Tertiary Sector
The tertiary sector encompasses immaterial activities such as transport, trade, tourism, and education, all of which focus on delivering services to meet the needs of individuals and companies.
Types of Services
Public Services
These services are provided by the government using revenue collected from taxes. Their primary aim is to ensure social welfare.
Private Services
Private companies deliver these services using funds paid by those who utilize them. Their main objective is to generate financial profit.
NGOs
Non-governmental organizations (NGOs) offer services not provided by the state, delivering them free of charge without aiming for economic profit.
Low-Skilled Services
These services are provided by individuals with limited qualifications and are prevalent in underdeveloped countries.
Skilled Services
These services necessitate professional qualifications, such as those found in education or healthcare, and are predominantly found in developed countries.
The Quaternary Sector
This sector comprises highly specialized services requiring advanced professional training, such as research and university-level education. These services are primarily concentrated in developed countries.
Services in Developed vs. Underdeveloped Countries
Developed Countries
- High contribution to GDP and employment (over 60%)
- Access to basic healthcare and education for all citizens
- High living standards leading to high demand for services
Underdeveloped Countries
- Low contribution to GDP and employment
- Limited access to basic healthcare and education
- Low living standards resulting in low demand for services
Transport
Transport involves moving people and goods between locations using various systems, including land, air, and sea, each with specific means of transport and infrastructure.
Transport Networks
These networks consist of nodes (departure/arrival points) and pathways (connecting lines). Denser networks have more nodes and pathways.
Linked Spaces
Found in developed countries like the USA, EU, and Japan, these spaces feature numerous, well-developed transport networks with good connections to strategic global shipping routes like the Panama and Suez Canals. Recent advancements include biofuels, increased passenger and cargo capacity, infrastructure improvements, and high-tech real-time monitoring systems.
Poorly Linked Spaces
Some African, Latin American, and Southeast Asian countries have few, poorly developed transport networks. Underpopulated regions like the Arctic and Central Asian mountains lack transport networks altogether.
Modes of Transport
Road Transport
- Most common for passengers and freight over short to medium distances
- Direct access between points
- Low passenger and freight capacity
Rail Transport
- Suitable for passengers and freight over short to medium distances
- High capacity, speed, and safety
- High infrastructure construction and maintenance costs
Sea Transport
- Optimal for transporting heavy goods over long distances
- High capacity and low cost
- High pollution levels
Air Transport
- Used for long-distance passenger travel and transporting perishable, urgent, or high-value goods
- Fast, safe, and independent of terrain obstacles
- Expensive and polluting
Tourism
Tourism refers to the temporary movement of people (24 hours to 1 year) from their residence to another location, primarily for leisure.
Causes of Tourism Growth
- Post-World War II economic growth increased middle-class purchasing power.
- The right to paid holidays increased leisure time.
- Transport advancements made travel more affordable.
Factors Influencing Tourist Choices
- Natural attractions
- Cultural and leisure attractions
- Affordable prices
- Good transport and infrastructure
- Political stability
Consequences of Tourism
- Job creation, although often precarious and seasonal
- Attraction of job seekers, potentially straining local services
- Promotion of cultural exchange, but also potential loss of regional identity
- Rehabilitation of certain areas, but also increased pollution and waste
New Tourism Policies
Current trends favor sustainable tourism, emphasizing social, cultural, environmental, and economic sustainability.
Trade
Trade involves the exchange of products and services between producers and consumers for payment.
Elements of Trade
- Supply and demand (sellers and buyers)
- Merchandise (goods and services)
- Payment (historically bartering, now money, credit cards, etc.)
- Market (physical or abstract, like the stock exchange)
Historical Development of Trade
Preindustrial Trade
Medieval trade was limited by low production levels, transport difficulties, and limited purchasing power. However, the discovery of America boosted foreign trade.
Industrial Trade
From the mid-18th century, the Industrial Revolution increased production, improved purchasing power, and advanced transport, leading to a surge in domestic and foreign trade.
Contemporary Trade
Trade has expanded significantly since the 1980s, with diversified production, new sales methods (e.g., self-service, large retailers), better-informed consumers, and new payment technologies driving a”commercial revolution”
Types of Trade
Domestic Trade
Trade within a country’s borders, encompassing wholesale and retail.
- Wholesale Traders: Buy large quantities from manufacturers and sell to other traders or businesses.
- Retail Traders: Sell directly to consumers through various commercial establishments.
Traditional Businesses
Operate on a small scale with limited products and personalized service, including specialized shops, municipal markets, and street markets.
Large Retail Stores
Operate on a large scale, offering a wide variety of products and self-service, including supermarkets, superstores, department stores, and shopping centers.
Foreign Trade
Trade between countries, involving imports (purchases from abroad) and exports (sales abroad), recorded in the balance of payments.
- Balance of Payments: The difference between imports and exports, resulting in a trade deficit (more imports) or surplus (more exports).
Trade Policies
Protectionism
An economic policy that restricts trade with other countries through tariffs, quotas, and other regulations to protect domestic businesses.
Free Trade
An economic policy that minimizes trade barriers, promoting the exchange of goods and services between countries without tariffs or quotas.
International Trade Organizations and Agreements
WTO (World Trade Organization)
An international institution regulating global trade rules, aiming to ensure smooth, predictable, and free trade flows.
Trading Blocs
Groups of countries formed to promote trade among members, such as NAFTA and the European Union Single Market.
Global Trade Patterns
- The EU and USA export manufactured goods and technology while importing cheap manufactured goods and raw materials.
- Emerging countries export cheap manufactured and technological goods, importing manufactured goods from the EU and USA and raw materials from others.
- Other countries primarily export raw materials and energy while importing manufactured goods.
Tourism Growth and Its Impact
Global Tourism Trends
Tourism has experienced significant growth since 1950, with Europe being the most visited region. This growth is projected to continue, with Asia showing the most rapid increase.
Causes of Growth
- Increased purchasing power of the European and American middle class
- The right to paid holidays
- Advancements in transport, making travel more affordable
Consequences of Growth
The growth of tourism has had significant economic, demographic, social, cultural, and environmental consequences.
Economic Consequences
- Contribution to GDP growth (9%)
- Seasonality of employment
Demographic Consequences
- Increased tourism flows
- Influx of young people seeking seasonal employment, leading to demographic imbalances
Social and Cultural Consequences
- Cultural exchange
- Potential for westernization of world cultures
Environmental Consequences
- Increased pressure on resources, particularly water
- Environmental degradation
The Future of Tourism
The future of tourism lies in promoting sustainable practices that balance economic, demographic, social, cultural, and environmental considerations. Addressing issues such as seasonal unemployment and resource depletion is crucial for ensuring the long-term viability of the tourism industry.