Understanding the Service Sector and Its Economic Impact
Sector or Service: K groups the activities that are not directly involved in the transformation of raw materials. Customer Service: Sofer directly to people, health, education, tourism, communications. Producer Services are those services provided by companies that publish administration, financial services, legal, publicity, and research. Utilities are the responsibility of the state. Services are operated by private companies and private or religious organizations or humanitarian groups.
Outsourcing: As K increases the level of economic development, society creates demand for services. For that reason, in developed countries, the majority of the population works in the active service sector.
Trade: The flow of goods between consumers and producers. K interchanges arose from two people or communities (primitive societies, markets, fairs).
Internal Trade: Trade that is performed within state borders, either domestic or imported products. The distribution mechanism traditionally has been through markets, annual fairs, and stores.
In the twentieth century, the engine of the economy shifted with newer commercializations such as department stores, chain stores, supermarkets, and shopping centers.
– Developed Countries: Open markets where laws establish supply, prices, and demand.
– Socialist Countries: A planned economy where domestic trade is governed by prices fixed by the state, as production adjusts to the needs of the population, thus avoiding excess supply and demand.
– Developing Countries: Domestic trade faces product shortages and a lack of money circulation, which prevents the development of large commercial structures. Much of the sales are made directly through local producers.
Financial System: A network formed by banks and savings institutions that play an important role in the development of the economy. The financial system acts as a mediator between people and businesses, allowing them to save and acquire capital goods and services.
Banks lend money to individuals and companies, and within the agreed terms, they must return the credit, including amortization. For the service, they must pay the interest rate, a percentage of the loan amount. Companies cover the costs of insurance that they must face, paying a premium for risks such as accidents and fires. The agreement between the insurer and the insured is formalized with a contract, known as the policy. Means: The economy plays an important and decisive role as services generate income and employment. The Importance of Transport: – Satisfies the necessity of mobility and displacement, allowing producers to meet the needs of both elements and the distribution of products. – Integration helps social groups and the dissemination of culture. Transport Elements: Infrastructure, traffic flow of people and goods (roads, airports, ports, channels) – The organization reviews and articulates the needs and resources to satisfy them (transport companies) – Legislation: Necessary to regulate activities from a social and economic security perspective. – Technical means allow the performance of activities (trucks, trains, ships, planes). Information Movement: From one point to another has been one of the main challenges of humanity for centuries. The nineteenth century saw the introduction of the telegraph, followed by the telephone in the twentieth century and radiotelephone.
Telecommunications: The majority of information is sound, images, and signs circulated through telecommunications systems that use various channels for transmission. Telematics: Information processed informatically. Mass Media: Information disseminated to a broad audience. 1. Press as a tool for the diffusion of ideas and news. 2. Radio in 1920, Television in 1950, and now the Internet. Socioeconomic indicators show that developed media are not present in underdeveloped areas. Assistance Services: Emerged in the second half of the nineteenth century, including education, health, social assistance, foresight, public security, and civil protection assistance. Assistance State: The state applies mechanisms to provide assistance through income redistribution by raising taxes and fees. Social Security: – Health Services will have primary care centers and hospitals. – Pension System applies when the worker reaches retirement or sooner if they have any disability. – Specific financial aid grants. Cultural Services: The availability of culture and leisure time are two indicators that characterize contemporary Western societies. Two factors have influenced this: – The Education Level of people has allowed access to culture to increase. – Buying Power allows resources for other activities, including cultural ones. Heritage Site Offer: Cultural offerings can be in the hands of public or private administration. The cultural and artistic heritage is varied (public museums, private foundations, film, music, theater).
Tourism: Develops joint activities around the temporary displacement of people away from their usual residence during leisure periods. It is a phenomenon that plays a significant role in the economy. Tourism began in the eighteenth century with trips to Europe. Development of Tourism: The widespread reduction in working days, paid holidays, and growth in income in developed countries, along with improved technology and cheaper transport, have contributed to this. – Emergence of social trends, – Elimination and reduction of border barriers, and reducing international tensions (Southern Europe, beaches in France, Spain, Italy, Greece, China, Japan, Caribbean islands, coastal Mexico).
Services in Europe: The presence of the commerce sector is marked by two fundamental facts: the single European market and tourism as a major attraction, with cities and cultural and artistic heritage preserved offering various activities. – Finance: Raising bank concentration. – Transport: Unifying terrestrial transport networks. – Media: Radio and television show various programs. – Culture: Numerous museums exist worldwide. – Utilities: University exchanges in several countries through initiatives like Erasmus.
Services in Spain: The sector’s presence in Spain includes: – Trade: Established especially with other EU states. – Tourism: Since the sixties of the twentieth century, focusing on sun and beach tourism. – Finance: Concentration of banks into large organizations. – Transportation: Improvement of the road network and construction of high-speed rail lines. – Media: Radio and Spanish television are controlled by the public broadcasting organization. The majority of competencies in these areas correspond to the governments of autonomous regions.
All in Catalonia: The presence of the tertiary sector in Catalonia includes: – Trade: A major part of external trade is established with the EU. – Tourism: Started in the sixties, contributing 10% to GDP, with attractions like beaches and Port Aventura. – Financial Sector: Many savings banks. – Transportation: Roads have a radial structure centered around Barcelona, including Renfe, AVE, Metro, and El Prat Airport. – Media: The incorporation of Catalan radio and television is responsible for public broadcasting. – Education: The Catalan government oversees public, private, and concerted education. – Health: Notable institutions include the Vall d’Hebron Clinic and Germans Trias i Pujol.