Unit 8The tertiary sector

The tertiary sector or service sector of the economy refers to activities which do not directly produce tangible goods, but provide services to satisfy people’s wants and needs

Some of these services are: Transport, trade, tourism, health, education, administration, cultural activities.

In developed countries, this is the main sector: Most of workers are employed by the tertiary sector.

1. THE TERTIARY SECTOR

services

ManagementPublic services

Private services

Function

Social services

Administrative

Financial

Cultural

Personal

Information and communication

Commercial

Transport

Leisure and tourism

2. TRADE

TradeWhat is it?

The exchange of goods and services, buying

and selling them

Types

Domestic trade

Foreign trade

2.1. Domestic trade It takes place inside a country and provides the

public with goods.

Two types:◦ Wholesale: A company buys products in large

quantities directly from the producer and sells them to small shopkeepers. (Mercaleón, Mercaolid)

◦ Small trade or retail: It buys small quantities of products from a wholesaler and sells them to consumers.

So, the usual shopping circuit is:Producer Wholesale

rSmall trader Consumer

Types of DT

Small or traditional shops

Superstores

Supermarket

Hypermarket

Department storeShopping centre

Sale by mail order, telephone or

Internet

Street markets

Small or traditional shops

Small establishment with one or two shop assistants. They are usually specialised in some articles (shoes, fruits,...)

A medium-sized establishment that sells a different products. (Mainly food)

Supermarket

A large establishment that sells a variety of products.

Hypermarket

It sells a wide variety of products in specialised departments. They have shop assistants.

Department store

A large building with small specialised shops. It usually has restaurants, cinemas and a hypermarket.

Shopping centre

The buyer selects the product and receives it at home

Sale by mail order, telephone or Internet

Sellers put up stalls and offer their products for sale in the street.

Street markets

It is the exchange of products and services between different countries. It consists of:◦ Imports: Products or services one country buys from

another country.◦ Exports: Products or services one country sells to

another country.

These exchanges are registered on the balance of payments, a document that shows the income and expenses from trading goods, services and the capital exchanges between countries.

It includes the merchandise trade account: Document that shows the value of a country’s imports and exports of products. It can be positive, negative or balanced.

2.2. Foreign trade

Industrialised countries

• They export industrial products.• They import raw materials and energy

sources.• Europe, USA, Canada and Japan.

Newly industrialised

countries from south-east Asia

• They export industrial products at low prices.

Less-developed countries

• They export raw materials and energy sources.• They depend on industrialised countries, from

which they buy industrial products.• Africa and some Asian and Latin American

countries.

Transport moves people and goods from one place to another. There are various forms of transport, which use the transport network.

3. TRANSPORT

Mode of transport

Overland transport

Road transport

Rail transport

River transport

Sea transport

Air transport

Road transport

Uses and types

• Short and medium distances.• Transportation of goods and people.

• For people Bus, car and motorcycle.• For goods Lorry.

Necessary infrastructures

• Roads, motorways and dual carriageways.

Advantages• Goods and people are moved directly from

the point of origin to their destination.

Disadvantages• High energy consumption• Traffic jams.• Pollution.

Road junction

Rail transport

Uses and types

• Medium-distance transportation of large quantities of heavy goods

• Short and medium distance transportation of passengers:• High-speed rail (AVE)• Suburban trains.

Necessary infrastructures

• Stations and railway tracks.

Advantages• Large carrying capacity.• Less pollution.• Direct access to city centres.

River transport

Uses and types

• Barges• Ships with bulky or heavy goods• Passengers

Necessary infrastructures

• Rivers and navigable lakes

Main navigable

areas

• USA. Great Lakes and Mississippi river.• Europe Rhine and Danube• South America Amazon• Africa Nile• Asia Ganges and Yangtze

Sea transport

Types and uses

• Long-distance transportation of bulky or heavy goods:• Raw materials.• Fuel.• Food and industrial products.

• Passenger transport on cruise ships and ferries.

Advantages

• Large carrying capacity.• Different types of ships adapted to the cargo

they transport.• Low cost.

Disadvantages • It requires additional types of transport.

Air transport

Types and uses

• Long and medium-distance transport of passengers.

• Urgent goods, goods with a high value or are not too bulky.

Necessary infrastructures

• Airports• Airlines.

Advantages • Speed.

Disadvantages

• Air pollution and noise pollution.

It refers to trips that people take for recreation from the place where they live to another place for a limited period of time. They must spend at least one night away from home.

4. TOURISM

Features and factors of tourism

Features

It is seasonal

There is a high concentration of tourists

It can cause supply problems

Factors

Physical

Human

Types of tourism

Beach tourism

Active tourism

Nature tourism

Ecotourism

Rural tourism

Cultural tourism

Health and beauty tourism

Congress and convention tourism

5. MEDIA

Main types of media

PressIt plays an important role in communicating news and

opinions.

RadioUntil the mid 20th century it

was the fastest way of communicating.

Television

It has been the most influential in the 2nd half of

the 20th century. Today is very diversified and

specialised.

The Internet

The Internet has revolutionised the mass

media, because it includes press, television, radio, blogs, social networking

services,...

6. THE IMPACT OF THE TERTIARY SECTOR

Transport

• It has an impact on the growth of cities.• It modifies the landscape.• Air and noise pollution.

Tourism

• It brings in foreign currency and stimulates other economic activities.

• It modifies the traditional economic activities of the tourist area.

• It modifies the lifestyle of the inhabitants.

Media

• They modify working practices and social relations.• Perform administrative tasks.• Buy online.• Information.• Education.• Leisure.• Teleworking

• But the excessive use of media can cause addiction and damage personal relationships.