Essential Economic and Geographic Terminology

Key Concepts in Economics, Trade, and Tourism

Terciarización (Tertiarization)

This is the process by which the tertiary sector (services) of the economy gains weight relative to the primary and secondary sectors, becoming the main economic driver in terms of both population employment and contribution to Gross Domestic Product (GDP).

Welfare State

Based on the theories of Keynes, particularly implemented in Europe after World War II, the Welfare State involves the intervention of the government to ensure that the entire population, without exception, receives at least two basic social services: health and education.

Transport and Intermodal Systems

Transport is the activity dedicated to moving people and goods between geographical locations.

Intermodal Transport

This refers to a transportation subsystem that combines a variety of means (modes) at a specific point or station to facilitate the movement of goods or passengers.

Tourism Definitions and Modes

Tourism is defined as the set of activities carried out by people during travel and stays outside of their habitual residence for business, leisure, or other unpaid reasons. This period must be for less than one year and more than 24 hours.

Tourism includes three primary modes:

• Inbound Tourism: Visitors arriving from abroad.
• Domestic Tourism: Travel undertaken by nationals within their own country.
• Outbound Tourism (Issuer Tourism): Nationals traveling abroad.

Visitors staying less than 24 hours are considered walkers (excursionists). If they stay overnight and the duration exceeds 24 hours, they are considered tourists.

Complete Tour Package

A complete tour package requires advance booking and combines at least two essential elements (e.g., lodging, transportation, visits). It is sold at an inclusive and indivisible price through a travel agency or tour operator. The client pays a single price and typically does not know the individual cost of each service included.

Seasonal Tourism

Seasonal tourism is characterized by the concentration of tourism demand in specific months of the year, most notably during the summer period.

International Trade and Balance

International Trade refers to the exchange of products between a country and the rest of the world.

• Exports: The value of sales of domestic products abroad.
• Imports: The value of the purchase of foreign goods by a country.

The Balance of Trade is the difference between the total value of exports and the total value of imports. Historically, this balance has often been in deficit and forms a component of the larger Balance of Payments.

Trade Growth Factors (Spain Example)

In Spain, both exports and imports have experienced tremendous growth since the 1960s, driven by three key factors:

1. Openness to the international economy (since 1959).
2. Entry into the European Community (1986).
3. Integration into growing global economic globalization.

World Trade Organization (WTO)

The World Trade Organization (WTO) is the governing body responsible for regulating world tariff policy. Since 1994, it has replaced the former GATT (General Agreement on Tariffs and Trade).

FAD (Development Assistance Foundation)

FAD is an acronym for the Development Assistance Foundation.