Key Economic and Social Concepts Defined

Classified in Geography

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Tertiary Services and Activities

These encompass all immaterial products of economic activity designed to meet our needs. Examples include:

  • Transport
  • Healthcare
  • Education

Post-Industrial Society

This describes an economy characterized by a strong service sector, where services constitute the most significant portion of GDP and employ over 60% of the active population. The contributing factors include:

  • Mechanization
  • Industrial production
  • Increased living standards
  • Policy development
  • Research and development
  • Information and communication technologies

Social Services

These are activities that ensure the welfare of people. In affluent countries, they are a consolidated "right," whereas in developing countries, they often represent a significant demand and a focus of social struggle.

Welfare State Policies

These are policies designed to ensure social services for all citizens, covering areas such as:

  • Education
  • Healthcare
  • Social security
  • Unemployment benefits
  • Sickness benefits
  • Retirement pensions

These services are typically funded by taxes collected from citizens.

Trade and Commerce

Trade involves a series of activities related to the purchase and sale of products and services.

Internal Trade

Commercial activities that take place within the borders of a single country. This includes:

  • Wholesale: Selling goods in large quantities to retailers or other businesses.
  • Retail: Selling goods directly to consumers.

Foreign Trade

Business activities carried out between different countries. The exchange of goods and services in foreign trade is categorized as:

  • Exports: Sales of goods and services to foreign countries.
  • Imports: Purchases of goods and services from foreign countries.

Trade Balance Explained

The trade balance represents the difference between the total value of goods and services a country sells abroad (exports) and what it purchases from abroad (imports).

  • A positive trade balance (or trade surplus) occurs when the value of exports is higher than the value of imports.
  • A negative trade balance (or trade deficit) occurs when the value of imports exceeds the value of exports.

Trade Flows and Their Types

Trade flows refer to the movement of goods and services and the direction these movements take between countries, areas, or zones. These "flows" can be categorized as:

  • Real Flows: Tangible products such as energy products, agricultural goods, manufactured items, etc.
  • Information Flows: Services, capital, data, etc.

Bilateral Trade Dynamics

Bilateral trade refers to trade between two countries. Its dynamics often depend on the economic status of the trading partners:

  • When trade occurs between two affluent countries, it typically operates within a framework of equality.
  • When trade occurs between an affluent country and a developing country, it is often characterized by inequality. Affluent countries tend to export manufactured goods, while developing countries primarily export raw materials.

Transport and Logistics

Transport encompasses economic activities and services that facilitate the movement of people, goods, and information. To enable this, robust transport and communication systems and networks are essential, as their infrastructure makes possible the movement of people and the exchange of goods.

Land Transport

  • Rail: Safe, suitable for large quantities over long distances, generally less polluting, and cost-effective.
  • Road: Offers "door-to-door" transport but is often more expensive and a significant contributor to pollution.

Maritime Transport

  • Utilizes large cargo ships. Ideal for transporting vast quantities over long distances, making it highly cost-effective.

Air Transport

  • Covers large distances quickly. Best suited for lightweight, high-value, or time-sensitive cargo. It is generally expensive and can be a significant pollutant.

River Transport

  • Similar to maritime transport but operates on rivers and canals, suitable for inland navigation.

Alternative Tourism Concepts

This activity is less aggressive towards the environment, with its primary focus on the preservation of natural and cultural values. Examples include:

  • Ecotourism: Focused on understanding ecosystems, flora, and fauna.
  • Sports and Adventure Tourism: Activities like hiking, climbing, etc.
  • Cultural Tourism: Exploring historical sites, local traditions, and arts.

Sustainable Tourism Principles

Sustainable tourism combines tourism activities with respect for the environment, ensuring the future preservation of social and cultural capital.

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