The Secondary and Tertiary Sectors of the Economy

The Secondary Sector

Industry and Construction

The secondary sector consists of construction and industry. It utilizes raw materials, which are resources that need to be transformed into finished or semi-finished products. Energy sources are crucial to power the machines used in this sector.

Human Resources

Developed Countries:

• Controlled working hours
• Right to strike
• Unemployment benefits
• Social protection and health insurance

Developing Countries:

• Minimum health and safety standards

Capital

Capital is provided by private companies, the state, or both. Companies can be owned by individuals or collectives.

Main Industrial Areas in the World

Europe:

• EU: Steel, aeronautics, aerospace
• Russian Federation: Energy sources and mineral resources

Asia:

• Japan, China, Asiatic Tigers, India

Africa:

• South Africa, Central Africa, and North Africa

Oceania:

• Australia, New Zealand

Environmental Consequences

The search for sustainable development is crucial to mitigate the environmental impact of the secondary sector.

Companies in Spain

In Spain, there are PYMES (small and medium-sized enterprises) and medium-sized companies. Private companies aim to generate profit.

Types of Industry

Metallurgical: Metal and steel. Principal producers: Iron, steel, aluminum, copper.

Heavy Chemical Industry: Makes products necessary for other industries.

Capital Goods Industry: Makes products necessary for other industries.

Light Industry or Consumer Goods: Products for direct consumption. Different types include:

• Food industry
• Automobile industry
• Light chemical industry
• Electronics and computers
• Textile industry

The Tertiary Sector

Services

The tertiary sector encompasses activities that do not produce goods but offer services.

Classification of Services

Management:

• Public
• Private (companies aim to earn money)

Function: Can be public or private.

Financial: Banks and saving banks.

Cultural: Museums, etc.

Personal and Business: Lawyers, plumbers, etc.

Information and Communication: Opinion (radio, TV)

Commercial: Trade and commerce.

Transport: Moving people and goods.

Tourism:

• Beach and sun tourism
• Active tourism
• Nature tourism
• Cultural tourism
• Health and beauty tourism
• Congress and convention tourism
• Gastronomy tourism

Media:

• Press
• Telephony
• Radio
• TV
• The internet

Trade

Trade involves buying and selling products and services.

Domestic Trade: Inside the country.

• Wholesale
• Small trade

Foreign Trade: Exchange between different countries. Export and import.

• Balance of payments
• Merchandise trade account
• Different characteristics based on country type (industrialized, newly industrialized, developing)

The Impact of the Tertiary Sector

Effects:

• Transport
• Tourism
• Media

Corrective Measures: Measures are needed to address the negative impacts of the tertiary sector, such as environmental damage and social inequality.