Tertiary Sector: Services, Transport, Trade and Types

Tertiary Sector: Definition and Characteristics

TERTIARY SECTOR: Activities involved in delivering services to meet people's or companies' needs.

• Immaterial activities: Do not produce material goods.
• Low level of mechanization: Undertaken mainly by humans, not machines.
• Very heterogeneous: Includes many different types of services.
• Examples: Transport, communications, tourism, trade, health care and education.

Transport System

Transport system — Means of transport — Infrastructures

Elements Involved in Trade

• Supply and demand: Sellers and customers.
• Merchandise: Goods and services that are traded.
• Payment: Money.
• Market: Place where the sale is undertaken.

Importance of Transport

• Economically: Encourages trade, tourism and industry.
• Politically: Defence and integration of territories.
• Socially: Enables leisure activities, personal and cultural contact.

Global Trade by Region

• EE. UU.: Es el primer importador (18.4%).
• La UE: Es la mayor potencia comercial del mundo; tiene un importante mercado interno y está compuesta por países ricos (41.3%).
• ASIA: Muy importante, ya que se ha especializado en vender productos manufacturados a precios bajos (mano de obra barata). Destacan China y Japón.
• ORIENTE MEDIO: La clave: el petróleo (4.0%).
• ÁFRICA: Debido a su pobreza participa poco en el comercio y, en general, exporta materias primas e importa productos industriales (2.9%).

Types of Services

TYPES OF SERVICES:

According to Who Delivers Them

• Public: Provided by the state (government) using money collected from taxes. Aim: guarantee social welfare.
• Private: Provided by private companies using money paid by those who demand the service. Aim: earn economic profit.

According to Degree of Specialization

• Low-skilled services: Require few qualifications.
• Skilled services: Require professional training.
• Highly skilled services (quaternary sector): Require an advanced level of professional training.