Understanding Economic Activities: 3S, Quaternary Sector, and Trade

Understanding Economic Activities

3S: A group of economic activities that consist of offering services.

• Public services (offered by the state): Healthcare, Education
• Distribution services (change the position of something): Transport, Telecommunications, Trade
• Business services (company to company): Repairs, Installations, Professional services
• Customer services (company to people): Repairs, Installations, Personal services, Trade, Travels, Tourism

Quaternary Sector: A group of economic activities classified within the 3S. Commonly, services require a lot of training and formation. Includes mostly scientific and technological research, such as Biomedicine.

TransNet: A combination of nodes and pathways.

• Nodes (N): Points of departure and arrival for passengers and merchandise, represented by dots (physical existence).
• Pathways (P): Routes that link nodes together, represented by lines. Sometimes they exist, but are not visible (Air & Sea Transport).

Intermodal Freight: A type of merchandise transport (not for passengers) which is based on the use of containers. Thanks to this, there is just one load and one unload rotation (+cheap). Disadvantage: ports need to be bigger to receive boats.

Road Network: Development leads to more equality and density. Less Developed countries: coast, capital, and mining zones are well connected.

Aviation: Planes and Aviation started in 1903 in North Carolina. Private airlines emerged in the 1920s to deliver mail. Intercontinental flights began after World War II. Low-cost airlines appeared in the 1990s.

Bartering: The exchange of goods and services without the use of money. Common in the Middle Ages, and recently in Rome (cultural areas).

Balance of Payments: The difference between the market value of all the income and all the expenses in a certain country and year. Includes goods, services, and capital.

Balance of Trade: The difference between the market value of all the exports and all the imports carried out in a certain country and year. It doesn't consider services or capital.

Trade Blocs/Trading Blocs/Custom Unions: A group of countries formed to foster trade between its members by eliminating custom tariffs (for member states). Advantages: +trade (benefits customers, +competition, goods, services cheaper). Disadvantages: harmful for workers as there is +competition, companies must adapt. NAFTA & EU are powerful examples.

Balance of Trade (BT) vs. Balance of Payments (BP): In More Developed Countries (USA, Spain, etc.), a negative BT can be compensated by tourism and investment of foreign capital.