Understanding the Economic Sectors and Transport Systems

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Tertiary Sector: It provides services to people and other economic sectors instead. Ex Works: Health care, education, tourism, retail, transport and logistics, communications, culture, leisure, sports, etc. The growth of the tertiary sector coincided with the emergence of the Information Society. Many changes have led people to talk about the Tertiary Revolution. Quaternary Sector: Technology and science are commonly said to belong to the high-end tertiary or quaternary sector. Low-End Tertiary Sector: Consists of jobs that require little training and are usually poorly paid. Services Today: Social changes include greater life expectancy, female participation in the labor force, reduced working hours, and paid holidays. The Diversity of the Service Sector: Characteristics include:

  • Being very diverse, not only in terms of the number of services or workers' qualifications but also in terms of the size of the companies that provide them.
  • Being intangible and immaterial because services are valued according to the personal dedication put into them.
  • Being activities that cannot be stored.
  • Being close to consumers, as the direct contact between supply and demand is often essential.
  • Having a relatively low degree of mechanization, though computers are often essential.
  • Being unevenly distributed.

Classification of Tertiary Activities: Four groups:

  • Social Services: Public administration, education, healthcare, etc. They are created, organized, and funded through taxes for the population's benefit.
  • Private Services:
  • Distribution Services: Related to the circulation of people, goods, and information, including transport, telecommunications, and wholesale trade.
  • Business Services: Most companies outsource services to other specialized tertiary companies. Examples include advertising, research, banking and finance, insurance, legal and fiscal advice, etc.
  • Consumer Services: Associated with retail, trade, hospitality, leisure, repairs, installations, and individual services (restaurants, tourism, language learning).


Transport Systems: The movement of humans, animals, and goods from one location to another. Road Transport: The densest and most structured of land transport networks (cars, lorries, motorcycles). Rail Transport: Ideal for moving passengers and goods over medium and long distances. Air Transport: An effective way of transporting people and light goods because it is fast and secure, though more expensive. Maritime Transport: Ideal for moving large quantities of goods over long distances at low prices. The Functions of Transport: Moving people on a daily basis, making long-distance travel, distributing goods and services. Transport Revolution: Changes include increased cargo capacity, freight transport intermodality, increased speed, improved road infrastructure, increased safety, and lower transport prices. Tourism and Its Economic Importance: Until the 20th century, only the wealthier social classes could travel due to factors such as the 5-day working week, paid holidays, pensions, free time, private cars, and improved transport and advertising. Economy and Tourism: In developed countries, tourism leads to the creation and expansion of companies and services, while in poorer countries, it is often controlled by companies based in developed countries, meaning benefits do not go to the tourist destination country. Types of Tourism:

  • Nature: Natural parks or protected areas.
  • Urban: Cities with historical, cultural, and other attractions, along with infrastructure for many people.
  • Cultural: Historical, artistic, and cultural characteristics such as museums, ruins, music, gastronomy, etc.
  • Rural: Activities in the countryside such as agrotourism, green, and environmental tourism.

Depending on the distance between the destinations and the places of origin, there are groups of tourism:

  • Short-Haul: Up to 200 km.
  • Medium-Haul: 200 to 2000 km.
  • Long-Haul: Over 2000 km.

Tourism Effects: Positive effects include income, boosts to the economy and jobs, and stimulation of other economic sectors. Negative effects include higher prices, land speculation, poorly paid jobs, unemployment in the off-peak season, and environmental impact.

Trade: Trade involves buying and selling products and services to satisfy the needs of the population. It is one of the world's oldest activities and promotes contact between cultures. It contributes to the economy of developed countries by increasing their GDP and providing jobs. There are two basic types: Domestic (inside a country) and International (between countries). Elements:

  • Sellers: Individuals or companies who want to sell goods or services.
  • Buyers: Individuals or companies who want to buy goods or services.
  • Goods: Products.
  • Markets: Places where commercial transactions take place, which can be physical (material goods) or non-physical (abstract or virtual goods).

Factors: Efficient infrastructure and transport networks, population's purchasing power and consumer confidence, positive financial results, business confidence, a large market, e-commerce, prices, taxes, advertising, and discounts. Trade Today: Large quantities of goods are in constant movement, supported by a worldwide network of trading partners, providing jobs for many people, and dominated by an ever-smaller number of large companies. Domestic Trade: Commerce that happens within a country's borders. Wholesalers: Act as intermediaries between producers and consumers. Retailers: Buy small numbers of goods from wholesalers and sell them to the public. Different places include:

  • Traditional Retailers: Small family shops, e.g., supermarkets, grocery stores.
  • Department Stores: Huge range of products, usually located in cities and having many floors.
  • Large Shopping Centres: Located on the outskirts of cities, often belonging to multinational chains.
  • Street Markets: Open air on particular days each week.

International Trade: Indicators include balance of trade and balance of payments. Trade in Abstract Goods and Services: Flows of capital and flows of information.

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