Understanding Services, Trade, and Transport in the Global Economy

Services:

consist of all the activities which do not directly produce tangible goods but help to satisfy people's needs and wants. Public services are financed by the state from taxes and run public institutions, while private services are offered by private companies that consumers pay for. Developed countries have experienced tertiarization. Today, services provide over 70% of wealth and employment in developed countries.

Trade:

is the exchange of goods and services between producers and consumers. Factors such as transport and infrastructure, market size, and wealth influence trade. Wealthy people have greater purchasing power and consume more. Domestic trade involves wholesalers buying large quantities and selling to retailers, who then sell products in small quantities to customers. Foreign trade considers the balance of trade, which is the difference between exports and imports, and the balance of payments, which accounts for remittances, foreign tourism, and capital investment.

Land Transport:

Road transport includes cars, buses, and lorries. Advantages include flexibility and usefulness for moving people and goods, while disadvantages include high costs, more accidents, and pollution. Rail transport involves trains, metros, and trams. Advantages include high-speed travel and the ability to transport goods in containers, making it a cheap, fast, and safe option.

Ship Transport:

Includes transport by sea and on navigable rivers. Characteristics include affordability, slow speed, the need for port infrastructure, pollution, and the use of huge containers. Main routes include the North Atlantic, Pacific, Mediterranean, Suez Canal, and Panama Canal.

Air Transport:

Mainly used to move people over long distances, air transport is quick and safe but expensive. It causes noise and air pollution, and its infrastructure is complex and costly. Main air routes include North America and EU, EU and Asia, Asia and America, and the Middle East.

Tourism:

Activities that people engage in for pleasure during their travels. Benefits of tourism include creating business and jobs, improving regional heritage, and fostering cultural exchanges. Negative effects include seasonal and precarious employment, the impact of coastal tourism on the environment, and threats to local traditions. Tourism flows are highest in the EU, followed by the Asia Pacific, America, Africa, and the Middle East.

Other Services:

Activities related to the management of money, such as investments, loans, and savings. Types of services include banks, insurance companies, investment funds, person-to-person services, mass media (press, radio, TV), the internet, and personal services like domestic staff, elderly assistance, child care, maintenance and repair, and professional services.