UNIT 8: THE TRANSFORMATION OR THE TERTIARY SECTOR

1. THE TERTIARY SECTOR.

1.1. The tertiary economic sector
The tertiary Sector or service industry include all activity which do not produce material
goods, but provide for people or other economic includes Transport, Communications,
commerce,

health

care,

tourism

and

education..

In developed countries, services are very Widespread and the majority of people have
access to basic services, such as health care and education.
In developing countries, services are insufficient, and most of the population does not
have access to basic services. The sector is far less important, in terms of employment
and GDP, as low-paid services requiring few qualifications predominate. such as
domestic service and street traders.
1.2. Classification of services
There are two types of service providers.

Provided by private companies, who private or market services are charge money to
people or other companies who require the service. Their main objective is to earn
profits.

Public or non-.market services are provided by the State with money collected
through taxes. Their purpose is to provide basic services to society, rather than
making profits, they include public administration, health care and education,.

Services can also be grouped according to their function, for example: transport,
commerce, leisure and tourism, information and

communication, administrative,

financial, cultural, social and personal.

1.3. Location of services
Traditionally, services providers have located themselves close to consumers, The most
specialised were in large cities while less specialised ones were distributed more
uniformly around the country .
Today, improvements in transport and new communication technologies means that
certain services have moved to areas with lower costs, such as small and medium-sized
towns and underdeveloped
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2. COMMERCE
2.1. Commerce
Commerce or trade is Of goods and between producers and Consumers in exchange for
Some form of payment.
Commercial activities are carried out through main components:
The transaction which is the act of buying or selling and the market, which is the place
where transactions are carried out.
There are two types of market: physical ones, where merchandise is present, such as
produce markets, and abstract ones, where it is not present, such as stock exchanges or
securities markets.
2.2. Domestic and foreign trade
Domestic trade is carried out within the borders of a country. It can be wholesale, when
large amounts of merchandise are bought directly from producers and then sold to
smaller shops; or retail which sells directly to consumers. Today because of new
technologies, telesales

and internet shopping are becoming increasingly popular.

Foreign trade is carried out between countries. Importation is the purchase of foreign
goods and services, exportation the sale of goods and services abroad. Both exchanges
are recorded annually in a document called the balance of payments, which can be
positive if the value of exports exceeds the value of imports, or negative , if the opposite
is true.
2.3. International trade
International trade, or foreign trade between countries, involves huge

volumes,

exchanged over very large distances.

The main trading regions the world are the European Union, the United States and
Japan, which exchange manufactured goods, technology and capital and buy materials
and energy sources from developing countries. Emerging countries, such China, India,
Brazil, and the new industrial manufactured goods to developed countries at low prices.
To facilitate international trade, international institutions have been set up, such as
World Trade Organisation (WTO)), and trading blocks.

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Trade Organisation (WTO) Seeks to eliminate or reduce tariffs in commercial

exchanges, persecute unfair trade and an arbitrator in trade disputes.

Trading blocks are groups of countries which promote trade among their members
There are free trade areas, such as the North American Free Trade Agreement
(NAFTA), and customs unions, such as the single market in the European Union.

3. THE TRANSPORT SYSTEM ANd NETWORKS.

3.1. The transport sector
It is the activity which transfers people or goods between place. There are different
transport systems, depending on how the transfer is achieved, e.g. by land, water or air.
Each one of them uses different means of transport (cars, buses, lorries, trains, ships,
aeroplanes, etc.) and infrastructure or facilities (roads, motorways, railway lines, ports,
airports, etc.).
Transport is a strategic sector because of its economic and social importance. 'Therefore
states control it totally or partially in different ways: by determining the land transport
routes, funding major infrastructure projects, etc.
3.2. The world's transport networks

Transport infrastructure forms physical networks. Each network is composed of lines,

which connect the places of origin with the destinations; and nodes, where the lines of
different transport systems meet.
On a global level, the densest, most abundant transport networks are found in the
developed countries. their main nodes are the largest cities and the capitals of each
country. In contrast, networks are less dense in developing countries and the more
sparsely

inhabited

areas

of

the

world,

such

as

Siberia,

the Arctic and the interior of Brazil.

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On a regional level, the distribution of networks depends on different factors, such as

the geographical conditions, the decisions of states and the different levels of economic
development.
4 LAND TRANSPORT
4.1. Road transport
Road transport is most commonly used to transfer passengers and merchandise over
short and medium distances.

The advantages of this transport system are that it is door to door and is very
flexible with regard to time.

The disadvantages are that the passenger and goods capacity is limited and that high
densities of traffic cause accidents and pollution, in particular CO2 emissions,
which cause climate change.

Developed countries have dense, well-maintained networks of roads and motorways

which makes it easy to control the use of land, economic activity and the mobility of
people.
Developing countries have insufficient, badly-maintained road networks, which is one
reason for their slow economic growth .
4.2. Rail transport
Rail transport is also used for the transfer of passengers and merchandise over short and
medium distances..

The advantages are it has high capacity, it is safe, fast and has low levels of
pollution if it is electrified.

The disadvantages are that the network does not always go door-to-door, and
construction and maintenance costs are high, especially in the case of high-speed
rail.

Today, rail transport is recovering from a crisis caused by competition road transport
and air travel.
In passenger transport, high-speed trains compete against aircraft and road transport
over medium distances. Local railways compete against cars and buses over short
distances
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For transportation of goods, containers are used, Speeding up loading and operations,
bringing down costs and increasing in land transportation of merchandise.
5. WATER AND AIR TRANSPORT
5.1. Water transport
Ships are used, above all, for the Of large quantities of

merchandise by Sea or

navigable rivers and account for only a small percentage of passenger transport.
Ships are ideal for the transportation of heavy, goods, over large distances. That is why
it accounts for three quarters of international freight traffic. The advantages are its large
capacity and low cost. The disadvantages are that it is slow, and that accidents cause
contamination of the waters.
Today, merchant ships are getting bigger and faster, companies are specialising in a
single type of merchandise (oil, cereals, metals, etc.) and using containers to transport
goods .
Passenger transport by ship is limited. Long-distance travel has virtually disappeared
due to competition from air transport, and the main focus is now on tourist cruises.
Mediam-andShort-distance transport is limited to is to ferry between islands or across
narrow stretches of water.
River navigation has a long tradition in the transportation of heavy products across the
interiors of continents. Today it is still important on the Great Lakes in North America
and along some European avers, such as the Rhine and the Danube.
5.2. Air transport
Air transport by plane is the of passengers over long and the transportation of urgent or
lightweight goods.
The advantages are lit is fast, safe and the fact that the routes are not affected by
geographic land features. The disadvantages are the high costs of operation and
maintenance, the high price of fuel and the acoustic and atmospheric pollution it causes.
Today, air passenger transport is an enormous industry
6. TOURISM
6.1 Tourism: causes and evolution

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Tourism is the transfer of people from place of to places, for leisure purposes, for a
period of more 24 hours and than one year.
Causes of the birth of are very diverse: the increase in the standard of living; the
generalisation of the five-day working week and paid holidays; the improvement of
means of transport and tourist facilities and tourist company marketing, which promotes
tourism through advertising.
6.2. Types of tourism

Tourism has become very diversified, offering a wide range of destinations and
activities:

Water tourism: is the most popular form of tourism. It includes sun-and-sand

tourism, along the coasts of temperate seas and the shores of some lakes; nautical
tourism, based around nautical ports and marinas; and spas, located next to springs
and thermal waters.

Mountain tourism includes skiing and sports and adventure activities, such as
hiking, climbing, crayoning, paragliding, etc.

Rural tourism leis people find out about traditional activities and landscapes, visit
agricultural museums, rest and purchase natural or artisanal products.
Other forms of tourism include cultural tourism, where people visit cities of historic,
artistic or cultural Interest business trips, congresses and conventions, which value
good communication and Infrastructure; and religious tourism to holy places.

6.3. Tourist destinations

The majority of tourists come from and travel to Europe and the United States.
In Europe, tourism is concentrated around the Mediterranean coast, the Alps, some
spas and large cities such as Paris, London and Rome .

In the United States, it concentrated on the coasts of California and Florida and in
large Cities, such as New York San Francisco and Las Vegas.

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