Services, Trade, and Transportation in the Modern Economy
1. Types of Services
Public and Private
Some services are exclusively public (e.g., town hall, post office, treasury), while others are exclusively private (e.g., retail: supermarkets and small shops).
However, some services can be either public or private, allowing citizens to choose (e.g., education, healthcare). The welfare state ensures minimum public services for everyone.
Individuals and Businesses
| Individuals | Businesses |
|---|---|
|
|
2. Economic Development and Sector Shifts
Developed countries have a tertiary sector economy, having transitioned from primary to secondary and finally to tertiary. In summary:
- Developed Countries: Tertiary
- Developing Countries: Secondary
- Underdeveloped Countries: Primary
Exceptions: Some regions have transitioned directly from primary to tertiary, bypassing the secondary sector. This often occurs in agricultural areas with favorable climates that shift to tourism. Examples: Mallorca, Andorra.
3. Types of Commerce
Traditional trade, typically older than large retailers, consists of shops located on streets and squares, occupying the ground floors of buildings. Supermarkets, conversely, require dedicated spaces.
Types of Stores
City Center: These stores attract customers from surrounding towns and are often open on Saturdays and some Sundays. In larger cities, these are often franchises (e.g., Zara, Benetton).
Neighborhood: Also known as “proximity” trading, these stores provide everyday necessities (e.g., bread, newspapers). Not all neighborhoods have many of these stores.
Supermarkets: The largest traditional retailers, found in both residential and downtown areas.
Local Markets: Typically the oldest retail spaces in a town, usually located in the historic district. These are privately owned, not municipally.
Types of Large Retailers
Department Stores: Located in city centers, these stores evolved from clothing retailers to sell diverse items (e.g., appliances, books, CDs). There are general department stores (e.g., El Corte Inglés) and specialized ones (e.g., FNAC).
Hypermarkets: Located on city outskirts, these originated as warehouses for nearby stores. They evolved into large retail spaces with ample parking (e.g., Carrefour).
Shopping Malls: Complexes with covered streets and squares containing various shops. Some are open-air.
4. Transportation and Communications
These are essential for industry, services, agriculture, and the economy as a whole.
Transportation
- Road: Rail, roads, and highways.
- Maritime: Ships and port infrastructure.
- Air: Cargo planes and airports.
- River: Navigable rivers and waterways (limited in Spain to the Guadalquivir in Seville and the Nervión in Bilbao).
Communications
- TV and Radio: Traditionally influential media.
- Telephone: Essential before the internet and email.
- Internet and Email: Accelerated telecommunications.
5. Tourism: Causes and Consequences
Causes of Tourism
- Increased free time (more people work Monday to Friday and have paid holidays).
- Increased purchasing power.
- Improved and cheaper transportation.
- Easier access to information about other countries.
- Travel agencies that organize vacations.
- Growing interest in other countries and cultures.
Consequences of Tourism
Economic: Land speculation, increased housing costs, and temporary employment contracts.
Cultural: Cultural manipulation to attract tourists.
Environmental: Excessive construction on coasts and mountainsides.
6. Alternative Tourism
Alternative tourism deviates from mass tourism focused on sun and beaches.
Leisure: Growing demand for quiet places away from crowds.
Environmental: Tourism that prioritizes preserving the environment.