Tertiary and Quaternary Sectors of the Economy: An Overview

Posted on Oct 18, 2024 in French

Tertiary and Quaternary Sectors

Introduction

The tertiary sector encompasses activities related to providing services (transport, trade, tourism, health, education, administration, cultural services, etc.). The quaternary sector includes financial services, information technology, communications, and research. In developed countries, the tertiary sector is constantly growing, while in underdeveloped countries, services are limited and of lower quality.

Classification of Services

1. Public Services:

Managed by the state, municipalities, and autonomous communities to meet the needs of the population and ensure better organization of the territory. Their purpose is social (health, education, public transportation, etc.).

2. Private Services:

Offered by individual companies to obtain a profit (healthcare, education, leisure, etc.).

According to Function:

  • Social (education, health)
  • Administrative
  • Financial
  • Cultural
  • Personal
  • Information and communication
  • Trade
  • Transport
  • Leisure and tourism

Elements of Trade

  • Seller: Sells merchandise and exchanges it on the market, which may be concrete (supply square) or abstract (stock exchange).
  • Buyer: Interested in the merchandise.

Methods of Internal Trade:

  • Small businesses
  • Large retailers (supermarkets, hypermarkets, department stores)
  • Shopping centers
  • Mail order
  • Television
  • Internet
  • Markets

Foreign Trade:

Exchange of goods and services between different countries.

  • Import: Purchase of goods and services a country makes from abroad.
  • Export: Sale of goods and services a country makes to abroad.

Imports and exports are recorded in the balance of payments and the trade balance, which reflects the balance of goods imports and exports.

  • Positive Balance: Payments exceed receipts.
  • Negative Balance: Receipts exceed payments.
  • Balanced: Payments and receipts are equal.

Geographical Distribution of Foreign Trade:

  • Developed Countries: Export industrial products and import raw materials and energy sources.
  • Industrialized Countries of Southeast Asia (South Korea, Taiwan, China): Great importance in world trade, specializing in the export of manufactured goods (textiles) at low prices due to reduced production costs.
  • Underdeveloped Countries: Major exporters of raw materials and energy sources. They depend on industrialized countries to buy technology (African, Asian, and Latin American countries).

Transport

The transfer of people and goods from one place to another.

Road Transport:

Buses, cars, and motorcycles moving on roads, highways, and expressways. Used for short and medium distances. Allows direct transfer of goods. Disadvantages: high energy consumption, traffic congestion, and air pollution. Solutions: use of unleaded gasoline, development of public transport. Developed countries have a hierarchical road network. In underdeveloped countries, the road network is insufficient.

Rail Transport:

Widely used for transporting goods in large volume and weight over medium distances and passengers over short distances. Requires high investment. Advantages: large cargo capacity, less pollution, direct access to the interior of cities.

River Transport:

Using navigable rivers and lakes to transport bulky and heavy goods. Major waterways include the Great Lakes, Mississippi, Rhine, Danube, and Nile.

Tourism

Any movement made from one’s place of residence to another for a limited time. A leisure activity that involves moving at least one night outside the home.

Types of Tourism:

  • Cultural Tourism: To experience the tourist and cultural heritage.
  • Beach Tourism: The most common type, occurring in temperate areas.
  • Religious Tourism: Destinations with important religious sites.
  • Health Tourism: Spas and places of rest.
  • Sports Tourism: Practicing sports.
  • Rural Tourism: In places with scenic interest to supplement economic activity.

Factors Affecting Tourism:

  • Physical: Suitable climate.
  • Human: Infrastructure, economic investments.

Origin Areas: Rich countries (USA, Japan, EU).

Destination Areas: (France, Spain, USA, Caribbean).

Impacts of Transport and Tourism

Transport:

  • Construction of bypass roads around urban centers clears the city center.
  • Results in environmental degradation, visual impact (altering the natural landscape), intense soil occupation, air pollution, noise pollution, and water pollution.

Tourism:

  • Allows the entry of currency and stimulates the development of other economic activities (trade, catering, sports).
  • Modifies the reception areas and the inhabitants, who may leave their former occupations.
  • Alteration and deterioration of the natural landscape.
  • Overexploitation of natural resources, such as water, to meet the needs of tourists.
  • Increase in waste in non-tourist areas.
  • Alteration of sea currents and beach formation.

Means of Communication

Their development has caused changes in personal and professional life. Thanks to the internet, it is possible to do things that previously took a lot of time. They play an important role in education and leisure time, and they have led to transformations in the workplace (telecommuting).

Negative Impacts of Transport:

  • Environmental degradation.
  • Visual impact (altering the natural landscape).
  • Intense soil occupation.
  • Air, noise, and water pollution.

Fastest and Most Expensive Means of Transport:

  • Airplane
  • High-speed train
  • Subway
  • Tourist boats

Advantages of Other Means of Transport:

  • Safer
  • Less polluting
  • Faster
  • Cheaper (car, bicycle, train, subway, bus, truck)

Disadvantages of Some Means of Transport:

  • Very expensive and polluting.
  • Heavy and suitable for transporting goods (oil, natural gas) over long distances.
  • Large cargo capacity but can be expensive.