Understanding the Tertiary Sector: Services, Trade, and Tourism

Posted on Jan 16, 2025 in Economy

The Tertiary Sector: A Comprehensive Analysis

The tertiary sector, also known as the service sector, is a non-productive economic sector that provides services to all citizens. It is the predominant sector in developed countries. It encompasses a wide range of activities, including health, construction, tourism, trade, and education.

Tertiary Sector Subcategories

The tertiary sector can be broadly divided into two subcategories:

  • Superior Tertiary Sector: This segment includes individuals with a good academic background who often receive high salaries.
  • Traditional Tertiary Sector: This segment is dedicated to jobs requiring little preparation and are often underpaid, such as domestic service, cleaning, and street vending.

Classification of the Tertiary Sector

The tertiary sector can be classified according to three main characteristics:

  1. Destination:
    • Social services: Education, health, etc.
    • Distribution services: Transport, telecommunications, wholesale, etc.
    • Business services: Advertising, banking, finance, insurance, etc.
    • Consumer services: Catering, entertainment, repairs and installations, individualized services, etc.
  2. Capital Invested: Public or private services.
  3. Qualification of Labor Used:
    • Advanced services
    • Traditional services

Key Organizations and Concepts

  • WHO: The World Health Organization strives to improve the health level of all people.
  • Tourism: A private, traditional customer service.

Causes of Tourist Development

  • Purchasing power and availability of leisure time (related to working time).
  • Existence of a welfare society (a society of consumption services).
  • Generalization and modernization of transportation.

Broadcast Center: Developed countries and areas -> TOURIST FLOWS -> Receiving Facility: Developed countries and some developing countries.

Consequences of Tourism

Tourism has both positive and negative consequences, including economic, social, and environmental impacts.

Trade and the Economy

  • Exports: The sale of domestic products.
  • Market: The place where trading takes place.
  • Imports: The purchase of external products.
  • Means of Transport: Roads, railways, ports, and airports are necessary elements to carry out trade.
  • Balance of Payments: Records all economic exchanges of a country, including financial services or goods.
  • Trade: The buying and selling of goods to meet the needs of the population.
  • Transport Networks: A set of infrastructures where vehicles can easily move.

Elements of Trade

  • Seller: The one who submits an offer or the quantity of merchandise offered for sale.
  • Buyer: The one who accepts the offer.
  • Merchandise: The product being exchanged, which depends on purchasing power.
  • Market: The place where the sale takes place. There are two types:
    1. Concrete: Offers a material product.
    2. Abstract: The product is not present.

Types of Trade

  • Domestic Trade:
    • Wholesale: Buying large quantities and selling to other retailers.
    • Retail: Selling directly to the public in small quantities.
  • International Trade: Trade between countries, reflected in the balance of payments and trade balance. There are two types:
    1. Exports: Selling products to other countries, generating profits.
    2. Imports: Buying products from other countries, producing a deficit.
      • Deficit: When incomes are lower than expenses.
      • Surplus: When incomes are higher than expenses.
Commercial Flows
  1. Raw materials
  2. Manufactured products
  3. Capital
  4. Information

Trading Blocs: Countries are grouped together for trade purposes.