What and What Are Tertiary Economic Activities?

Some Tertiary economic activities Are transportation, insurance, advertising, storage, sales, among others.

Activities related to the production of information are also often included in this sector; However, some economists have developed a new theory.

It proposes the existence of an additional sector, the quaternary, which integrates activities of an intellectual nature, such as education, information technologies and scientific research, among others.

The tertiary sector is one of the sectors in which the economy is divided, which refers to the commercial services that accompany the production and distribution processes. This sector is also known as the service sector, since the purpose of this sector is not to create a product but to offer it or serve it to consumers.

Activities in the tertiary sector

The activities of the tertiary sector can be divided into three main groups: trade, transport and services.

1- Trade

Trade represents the way of transacting goods and services, from a producer to a consumer. In simpler terms, the trade refers to the practice of buying and selling. This is divided into two branches: internal and external.

Internal trade

The internal trade is the one that is realized within a country. It can be wholesale, where large quantities of products are bought or sold, or retail, when small quantities are marketed.

Foreign trade

Foreign trade refers to commercial transactions between countries. This can be export (when the country sells products to other nations) or import (when the country buys products from other nations).

2- Transportation

The transport can be of merchandise and products

Transportation is the process of moving goods or people from one place to another. This can be:

1. Land.
2. Water.
3. Aerial.

With regard to the transport of people, the development of public transport structures is an important phenomenon for the development of a city. The railroad was one of the first that allowed the growth of urban nuclei. Subsequently, in the 19th century, some countries introduced the tram.

Currently, the most common transport services are taxi service, buses, rail systems (metros and suburban trains) and commercial airlines.

These means of transport constitute an essential service for the proper functioning of an urban society, since they allow to move for an affordable price.

Relationship between transport and trade

Most freight transport is done by sea.

Transportation makes certain business transactions possible. This relationship gives rise to commercial routes, which may be maritime, rail or air.

Most commercial transportation is by sea or ocean. The most well-known sea routes are:

1. Europe - United States , Across the Atlantic Ocean.
2. The Mediterranean , Through the Suez Canal and the Rock of Gibraltar.
3. Japan - Europe and America , Through the Panama Canal and the Pacific and Atlantic oceans.

Air routes are usually used only as a mail system, since the high cost of these does not allow them to be used as cargo transportation.

Finally, rail routes are widely used in Europe, continent with the most developed railway system. Between the United States and Canada, the railroad is used to transport products and raw materials from the Atlantic Coast to the Pacific and vice versa.

3- Services

Services are the activities carried out by individuals or by organizations, whose purpose is to meet the individual and collective needs of the members of the population.

Services include public health, water, electricity, urban cleanliness, public banking, the mass media, the entertainment industry and hospitality.

Public health

Public health, also known as the health network, allows to increase the quality of life of the population.

The health network should include the following services: outpatient clinics, recovery centers, hospitals, maternities, among others, which make it possible to meet the medical needs of individuals in a society.

In developed countries, the public health system is optimal. However, in the underdeveloped countries , The health network is insufficient or even non-existent.

Urban toilet

The urban toilet is the service that is responsible for maintaining the cleanliness of the streets and urbanization of a country. This, together with the health network, protects the health of individuals in a society.

Public Banking

The purpose of public banking is to safeguard the money or securities of individuals or organizations. The banking system of nations is usually organized under a central bank, charged with issuing the national currency.

Entertainment

The entertainment industry is an essential element of the tertiary sector. The production of films, discs and books are part of this group. In this sense, cinemas, theaters and libraries are establishments belonging to the tertiary sector.

For its part, the radio And television, besides being mass media, are also entertainment industries.

Telecommunications

The telecommunications service refers to the transmission of electrical signals or Electromagnetic , Which are intended for distance communication. The phone is the best example of this.

Other telecommunications services are some mass media, such as radio, television and electronic media.

Hostelry

The hotel industry is a service industry that favors the development of tourism in a country, since it offers lodging options and accommodation for visitors.

References

1. Tertiary - Service Sector of the economy. Retrieved on April 20, 2017, from economicshelp.com.
2. Rosenberg, Matt (2017). Sectors of the Economy. Retrieved on April 20, 2017, from thoughtco.com.
3. Pettinger, Teivan (2014). Sectors of the Economy. Retrieved on April 20, 2017, from economicshelp.com.
4. Service Sector. Retrieved on April 20, 2017, from investopedia.com.
5. Tertiary Industry. Retrieved on April 20, 2017, from investopedia.com.
6. Economic Activities. Retrieved on April 20, 2017, from saids.net.
7. Industrial Sectors. Retrieved on April 20, 2017, from learmanagement2.com.