u7. tertiary sector

TERTIARY SECTOR.

SPACES & ACTIVITIES.Unit 7

IES CAMILO JOSÉ CELA

Teacher: Rocío Bautista

TERTIARY SECTOR

Activities involved in delivering services to meet people’s or

companies’ needs.

Immaterial activities don’t produce material goods.

Low level of mechanization (undertaken by humans, not

machines!!)

Very heterogeneous.

Transports

Communications

Tourism

Trade

Health care

Education

SERVICES CLASSIFICATIONWhat differences the services provided by these schools?

SERVICES CLASSIFICATIONWhat makes these tertiary employees different?

SERVICES CLASSIFICATION

TY

PES O

F S

ERV

ICES

According to who delivers them

PUBLIC: provided by the State (government) using money collected from taxes.

Aim: guarantee social welfare.

PRIVATE: provided by private companies using money paid by those who demand the service.ç

Aim: earn economic profit.

According to degree of

specialization

LOW-SKILLED SERVICES: requires few qualification.

SKILLED SERVICES: requires professional training.

HIGHLY SKILLED SERVICES (QUATERNARY SECTOR): requires advanced level of professional training.

SERVICES IN THE WORLD TODAY

In which regions is the tertiary sector most important?

Why?

SERVICES IN THE WORLD TODAY

DEVELOPED COUNTRIES

• High contribution to GDP & employment (>60%).

• Establishment of the “Welfare state” majority of people have access to basic services (health care & education).

• Increasing living standard higher demand of varied services.

UNDERDEVELOPED COUNTRIES

• Low contribution to GDP & employment.

• Most people no access to basic services (health care & education).

• Low standard of living (poverty) scarce demand of services.

Activities

Define “Tertiary sector”

P. 154-155: 1 / 2 / 6

TRANSPORT

TRANSPORT:

MEANS & INFRASTRUCTURE

TRANSPORT = Activity that moves people & merchandise

between places.

TRANSPORT

SYSTEMS

MEANS OF TRANSPORTS

(medios de transporte)

INFRASTRUCTURES

(infraestructuras)

LAND

TRANSPORTCars, buses, lorries, trains… Roads, motorways, railways…

SEA

TRANSPORTBoats Ports

AIR

TRANSPORTAeroplanes Airports

DO YOU THINK TRANSPORT IS A STRATEGIC SECTOR FOR COUNTRIES?

WHY?

DOES TRANSPORT INFLUENCE ECONOMY?

TRANSPORT: A STRATEGIC

SECTOR

Transports’ importance

ECONOMICALLY:

Encourages trade, tourism,

industry…

SOCIALLY:

Enables leisureactivities, personal &

cultural contact…

POLITICALLY:

Defence & integration of territories…

GLOBAL TRANSPORT NETWORKS

Transport networks are made up of NODES (points of

departure/arrival) & PATHWAYS (lines that connect the nodes).

The more nodes & pathways a transport network has, the

more dense it is.

Are the different regions

in the world equally

interconnected?

Are there any isolated regions?

GLOBAL TRANSPORT NETWORKS

LINKED

SPACES

• DEVELOPED COUNTRIES (USA, Europe, Japan):

• Numerous & well-built transport networks. boost economic development.

• Good links to strategic global shipping routes (e.g: Panama & Suez Canals).

• Latest improvements:

• New fuels (biofuels)

• Increased capacity of passengers/loads.

• Infrastructure improvements (safety, time-saving)

• Intermodal transport

• High-tech systems to monitor transport in real-time.

POORLY LINKED SPACES

•LESS DEVELOPED COUNTRIES (Africa, Latin-America, E.E. Asia) & UNDERPOPULATED REGIONS (Siberia, Arctic, Central Asia Australia’s arid regions, Amazon basin):

•Few & badly-built, sparse, transport networks. hinder economic development (hard to access, isolated regions).

Strategic global shipping

routes

Panama

Canal

Intermodal

transport

Activities

1) Fill in the following chart:

2) A “transport network” is a structure that enables the movement of

passengers & merchandise. Name & explain the 2 elements that make

up a transport network.

3) Define “Intermodal transport”.

4) Describe the transport networks in underdeveloped countries. How do

they affect their economic development?

5) In the World map:

a) Locate the 5 major canals & straits that are key in global shipping routes.

b) How would you transport crude oil from the Persian Gulf to Spain?

c) Indicate 2 options to bring merchandise from China to Barcelona.

TRANSPORT

SYSTEMS

MEANS OF

TRANSPORTS

(medios de transporte)

INFRASTRUCTURES

(infraestructuras)

LAND TRANSPORT

SEA TRANSPORT

AIR TRANSPORT

Which transport system do you think is the best…???

a) Land Transport

b) Sea Transport

c) Air transport

TOURISM

TOURISM

TOURISM = temporary movement of people (24h – 1 year)

from their place of residence to another place. Generally it

has leisure purposes.

How has tourism evolved in the last half century?

What reasons might explain this evolution?

CAUSES OF TOURISM GROWTH

Right to paid holidays it increased the

amount of spare time.

Progress in transports it enabled people to travel from one place to

another at affordable prices.

Economic growth after World War II (1939 – 45) it

increased the purchasing power of the European & American

middle-class.

Since the 1950’s tourism has grown massively in developed

countries, and has become a mass phenomenon.

1950 25 million tourists (25.000.000)

2014 1133 million tourists (1.133.000.000)

2030 1,8 billion (forecast) (1.800.000.000.000)

TOURISM

TYPES OF TOURISM

Rural tourism

Cultural tourism

Business tourism

Religioustourism

Mountain tourism

Watersidetourism

TOURIST AREASWhat makes these countries attractive for tourists?

TOURIST AREASWhich are the least attractive regions

for tourism? Why?

TOURIST AREAS

Tourists choses their destinations according to different factors…

Natural attractions (beautiful landscapes, beaches, pleasant climates…)

Cultural & leisure attractions (monuments, museums, gastronomy,

amusement parks…)

Affordable prices

Good (& cheap!) transports & infrastructures

Political stability & safety

CONSEQUENCES OF TOURISM

CONSEQUENCES OF TOURISM

ECONOMIC

SOCIAL

ENVIRONMENTAL

DEMOGRAPHIC

Benefits for the economy…

• Key source of income for many countries (9% of the world’s GDP /

1,5 trillion dollars)

• Employment (1/11 jobs)

Tourism creates many jobs in different sectors, since it stimulates other economic activities (construction, agriculture, transport, trade…)

However, the type of employment that tourism creates isn’t the best in some cases…

Compare the graphs:

what relation can you see between the seasonality of tourism & the unemployment rate in Spain?

Compare these maps…

What happens to the population in the most touristic regions? Do they suffer the problem of having an ageing population?

Tourism contributes to cultural exchanges & the spread of knowledge of different customs.

To what extent do you think this is positive? Can it have negative consequences?

The rise of population in certain months (seasonal rise) can saturate the services provided & overexploit some resources like water (ej: more tourism in the least rainy months), increase pollution & waste.

Sometimes touristic infrastructures alters the landscape too much…

http://www.rtve.es/

noticias/20140730/ts

ja-dice-licencia-del-

hotel-algarrobico-

legal/984642.shtml

http://www.rtve.es/noticias/20140730/tsja-dice-licencia-del-hotel-algarrobico-legal/984642.shtml

NEW TOURISM POLICIES

Current tourism policies tend to promote SUSTAINABLE TOURISM

Activities

1) Individually or in groups (up to 3 people): design a trip to Spain for

international tourist & explain it in detail in a brochure. It can be done with

the computer or by hand, but it must be in eye-catching… so include

pictures & colours!! Your aim is to persuade people to book your trip!!:

It should include activities related to at least 4 types of tourism (waterside,

cultural, rural, religious…). Explain them in detail, and include pictures!!

Include the transport systems used for reaching the different places.

Activities

1) P. 161 ex. 5 / P. 163 ex. 1 & 2

2) Comment the following graph:

a) DESCRIPTION: describe what

the graph shows. Define

technical concepts (e.g.:

“tourism”).

b) ANALYSIS:

DESCRIBE THE GENERAL

TRENDS & FORECAST of

tourism.

CAUSES

CONSEQUENCES

FUTURE OF TOURISM

TRADE (COMMERCIAL ACTIVITIES)

TRADE

TRADE = sale & purchase of products/services between

producers & consumers in exchange for payment.

What elements are needed in a transaction?

ELEMENTS INVOLVED IN

TRADE

MERCHANDISE

goods & servicesthat are traded

PAYMENT

money

MARKET

place where thesale is

undertaken.

SUPPLY & DEMAND

sellers & customers

DEVELOPMENT

OF TRADE

Preindustrial trade

Until Mid-18th Century

Industrial trade

Mid-18th Century – 1980’s

Current trade

Since 1980’s

DEVELOPMENT OF TRADE:

Trade in the past

Trade in medieval times was limited due to the manufacturing processes. Production was unique… but also scarce & expensive. Transport difficulties & population’s limited purchasing power also hindered trade.


Trade in the past

The Discovery of America increased foreign trade.


Trade in the past

Transports’ advancements during the Industrial Revolution led to an increase in trade too.


Contemporary trade

Trade has undergone a huge expansion since the 1980’s


Contemporary trade

Production has diversified… Tons of products to choose!!


Contemporary trade

New forms of sale- Self-service- Large retail shops


Contemporary tradeDemand (buyers):- Increased purchasing power- Better informed (brands, quality, prices…)- Influenced by advertisings- Shopping = leisure activity

GDP per capita


Contemporary trade

New technologies- Card payment terminals- Barcodes- Vending machines- Internet

ACTIVITY

TRADE IN THE PAST

CONTEMPORARY TRADESince 1980’s

PRE-INDUSTRIAL

ERAUntil Mid-18th Century

INDUSTRIAL

ERAMid-18th Century – 1980’s

Trade increased due to:

• Increase in

production.

• Higher purchasing

power.

• Development of

transports.

Copy & complete the chart.

TYPES OF TRADETy

pes

of

trade

Domestictrade

Wholesale

Retail

Foreigntrade

Traditional

businesses

Large retail

stores

DOMESTIC TRADE

Traditional businesses

(shops)

Large retail stores

Supermarkets / Superstores /

Department stores / Shopping centres /

Shopping parks

In the urban centre In the periphery (outskirts)

In crisis. Can’t compete against

large retail stores.

Read p.167 - Which of the pictures is a…a) Supermarketsb) Superstorec) Department stored) Shopping centree) Shopping parks

ACTIVITY

• P. 166 1

• P. 167 3

• What type of trade can we find in the urban centre? What problems

does it have? What measures are taken to solve those problems?

• How do large retail stores located in the periphery add value to those

areas?

• Devise an outline about the different types of retail establishments.

FOREIGN TRADE

FOREIGN TRADE = trade undertaken between countries.

EXPORTS: sale of

goods abroad.

IMPORTS: purchase

of goods abroad.

FOREIGN TRADE

BALANCE OF PAYMENTS: difference between exports & imports.

Trade surplus if there are more exports.

Trade deficit if there are more imports

EXPORTS

˗

IMPORTS

ACTIVITY

Calculate the balance of payments for Spain in 2008 2011 and 2013.

Do we have a trade deficit or surplus?

ACTIVITY

ECONOMIC POLICIES ABOUT

FOREIGN TRADE

PROTECTIONISM (proteccionismo)Economic policy that limits trade with

foreign countries using methods such as

tariffs on imported goods. Aims to protect

national businesses.

FREE TRADE (librecambismo)Economic policy that reduces as much as

possible the barriers to trade (no tariffs on

imported goods).

VS

WTO

INTERACTIVE MAP: https://www.wto.org/english/thewto_e/countries_e/org6_map_e.htm

The World Trade Organization (WTO)

deals with the global rules of trade

between nations. Its main function is

to ensure that trade flows as

smoothly, predictably and freely as

possible.

https://www.wto.org/english/thewto_e/countries_e/org6_map_e.htm

TRADING BLOCKS

Free trade is also fostered by

agreements between countries.

FOREIGN TRADE AREAS

Is global trade equally distributed?Which regions have a larger participation in it?

a) Where are technological products (machinery, electronics…) exported from???

b) What type of products are exported from the leastcommercial areas (Russia, Latin America –exceptBrazil-, Oceania, Sub-Saharan Africa)???

EXPORT IMPORT

EU & USAManufactured goods &

technology

• From emerging countries:

Cheap manufactured &

technological goods.

• From the rest: raw materials

& energy

EMERGING CONTRIES(China, India, Brazil)

Cheap manufactured &

technological goods.

• From EU & USA:

manufactured goods &

technology

• From the rest: raw materials

& energy

Rest(Russia, Latin America,

Oceania, Sub-Saharan

Africa)

Raw materials & energy Manufactured goods

ACTIVITY

Define imports & exports.

Who controls the majority of the world’s exports?

Answer TRUE or FALSE and correct the mistakes:

The WTO & trading blocks such as the NAFTA & the EU Single

market try to promote protectionism.

The EU & USA export manufactured goods & technology to the

rest of the world.

The EU & USA lack of enough raw materials & energy, so they

have to import them from emerging countries.

Emerging countries (China, India, Brazil) export cheap

manufactured & technological goods to the EU & USA.

Isolated & underdeveloped regions such as Latin America,

Oceania & Sub-Saharan Africa export manufactured goods in

exchange of raw materials & energy products.