Q. 1. ‘Services are very important aspect for economic development of the country’. Analyse the statement by explaining five components of a service sector.
Ans. The major components of a service sector are :
(i) Business sector
(iii) Wholesale and retail trading
(iv) Transportation and communication
(vi) Government of different levels
(vii) Non-Government Agencies
Detailed Answer : The service sector produces intangible goods, more precisely services instead of goods.
(i) Business Sector : Business sector or corporate sector is part of the economy made up by companies. It is a subset of the domestic economy, excluding the economic activities of general government, of private households and of non-profit organisations serving individuals.
(ii) Finance : Finance is a field that deals with the study of investment.
(iii) Wholesale and Retail Trading : Wholesale trade means trading in large quantities and retail trade means selling in small quantities. In wholesale trade, the goods are mainly sold to the retailer who sells it to the customers.
(iv) Transportation and Communication : Modern transportation and communication plays an important role in the integrated economic development.
(v) Entertainment : Entertainment sector consists of many different segments under its fold such as television, print, radio, internet and films.
Q. 2. What is tourism? Explain any four factors that attract tourists to a particular place.
What is tourism? Analyse any four tourist attractions in the world.
Define the term ‘tourism’. Explain any four factors that attract tourists in the world.
Ans. Tourism is travel undertaken for purposes of recreation rather than business. It has become the world’s single largest tertiary activity in total registered jobs (250 million) and total revenue (40 per cent of the total GDP).
Tourism fosters the growth of infrastructure industries, retail trading and craft industries (souvenirs). In some regions, tourism is seasonal because the vacation period is dependent on favourable weather conditions, but many regions attract visitors all round the year.
Factors that attract tourists to a particular place :
(i) Transport : The opening-up of tourist areas has been aided by improvement in transport facilities. Travel is easier by car, with better road systems. More significant in recent years has been the expansion in air transport.
(ii) Climate : Most people from colder regions expect to have warm, sunny weather for beach holidays. This is one of the main reasons for the importance of tourism in Southern Europe and the Mediterranean lands. The Mediterranean climate offers almost consistently higher temperatures, than in other parts of Europe, long hours of sunshine and low rainfall throughout the peak holiday season.
(iii) History and Art : The history and art of an area have potential attractiveness. People visit ancient or picturesque towns and archaeological sites and enjoy exploring castles, palaces and churches.
(iv) Landscape : Many people like to spend their holidays in an attractive environment, which often means mountains, lakes, spectacular sea coasts and landscapes not completely altered by man.
Q. 3. Explain in detail the significance of transport and communication services.
Ans. Rail, road, air and ships are included in the transport services, whereas, postal, telephone, telegraph, internet, radio are included in the communication services. These sources play a significant role in the economic development of any country.
The significance of transport and communication services are as follows :
(i) Mobility factor of production : If the means of transport and communication are improved, quick and cheap, it will for sure improve the mobility factors of production.
(ii) Stable prices : The well developed system of transport and communication helps in stabilising prices of the commodities throughout the country.
(iii) Supply of raw material : Due to quick and cheap transport system, raw material can be easily supplied to factories on lower cost, even from outside the country it can reach on time.
(iv) Supply of manufactured goods : From the factories goods can be easily transported to the markets if transport is efficient.
(v) Use of natural resources : To use idle resources of the country transport sector plays very important role. The production of the country can increase with the development of transport and communication.
(vi) Extension of market : If the means of transport and communication system are cheap and fast then commodities can be easily carried over to long distances and the size of the market will expand.
Q. 4. Define the term ‘medical tourism’. Explain the four tourist attractions with examples.
Ans. Medical tourism can be defined as the process of travelling outside the country of residence for the purpose of receiving medical care. Originally, the term referred to the travel of patients from less-developed countries to developed nations in pursuit of the treatments not available in their homeland. The four tourist attractions with examples are:
(i) China : China is fast emerging as a desirable destination for individuals seeking medical care in a wide range of medical specialities.
(ii) India : India’s medical tourism is growing as a rapid speed. People from all over the globe are looking to visit India for their medical needs.
(iii) Israel : Israel’s high ratio of doctors and specialists to patients make it highly attractive to health travellers.
(iv) Thailand : Visitors that come to Thailand and other countries for various medical procedures and tests combine it with some rest and relaxation.
Q. 5. Explain any five characteristics of quaternary activities.
Ans. Five characteristics of quaternary activities are :
(i) Quaternary activities involve some of the following : Collection, production and dissemination of information or even the production of information.
(ii) Quaternary activities centre around research, development and may be seen as an advanced form of services involving specialised knowledge, technical skills and administrative competence.
(iii) New trends in quaternary services like KPO (Knowledge processing outsourcing) and home shoring.
(iv) KPO involves more high skilled workers.
(v) It is information driven knowledge outsourcing.
(vi) KPO enables companies to create additional business opportunities. Examples of research and development, e-learning, business research, intellectual property (IP) research, legal profession and banking sector.
Q. 6. What is medical tourism? Explain the scope of medical services for overseas patients in India.
Ans. Medical tourism is defined as the process of travelling outside the country of residence for the purpose of receiving medical care. Traditionally, people travelled from under-developed countries to highly developed countries for treatment that was not available in their own country. The trends have reversed now, people have started travelling from developed countries to third world countries for medical treatments because of low cost medical treatment with results at par with the best in the world with zero waiting time.
Scope of medical services for overseas patients in India :
(i) About 55,000 patients from USA visited India in 2005 for treatment.
(ii) India has emerged as the leading country of medical tourism in the world.
(iii) World class hospitals are located in metropolitan cities of India.
(iv) Medical tourism brings abundant benefits for the developing countries like India by boosting its economy.