Tertiary Activities
- Tertiary activities are related to the service sector. Manpower is an important component of the service sector as most of the tertiary activities are performed by skilled labour, professionally trained experts and consultants.
- Tertiary activities include both production and exchange. The production involves the ‘provision’ of services that are ‘consumed’. Exchange, involves trade, transport and communication facilities that are used to overcome distance.
Types of Tertiary Activities
There are four types of tertiary activities. They are trade, transport, communication and services. These include provision of services in exchange of payments.
Trade and commerce
Trade and commerce is essentially buying and selling of items produced elsewhere. The collection and distribution points where trading takes place are called trading centres. These centres are divided into:
Rural Marketing Centres
- They are quasi urban and cater to local needs and areas.
- Most of these have mandis (wholesale markets) and retail markets.
- In rural areas, there are periodic markets that may be weekly or bi-weekly and people from the nearby areas meet their demands.
- These markets are held on specified dates and shopkeepers move from one place to another.
Periodic Markets
- Periodic markets in rural areas are found where there are no regular markets.
- These markets are organized at different temporal intervals, such as weekly or bi-weekly, to meet the temporally accumulated demand of people from surrounding areas.
- They are held on specified dates and move from one place to another.
- This system keeps shopkeepers busy on all days while serving a large area.
Urban Marketing Centres
- These markets sell ordinary as well as specialised goods and services.
- Markets for labour, housing, semi or finished products exist.
- Services of educational institutions and professionals like teachers, doctors, lawyers also develop.
Question for Chapter Notes - Tertiary And Quaternary Activities
Try yourself:
What are the four types of tertiary activities mentioned in the text?Explanation
- Trade and commerce involve buying and selling items produced elsewhere.
- The collection and distribution points where trading takes place are called trading centres.
- These centres are divided into rural marketing centres, periodic markets, and urban marketing centres.
Report a problem
Retail Trading
- In this type of trading, goods are directly sold to consumers.
- This trading is done through fixed establishments or stores, small shops, consumer cooperatives, big departmental stores, and chain stores.
- The chain stores buy commodities in bulk and then hire skilled specialists for executive tasks.
- Street peddling, handcarts, trucks, door-to-door, mail order, telephone, and Internet are examples of non-store retail trading.
Wholesale Trading
- Wholesale trading constitutes bulk business through numerous intermediary merchants and supply houses and not through retail stores.
- Some large stores including chain stores are able to buy directly from the manufacturers.
- However, most retail stores procure supplies from an intermediary source.
- Wholesalers often extend credit to retail stores to such an extent that the retailer operates very largely on the wholesaler’s capital.
Transport
Transport is a tertiary activity in which people, materials and manufactured goods are physically carried from one place to another. While selecting the mode of transport, distance, time and cost are seen.. Distance can be measured as km distance, time taken to travel particular route as time distance, expense of travelling on a route as cost distance.
Factors Affecting Transport
- Population size influences demand; larger populations increase demand.
- Routes depend on location of cities, towns, villages, industrial centers, raw materials.
- Pattern of trade influences routes.
- Landscape, climate affect feasibility and costs.
- Funds determine ability to overcome obstacles.
Communication
- Transmission of words, messages, facts, ideas.
- Writing preserved messages, dependent on transport (hand, animals, boat, road, rail, air).
- Mobile telephony, satellites made communication less dependent on transport, though mail still relies on transport.
Telecommunications
- Modern technology reduced transmission time from weeks to minutes.
- Mobile telephony allows direct, instantaneous communication.
- Telegraph, Morse code, telex now obsolete.
- Radio, television relay news, pictures, calls globally, mass media for advertising, entertainment.
- Satellite communication relays information from earth, space.
- Internet revolutionized global communication.
Services
- Different levels: industry, people, both (e.g., transport systems).
- Low-order services (e.g., grocery shops, laundries) common, widespread.
- High-order services (e.g., accountants, consultants, physicians) specialized.
- Services provided to consumers who can afford them: physical labor (e.g., gardeners, launderers, barbers), mental labor (e.g., teachers, lawyers, physicians, musicians).
- Many services regulated by governments or companies: highways, bridges, fire fighting, education, customer care.
- Professional services: health care, engineering, law, management.
- Location of recreational, entertainment services depends on market demands (e.g., multiplexes near CBDs, golf courses in lower-cost areas).
- Personal services facilitate daily life, provided by unskilled workers migrating from rural areas (e.g., housekeepers, cooks, gardeners).
- Example: Mumbai’s dabbawala (Tiffin) service, serving about 175,000 customers across the city.
Question for Chapter Notes - Tertiary And Quaternary Activities
Try yourself:
Which type of trading involves goods being directly sold to consumers?Explanation
- Retail trading involves goods being directly sold to consumers through various establishments.
- Wholesale trading, on the other hand, involves bulk business through intermediary merchants.
- Manufacturing trading involves the production and sale of goods by manufacturers.
- E-commerce trading involves the buying and selling of goods online.
Report a problem
People Engaged in Tertiary Activities
Earlier more number of people were employed in the primary and secondary sector as these sectors provided more jobs. But, now there has been a shift of jobs to tertiary or service sector. In developed countries, a higher percentage of workers are employed in providing services as compared to less developed countries.
Some Selected Examples
Some of the selected examples that are related to the people engaged in tertiary activities are as follows:
Tourism
- Travel for recreation rather than business.
- Largest tertiary activity in registered jobs (250 million) and total revenue (40% of total GDP).
- Provides employment in services like accommodation, meals, transport, entertainment, and special shops.
- Fosters growth of infrastructure industries, retail trading, and craft industries (souvenirs).
- Seasonal in some regions due to vacation periods and favorable weather conditions.
- Many regions attract visitors all year round.
Tourist Regions
- Tourism can be seasonal or throughout the year like warmer places around the Mediterranean coast, West coast of India during winters, mountains in summers or winter spots regions found mainly in mountainous areas.
- Historic towns, religious places, heritage sites offer tourism throughout the year.
- Factors Affecting Tourism
- The rise in tourism industry is due to increased demand for it which is thus influenced by improvement in standard of living and increased leisure time.
- Another factor is improvement in transportation that has made travel easier and destinations reachable.
Tourist Attractions
Tourist attractions are specific features of a place that attract people. These are as follows:
- Climate In winter holidays, areas having warm sunny weather is preferred like beaches in Southern Europe, so it attracts more number of tourists there.
- Landscape Mountains, lakes, spectacular sea coasts and landscapes not completely altered by man are good tourist attractions.
- History and Art Ancient or picturesque towns, archaeological sites, historically important places having castles and palaces attract tourists.
- Culture and Economy Areas having rich cultures attract people as they go their to experience ethnic and local customs. Places giving economic benefits are also attractions such as cheap home stays in Goa, Madikere and Coorg in Karnataka.
Question for Chapter Notes - Tertiary And Quaternary Activities
Try yourself:
Which sector involves the collection, production, and dissemination of information?Explanation
- Quaternary sector involves research and development, specialized knowledge, and technical skills.
- It focuses on information-based services and is crucial for economic growth.
- Workers in this sector may include software developers, statisticians, and mutual fund managers.
Report a problem
Medical Services for Overseas Patients in India
- Medical services or tourism takes place when medical treatment is combined with international tourism activity. People from developed countries like US are visiting India for medical tourism or services.
- This brings economic benefits to India and other countries where medical tourism is taking place like Thailand, Singapore and Malaysia.
- Other medical related activities such as outsourcing of medical tests, data interpretation, reading radiology images, interpreting Magnetic Resonance Images (MRIs) and ultrasound tests are taking place in India, Australia and Switzerland.
Quaternary Activities
- Quaternary activities involve the collection, production, and dissemination of information.
- These activities focus on research and development and require specialized knowledge and technical skills.
- The quaternary sector, along with the tertiary sector, has replaced most primary and secondary employment as the basis for economic growth.
- Over half of all workers in developed economies are in the 'Knowledge Sector'.
- There has been significant growth in demand for information-based services, such as those provided by mutual fund managers, tax consultants, software developers, and statisticians.
- Personnel working in office buildings, elementary schools, universities, hospitals, doctors’ offices, theatres, accounting firms, and brokerage firms all belong to this category of services.
- The quaternary activities, like some tertiary functions, can also be outsourced.
- They are not tied to specific resources, are unaffected by the environment, and are not necessarily localized by the market.
Question for Chapter Notes - Tertiary And Quaternary Activities
Try yourself:
Which of the following is a characteristic of quinary activities?Explanation
- Quinary activities focus on the creation, re-arrangement, and interpretation of new and existing ideas.
- These activities involve data interpretation and evaluation of new technologies.
- They are known as 'gold collar' professions and represent highly paid skills.
- The importance of quinary activities in advanced economies far outweighs their numbers.
Report a problem
Quinary Activities
- Highest level of decision makers or policy makers perform quinary activities.
- Different from general knowledge-based industries.
- Focus on creation, re-arrangement, and interpretation of new and existing ideas.
- Involve data interpretation and evaluation of new technologies.
- Known as ‘gold collar’ professions: senior business executives, government officials, research scientists, financial and legal consultants.
- Represent highly paid skills.
- Importance in advanced economies far outweighs their numbers.
Outsourcing
- Resulted in opening many call centres in India, China, Eastern Europe, Israel, Philippines, and Costa Rica.
- Created new jobs in these countries.
- Attracted by cheap and skilled workers.
- May reduce migration in outsourcing countries.
- Facing resistance from job-seeking youths in outsourcing countries.
- Comparative advantage is the main reason for continuing outsourcing.
New Trends in Quinary Services
- Knowledge Processing Outsourcing (KPO): Involves highly skilled workers, distinct from BPO.
- Home shoring: Alternative to outsourcing.
- KPO is information-driven and enables companies to create additional business opportunities.
- Examples of KPOs: Research and Development (R&D), e-learning, business research, intellectual property (IP) research, legal profession, and the banking sector.
Question for Chapter Notes - Tertiary And Quaternary Activities
Try yourself:
What is the primary focus of quinary activities?Explanation
- Quinary activities primarily focus on data interpretation and evaluation of new technologies.
Report a problem