TERTIARY SECTOR

1. TERTIARY SECTOR.
SPACES & ACTIVITIES.
Unit 7
IES CAMILO JOSÉ CELA
Teacher: Rocío Bautista

2. 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

3. SERVICES CLASSIFICATION
What differences the services provided by these schools?

4. SERVICES CLASSIFICATION
What makes these tertiary employees different?

5. SERVICES CLASSIFICATION
TYPESOFSERVICES
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.

6. SERVICES IN THE WORLD TODAY
In which regions
is the tertiary
sector most
important?
Why?

8. 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.

9. Activities
 Define “Tertiary sector”
 P. 154-155: 1 / 2 / 6

10. TRANSPORT

11. TRANSPORT:
MEANS & INFRASTRUCTURE
 TRANSPORT = Activity that moves people & merchandise
between places.
TRANSPORT
SYSTEMS
MEANS OF TRANSPORTS
(medios de transporte)
INFRASTRUCTURES
(infraestructuras)
LAND
TRANSPORT
Cars, buses, lorries, trains… Roads, motorways, railways…
SEA
TRANSPORT
Boats Ports
AIR
TRANSPORT
Aeroplanes Airports

12. DO YOU THINK
TRANSPORT IS A
STRATEGIC SECTOR
FOR COUNTRIES?
WHY?
DOES TRANSPORT
INFLUENCE ECONOMY?

13. TRANSPORT: A STRATEGIC
SECTOR
Transports’
importance
ECONOMICALLY:
Encourages
trade, tourism,
industry…
SOCIALLY:
Enables leisure
activities,
personal &
cultural
contact…
POLITICALLY:
Defence &
integration of
territories…

14. 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?

15. 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).

16. Strategic global shipping
routes

18. Panama
Canal

19. Intermodal
transport

20. 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

21. Which transport system
do you think is the
best…???
a) Land Transport
b) Sea Transport
c) Air transport

22. TOURISM

23. 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?

24. 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

25. TYPES OF
TOURISM
Rural
tourism
Cultural
tourism
Business
tourism
Religious
tourism
Mountain
tourism
Waterside
tourism

26. TOURIST AREAS
What makes these countries
attractive for tourists?

27. TOURIST AREAS
Which are the least attractive regions
for tourism? Why?

28. 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

30. CONSEQUENCES OF TOURISM
CONSEQUENCES
OF TOURISM
ECONOMIC
SOCIAL
ENVIRONMENTAL
DEMOGRAPHIC

31. 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)

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

33. 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?

34. Compare these maps…
What happens to the
population in the most
touristic regions? Do
they suffer the
problem of having an
ageing population?

35. 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?

36. 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.

37. Sometimes touristic
infrastructures
alters the landscape
too much…
http://www.rtve.es/
noticias/20140730/ts
ja-dice-licencia-del-
hotel-algarrobico-
legal/984642.shtml

38. NEW TOURISM POLICIES
 Current tourism policies tend to promote SUSTAINABLE TOURISM

39. 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.

40. 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

41. TRADE (COMMERCIAL ACTIVITIES)

42. TRADE
 TRADE = sale & purchase of products/services between
producers & consumers in exchange for payment.
What elements
are needed in a
transaction?

43. ELEMENTS
INVOLVED IN
TRADE
MERCHANDISE
goods & services
that are traded
PAYMENT
money
MARKET
place where the
sale is
undertaken.
SUPPLY &
DEMAND
sellers &
customers

44. DEVELOPMENT
OF TRADE
Preindustrial trade
Until Mid-18th Century
Industrial trade
Mid-18th Century – 1980’s
Current
trade
Since 1980’s

45. 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.

46. DEVELOPMENT OF TRADE:
Trade in the past
The Discovery of America increased foreign trade.

47. DEVELOPMENT OF TRADE:
Trade in the past
Transports’ advancements during the Industrial Revolution
led to an increase in trade too.

48. DEVELOPMENT OF TRADE:
Contemporary trade
Trade has undergone a huge expansion since the 1980’s

49. DEVELOPMENT OF TRADE:
Contemporary trade
Production has diversified… Tons of products to choose!!

50. DEVELOPMENT OF TRADE:
Contemporary trade
New forms of sale
- Self-service
- Large retail shops

51. DEVELOPMENT OF TRADE:
Contemporary trade
Demand (buyers):
- Increased purchasing power
- Better informed (brands, quality, prices…)
- Influenced by advertisings
- Shopping = leisure activity
GDP per capita

52. DEVELOPMENT OF TRADE:
Contemporary trade
New technologies
- Card payment terminals
- Barcodes
- Vending machines
- Internet

53. ACTIVITY
TRADE IN THE PAST
CONTEMPORARY TRADE
Since 1980’s
PRE-INDUSTRIAL
ERA
Until Mid-18th Century
INDUSTRIAL
ERA
Mid-18th Century – 1980’s
Trade increased due to:
• Increase in
production.
• Higher purchasing
power.
• Development of
transports.
Copy & complete the chart.

54. TYPES OF TRADETypesoftrade
Domestic
trade
Wholesale
Retail
Foreign
trade
Traditional
businesses
Large retail
stores

55. 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.

56. Read p.167 - Which of the pictures is a…
a) Supermarkets
b) Superstore
c) Department store
d) Shopping centre
e) Shopping parks

57. 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.

58. FOREIGN TRADE
 FOREIGN TRADE = trade undertaken between countries.
 EXPORTS: sale of
goods abroad.
 IMPORTS: purchase
of goods abroad.

59. 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

60. ACTIVITY
 Calculate the balance of payments for Spain in 2008 2011 and 2013.
 Do we have a trade deficit or surplus?

61. ACTIVITY

62. 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

63. 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.

64. TRADING BLOCKS
Free trade is also fostered by
agreements between countries.

65. FOREIGN TRADE AREAS
Is global trade equally distributed?
Which regions have a larger participation in it?

66. a) Where are technological products (machinery,
electronics…) exported from???
b) What type of products are exported from the least
commercial areas (Russia, Latin America –except
Brazil-, Oceania, Sub-Saharan Africa)???

67. EXPORT IMPORT
EU & USA
Manufactured 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

69. 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.