The Tertiary and Secondary Sectors

THE TERTIARY SECTOR 1. technological changes that enable people, goods, money and above all The tertiary sector is also called the service information and ideas to travel the world sector. much faster than ever before, and

Activities: 2. the liberalisation of world markets, greatly increasing levels of trade between . The selling of goods and products from different parts of the world primary and secondary industries

. The sale of services and skills. Globalisation: not new phenomenon but predominant over the last half-century. Factors . The transport of goods and products influencing globalization: . Tourism Communications: TV, telephony and the internet Tertiary employment: health service, have created a global village. Spanish businesses transportation, education, entertainment, tourism, can have a call centre in Argentina answering calls finance, sales and retail, plumbers and from Spanish customers. mechanics. Transport has become cheap and quick. People The biggest area of expansion in the tertiary now holiday all over the world, and people from sector: financial and business services. other countries can travel to others to seek better- According to government statistics, 25 years ago paid jobs. Businesses can more easily one in ten people worked in this sector; now this is manufactured products and raw materials all one in five. over the world - making products and services from all over the globe available to any customer. TERTIARY LOCATION FACTORS include easy access to: Trade liberalisation: governments around the world have relaxed laws restricting trade and  power supply foreign investment, with some governments offering subsidies and tax incentives to persuade  communications including transport, foreign companies to invest in their country. The telecommunications idea that there should be no restrictions on trade between countries is known as free trade.  labour supply including skilled workers

 distance to market Although globalisation probably is helping to create more wealth in developing countries - it is  subsidies and financial incentives from not helping to close the gap between the world's governments poorest countries and the world's richest.

 raw materials Positive impacts of globalization:

1. TRADE:  Investments by multinational corporations (MNCs): they help countries Definition: It is the exchange of goods and by provide new jobs and skills for local services across local, national or international people. boundaries or territories.

Representation: In most countries, it represents  MNCs bring wealth / foreign currency to a significant share of GDP. local economies when they buy local resources, products and services - Types: Commerce (in history: protectionism, free providing resources for education, health trade), outsourcing, multinational corporations, and infrastructure. and globalization are all having a major impact.

What is globalization?  There is far more mixing of people and cultures from all over the world: sharing of Globalization: the process by which the world is ideas, experiences, and lifestyles. People becoming increasingly interconnected as a result can experience foods and other products of massively increased trade and cultural not previously available in their countries. exchange. It is the result of  Globalisation can help make people Activity: aware of events in far-away parts of the world. For example, people all over the . Write a 50 words paragraph making sure you world were quickly aware of the impact of understand that globalisation refers to changing the 2004 Tsunami tidal wave on countries relationships between different world cultures, in SE Asia, and were therefore able to as well as different world economies - and that send help rapidly. there are differing views about the benefits and drawbacks of globalisation.

 It may help make people more aware of A Common Market is a customs union with global issues such as deforestation and common policies on product regulation, and global warming - and alert them to the freedom of movement of all the three factors of need for sustainable development. production (land, capital and labour) and of enterprise. The goal is that movement of capital, labour, goods, and services between the Negative impacts of globalisation: members is as easy as within them.

Critics include many different groups such as This is the fourth stage of economic integration environmentalists, anti-poverty campaigners and (e.g. the European Union). trade-unionists. It includes: Some of the negative impacts are: . removing the physical (borders), technical  Globalisation operates mostly in the (standards) and fiscal (taxes) barriers among the interests of the richest countries (they member states. dominate world trade), and at the . To remove these barriers the member states expense of developing countries -(they need political will and they have to formulate provide the MEDC's with cheap labour common economic policies (e.g. CAP in the and raw materials). EU).

 There are no guarantees that the wealth 2. TRANSPORT: from MNC's investment will benefit the local community (profits are sent back to Definition: Movements of people, goods and the MEDC where the MNC is based). information from one place to another. Multinational companies, with their Features: massive economies of scale, may drive local companies out of business. If it . high levels of accessibility (Although this becomes cheaper to operate in another trend can be traced back to the industrial country the MNC might close down the revolution, it significantly accelerated in the factory and make local people redundant. second half of the 20th century as trade was liberalized)  Lack of strictly enforced international laws means that MNCs may operate in a . efficient use of resources way that would not be allowed in an MEDC (polluting the environment, running . transport systems: to support commuting, risks with safety or imposing poor working supplying energy needs, to distributing parts conditions and low wages on local between factories. workers). . Contributes to global economy

 Globalization is viewed by many as a . importance of specific dimensions such as threat to the world's cultural diversity - nodes, locations, networks and interactions. drowning out local economies, traditions and languages and re-casting the whole Types: world in the mould of the capitalist North Modes of transport are combinations of networks, and West. vehicles, and operations, and include walking, the Anti-globalization campaigners: carry out road transport system, rail transport, ship demonstrations against the World Trade transport and modern aviation. Organisation (WTO), an inter-government Private transport organisation which promotes the free-flow of trade around the world. Public transport: all transport systems in which  it may impact on people's livelihoods - for the passengers do not travel in their own vehicles. example, pollution of the sea will hurt They include: rail and bus services, airline people who are involved in fishing and services, ferries, taxicab services etc. — any tourism. system that transports members of the general public.

. Short distance: underground, buses .

. Long-distance or commuter railroads, intercity buses, or intercity railways.

Sustainable transport: sustainable transport is used to describe all forms of transport which minimise emissions of carbon dioxide and pollutants. It can refer to public transport, car sharing, walking and cycling as well as technology such as electric and hybrid cars and biodiesel. In Industrial atmospheric pollution in Tashkent, particular the phrase has been adopted by Uzbekistan environmental campaign groups. Some governments have introduced legislation to 3. TOURISM: (see textbook) try to cut down on avoidable pollution and to encourage industries which are non-polluting and therefore more sustainable. These laws must of course be enforced by courts. THE QUATERNARY SECTOR: The Exxon oil spill1 . activities providing information services, such as computing and ICT (information and A recent example of courts taking action against a communication technologies), consultancy company causing pollution was in 2004 when a (offering advice to businesses) and R&D US court ordered the oil company Exxon to pay (research, particular in scientific fields). £2.5bn for an oil spill 15 years ago, in 1989. The court wanted the money to help compensate The quaternary sector is sometimes included with those people in Alaska, whose livelihoods were the tertiary sector, as they are both service hurt the worst. This is the latest ruling in a long- sectors. Between them, the tertiary and running court case. quaternary sectors are the largest part of the EU economy, employing 76% of the workforce. The oil tanker Exxon Valdez ran aground while off course. It spilled 11 million gallons of crude oil contaminating over 1,300 miles of the coast of Alaska. It is estimated that the spill killed as many ECONOMIC SECTORS AND THE as 250,000 seabirds, 3,000 sea otters, 300 seals ENVIRONMENT and 22 killer whales.

Any large-scale economic activity may have a Activity: negative impact on the natural environment, for example manufacturing industries can cause air, . Use case-study examples, perhaps from the water and noise pollution. Industrial pollution can news, to show how economic activity can have intervene in the environment in a number of ways: different impacts on the environment. If possible tie case studies into different areas of  it may damage the wellbeing of humans geography (50 words). and other species - for example by polluting drinking-water supplies or poisoning plants or animals

 it may interfere with natural processes - for example, changing local climatic conditions or destroying wildlife habitats, and 1 Derelicts of the Swedish Chemics Boliden in Aznalcóllar (Sevilla) to National Park of Doñana (2002).