TERTIARY ECONOMIC ACTIVITIES

Content Definition Importance of Tertiary Sector How Tertiary Sector influences other Sectors Classification Trade Transport Communication Services Tourism Tertiary Sector in India

What is Tertiary Economic Activity?

The tertiary sector of economy ( also known as the service sector or the service industry) is one of the three economic sector, the others being the secondary sector ( same as manufacturing) and the primary sector (agriculture, fishing, and extraction such as mining). The service sector consists of soft parts of the economy, i.e. activities where people offer their knowledge and time to improve productivity, performance, potential, and sustainability, which is termed as affective labor. The basic characteristic of this sector is the production of services instead of end products.

Importance of Tertiary Sector Over the past 30 years, while production has increased in all the 3 sectors, it has increased the most in the tertiary sector. The reasons for the fast development of tertiary sector in India are as follows:-

The necessity for ‘basic services’ like hospitals, educational institutions, post and telegraph services, police stations, courts, administrative offices, defense, transport and banking services have increased with the increase in population.

The development in the Agricultural and Industrial sectors has increased the need for services such as transportation, storage and trade.

As the income of the people increased the demand for services in tourism, retailing, catering and elite education also increased.

How Tertiary sector influences Other Sector Primary sector Secondary sectorTertiary sector

Tertiary sector Tertiary sector

(Transport)

Classification of Tertiary SectorTertiary Economic Activities

Trade Transport Communication Services Tourism

Trade Trade involves the transfer of the ownership of goods or services from one person or entity to another in exchange for other goods or services or for money. Possible synonyms of “trade” include “commerce” and “financial transaction”. A network that allows trade is called a Market. There are two type of marketing centreRural Marketing- Rural marketing is the process of marketing in rural areas. It includes the adoption of various marketing strategies and policies in rural market with a view to convert the needs and wants of rural people into demand.

Urban Marketing- urban Marketing is the process of marketing in urban areas. It provides facility to wide services to large areas. It offers specialized services. Urban marketing cetres provide services beyond cities at national or international levels. It is highly developed than rural marketing.

There are two types of trade- wholesale and retail trade.Wholesale Trade- Wholesaling is the sale of goods to retailersIn general, it is the sale o goods to anyone other than a standard consumer.There are three types of wholesalers- merchant wholesalers, Agents, Brokers.In developing countries the linkage between the producer and the retailer isStill usually provided by assembly and wholesale markets. Retail Trade- Retail is the process of selling consumer goods and/or services to consumes through multiple channels of distribution to earn a profit. In the 2000s, an increasing amount of retailing is done online using electronic payment and delivery via a courier or postal mail.

International Trade International Trade is the exchange of capital, goods and services across international borders or territories, which could involve the activities of the government and individual.Importance Of International Trade:- Qualitative improvement of goods Increasing demands Increasing the productivity of goods International relationship Development of industries Insufficient resources Increase sales and profits

WTO (World Trade Organization) :- The world Trade Organization is an intergovernmental organization which regulates international trades. The WTO officially commenced on 1st January1995 under Marrakesh Agreement, signed by 123 nations on 15th April1994, replacing the General Agreement on Tariffs and Trade (GATT).Function Of WTO The WTO shall provide the forum for negotiations among its members concerning their multilateral

trade relations in matters dealt with under the Agreement in the Annexes to this Agreement. The WTO shall administer the Understanding on Rules and Procedures Governing the Settlement of

Disputes. The WTO shall administer Trade Policy Review Mechanism.SEZ (Special Economic Zone) & EPZ (Export Processing Zone):- Sez is commonly used as a generic term to refer to only one modern economic zone. In these zones business and trades laws differ from the rest of the country. The name of SEZ in India are- Surat SEZ, Jaipur SEZ, Saltlake Electronic city- WIPRO etc. EPZ also called Free Trade Zone, formerly free port is an area within which goods may be landed, handled, manufactured or re-exported without the intervention of customs authorities. The name of EPZ in India are- Falta EPZ, Chennai EPZ, Nodia EPZ, Cochin EPZ, Visakhapatnam EPZ.

TransportTransport or transportation is the movement of people, animals and goods from one location to another. Transport is important because it enables trade between persons, which is essential for the development of civilizations. MODE OF TRANSPORT :-Road Transport- It is used for personal travel (over short distance) and transporting goods. The most commonly road vehicle is automobile like bus, truck, motorcycles etc.

Railway- Rail transport is where a train runs along a set off two parallel steel rails, known as a railway or railroad. It carries passenger. Also used

for carrying large and heavy goods. It can be powered by steam, diesel or

electricity.

.Waterways- Water transport is movement by means of a watercraftSuch as a barge , boat, ship or sailboat- over a body of water, such as sea, lake, ocean, river, canal. It is a used for carrying heavy and large goods and people.

Airway- A fixed-wing aircraft, commonly called aircraft, is a heavier- then -air craft where movement of the air in relation to the wings is used to generate lift. The aircraft is the second fastest method of transport, after rocket. Helicopters also use as a aircraft. It is long distance place to another without any difficulties.

Ropeway- A ropeway is a form of naval lifting device used to transport light stores and equipment across rivers or ravines. It is used for carrying goods from one.

Pipe-lineway- Pipeline transport sends goods through a pipe, most commonly liquid and gases are sent, but pneumatic tubes can also send solid capsules using compressed air. For liquids/ gases, any chemically stable liquid or gas can be sent through a pipeline. Short distance system exists for sewage, water, slurry and long distance networks are used for petroleum and natural gas.

CommunicationCommunication( from Latin commūnicāre, meaning "to share”)is the purposeful activity of information exchange between two or more participants in order to convey or receive the intended meaning through a shared system of signs and semiotic rules. The basic steps of communication are the forming of communicative intent, message composition, message encoding, transmission of signal, reception of signal, message decoding and finally interpretation of the message by the recipient. MODE OF COMMUNICATION-

COMMUNICATION

Services A type of economic activity that is intangible, is not stored and does not result in ownership. A service is consumed at the point of sale. Service are one of the two key components of economics, the other being goods. Example of services include the transfer of goods, such as thee postal service delivering mail, and the use of experience, such as a person visiting doctor.Classification of services – Banking- Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on he bank, and collecting cheques deposited to customers’ current accounts. It is a financial intermediary that creates credit by lending money to a borrower, thereby creating a corresponding deposit on the bank’s balance sheet. There are two type of banks- 1) Commercial bank, 2) Central bank.

Insurance- Insurance is the equitable transfer of the risk of a losses, form one entity to another in exchange for money. It is a form of risk management primarily used to hedgeAgainst the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is selling the Insurance; the insured, o policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the Premium.Risk management, the practice of appearing and controlling risk, has envolved as a discrete field of study and practice.

Advertisement & Marketing- Advertising is form of marketing communication used to promote or sell something, usually a business’s product or service. Advertising messages are usually paid for by sponsors and viewed via various old media, including mass media such as newspaper, magazines, television advertisement, outdoor advertising, radio or new media like websites, blogs or text messages. Commercial ads seek to generate increased consumption of their products or services through “branding”, which associates a product name or image with certain qualities in the minds of consumers.

Tourism Tourism is a travel for pleasure, also the theory and practice of touring, the business of attracting, accommodating and entertaining tourists, and the business of operating tours. Tourism may be international, or within the traveler’s country. There are two type of tourism- i) International tourism, ii) National Tourism. International Tourism- International tourism is when people travel globally outside of their region and home country. This means a temporary movement of people to one place to another for different reasons.

International Tourism

According to purpose

Commercial Tourism

Holiday Tourism

Tourism for General interest

According to distance

Short distance Tourism

Long distance Tourism

National Tourism- Basically, national tourism means tourism in national level or the whole country. Unlike local tourism, it covers more of the country in general and not only of a specific locality. It is classified into three types-

Local Tourism Regional Tourism Tourism in a Country (Zoo) ( From North to South of a state) (Thar Desert) There are also different types of tourism such as Ecotourism , Educational Tourism , Sustainable Tourism etc.

Tertiary Sector In India 50% share in gross domestic product (GDP) in the year 2013-2014 Growth by 9% annually.(2013-2014) Contributing to about a quarter of total employment(26.8%) Accounting for a high share in FDI inflows and over 1/3 of total exports. 7th largest service exporters in India.

Reference Chaya Bhugol Porichoy (XII) (2014)(Pg-260) – Dr. Goutam Mallick Ucchomadhyamik Arthoniti (XI) (2013)(Pg -231) – Dr. Debashish Majumder Ucchomadhyamik Arthoniti (XII) (2014)(Pg -288) – Dr. Debashish Majumder

Bibliography Economic Survey 2012-13 (Pg -210) – indiabudget.nic.in Wikipedia Bing Slide Share Answers.yahoo.com

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Created by,

Riya Dey