What do you know about tertiary sector?

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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

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SERVICES CLASSIFICATION What differences the services provided by these schools

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SERVICES CLASSIFICATION What makes these tertiary employees different

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SERVICES CLASSIFICATION TYPES OF SERVICES 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.

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

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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.

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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

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

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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 ifferent regions in the world n the world equally equally interconnected Are there any Are there any isolated regions

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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 ica Latin ica Latin America ca E.E. America a E.E. UNDERPOPULATED Asia UND 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.

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Strategic global shipping routes

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Panama Canal

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Intermodal transport

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

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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 How has tourism evolved in the last evolved in the l half century What reasons What reasons might explain this might expla evolution

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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 2030 18 billion forecast 1.800.000.000.000 TOURISM

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

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TOURIST AREAS What makes these countries What makes these countr attractive for tourists

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TOURIST AREAS Which are the least attractive regions for tourism Why

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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 ms gastronomy infrastructures

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Benefits for the economy… • Key source of income for many countries 9 of the world’s GDP / 15 trillion dollars • Employment 1/11 jobs

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Tourism creates many jobs in different sectors since it stimulates other economic activities construction agriculture transport trade…

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However the type of employment that tourism creates isn’t the best in some cases… Compare the graphs: what relation can you what relation can y see between the see between the seasonality of tourism seasonality of tourism the unemployment rate the unempl in Spain

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

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Tourism contributes to cultural exchanges the spread of knowledge of different customs. To what extent do you To what extent do you think this is positive think this is positive Can it have negative Can it have nega consequences

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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.

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

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NEW TOURISM POLICIES Current tourism policies tend to promote SUSTAINABLE TOURISM

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

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

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

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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.

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

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

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

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

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

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

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

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

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TYPES OF TRADE Types of trade Domestic trade Wholesale Retail Foreign trade Traditional businesses Large retail stores

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DOMESTIC TRADE Traditional businesses shops Large retail stores Supermarkets / Superstores / Department stores / Shopping centres / Shopping parks In n the e urban n centre In n the e periphery y outskirts ts In crisis. Can’t compete against large retail stores.

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FOREIGN TRADE FOREIGN TRADE trade undertaken between countries. EXPORTS: sale of goods abroad. IMPORTS: purchase of goods abroad.

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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

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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

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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.

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

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FOREIGN TRADE AREAS Is s global l trade e equally y distributed ed Is s globa g Which al l rade tr ba h h regions equal e de e s s have ly ual e e a distrib d ly y d a a larger bute ed rib r r participation n in n it t it

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a Where e are e technological l products s machinery ry Where e are a electronics te re e t cs cs s… hnologica g g g g g g ech te exported l produ p p p p p p cal d d from ucts rodu m m b What t type e of f products s are e exported d from m the e least What t type t e commercial of f rod pr e o o l l areas od s s cts s duc od Russia are a ia ia ia xpor ex e e re Latin rted d from f por n n America om a a – the t e ea l m m t m – – –except commer Brazil mer zil zil- rc er - - al areas a cia rc Oceania ussi Ru as s ia ia Sub ussi ub ub- a atin La i ia ssi - -Saharan America A n n A n n n Africa a x ex rica a ca ca

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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

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