Tertiary And Quaternary Activities

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Unit-IIIChapter-7Tertiary andQuaternary ActivitiesWhen you fall ill you go to your family doctoror you call a doctor. Sometimes your parentstake you to a hospital for treatment. While inschool, you are taught by your teachers. In theevent of any dispute, legal opinion is obtainedfrom a lawyer. Likewise, there are manyprofessionals who provide their services againstpayment of their fee. Thus, all types of servicesare special skills provided in exchange ofpayments. Health, education, law, governanceand recreation etc. require professional skills.These services require other theoreticalknowledge and practical training. Tertiaryactivities are related to the service sector.Manpower is an important component of theservice sector as most of the tertiary activitiesare performed by skilled labour, professionallytrained experts and consultants.In the initial stages of economicdevelopment, larger proportion of peopleworked in the primary sector. In a developedeconomy, the majority of workers getemployment in tertiary activity and a moderateproportion is employed in the secondary sector.Tertiary activities include both productionand exchange. The production involves the‘provision’ of services that are ‘consumed’. Theoutput is indirectly measured in terms of wagesand salaries. Exchange, involves trade,transport and communication facilities that areused to overcome distance. Tertiary activities,therefore, involve the commercial output ofservices rather than the production of tangiblegoods. They are not directly involved in theprocessing of physical raw materials. Commonexamples are the work of a plumber, electrician,technician, launderer, barber, shopkeeper,driver, cashier, teacher, doctor, lawyer andpublisher etc. The main difference betweensecondary activities and tertiary activities is thatthe expertise provided by services relies moreheavily on specialised skills, experience andknowledge of the workers rather than on theproduction techniques, machinery and factoryprocesses.TYPES OF TERTIARY ACTIVITIESBy now you know that you purchase yourbooks, stationery from traders shop, travel by2021-22

Fig. 7.1: Service Sector56Fundamentals of Human Geography2021-22

bus or rail, send letters, talk on telephone andobtain services of teachers for studies anddoctors at the time of illness.Thus, trade, transport, communicationand services are some of the tertiary activitiesdiscussed in this section. The chart providesthe basis for classifying the tertiary activities.Trade and commerceTrade is essentially buying and selling of itemsproduced elsewhere. All the services in retailand wholesale trading or commerce arespecifically intended for profit. The towns andcities where all these works take place areknown us trading centres.The rise of trading from barter at the locallevel to money-exchange of international scalehas produced many centres and institutionssuch as trading centres or collection anddistribution points.Trading centres may be divided into ruraland urban marketing centres.Rural marketing centres cater to nearbysettlements. These are quasi-urban centres.They serve as trading centres of the mostrudimentary type. Here personal andprofessional services are not well-developed.These form local collecting and distributingcentres. Most of these have mandis (wholesalemarkets) and also retailing areas. They are noturban centres per se but are significant centresfor making available goods and services whichare most frequently demanded by rural folk.Periodic markets in rural areas are foundwhere there are no regular markets and localperiodic markets are organised at differenttemporal intervals. These may be weekly, biweekly markets from where people from thesurrounding areas meet their temporallyaccumulated demand. These markets areheld on specified dates and move from oneplace to another. The shopkeepers thus,remain busy on all the days while a large areais served by them.Urban marketing centres have more widelyspecialised urban services. They provideordinary goods and services as well as many ofthe specialised goods and services required bypeople. Urban centres, therefore, offermanufactured goods as well as manyspecialised markets develop, e.g. markets forlabour, housing, semi or finished products.Services of educational institutions andprofessionals such as teachers, lawyers,consultants, physicians, dentists and veterinarydoctors are available.Fig. 7.3: Packed Food Market in U.S.A.Retail TradingFig. 7.2: A Wholesale Vegetable MarketThis is the business activity concerned with thesale of goods directly to the consumers. Mostof the retail trading takes place in fixedestablishments or stores solely devoted toselling. Street peddling, handcarts, trucks,door-to-door, mail-order, telephone, automaticvending machines and internet are examplesof non-store retail trading.Tertiary and Quaternary Activities2021-2257

particular route; and cost distance or theexpense of travelling on a route. In selecting themode of transport, distance, in terms of time orcost, is the determining factor. Isochrone linesare drawn on a map to join places equal in termsof the time taken to reach them.More on StoresConsumer cooperatives were the first ofthe large-scale innovations in retailing.Departmental stores delegate theresponsibility and authority to departmentalheads for purchasing of commodities andfor overseeing the sale in different sectionsof the stores.Network and AccessibilityAs transport systems develop, differentplaces are linked together to form anetwork. Networks are made up of nodesand links. A node is the meeting point oftwo or more routes, a point of origin, a pointof destination or any sizeable town along aroute, Every road that joins two nodes iscalled a link. A developed network hasmany links, which means that places arewell-connected.Chain stores are able to purchasemerchandise most economically, oftengoing so far as to direct the goods to bemanufactured to their specification. Theyemploy highly skilled specialists in manyexecutive tasks. They have the ability toexperiment in one store and apply theresults to many.Wholesale TradingFactors Affecting TransportWholesale trading constitutes bulk businessthrough numerous intermediary merchantsand supply houses and not through retailstores. Some large stores including chain storesare able to buy directly from the manufacturers.However, most retail stores procure suppliesfrom an intermediary source. Wholesalers oftenextend credit to retail stores to such an extentthat the retailer operates very largely on thewholesaler’s capital.Demand for transport is influenced by the sizeof population. The larger the population size,the greater is the demand for transport.Routes depend on: location of cities,towns, villages, industrial centres and rawmaterials, pattern of trade between them, natureof the landscape between them, type of climate,and funds available for overcoming obstaclesalong the length of the route.CommunicationTransportTransport is a service or facility by whichpeople, materials and manufactured goodsare physically carried from one location toanother. It is an organised industry createdto satisfy man’s basic need of mobility.Modern society requires speedy and efficienttransport systems to assist in the production,distribution and consumption of goods. Atevery stage in this complex system, the valueof the material is significantly enhanced bytransportation.Transport distance can be measured as:km distance or actual distance of route length;time distance or the time taken to travel on a58Fundamentals of Human Geography2021-22Communication services involve thetransmission of words and messages, factsand ideas. The invention of writing preservedmessages and helped to make communicationdependent on means of transport. These wereactually carried by hand, animals, boat, road,rail and air. That is why all forms of transportare also referred to as lines of communication.Where the transport network is efficient,communications are easily disseminated.Certain developments, such as mobiletelephony and satellites, have madecommunications independent of transport. Allforms are not fully disassociated because of thecheapness of the older systems. Thus, very

large volumes of mail continue to be handledby post offices all over the world.Some of the communication services arediscussed below.TelecommunicationsThe use of telecommunications is linked to thedevelopment of modern technology. It hasrevolutionised communications because of thespeed with which messages are sent. The timereduced is from weeks to minutes. Besides, therecent advancements like mobile telephonyhave made communications direct andinstantaneous at any time and from anywhere.The telegraph, morse code and telex have almostbecome things of the past.Radio and television also help to relaynews, pictures, and telephone calls to vastaudiences around the world and hence they aretermed as mass media. They are vital foradvertising and entertainment. Newspapers areable to cover events in all corners of the world.Satellite communication relays information ofthe earth and from space. The internet has trulyrevolutionised the global communicationsystem .legislation have established corporations tosupervise and control the marketing of suchservices as transport, telecommunication,energy and water supply. Professional servicesare primarily health care, engineering, law andmanagement. The location of recreational andentertainment services depends on the market.Multiplexes and restaurants might find locationwithin or near the Central Business District(CBD), whereas a golf course would choose asite where land costs are lower than in the CBD.Personal services are made available to thepeople to facilitate their work in daily life. Theworkers migrate from rural areas in search ofemployment and are unskilled. They areemployed in domestic services ashousekeepers, cooks, and gardeners. Thissegment of workers is generally unorganised.One such example in India is Mumbai’sdabbawala (Tiffin) service provided to about1,75,000 customers all over the city.ServicesServices occur at many different levels. Someare geared to industry, some to people, and someto both industry and people, e.g. the transportsystems. Low-order services, such as groceryshops and laundries, are more common andwidespread than high-order services or morespecialised ones like those of accountants,consultants and physicians. Services areprovided to individual consumers who canafford to pay for them. For example, thegardener, the launderers and the barber doprimarily physical labour. Teacher, lawyers,physicians, musicians and others performmental labour.Many services have now been regulated.Making and maintaining highways andbridges, maintaining fire fighting departmentsand supplying or supervising education andcustomer -care are among the importantservices most often supervised or performed bygovernments or companies. State and unionFig. 7.4: Dabbawala Service in MumbaiPEOPLE ENGAGED INTERY ACTIVITIESTERTIARTIARYTIARToday most people are service workers. Servicesare provided in all societies. But in moredeveloped countries a higher percentage ofworkers is employed in providing services ascompared to less developed countries. Thetrend in employment in this sector has beenTertiary and Quaternary Activities2021-2259

increasing while it has remained unchanged ordecreasing in the primary and secondaryactivities.are scattered. Historic towns also attracttourists, because of the monument, heritagesites and cultural activities.SOME SELECTED EXAMPLESFactors Affecting TourismTourismDemand : Since the last century, the demandfor holidays has increased rapidly.Improvements in the standard of living andincreased leisure time, permit many morepeople to go on holidays for leisure.Transport : The opening-up of touristareas has been aided by improvement intransport facilities. Travel is easier by car, withbetter road systems. More significant in recentyears has been the expansion in air transport.For example, air travel allows one to travelanywhere in the world in a few hours of flyingtime from their homes. The advent of packageholidays has reduced the costs.Tourism is travel undertaken for purposes ofrecreation rather than business. It has becomethe world’s single largest tertiary activity in totalregistered jobs (250 million) and total revenue(40 per cent of the total GDP). Besides, manylocal persons, are employed to provide serviceslike accommodation, meals, transport,entertainment and special shops serving thetourists. Tourism fosters the growth ofinfrastructure industries, retail trading, andcraft industries (souvenirs). In some regions,tourism is seasonal because the vacation periodis dependent on favourable weather conditions,but many regions attract visitors all the yearround.Fig. 7.5: Tourists skiing in the snow cappedmountain slopes of SwitzerlandTourist RegionsThe warmer places around the MediterraneanCoast and the West Coast of India are some ofthe popular tourist destinations in the world.Others include winter sports regions, foundmainly in mountainous areas, and variousscenic landscapes and national parks, which60Fundamentals of Human Geography2021-22Tourist AttractionsClimate: Most people from colder regions expectto have warm, sunny weather for beachholidays. This is one of the main reasons forthe importance of tourism in Southern Europeand the Mediterranean lands. TheMediterranean climate offers almost consistentlyhigher temperatures, than in other parts ofEurope, long hours of sunshine and low rainfallthroughout the peak holiday season. Peopletaking winter holidays have specific climaticrequirements, either higher temperatures thantheir own homelands, or snow cover suitablefor skiing.Landscape: Many people like to spendtheir holidays in an attractive environment,which often means mountains, lakes,spectacular sea coasts and landscapes notcompletely altered by man.History and Art: The history and art of anarea have potential attractiveness. People visitancient or picturesque towns andarchaeological sites, and enjoy exploringcastles, palaces and churches.Culture and Economy: These attracttourists with a penchant for experiencing ethnicand local customs. Besides, if a region providesfor the needs of tourists at a cheap cost, it islikely to become very popular. Home-stay hasemerged as a profitable business such as

heritage homes in Goa, Madikere and Coorgin Karnataka.Medical Services for Overseas Patients in IndiaAbout 55,000 patients from U.S.A. visited Indiain 2005 for treatment. This is still a smallnumber compared with the millions of surgeriesperformed each year in the U.S. healthcaresystem. India has emerged as the leadingcountry of medical tourism in the world. Worldclass hospitals located in metropolitan citiescater to patients all over the world. Medicaltourism brings abundant benefits to developingcountries like India, Thailand, Singapore andMalaysia. Beyond medical tourism, is the trendof outsourcing of medical tests and datainterpretation. Hospitals in India, Switzerlandand Australia have been performing certainmedical services – ranging from readingradiology images, to interpreting MagneticResonance Images (MRIs) and ultrasound tests.Outsourcing holds tremendous advantages forpatients, if it is focused on improving quality orproviding specialised care.ATERNQUARY ACTIVITIESQUATERNARARYWhat do a CEO of an MNC in Copenhagen, atNew York and a medical transcriptionist atBangalore have in common? All these peoplework in a segment of the service sector that isknowledge oriented. This sector can be dividedinto quaternary and quinary activities.Quaternary activities involve some of thefollowing: the collection, production anddissemination of information or even theproduction of information. Quaternary activitiescentre around research, development and maybe seen as an advanced form of services involvingspecialised knowledge and technical skills.The Quaternary SectorMedical TourismThe Quaternary Sector along with the TertiarySector has replaced most of the primary andsecondary employment as the basis foreconomic growth. Over half of all workers Indeveloped economies are in the ‘KnowledgeSector’ and there has been a very high growthin demand for and consumption of informationbased services from mutual fund managersto tax consultants, software developers andstatisticians. Personnel working in officebuildings, elementary schools and universityclassrooms, hospitals and doctors’ offices,theatres, accounting and brokerage firms allbelong to this category of services.When medical treatment is combined withinternational tourism activity, it lends itselfto what is commonly known as medicaltourism.Like some of the tertiary functions,quaternary activities can also be outsourced.They are not tied to resources, affected bythe environment, or necessarily localised bymarket.Organise an informal debate session in your class about how could theemerging medical industry of our country become a boom as well as doom?Tertiary and Quaternary Activities2021-2261

Outsourcing has resulted in the openingup of a large number of call centres in India,China, Eastern Europe, Israel, Philippines andCosta Rica. It has created new jobs in thesecountries. Outsourcing is coming to thosecountries where cheap and skilled workers areavailable. These are also out-migratingcountries. With the work available thoughoutsourcing, the migration in these countriesmay come down. Outsourcing countries arefacing resistance from job-seeking youths intheir respective countries. The comparativeadvantage is the main reason for continuingoutsourcing. New trends in quinary servicesinclude knowledge processing outsourcing(KPO) and ‘home shoring’, the latter as analternative to outsourcing. The KPO industryis distinct from Business Process Outsourcing(BPO) as it involves highly skilled workers. It isinformation driven knowledge outsourcing.KPO enables companies to create additionalbusiness opportunities. Examples of KPOsinclude research and development (R and D)activities, e-learning, business research,intellectual property (IP) research, legalprofession and the banking sector.Where Will it All Lead to?OutsourcingQUINY ACTIVITIESQUINARARYARThe highest level of decision makers or policymakers perform quinary activities. These aresubtly different from the knowledge basedindustries that the quinary sector in generaldeals with.Quinary activities are services that focus onthe creation, re-arrangement andinterpretation of new and existing ideas; datainterpretation and the use and evaluation ofnew technologies. Often referred to as ‘goldcollar’ professions, they represent anothersubdivision of the tertiary sector representingspecial and highly paid skills of seniorbusiness executives, government officials,research scientists, financial and legalconsultants, etc. Their importance in thestructure of advanced economies faroutweighs their numbers.62Outsourcing or contracting out is giving workto an outside agency to improve efficiencyand to reduce costs. When outsourcinginvolves transferring work to overseaslocations, it is described by the term off shoring, although both off - shoring andoutsourcing are used together. Businessactivities that are outsourced includeinformation technology (IT), humanresources, customer support and call centreservices and at times also manufacturingand engineering.Data processing is an IT related serviceeasily be carried out in Asian, EastEuropean and African countries, In thesecountries IT skilled staff with good Englishlanguage skills are available at lower wagesthan those in the developed countries. Thus,a company in Hyderabad or Manila doesFundamentals of Human Geography2021-22

AL DIVIDETHE DIGITDIGITALwork on a project based on GIS techniquesfor a country like U.S.A or Japan. Overheadcosts are also much lower making itprofitable to get job-work carried outoverseas, whether it is in India, China oreven a less populous country like Botswanain Africa.Opportunities emerging from the Informationand Communication Technology baseddevelopment is unevenly distributed acrossthe globe. There are wide ranging economic,political and social differences amongcountries. How quickly countries can provideICT access and benefits to its citizens is thedeciding factor. While developed countries ingeneral have surged forward, the developingcountries have lagged behind and this isknown as the digital divide. Similarly digitaldivides exist within countries. For example,in a large country like India or Russia, it isinevitable that certain areas like metropolitancentres possess better connectivity andaccess to the digital world versus peripheralrural areas.Describe the nature of work against each colour-nameColour of the collarNature of workRedGoldWhiteGreyBluePink?EXERCISES1.Choose the right answer from the four alternatives given below.(i)(ii)(iii)(iv)(v)Which one of the following is a tertiary activity?(a) Farming(c)Weaving(b) Trading(d)HuntingWhich one of the following activities is NOT a secondary sector activity?(a) Iron Smelting(c)Making garments(b) Catching fish(d)Basket WeavingWhich one of the following sectors provides most of the employment in Delhi,Mumbai, Chennai and Kolkata.(a) Primary(c)Secondary(b) Quaternary(d)ServiceJobs that involve high degrees and level of innovations are known as:(a) Secondary activities(c)Quinary activities(b) Quaternary activities(d)Primary activitiesWhich one of the following activities is related to quaternary sector?(a) Manufacturing computers(c) University teaching(b) Paper and Raw pulp production (d) Printing booksTertiary and Quaternary Activities2021-2263

(vi)Which one out of the following statements is not true?(a) Outsourcing reduces costs and increases efficiency.(b) At times engineering and manufacturing jobs can also be outsourced.(c)BPOs have better business opportunities as compared to KPOs.(d) There may be dissatisfaction among job seekers in the countries thatoutsource the job.2.3.Answer the following questions in about 30 words.(i)Explain retail trading service.(ii)Describe quaternary services.(iii)Name the fast emerging countries of medical tourism in the world.(iv)What is digital divide?Answer the following questions in not more than 150 words.(i)(ii)Discuss the significance and growth of the service sector in moderneconomic development.Explain in detail the significance of transport and d out the activities of BPO.Find out from a travel agent the documents you need to travel abroad.Fundamentals of Human Geography2021-22

Chapter-7 Tertiary and Quaternary Activities When you fall ill you go to your family doctor . transport and communication facilities that are used to overcome distance. Tertiary activities, . Networks are made up of nodes and links. A node is the meeting po

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