Tertiary Activity

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Unit 5

• Tertiary Activity
• Chapter 14
• (text)

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Introduction

• Tertiary Activity
• Involves service industries which provide
  services for people.
• People serving people!!
• Examples. Doctor, lawyer, waitress, tourism
  industry, mechanic, teacher

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• REMEMBER.Tertiary economic activity
• The focus is on people interacting with people
  and serving the customer rather than transforming
  physical goods
• Often referred to as the service industry.
• A service occurs when a person performs some type
  of ACTION.

• EXAMPLES INCLUDE
• Nurses, doctors, mechanics
• lawyers, teachers, waitresses, technicians
• hairdressers, repair and sales people
• Tourism is an important part of the tertiary
  sector golf has become a thrust for investment
  in NL.

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Public vs. Private Tertiary Activity

• Public service industry
• is usually run by the government and are
  available to anyone in society.
• Ex. Health care, public transportation,
  education.
• Private service industry
• is run by private business and requires that a
  profit be made from the service.
• Ex. mechanics, lawyers, tourism.
• NOTE
• some careers can be classified as public or
  private.
• Ex A teacher can work in the public school
  system or for a private college.

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Four Categories of Tertiary Activity

• 1. Distributive activities
• distribution or movement of goods
• involves the transportation and sale of all
  products from manufacturer to consumer.
• Ex. truck driver, warehouse manager, sales person.

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Four Categories of Tertiary Activity

• 2. Financial Activity
• involves banks, insurance companies, financial
  advising companies, and trust companies.

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Four Categories of Tertiary Activity

• 3. Personal Service
• involves a wide range of services from legal
  services, to food services, to entertainment and
  counselling services.

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Four Categories of Tertiary Activity

• 4. Government service
• Public service industry is operated by Government
  and is not for profit.
• Paid for by Tax payers!!
• Ex. Education, health care, mail, water, sewer,
  roads. Hence the term public servant.

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Four Categories of Tertiary Activity

• Which category of Tertiary Activity is ach of the
  following?
• Sameday Courier drops off a Christmas present
  from your Uncle
• You get fungus removed from your feet at the Foot
  Spa
• The town removes snow from your street after a
  snow storm..
• You buy stocks in Abitibi-Bowater from a local
  stock broker
• You have your Poodle shaved and groomed
• You order a piece of lingerie from the catalogue
  at Sears

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Factors affecting the location of Tertiary
Activity

• The MAIN FACTOR affecting Tertiary Activities is
  POPULATION!!!
• Location Being located close (Proximity) to a
  large enough market to produce DEMAND.
• Viability services are only viable as businesses
  if the demand is high enough the price is
  reasonable.
• Larger populations support a wider range of
  services and even competition within services.

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Patterns in World Trade for a Selected Service

• Example ? TOURISM
• one of the fastest growing and most profitable
  sectors of the economy. 
• Ex. sunny area, good ski slopes or cultural
  attractions people will flock there and spend
  money. 
• From a country's perspective international
  tourism is NEW MONEY coming into the country.

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International tourism has increased dramatically
for 6 reasons

1. increased leisure time due to available
   technologies.
2. retired people have secure incomes and are able
   to travel.
3. people have increased discretionary spending
   money.
4. travel has become easier and less expensive.
5. travel agencies have packaged attractive "all
   expenses paid" trips.
6. advertising has been effective using attractive
   exotic pictures.

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Travel agents see that people are usually looking
for 1 of 3 different kinds of vacations

• Climate oriented (skiing sun bathing are at
  opposite extremes but both rely on climate).
  PLACES??
• Landscape oriented (some people like to view the
  sites). PLACES??
• Culture oriented (cultural land marks are of
  interest to people ex. Athens) . PLACES??

Athens, Greece
Marble Mountain, Newfoundland
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Importance of the tertiary industry

• Service industries provide services needed by ALL
  of society!
• They provide services to the primary, secondary
  AND the tertiary industries.
• Without these services, society could not
  operate.
• The BROAD RANGE of services include
• financial, insurance, real estate, trade,
  transportation and communications, retailing,
  government, health care, education, personal
  care, tourism, recreation, etc.
• more people living in urban areas more services.

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The Growing Tertiary Industry

• Economists recognize that the tertiary industry
  has expanded significantly in the last 100 years.
• Figure 14.3 on page 243 of your text shows that
  in Canada the tertiary sector of the economy has
  grown from 36 of GNP - 73 of GNP over the last
  100 years.
• Approximately 70 of the work force in Canada is
  engaged in the service area.
• The entire tertiary sector is becoming a much
  larger part of the economy for DEVELOPED NATIONS.

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Why the tertiary industry is growing.

• As the secondary sector of the economy grew,
  there were more people working in urban areas at
  manufacturing.
• The concentration of people meant there was more
  need for services.
• The multiplier effect is in part responsible for
  this phenomenon.
• The people working in the tertiary industry need
  services too so the growth of the service
  industry continues.