CHAPTER -7 Tertiary and Quaternary Activities

Q What do you mean by tertiary activities. Write main characteristics of tertiary activities.
Q What do tertiary activities include?
Tertiary activities involve services, transport, communication and trade that are used to
overcome distances are called tertiary activities.
Characteristics of tertiary activities –
1 Tertiary activities are performed by skilled labour, professionally trained experts and
consultants.
2 Tertiary activities include both production and exchange
3 Production involves the provision of services that are consumed and indirectly
measured by in terms of salary and wages.
4 Exchange involves trade transport and communication that are used to overcome
distances.
5 Tertiary activities involve the commercial output of services rather than production of
tangible goods.
6 They are not directly involve in the processing of physical raw material.
Q What do you mean by trading centres? Distinguish between rural marketing centres and
periodic markets.
Town and cities where buying and selling of goods take place are called trading centres.
Rural marketing centres –

1 These centres cater to nearby settlements

2 These are quasi – urban centres.
3 They serve as trading centres of the most rudimentary type primary/ half developed.
4 Here personal and professional services are not well developed
5 They form local collecting and distribution centres
6 Most of these have mandies and also retailing areas.
7 They are not urban centres but significant centres for making available goods and
services for rural folk.
Periodic Market –
1 Where there are no regular market, periodic market is found.
2 It is organized at different temporal intervals
3 These may be weekly, bi-weekly markets from where people from surrounding areas
meet their demand.
4 These markets are held on specified dates and move from one place to other place.
5 The shopkeepers remain busy on all the day while a large area is serve by them.
Q Explain urban marketing centres
1. These centres have more widely specialized urban services.
2. They provide ordinary goods and services as well as specialized goods and services
required by people.
3. Urban centres, offer manufactured goods, market for semi finished and finished
products and specialised markets for housing.
4. Services of education institutions and professionals like teachers, lawyers, physicians,
dentists, veterinary doctors, consultants are available in these market centre.
Q Distinguish between retail trading services and wholesale trading services.
Retail trading services –
1 Retail trading concerned with the sale of goods directly to the consumers.
2 These services takes place in fixed establishments or stores devoted to selling.
3 Form of non-store retail selling are street peddling, hand carts, trucks, door to door,
mail order, telephone, automatic vending machines and internet.
4 Generally retailers buy goods on credit from whole sellers.

Whole sale trading services –

1 Wholesale trading services constitute bulk business through intermediary merchants

and supply houses.
2 These services takes place at fixed place through big business houses from
manufactures.
3 The big houses sell goods to retailers through intermediaries.
4 Wholesales often sell their goods to retailers on credit to such an extent that the retailer
operates very largely on the wholesalers capital.
Q State three characteristics of means of transport and communication.
Q Distinguish between transport and communication.
Transport –
1 Used for carrying goods and passengers from one place to other place.
2 Physical or bodily movement reference to time
3 Reduce distance with reference to time
4 Help in the distribution of materials by linking farms, factories and market.
5 Human, animals and various type of vehicles are the means of transport.
Communication –
1 Used for carrying message, ideas and information between individuals or to the masses.
2 Physical movement is not necessary.
3 Increase worldwide knowledge
4 Help in improving the efficiency of transport
5 Postal services, telephones, telex, internet are the means of communication.
Q Account for the transport
Transport is a service which carries personal goods and property physically from one place to
another.
- It is an organized service, created to satisfy man’s basic need of mobility.
- Modern society require speedy and efficient transport system to assist in production,
distribution and consumption of goods.
- Transport system enhance the value of the material
- Transport distance is measured by kilometer distance of route length.
- Time distance is the time taken to travel on the particular route and cost distance is
expense of travelling on a route.
- In selecting the mode of transport, distance, time, cost is the determining factors.
- Ishochrome line are drawn on a map to join places equal in terms of the time taken to
reach them.
Q Define network and accessibility of transport.
- With the development of transport systems different places are linked together to form
a network. Network are made up of nodes and links.
- A note or vertex, is the meeting point of two or more routs. It may be a point of origin,
a point of destination or any sizeable town along a route.
- Every road join two nodes is called a link or edge.
- A developed network has many links, which means places are well connected and well
connected link facilitate accessibility.
Q What are factors that affect transport services.
1 Size of population
2 Location of raw material
3 Location of towns and cities and industrial centres
4 Pattern of trade between them
5 Nature of Landscape
6 Type of climate.
7 Funds available for overcoming obstacles along the length of the route.
Q Give an account of communication services.
Q Discuss major communication services
Telecommunication –
- The use of telecommunication is linked to the development of electrical technology.
- It has revolutionized communications due to the speed with which message are sent.
Radio and Television
- They help to relay news, picture and telephone calls to vast audiences around the
world.
- They are termed as mass media and are vital for advertising and entertainment.
News papers
They are able to cover events in all corner of the world.
Satellite communication –
It relay information of the earth and from space.
Internet –
It has truly revolutionized the globe communication system in recent times.
Q “Services are very important for economic development in the world”. Elaborate the
statement by explaining four major components of service sector.
Services are most important constituent of economic development. Services include
education, health, welfare, recreation, business etc.
Major components –
1 Business services includes advertising, legal services, public relation and consulting.
2 Finance, insurance and real estate include saving and investment in banking, insurance
and real estate.
3 Wholesale and retail trading links the producer with consumers
4 Transport and communication include railways, roadways, shipping, air services and
post and telegraph services.
5 Entertainment include radio, television, film and literature.
6 Government at different level, local state, national include bureaucratic, police, army
and other public services.
7 Non-governmental agencies include both organization which has been set up by
individuals or groups for charity on non-profit social activities concerning education, health,
care, environment rural development.
Q Describe the importance of service sector in the economic development of the world by
giving three suitable examples.
1 Services sector has now assume an independent status as a productive sector in the
economy.
2 This sector provide employment opportunities to a large number of people specially
women.
3 In developing countries the service sector is growing faster.
4 It increases per capita income and enhance the productivity and efficiency.
5 It contribute to national wealth
6 It include retailing and the sale of goods to the people, services of education, health
welfare, recreation, business.
Q Why service sector known as productive sector in the world. Explain three major
components of service sector.
Service sector has assume an independent status as a productive sector in the economy.
1 Services are easily be exported.
2 They are needed everywhere
3 Preference in this sector is very high specially among women.
4 Employment is increasing faster in the sector
5 Per capita income is very high
Major components in previous question.
Q Explain informal/ non-formal services.
- Personal services are informal or non-informal services
- They are made available to the people to facilitate their work in daily life.
- The workers migrate from rural areas in search of employment and are unskilled.
- This segment of workers is unorganized.
- They are employed in domestic services as house keepers, cook and gardeners.
- Mumbai’s dabbawala provide services to about 1,75,000 customers all over Mumbai.
Q Give an account of people engaged in Tertiary Activities.
- Today most people are service workers and provide services to the society.
- In more developed countries a higher percentage of worker employed in services in
contrast to less than 10% in the less developed countries.
- The trend in employment in this sector has been increasing while it has remained
unchanged or decreasing in the primary and secondary sector.
- In USA over 75% of workers are engaged in services.
Q Write three points of difference in the service sector in developed countries and developing
countries.
Developed countries –
1 The employment in the service sector has increased steadily and fall in the job in
manufacturing sector
2 Service sector employees large number of women
3 The rising per capital income has generated increasing demand of many kind of services
like health care, entertainment and transport.
Developing countries –
1 In these countries also, the service sector is growing faster than the manufacturing
sector.
2 Its contribution to national wealth is also increasing but many of these services are
unorganized.
3 In developing countries the services are poorly accounted because unorganized informal
sector in cities offer employment to rural migrant who are poorly paid. Also the housewives
and child labour’s services are not accounted.
Q What is tourism? What are the factors affecting tourism?
Q Analyse and four tourist attraction in the world.
Q. How does climate of a region attract tourists? Explain with examples from different
regions of the world.
Tourism is travel undertaken fro purpose of recreation rather than business.
Factor affecting tourism –
Demand - Since the last century, the demand for holidays has increased rapidly.
Improvement in the standard of living and increased leisure time, permit many more people to
go on holidays for leisure.
Transport - The opening up of tourist areas has been aided by improvement in transport
facilities.
- The expansion of air transport allow one to travel anywhere in the world in few hours.
- The advent of package holidays has reduce the costs.
Tourist attraction –
1 Most people from colder regions expect to have warm sunny weather for beach
holidays.
2 The Mediterranean climate offer almost constantly higher temperature than in other
parts of the Europe, long hours of sunshine and low rainfall during the peak season of
holidays.
3 People taking winter holidays have specific climatic requirement either higher
temperature than their own home or snow cover suitable for skin.
Landscape –
Many people like to spend their holidays in an attractive environment. They prefer mountain,
lakes, sea coast and landscape not attired by man.
History and Art –
The history and art of an area have potential to attract people. People visit ancient town and
archaeological sites and enjoy exploring castle, palaces and churches.
Culture and Economy –
- These attract people to take experience of ethnic and local customs
- Besides of a region provides for the need of tourist at a cheap cost.
- Home stay has emerged as a profitable business such as heritage home in Goa,
Madikere and Coorg in Karnataka.
Q Explain empowered workers.
Entrepreneurs are the empowered workers of quaternary sector and slowly emerging quinrary
sector.
- They represent an important stage of development in the hierarch of economic
activities where the need for self actualization is not motivated by wealth but by other factors.
- They have a value system which emphasis quality of life and believe in creativity and
individual values
- As ideas and freedom of information and communication grow, people expect their
applications at the work place.
- More employees will receive training and become highly skilled. They will work more
on their own initiative. Many will have flexible working arrangement.
- Some will choose work paid and unpaid, that is personal fulfilling and accords with their
concern for natural environment and social issues.
Q Write three characteristics of quaternary activities.
1 people who work in a segment of the service sector that is knowledge oriented come
under quaternary activities.
2 Quaternary activities involve the collection, production and dissemination of
information
3 Quaternary activities centre around research, development, specialized knowledge,
technical skills and administrative competence.
4 New trends in quaternary services include knowledge processing outsourcing (KPO)
which involve high skilled workers.
Q Describe three points regarding the importance of quaternary activities in the rapid
economic development of a country.
1 In recent years information technology has given rise to knowledge based industries
such as technology based industrial complexes and technology parks.
2 A breakthrough in genetic engineering had led to development in the field of energy
medicine, healthcare, transport and communication.
3 Economic activities have stretched over larger distances even distant areas of continents
by the use of telecommunication.
4 Banks, insurance companies and security firms which are highly information intensive
economic activities.
5 Electronic funds transfer system from the nerve of the international financial economy,
allowing banks to transfer capital at a moment’s nature.
Q Why specialized activities of the advanced economy such as finance and insurance have a
scattered location around the globe? How are they managed? Give three points.
1 In advanced economics the production and marketing of goods and services have
become information intensive. Therefore, the geography of the world economy rests heavily
upon invisible flow of data and capital, binding places unevenly to the world system.
2 Economic activities have stretched over ever-larger distances, at times, across different
continents due to use of telecommunication system.
3 Telecommunication steadily merged with computers especially through the internet.
Professionals can conduct most of their business on Electronic funds transfer system from the
nerve of the international financial economy.
Explain main features of quinary activities.
1 The highest level of decision makers or policy makers perform quinary activities. It is
different from the knowledge based industry.
2 Quinary activities are services that focus on the creation, rearrangement and
interpretation of new and existing ideas, data interpretation and the use and evaluation of
new technologies.
3 These activities are often referred to as gold collar’s professions.
4 They represents highly paid skills of senior business executives., government officials,
research scientists, financial and legal consultants.
5 Their importance in the structure of advance economics for outweigh their numbers.
Q “ Outsourcing has resulted in opening up a large numbers of job opportunities in several
countries”. Analyse the statement with three suitable examples.
1 Provide work to an outside agency to improve efficiency and reduce costs.
2 Opening up of a large numbers of a call centre in India, China, Eastern Europe, Israel,
Philippines and Costa Rica created new job opportunities.
3 Outsourcing is coming to those countries where cheap and skilled workers are available.
4 New trend is quaternary services include knowledge processing outsourcing (KPO) and
home sharing.
5 KPO enable companies to create additional business opportunities.
6 KPO include research and development (R and D) activities, business research, e-
learning, intellectual property (IP) research legal profession and banking sector.
7 New jobs are created by business process outsourcing as it involve high skilled workers.
Give an account of outsourcing
1 Outsourcing or contracting out is giving work to an outside agency to improve efficiency
and reduce costs.
2 When outsourcing involve transferring work to overseas location it is described by the
term off-shoring and out sourcing are used together.
3 Business activities included in outsourcing are human resources, customer support, and
call centre services, manufacturing and engineering.
4 Data processing is an IT related services easily carried out in Asian East European and
African countries.
5 In these countries IT skilled staff with good English language skill are available at low
wages
6 Overhead costs are much lower on job work in India, China and Botswana.
Q Give an account of medical tourism in India.
1 India has emerged as the leading country of medical tourism in the world
2 About 55,000 patients from USA visited India in 2005.
3 World class hospitals located in metro cities cater patients all over the world.
4 Hospitals in India, Switzerland, Australia performing outsourcing of medical tests, data
interpretation.
5 They are performing certain medical services like reading of radiology images,
interpreting magnetic resonance images (MRI) ultra sound test.
Q What does digital divide mean?
1 Opportunities emerging from the information and communication technology based
development are unevenly distributed across the globe.
2 There are wide ranging economic, political and social differences among countries. How
quickly countries can provide IT access.
3 Developed countries are forward in providing IT access to its citizens, the developing
countries are lagged behind and this is known as the digital divide. Similar digital divide exist
within countries.
- In a large countries like India and Russia, metropolitan centres have better connectivity
and access to the digital world in comparison to rural areas.