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Overview of Tertiary and Quaternary Activities

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Estimated time: 9 minutes
CBSE: Class 12

Key Points: Types of Tertiary Activities

  • Tertiary activities are service-based activities, such as trade, transport, communication, and services used in daily life.
  • Trade means buying and selling goods produced elsewhere for profit. Towns and cities where trade happens are called trading centres.
  • Trading centres are of two types: Rural and Urban.
    Rural centres serve nearby villages and have mandis and periodic markets.
    Urban centres provide both ordinary and specialised goods and services.
  • Retail trading means selling goods directly to consumers. It can be through shops or non-store methods like street vending, door-to-door selling, mail-order, telephone, vending machines, and internet.
  • Wholesale trading means selling goods in large quantities to retailers. Wholesalers often provide credit to retailers.
  • Transport is the movement of people and goods from one place to another. It increases the value of goods and is measured by distance, time distance, and cost distance.
  • Communication means transfer of messages and information. Modern communication includes mobile phones, satellites, radio, television, newspapers, and the internet, which has revolutionised global communication.
CBSE: Class 12

Key Points: People Engaged in Tertiary Activities

  • Most people today work in the service sector (tertiary activities), especially in developed countries. Employment in this sector is increasing, while it is decreasing in primary and secondary sectors.
  • Tourism is the largest tertiary activity in the world, providing about 250 million jobs and contributing nearly 40% of total GDP globally.
  • Tourism provides employment in accommodation, transport, food services, entertainment, retail shops, and craft industries (souvenirs).
  • Tourist regions include Mediterranean countries, West Coast of India, mountain regions (for winter sports), scenic landscapes, national parks, and historic towns.
  • Main tourist attractions include:
    Climate (warm beaches or snow for skiing)
    Landscape (mountains, lakes, sea coasts)
    History and art (monuments, heritage sites)
    Culture and low cost of living
  • Medical tourism means travelling to another country for medical treatment along with tourism. India is a leading country in medical tourism.
  • Medical tourism and outsourcing of medical services (like MRI reports and radiology tests) bring economic benefits to countries like India, Thailand, Singapore, and Malaysia.
CBSE: Class 12

Key Points: Quaternary & Quinary Activities

  • Quaternary activities are knowledge-based services involving the collection, production and distribution of information. They include research, development (R&D), IT, education, finance, and consultancy.
  • The Quaternary sector is called the ‘Knowledge Sector’, and it plays a major role in developed economies where most workers are employed in information-based services.
  • Quinary activities involve top-level decision making and policy making. These include senior executives, government officials, scientists, and legal and financial consultants. They are also called ‘gold collar’ professions.
  • Outsourcing means giving work to an outside agency to reduce costs and increase efficiency. When work is shifted to another country, it is called offshoring.
  • Countries like India, China, Philippines, and Eastern Europe benefit from outsourcing because they provide cheap and skilled labour.
  • KPO (Knowledge Process Outsourcing) is different from BPO because it requires highly skilled workers. Examples include R&D, legal services, banking, IP research, and e-learning.
  • The Digital Divide refers to the gap between developed and developing countries (and also between urban and rural areas) in terms of access to Information and Communication Technology (ICT).
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