हिंदी

Overview of Tertiary Economic Activities

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Estimated time: 21 minutes
Maharashtra State Board: Class 12

Key Points: Classification of Economic Sectors

  • Primary activities are directly dependent on nature and provide natural resources (e.g., agriculture, fishing, mining).
  • Secondary activities involve processing raw materials from primary activities to make finished and more valuable products.
  • Tertiary activities provide services that link primary and secondary activities, such as transport, trade, communication, and banking.
  • Tertiary activities are also called the service sector, as they provide services instead of producing goods.
  • Tertiary activities are influenced by geographical factors like climate, location, nearness to the sea, and transport facilities.
  • Markets and service centres usually develop near human settlements, while industries may be located away from them.
  • Transportation (airways, waterways, etc.) plays an important role in trade, especially for perishable and export goods.
Maharashtra State Board: Class 12

Definition: Transportation

Transportation is a service or facility through which passengers, freight and industrial products are carried from one place to another. 

Maharashtra State Board: Class 12

Key Points: Classification of Tertiary Economic Activities> Transportation

  • Transportation is a tertiary activity that carries passengers and goods from one place to another and is essential for economic development.
  • There are three main modes of transport: land, water, and air.
  • The development of transport depends on geographical factors like relief, location, and climate.
  • Ports develop in suitable coastal areas, and major world trade mostly happens through ocean routes (e.g., Suez Canal and Panama Canal).
  • Air transport requires a favourable climate, advanced technology, and plain land for airports.
Maharashtra State Board: Class 12

Definition: Trade

Trade means the voluntary exchange of goods and services, where two or more parties are involved

Maharashtra State Board: Class 12

Key Points: Classification of Tertiary Economic Activities> Trade

  • Trade is the voluntary exchange of goods and services between two or more parties. It can be internal (within a country) or international.
  • International trade happens due to specialisation and comparative advantage, when countries benefit by exchanging goods.
  • Differences in natural resources lead to trade, as resources like soil, minerals, and oil are unevenly distributed.
  • Climate affects production; for example, tropical countries export tea and coffee, while cold countries export meat and wool.
  • Population factors such as size, skills, and standard of living influence production and demand, which affects trade.
  • Culture and specialisation promote trade, as some regions are famous for specific products like carpets, silk, or technology services.
  • Economic cost and government policies also influence trade; countries import goods if production is costly, and trade policies may encourage or restrict trade.
Maharashtra State Board: Class 12

Key Points: Classification of Tertiary Economic Activities> Tourism

  • Tourism is an important tertiary (service) activity and has grown rapidly due to improved transport and infrastructure.
  • Tourism contributes significantly to a country’s GDP and employment, especially in island countries.
  • Physical factors affecting tourism include climate, relief, altitude, biodiversity, water availability, and location.
  • Human factors include transport facilities, lodging and boarding, cultural diversity, and government policies.
  • Political stability and good infrastructure are important for the development of tourism.
Maharashtra State Board: Class 12

Key Points: Classification of Tertiary Economic Activities> Communication

  • Communication is a means by which people share information using signs, speech, symbols, or technology.
  • In earlier times, people used simple methods like smoke signals, while today we use telephones, mobiles, and the internet.
  • This is the era of information, and technology has greatly improved communication systems.
  • Satellites play an important role in communication and provide information about weather, cyclones, minerals, and location.
  • Communication is an important tertiary activity and supports regional development.
 
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