THE TERTIARY SECTOR

THE TERTIARY SECTOR: SERVICE CLASSIFICATION

We can group services into various areas:

* Commercial services include all the activities related to selling and distributing products to the customers.

* Financial services provided by banks and savings banks that carry out financial operations such as giving loans, administration of bank accounts and money exchange.

* Transportation services in charge of moving people and goods. Can be by land, river, sea or air.

* Services related to tourism:  hotels, travel agencies, restaurants, etc.

* Information and communication services include activities that transmit information and opinions: radio, television, telephone, press, postal services and the internet.

* Business services include professional activities as well as those offered to the general public. The main objective is to make profit and service the companies with consultancies or outsourcing services.

* Government administration services managed by public administrations to meet the needs of the people and administer the country. Social function with no profit. Also provide services which are too expensive to be provided by private companies such as railways or water supply systems.

* Social and personal services provide services to meet needs of the society like education or health.

 The service industry takes place mostly in developed countries. There are four factors that contribute to this:

* The high earnings of its inhabitants. Only societies with a high level of consumption and quality of life have services related to leisure, tourism, culture, or wellbeing.

* The government’s role in providing certain basic social services.

* The high productivity and advanced technology of the agricultural and industrial sectors, which increasingly need fewer workers.

* Increased outsourcing of industries

Classification-of-Business

7_unit_14_tertiary_sector

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