Tertiary and Quaternary Activities

Introduction to Tertiary Activities

• Services provided by professionals in exchange for fees (e.g., health, education, law).
• Tertiary activities include production and exchange of services, not tangible goods.
• Skills and knowledge are central to the tertiary sector.
• Shift from primary to tertiary activities observed in developed economies.

Types of Tertiary Activities

Trade and Commerce

• Trade involves buying and selling goods.
• Trading centres: rural (basic services) and urban (advanced services).
• Retail trading: Direct sale to consumers, non-store methods include online, vending machines.
• Wholesale trading: Bulk transactions, often intermediaries involved.

Transport

• Transport links places and enhances material value.
• Measured in distance, time, and cost.
• Networks consist of nodes (intersections) and links (routes).

Communication

• Involves transmission of information.
• Advanced by telecommunications (e.g., mobile phones, internet).
• Mass media includes radio, TV, newspapers, satellite communication.

Services

• Varied levels, from low-order (groceries) to high-order (consultants, physicians).
• Provided by individuals and regulated by governments.
• Professional services include health care, engineering, management.

People Engaged in Tertiary Activities

• Higher employment in services in developed countries.
• Growth trend in tertiary sector employment.

Examples of Tertiary Activities

Tourism

• Recreational travel, major tertiary activity.
• Generates jobs and revenue globally.
• Tourist attractions: Climate, landscape, history, culture.

Medical Services for Overseas Patients

• India as a medical tourism hub.
• Outsourcing medical services for quality and specialized care.

Quaternary Activities

• Knowledge-oriented services (e.g., research, development).
• High demand in developed economies.
• Often outsourced, not resource-tied.

Quinary Activities

• High-level decision-making roles.
• Involves interpretation and innovation.
• Outsourcing trends include KPO and home shoring.

Outsourcing

• Contracting work to outside agencies for efficiency and cost reduction.
• Includes IT, HR, customer support.
• Benefits from lower overhead costs in developing countries.

Digital Divide

• Uneven ICT development globally.
• Disparity in access within and between countries.

Exercises

• Multiple choice questions on tertiary and quaternary sectors.
• Short answer questions on retail trading, quaternary services, medical tourism, digital divide.
• Longer answer questions on the service sector's role in economic development and the importance of transport and communication.

Project/Activity Suggestions

• Investigate BPO activities.
• Consult a travel agent for documentation needed for international travel.