World Geography 3202 Secondary and Tertiary Activities The

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World Geography 3202 Secondary and Tertiary Activities

World Geography 3202 Secondary and Tertiary Activities

The economic importance of the tertiary sector • Economists recognize that the tertiary industry

The economic importance of the tertiary sector • Economists recognize that the tertiary industry has expanded significantly in the last 100 years. • In Canada the tertiary sector of the economy has grown from 36% of GNP - 73% of GNP over the last 100 years. • A quick survey of any high school class will reveal that students are expressing a preference for a career choice in Tertiary activity

the economic importance of the tertiary sector • The entire tertiary sector is growing

the economic importance of the tertiary sector • The entire tertiary sector is growing and is becoming a much larger part of the economy of developed nations. • The multiplier effect is in part responsible for this phenomenon. • As the secondary sector of the economy grew there were more people working in urban areas as manufacturers.

the economic importance of the tertiary sector • The concentration of people meant there

the economic importance of the tertiary sector • The concentration of people meant there was more need for services. • Service industries grow in turn. • The people working in the tertiary industry need services too so the growth of the service industry continues. • While the entire service industry is growing we will look at two tertiary growth sectors in particular, International tourism and information technology.

International Tourism • In the last quarter of the twentieth century International tourism increased

International Tourism • In the last quarter of the twentieth century International tourism increased 12. 5%. There are several reasons for this which are outlined below. • More leisure time since WWII: • More retired people because of aging population • Younger retirement age. It did average 65 now it is closer to 55. • The average holiday time has increased from 2 weeks to 4 weeks

International Tourism • More money for leisure & recreation since WWII. • Wages have

International Tourism • More money for leisure & recreation since WWII. • Wages have increased giving people more disposable income • Travel time and travel costs have decreased • Travel agencies are offering all inclusive packages which attract people • Appealing advertising campaigns by travel agencies

Tourist Destinations • Travel agencies and related tourism industries have both been a cause

Tourist Destinations • Travel agencies and related tourism industries have both been a cause and a result of the increased interest in tourism. • Tourists tend to be looking for any one or combination of three destination sites.

Tourist Destinations • Climate-oriented Sites: • warm climates, sunbathing and swimming attract some tourists

Tourist Destinations • Climate-oriented Sites: • warm climates, sunbathing and swimming attract some tourists from colder regions. • Abundant snow and good skiing conditions attract those avid skiers and snowmobilers • Landscape-oriented Sites: • some tourists are attracted by site seeing opportunities. • Culture-oriented Sites • Some tourists are attracted by historic sites like Athens and Jerusalem.

Quaternary Sector of the Economy • The quaternary sector of the economy is a

Quaternary Sector of the Economy • The quaternary sector of the economy is a specialized part of the Tertiary Sector. • QUATERNARY activity refers to activities which involve the collection, recoding, arranging, storage, retrieval, exchange, and dissemination of information. Computers, Cell Phones, E-mail, and the WWW are some of the examples of new information technology which drives the quaternary sector.

Economic Indicators • Development is a difficult thing to define. • Economists, sociologists, cultural

Economic Indicators • Development is a difficult thing to define. • Economists, sociologists, cultural geographers and all social scientists use "indicators" to give some degree of measure to the concept of development.

Economic Indicators • There seems to be two aspects to development, economic (financial) and

Economic Indicators • There seems to be two aspects to development, economic (financial) and social (human). • Social scientists have developed economic indicators and social indicators. • There is some debate over which indicators are a better measure of development. • It is very likely that a variety of indicators is the best way to determine the level of economic development. • This lesson deals exclusively with 2 economic indicators.

Employment Structure • Economists have recognized that those countries that have become "developed" have

Employment Structure • Economists have recognized that those countries that have become "developed" have been able to move their economy beyond the primary sector to the secondary sector which in turn grows the tertiary sector. • In other words developed countries have a much larger percentage of their work force employed in the secondary and tertiary sectors, while lesser developed countries have most of their work force employed in the primary economic sector.

Employment Structure • When economists calculate the percentage of people working in each economic

Employment Structure • When economists calculate the percentage of people working in each economic sector the statistic created is known as the employment structure. • By way of example we will look at country "X" and country "Y" which have very different employment structures. By using fictional countries you have no other preconceived notions of the countries or their level of development. We will see how economists would classify each countries development based soley on the employment structure.

Employment Structure • Employment Structure for Country "X" • Primary sector • Secondary sector

Employment Structure • Employment Structure for Country "X" • Primary sector • Secondary sector • Tertiary sector • 60% • 15% • 25%

Employment Structure • Economists would look at country X and realize that it is

Employment Structure • Economists would look at country X and realize that it is not a developed country. It might be developing but a developed country would have a great majority of its workers in the secondary and tertiary sectors of the economy.

Employment Structure • Employment Structure for Country Y • Primary sector • Secondary sector

Employment Structure • Employment Structure for Country Y • Primary sector • Secondary sector • Tertiary sector • 5% • 25% • 70%

Employment Structure • Economists would classify country Y as a developed country. It has

Employment Structure • Economists would classify country Y as a developed country. It has a great majority of its workers in the secondary and tertiary sectors of the economy.

GNP per Capita • GNP per capita is a measure based on the Gross

GNP per Capita • GNP per capita is a measure based on the Gross National Product (GNP) of a country. GNP refers to the total value of the production of goods and services in a nation measured over a year, together with any money earned from investment abroad, less the income earned with in the nation by non-nationals. • The GNP per capita takes that dollar value and divides it by the population of the country.

GNP per Capita • For example if the GNP for Country X was $5,

GNP per Capita • For example if the GNP for Country X was $5, 000 and there were 1, 000 people in the country then the GNP per capita would be $5, 000 ¸ 1, 000 people = $5, 000 person or a GNP per capita of $5, 000. • It is very likely that country X would have a much higher GNP per Capita.

GNP per Capita • Economists do recognize there is a major flaw in this

GNP per Capita • Economists do recognize there is a major flaw in this measure as a measure of "Standard of Living. " • This measure is an average which assumes that the wealth in the country is evenly spread. • This is often not the case. If one or two families in the country are very rich and control most of the money then many of the people could be living in poverty even though the GNP per capita is high.

The level of development in a country refers to two type of development, economic

The level of development in a country refers to two type of development, economic development and social development. • GNP and GNP per capita are usually expressed in U. S. Dollars. • Economic development refers to how well the economy is doing and how much money people have at their disposal. • Social development is often closely tied to economic development but refers to more human indicators of well being such as life expectancy, infant mortality rate, literacy rate, availability of communications.

 • Generally speaking, people in more developed countries are better off and have

• Generally speaking, people in more developed countries are better off and have an easier life than people in lesser developed nations. • Economists and sociologists use the term "standard of Living" to describe how well off people are. Standard of living equates to quality of life.

 • The level of development among nations is far from equal. • Some

• The level of development among nations is far from equal. • Some countries have a very high standard of living with long life expectancy, equal rights, high average wages, strong economies, great health care and high literacy rates • while other countries have a short life expectancy, fierce discrimination against woman, very low wages, faltering economies, little health care and very low literacy rates.

The United Nations recognizes the disparity and has set forth eight "millennium goals" to

The United Nations recognizes the disparity and has set forth eight "millennium goals" to reduce the disparity among nations. • • Eradicate extreme poverty and hunger Achieve universal primary education Promote gender equality and empower women Reduce child mortality Improve maternal health Combat HIV/AIDS, malaria and other diseases Ensure environmental sustainability Develop a global partnership for development By the year 2015 all 189 United Nations Member States have pledged to meet the above goals