Tertiary and Quaternary Activities| Class 12 Geography Notes

Tertiary and quaternary activities are both part of the service sector. Tertiary activities are services that support the primary and secondary sectors. They include trade, transport, communication, and services. Quaternary activities are specialized tertiary activities that involve the collection, production, and dissemination of information. They include computing, information and communication technologies, consultancy, and research and development.

Both sectors are integral to modern economies, reflecting the shift towards specialized knowledge and technology-driven employment. In this article, we will study the Tertiary and Quaternary Activities in detail.

Tertiary Activities

Tertiary activities include various services provided by skilled professionals in exchange for payment, including health, education, law, governance, and recreation. These services require specialized skills, theoretical knowledge, and practical training, with the majority of workers in developed economies employed in the tertiary sector.

Examples of tertiary activities include plumbing, electrician work, teaching, healthcare, legal services, and retail. Unlike secondary activities, which focus on tangible goods production, tertiary activities rely more on specialized skills, experience, and knowledge of workers.

Types of Tertiary Activities

Tertiary activities play an important role in modern economies, providing essential services and contributing significantly to economic development and societal well-being. Different types of tertiary activities are:

Trade and Commerce

Involves buying and selling items produced elsewhere for profit, with services in retail and wholesale trading. Trading centers, both rural and urban, serve as collection and distribution points for goods and services.

• Rural Marketing Centers: Serve nearby settlements with rudimentary trading services, often featuring wholesale markets (mandis) and periodic markets held at specified intervals.
• Urban Marketing Centers: Offer a wider range of specialized urban services, including manufactured goods and specialized markets for labor, housing, and professional services like education and legal consultation.

Retail Trading

• Involves the sale of goods directly to consumers, often through fixed establishments like stores, but can also include non-store methods like street peddling, online sales, or vending machines.
• Retail trading is distinct from wholesale trading, where goods are sold in bulk to intermediary merchants rather than directly to consumers.

Wholesale Trading

• Wholesale trading constitutes bulk business through numerous intermediary merchants and supply houses and not through retail stores.
• Wholesalers often extend credit to retail stores, allowing retailers to operate using the wholesaler’s capital.

Transport

• Transport facilitates the physical movement of people, materials, and goods from one location to another, serving as an important component of modern society’s production, distribution, and consumption systems.
• Efficient transport systems are essential for enhancing the value of materials and enabling economic activities.
• Networks of transport routes connect different places, consisting of nodes (meeting points or centers) and links (roads or routes connecting nodes).

Factors Affecting Transport

• Demand for transport is influenced by population size and distribution, trade patterns, geographic features, climate, and available funding.
• Routes are determined by the location of cities, towns, industrial centers, natural resources, and the nature of the landscape.

Communication

• Communication services involve the transmission of words, messages, facts, and ideas, with various means of transport facilitating communication.
• Traditional forms of communication relied on physical transportation methods, but modern technology, such as telecommunications and the internet, has revolutionized communication by enabling faster and more direct transmission of information.
• Services includes a wide range of activities geared towards industry, individuals, or both, including low-order services (e.g., grocery shops, laundries), high-order services (e.g., accounting, consulting), and professional services (e.g., healthcare, law).
• Some services, such as transport, telecommunication, and energy supply, may be regulated or supervised by governments or companies.
• Personal services, like domestic work or specialized services such as Mumbai’s dabbawala service, cater to individual needs and often involve unskilled labor.

Telecommunications

1. Rapid advancements like mobile phones and the internet have revolutionized communication.
2. Messages now travel instantaneously, reducing communication time from weeks to minutes.
3. Mass media, such as radio, television, and newspapers, play an important role in transmitting information.
4. Satellite communication and the internet have further enhanced global connectivity.

Services

1. Services cater to various needs, from basic necessities to professional assistance.
2. They include low-order services like grocery shops and laundries, as well as high-order services like healthcare and legal advice.
3. Many services are regulated by governments or companies to ensure quality and safety.
4. Professional services such as healthcare, engineering, and law are essential for modern society’s functioning.

People Engaged in Tertiary Activities

Tertiary activities engage a large portion of the workforce in developed countries. This sector includes services like healthcare, education, and retail. Skilled labor, professionals, and consultants are commonly engaged in tertiary activities.

Some Selected Examples

Tourism

1. Tourism includes recreational travel and is the world’s largest tertiary industry, generating substantial employment opportunities and contributing significantly to global GDP.
2. Communities benefit from tourism by offering services such as accommodation, dining, transportation, and entertainment, thereby stimulating economic growth and supporting local businesses.
3. Tourism results in infrastructure development, retail trade, and craft industries like souvenir shops. While some destinations experience seasonal peaks based on weather conditions, others attract visitors year-round.

Tourist Regions

• Regions like the Mediterranean Coast and the West Coast of India are renowned tourist destinations due to their favorable climate and scenic beauty.
• Winter sports regions in mountainous areas and national parks also attract visitors seeking outdoor recreation and adventure.

Medical Services for Overseas Patients in India

• India has emerged as a leading destination for medical tourism, attracting patients from around the world seeking affordable healthcare services.
• World-class hospitals in metropolitan cities cater to international patients, offering specialized medical treatments and procedures.
• Medical tourism not only benefits patients but also contributes to the economies of developing countries like India, Thailand, and Malaysia.

Outsourcing in Healthcare

• Beyond medical tourism, there is a trend of outsourcing medical services such as reading radiology images and interpreting medical tests.
• Hospitals in various countries offer outsourcing services, providing specialized care and improving healthcare quality for patients globally.
• Medical tourism combines medical treatment with international tourism activities, leading to the concept of medical tourism.
• This integration offers patients the opportunity to access quality healthcare services while experiencing tourism activities in a foreign destination.

Quaternary Activities

Quaternary activities involve the collection, production, dissemination, and manipulation of information, often requiring specialized knowledge and technical skills.

• These activities focus on research, development, and the creation of new ideas, technologies, and services.
• Workers in quaternary activities include professionals like researchers, software developers, statisticians, and educators.
• It has replaced most of the primary and secondary employment as the basis for economic growth.
• Quaternary activities are not tied to specific resources, environmental factors, or local markets.
• They can be outsourced globally.

Quinary Activities

Quinary activities represent the highest level of decision-making and policy-making in the service sector.

• These activities involve the creation, interpretation, and evaluation of new ideas, data, and technologies, performed by senior business executives, government officials, and research scientists.
• Quinary activities are sometimes referred to as “gold collar” professions due to the specialized skills and high salaries involved.
• Outsourcing of quinary services, like call centers, has created job opportunities in countries with skilled labor and lower costs.
• Knowledge Processing Outsourcing (KPO) and ‘homeshoring’ are emerging trends, providing specialized services like research and development, e-learning, and legal consultation.

Outsourcing

• Outsourcing or contracting out is giving work to an outside agency to improve efficiency and to reduce costs.
• Business activities that are outsourced include information technology (IT), human resources, customer support and call centre services and at times also manufacturing and engineering.
• Outsourcing, particularly in countries like India, China, Eastern Europe, and the Philippines, has led to the growth of quinary activities in areas like knowledge processing outsourcing (KPO) and research and development (R&D).

The Digital Divide

• Not all countries have the same access to Information and Communication Technology (ICT) benefits due to economic, political, and social differences.
• The gap between countries that have advanced in ICT development (developed countries) and those that have not (developing countries) is known as the digital divide.
• Within large countries like India or Russia, there are differences in ICT access between urban areas (like cities) and rural areas (like villages).
• Some areas, especially metropolitan centers, have better connectivity and access to the digital world compared to rural or peripheral areas.

Conclusion – Tertiary and Quaternary Activities

In conclusion, tertiary and quaternary activities play an important roles in modern economies, representing the service and knowledge-based sectors. Tertiary activities involve providing services such as healthcare, education, banking, and tourism, contributing significantly to employment and GDP. Quaternary activities focus on knowledge-based industries like research and development, information technology, and consultancy services, driving innovation and technological advancement. Together, these sectors form the backbone of post-industrial economies, facilitating specialization, diversification, and sustainable growth.

People Also View:

• Distinguish between Primary and Tertiary Activities
• Classification of Economic Activities 
• Sectors of Indian Economy
• 4 Major Sectors of an Economy

Tertiary and Quaternary Activities- FAQs

What are tertiary and quaternary activities?

 Tertiary activities involve the production and exchange of services, while quaternary activities involve the collection, production, and dissemination of information.

What is the difference between tertiary and quaternary occupation?

Tertiary occupations involve providing services, while quaternary occupations focus on knowledge-based activities such as research and development.

What do you understand by tourism industry?

The tourism industry is made up of businesses and organizations that provide services for people on holiday. This includes people, activities, and organizations that provide services such as hotels, restaurants, and tour guides.

What are the three characteristics of quaternary activities?

Quaternary activities involve knowledge-intensive tasks, innovation-driven processes, and high-value-added services.

What is the difference between quaternary and quinary activities?

Quaternary activities involve knowledge-based services and research, while quinary activities includes top-level decision-making and leadership roles within organizations.